Each week, Liebert Cassidy Whitmore provides a summary of newly issued Executive Orders and other significant Presidential and federal actions that have a foreseeable impact on governance, compliance, and operational policies for California employers. The summaries below outline the key provisions of each action, along with our brief analysis of their potential implications for municipal agencies, school districts, nonprofits, and private schools.
Executive Order: Restoring Public Service Loan Forgiveness (March 7, 2025)
On March 7, 2025, President Donald Trump signed an Executive Order titled “Restoring Public Service Loan Forgiveness” that redefines eligibility for the Public Service Loan Forgiveness (PSLF) Program.
Established in 2007, the PSLF Program incentivizes employment in the public service sector by forgiving an individual’s outstanding student loans after 10 years of working in public service and making minimum loan payments.
The Executive Order directs the Secretary of Education to ensure the definition of “public service” excludes organizations that engage in activities that have a substantial illegal purpose, including aiding and abetting violations of Federal immigration laws; supporting terrorism; engaging in child abuse as defined by the Executive Order; aiding and abetting illegal discrimination; and violating laws against trespassing, disorderly conduct, public nuisance, vandalism, and obstruction of highways. The purpose of the Order is to exclude employees of such organizations from eligibility for the PSLF Program.
This Order may affect employees of public agencies and some nonprofit organizations who are eligible for or participating in the PSLF Program.
Update: Trump Administration Cancels $400 Million in Federal Funds to Columbia University Pursuant to Executive Order re Anti-Semitism (March 7, 2025)
On March 7, 2025, the Trump administration took a step toward enforcing the January 29, 2025 Executive Order directing federal agencies to address anti-Semitic discrimination, particularly in educational institutions. In a joint statement from the Department of Justice, Department of Health and Human Services, Department of Education and the U.S. General Services Administration, the administration announced that it has canceled $400 million in federal grants and contracts to Columbia University over what it described as the school’s failure to police antisemitism on campus. The decision was carried out, the statement said, “due to the school’s continued inaction in the face of persistent harassment of Jewish students.”