The Trump Administration has abandoned its defense of the PSLF Final Rule, cementing a major victory for public-sector workers, non-profit institutions, civil rights organizations and the communities they serve. On August 27, 2026 (just before the appeal window was about to close), the Department of Justice ("DOJ") filed notices of appeal in the Massachusetts (2) and District of Columbia (1) cases to the First Circuit and D.C. Circuit Courts of Appeals, respectively. All three appeals targeted the rulings issued on June 30, 2026 vacating the PSLF Rule. After briefing schedules were set, the DOJ, on October 21 and 22, 2026, filed joint stipulations dismissing all three appeals, effectively ending the Administration's efforts - at least for now - to weaponize the PSLF Program. The stipulations are silent as to the reasoning behind the dismissals ("Pursuant to Federal Rule of Appellate Procedure 42(b)(1), the parties hereby stipulate to the dismissal of this appeal, with each side to bear its own fees and costs on appeal."), and the Administration has provided no public explanation for its reversal. Therefore, it is impossible to determine whether the Administration concluded that the appeals were unwinnable, or whether the decision to dismiss reflects a shifting strategic approach to the Program. The practical impact of the decision is that the June rulings issued by two federal judges striking the PSLF Final Rule and its proposed regulatory overhaul stand, and the current PSLF eligibility rules remain in place. Congratulations to one of the Center's newest volunteer attorneys, Khandice Lofton, who, while at Protect Borrowers, served as co-counsel for the plaintiffs in the District of Massachusetts case.
Copies of the joint stipulations of dismissal can be found at the following links: