No Halo News · Sourced development
Federal government drops appeal after National Council of Nonprofits and partners defeated PSLF restrictions
The National Council of Nonprofits reported that the federal government filed a joint stipulation dismissing its appeal of a ruling that vacated new Public Service Loan Forgiveness eligibility restrictions. The dismissal leaves the lower-court ruling in place and ends the government’s defense of the challenged rule.
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
The outcome removes a threatened employment and retention risk for charitable nonprofits whose workers rely on Public Service Loan Forgiveness. It also converts an earlier trial-court victory into a resolved result because the government abandoned its appeal.
Attribution
Who reported or established this
The National Council of Nonprofits reported the government’s filing and described the result; the organization was a plaintiff in the litigation.
Evidence limits
What remains unverified
No Halo has not independently evaluated every borrower’s eligibility or established how many nonprofit employees would have lost loan-forgiveness credit under the vacated rule.
Right of reply
Organization response
National Council of Nonprofits President and CEO Diane Yentel said the dismissal provides certainty to nonprofit employees and helps charities attract and retain skilled workers.
Classification
How No Halo records this event
Event type: Dismissal. Current state: Resolved. 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.