No Halo News · Sourced development
Federal government files to dismiss appeal in National Council of Nonprofits PSLF case
The federal government submitted a joint stipulation to dismiss its appeal in National Council of Nonprofits et al. v. McMahon. The appeal followed a June 2026 federal-court decision vacating a Department of Education rule that could have disqualified certain nonprofit and government employers from the Public Service Loan Forgiveness program. The plaintiff coalition included the National Council of Nonprofits, other charities, local governments and labor organizations.
Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.
Donor relevance
Why this matters
Ending the appeal would preserve a ruling protecting nonprofit employers’ participation in a major federal loan-forgiveness program used to recruit and retain public-service workers.
Attribution
Who reported or established this
Democracy Forward, counsel for the plaintiff coalition, reported the government’s joint dismissal filing and described its expected effect on the challenged rule.
Evidence limits
What remains unverified
No Halo has not independently established that the appellate court has entered the dismissal or formally closed the appeal, and it has not assessed every possible effect on individual borrowers or employers.
Right of reply
Organization response
Plaintiff counsel said the filing preserves the coalition’s court victory and prevents the challenged rule from taking effect. No separate statement from the National Council of Nonprofits was located in the consulted material.
Classification
How No Halo records this event
Event type: Filing. Current state: Pending. No Halo preserves the current procedural state rather than treating every mention as a finding.
Published October 22, 2026 · Last verified October 23, 2026. See an error or a later outcome? Submit a correction or right of reply.