On March 7, 2025, President Donald Trump issued a sweeping executive order revising the Public Service Loan Forgiveness (PSLF) program, a move that will have profound and chilling effects on organizations that support the transgender community. Framed as an effort to curb so-called abuses of the program, the order effectively weaponizes student loan forgiveness criteria to punish advocacy groups, healthcare providers, and legal organizations that serve transgender individuals.
This action is just the latest step in a broader effort by the Trump administration to erode transgender rights and push the community further into the margins of society. By redefining what constitutes “public service” in the PSLF program, this executive order could force countless organizations to choose between supporting transgender rights or retaining eligibility for student loan forgiveness for their employees.
What the Executive Order Does
Trump’s executive order directs the Department of Education to revise PSLF regulations to exclude organizations that engage in activities deemed to have a “substantial illegal purpose.” Under this vague and politically charged standard, groups that assist undocumented immigrants, advocate for marginalized communities, or provide gender-affirming care to transgender youth could be stripped of their eligibility for loan forgiveness. The order specifically names child trafficking, illegal immigration, and what it calls the “chemical and surgical castration or mutilation of children” as reasons to disqualify organizations from receiving PSLF benefits.
While the administration presents these changes as necessary for protecting national security and the rule of law, the real targets are clear: transgender advocacy groups, LGBTQ+ health organizations, and nonprofit legal services that assist transgender people in securing equal rights. This order seeks to create financial disincentives for working in these fields, effectively discouraging young professionals from supporting transgender individuals through education, law, and healthcare.
The Implications for Transgender Allies and Organizations
For transgender individuals, allies, and the organizations that serve them, this order is an unmistakable warning. Organizations that provide gender-affirming healthcare—hospitals, clinics, and advocacy groups—could now face financial pressures as their employees reconsider whether they can afford to remain in their roles without PSLF benefits. Legal organizations that fight for transgender rights in the courts could similarly struggle to recruit and retain young lawyers who rely on PSLF to offset the burden of law school debt.
Even universities and research institutions that focus on transgender issues could be affected. Schools that support transgender students and staff through inclusive policies, gender-affirming healthcare, or research programs could see their status jeopardized if the government deems their work to be “engaging in a pattern of aiding and abetting illegal discrimination” under the new PSLF standards.
The Broader Context: A Coordinated Attack on Transgender Rights
This executive order is not an isolated act—it is part of a broader pattern of aggressive policies aimed at dismantling transgender rights under the Trump administration. From banning transgender people from military service to stripping healthcare protections, this administration has systematically sought to erase transgender individuals from public life. Now, with this new PSLF restriction, Trump is taking a more insidious approach: rather than direct bans, the government is using financial coercion to force organizations to abandon their support for transgender people.
By tying loan forgiveness eligibility to the political goals of the administration, the government is essentially strong-arming nonprofits, schools, and hospitals into compliance. This tactic follows other authoritarian playbooks where financial incentives are manipulated to suppress dissent and weaken civil society.
Resistance and Next Steps
The transgender community and its allies must push back against this latest attack with every tool available. Advocacy groups must challenge the executive order in court, arguing that it unfairly punishes organizations based on their political and social missions. Legal experts are already examining ways to challenge the vague and overbroad language of the order, which could be used arbitrarily to target any organization the government deems problematic.
In the meantime, transgender individuals and allies should take proactive steps to support the organizations that will be affected. Donations to transgender advocacy groups, volunteer efforts, and public demonstrations will all play a crucial role in countering the effects of this order. Additionally, calling on lawmakers—particularly those in the Senate—to oppose this move is critical in preventing further erosion of transgender rights.
The Bottom Line
Trump’s latest executive order is a blatant attempt to silence and starve transgender advocacy efforts under the guise of “reforming” the PSLF program. By linking student loan forgiveness to political compliance, the administration is using economic pressure to force organizations to abandon their support for transgender individuals. But the transgender community is no stranger to adversity, and this attack will not go unanswered. Now, more than ever, it is essential for allies to stand firm, fight back, and ensure that organizations continue their essential work in supporting transgender individuals in the face of this oppressive administration.
The message from the Trump administration is clear: they want to erase transgender people. Our response must be just as clear: we will not go quietly. The fight for equality continues.
