New Executive Order Impacting Nonprofits
Posted by PA Association of Nonprofit Organizations (PANO) on March 11, 2025
On Friday, March 7, President Trump signed a new Executive Order (EO) directing the Secretary of Education to revise the current rules on the Public Service Loan Forgiveness Program (PSLF), in which many nonprofit professionals are currently enrolled. The new rules would disqualify organizations that “engage in activities that have a substantial illegal purpose”, including organizations that advance or support illegal immigration, terrorism, child abuse, discrimination, or public disruptions.
Language in the EO specifically states that nonprofits doing any of the following will be targeted:
- Those that work with undocumented immigrants or trans people;
- Those doing DEI work; and/or
- Those who have organized in support of Gaza
Because EOs cannot override federal law, these proposed revisions will need to go through a process called negotiated rulemaking before any changes go into effect. For now, 501(c)(3) organizations continue to be covered as eligible employers for PSLF, regardless of what type of work they do.
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