A federal judge has blocked the Trump administration from implementing a new rule that would impose lower federal student loan limits for people pursuing graduate degrees in nursing and other healthcare-related fields.

U.S. District Judge Beryl Howell in Washington, D.C., late on Wednesday sided with eight ‌trade organizations, including the American Association of Nurse Practitioners and the PA Education Association that sought to ​block the rule from taking effect on July 1.

Skye Perryman, whose liberal legal group Democracy Forward represented the plaintiffs, in a statement said the ruling would benefit students pursuing careers in ⁠nursing, public health, education, and marriage and family therapy.

“These are key services that the federal government should be supporting ​by welcoming those who wish to enter them, not creating barriers to vital support,” she said.

The Education Department ⁠in a statement said it is reviewing the decision and will take “appropriate action.” It has previously defended the caps as necessary to encourage universities to control costs.

The trade associations sued after the department published the rule on May 1 in order to implement new federal student ‌loan caps the Republican-led Congress adopted in July 2025 when it passed President Donald Trump’s tax and spending ​bill known as the ‌One Big Beautiful Bill Act.

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