The U.S. Office of Management and Budget (OMB) received close to 500,000 comments on its proposal to overhaul the set of rules governing federal grants, cooperative agreements, and other monetary awards to nonprofits, state and local governments, and other grantees. Early analysis indicates that more than 94% of the comments opposed these sweeping changes to federal grants, cooperative agreements, and pass-through awards received by Wyoming nonprofits.

The Wyoming Nonprofit Network submitted comments on this proposed rule and joined 30 other Wyoming nonprofits in signing on to a national letter opposing the proposed changes. WNN has also shared comments and concerns with Wyoming’s federal delegation. OMB is now required by law to review and legally respond to all substantive arguments raised during the comment period. The proposed rule is currently scheduled to take effect Oct. 1.

National Council of Nonprofits Lawsuit Successfully Blocks Unlawful Changes to Public Service Loan Forgiveness

The U.S. District Court for the District of Massachusetts issued a decision on June 30 vacating a U.S. Department of Education’s final rule, which would have allowed the Education Secretary to disqualify certain nonprofit employers from participating in the Public Service Loan Forgiveness (PSLF) program based on their mission. The lawsuit, National Council of Nonprofits et. al v. McMahon et. al, was filed by the National Council of Nonprofits (NCN) and a coalition of more than a dozen cities, labor unions, and nonprofits.

The court held that the PSLF rule exceeded the Department’s statutory authority and violated the Administrative Procedure Act and the First Amendment. As a result, the final rule was vacated and will not go into effect. For more details, read NCN’s press statement.

PSLF helps ensure that talented individuals can afford to choose and remain in careers in public service without being burdened by long-term federal student debt. The final rule would have had far-reaching, harmful consequences for nonprofit workers and the communities that rely on nonprofits’ work.