No Loan Forgiveness for Terrorists Act of 2025
- Bill Number
- H.R. 3739
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-06-04: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2025-12-05T22:54:33Z
AI-Generated Summary
Purpose
This legislation aims to modify the Public Service Loan Forgiveness (PSLF) program under the Higher Education Act of 1965. The PSLF program forgives federal student loans for borrowers who work full-time in qualifying public service jobs for at least 10 years while making payments. The bill seeks to prevent loan forgiveness for individuals employed by organizations involved in activities deemed to have a "substantial illegal purpose," ensuring that public funds do not support such groups.
Key Provisions
- Exclusion from Qualifying Jobs: Adds a new subsection (C) to the definition of "public service job" in the PSLF program.
- Specific Excluded Activities: Employment with organizations engaging in the following is disqualified:
- Aiding or abetting violations of federal immigration laws, such as illegal entry (referencing section 275 of the Immigration and Nationality Act).
- Materially supporting terrorism, including facilitating funding or operations for cartels designated as Foreign Terrorist Organizations (under section 219 of the Immigration and Nationality Act) or using violence to influence federal policy.
- Materially supporting child abuse, defined to include chemical or surgical procedures on children (e.g., castration or mutilation) or trafficking children to "transgender sanctuary states" for emancipation from parents, if in violation of law.
- A pattern of aiding or abetting illegal discrimination.
- A pattern of violating state tort laws (civil wrongs), such as those against trespassing, disorderly conduct, public nuisance, vandalism, or blocking highways.
- Short Title: "No Loan Forgiveness for Terrorists Act of 2025."
Significant Changes to Existing Law
- The current PSLF law (20 U.S.C. 1087e(m)(3)) defines qualifying public service jobs broadly as full-time employment with government, nonprofits, or certain other entities providing public services. This bill narrows that definition by explicitly excluding organizations based on involvement in the listed illegal activities, regardless of their overall public service role.
- It introduces specific criteria tied to immigration, terrorism, child protection, discrimination, and civil disruptions, which were not previously addressed in the PSLF eligibility rules.
Potential Impacts
- On Borrowers: Individuals working for excluded organizations would lose eligibility for PSLF, potentially facing higher long-term debt and discouraging employment in affected sectors.
- On Organizations: Nonprofits, advocacy groups, or service providers (e.g., those aiding immigrants, protesting policies, or involved in social services) could see reduced staffing if employees prioritize loan forgiveness elsewhere.
- On Government Agencies: The Department of Education would need to verify employment exclusions during PSLF applications, increasing administrative workload and requiring new guidance or processes to identify "substantial illegal purposes."
- On Citizens and International Relations: Could limit support for immigrant aid or anti-discrimination efforts, affecting vulnerable populations. Internationally, it might signal stricter U.S. stances on terrorism and immigration, potentially straining relations with countries or groups involved in cross-border issues.
- Broader effects may include shifts in workforce participation in public interest work, with possible legal challenges delaying implementation.
Main Stakeholders Affected
- Student Loan Borrowers: Primarily those in public service roles, who may lose forgiveness benefits if their employer is deemed ineligible.
- Nonprofit and Advocacy Organizations: Groups focused on immigration, civil rights, child welfare, or activism (e.g., legal aid societies, protest coordinators) that risk disqualification.
- Government Entities: The Department of Education (for program administration) and potentially the Department of Justice (for defining illegal activities).
- Vulnerable Populations: Immigrants, children in contested custody situations, and communities facing discrimination or policy protests, who may receive less support if organizations shrink.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The bill's terms like "substantial illegal purpose," "materially supporting," or "pattern of aiding" could be challenged for vagueness, making it hard to apply consistently without court clarification. Enforcement might require coordination between agencies to prove violations.
- Constitutional Implications: Potential conflicts with First Amendment rights to free speech and association, as excluding organizations for activities like protests or advocacy could be seen as penalizing protected expression. Equal protection concerns might arise if exclusions disproportionately affect certain groups.
- Political Implications: The bill targets politically charged issues (e.g., immigration enforcement, terrorism designations, transgender youth policies, and protest activities), which could polarize debates on public funding for social causes. It reflects a push to align federal benefits with specific law-and-order priorities, possibly influencing future education and loan policy reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Steube, W. Gregory [R-FL-17]
Recent Actions
- 2025-06-04: Referred to the House Committee on Education and Workforce.
- 2025-06-04: Introduced in House
- 2025-06-04: Introduced in House
Bill Versions
- No Loan Forgiveness for Terrorists Act of 2025 — issued 2025-06-04 — PDF (3 pages)