PSLF Congressional Review Act Resolution: Senate Vote Imminent

What happened:  In April, Senators Tim Kaine (D-VA), Kirsten Gillibrand (D-NY), and Cory Booker (D-NJ) introduced S.J.Res. 182 — a Congressional Review Act (CRA) resolution to overturn the Department of Education’s final rule on Public Service Loan Forgiveness (PSLF). A companion resolution, H.J.Res. 155, was introduced in the House. The National Council of Nonprofits endorsed both. The Senate has announced a floor vote is imminent. The resolution has support from 56 House members and 24 Senators.

What the rule does:  The Department of Education’s final rule — effective July 1, 2026 — gives the Secretary of Education authority to exclude employers from PSLF eligibility if she determines they have a “substantial illegal purpose.” That term is defined to include organizations providing immigration services the administration considers unlawful, gender-affirming care, or other activities the administration has targeted. The standard is vague and the Secretary’s determination is largely discretionary. Three federal lawsuits are underway seeking to block the rule before July 1.

Why it matters:  Pennsylvania’s nonprofit sector depends on PSLF as a recruitment and retention tool. Social workers, nurses, case managers, housing navigators, and direct care workers choose nonprofit employment in part because of the PSLF promise. If the rule takes effect, organizations providing immigration services, gender-affirming care, or equity-focused programming risk losing PSLF eligibility — with immediate effects on their workforce. The chilling effect on recruitment may arrive before formal implementation.

What nonprofits can do:  Contact your U.S. Senators and urge support for S.J.Res. 182, here are some talking points. Separately, audit your organization’s PSLF exposure now: which staff are making qualifying payments, and how would disqualification affect your workforce and compensation planning?

Where things stand:  A Senate vote is expected shortly. The resolution is unlikely to pass given current Republican opposition, but a vote creates a public record on the issue. The rule’s July 1 effective date remains the operational deadline. PANO will share updates when the vote occurs.