Washington sues Trump's Dept. of Education, alleging illegal restriction of student loans

May 19, 2026 - 21:01

Washington Attorney General Nick Brown, along with a coalition of 23 states and two governors, filed a lawsuit Tuesday against the U.S. Department of Education. The legal action challenges what the plaintiffs describe as an illegal restriction on federal student loan programs.

The lawsuit centers on a new federal rule that the coalition argues unlawfully limits access to income-driven repayment plans and loan forgiveness options. According to the complaint, the policy change violates the Higher Education Act by imposing stricter eligibility requirements that were not authorized by Congress. The states claim the rule disproportionately harms low-income borrowers and those working in public service.

Brown stated that the Department of Education overstepped its authority by implementing the restriction without proper legislative approval. He emphasized that the move undermines the financial stability of millions of students and families who rely on these programs to manage debt.

The coalition seeks a court order to block the rule from taking effect. The lawsuit is the latest legal clash between Democratic-led states and the Trump administration over education policy. A spokesperson for the Department of Education declined to comment on the pending litigation.