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Saturday, July 5, 2025

U‑6 Unemployment Rate Inching Up: A Broader Look at Labor Market Strain

The U‑6 unemployment rate, the broadest measure of labor underutilization reported by the Bureau of Labor Statistics (BLS), is showing signs of upward pressure. Unlike the headline U‑3 rate, which only includes those actively seeking work, the U‑6 figure captures a more complete picture of employment. It includes discouraged workers, marginally attached individuals, and those working part-time for economic reasons.

According to the most recent data from the BLS and the Federal Reserve Bank of St. Louis, the U‑6 rate inched up from 7.7 percent in June 2024 to a recent peak of 8.0 percent in February 2025. Since then, it has remained elevated, recording 7.9 percent in March and 7.8 percent in both April and May. The June 2025 figure dropped slightly to 7.7 percent but remains among the highest levels seen since 2023.

The U‑6 rate tends to rise when more people are involuntarily working part-time or when marginally attached workers reenter the job search but fail to secure full-time employment. These dynamics suggest that while headline unemployment may appear stable—hovering around 4.1 percent in June—the underlying labor market may be more fragile than it seems.

This persistence in underemployment raises concerns about the quality of jobs available, wage stagnation, and economic resilience, particularly for lower-income workers and those in precarious positions. A growing number of Americans want full-time employment but are unable to find it. Others are technically outside the labor force but remain discouraged or marginally attached to it.

In the broader context, the U‑6 rate serves as a counterbalance to optimistic economic narratives. The apparent stability in the U‑3 rate masks lingering vulnerabilities, especially as sectors like retail, hospitality, and education continue to rely heavily on part-time labor or are facing budgetary constraints. For those watching the post-pandemic economy, particularly in relation to student debt, workforce readiness, and higher education policy, these indicators suggest a structural weakness in job creation and labor absorption.

The gradual rise of U‑6 is not just a statistical footnote. It signals that the labor market is not fully healed and that a portion of the population remains economically sidelined. It is a metric worth monitoring as debates around economic recovery, fiscal policy, and employment strategies continue.

For readers of the Higher Education Inquirer, this trend reinforces the need to consider broader employment conditions when evaluating the health of the U.S. economy, particularly for recent graduates, contingent faculty, and other workers navigating a precarious job landscape.

Sources
Bureau of Labor Statistics, Table A-15. Alternative measures of labor underutilization: https://www.bls.gov/news.release/empsit.t15.htm
Federal Reserve Bank of St. Louis (FRED), U‑6 Unemployment Rate: https://fred.stlouisfed.org/series/U6RATE
TradingEconomics, U‑6 Unemployment Rate: https://tradingeconomics.com/united-states/u6-unemployment-rate

Labor Notes

 

IN THIS ISSUE:

  • Philadelphia Municipal Workers Strike Before July 4 Celebrations
  • LISTEN: Labor Notes Podcast—How to Win a Strong Contract
  • Social Justice Artists: Apply for an Anne Feeney Hellraiser Grant
  • Reactions to the GOP Budget Legislation
UPCOMING EVENTS
  • Workshop: Winning a Strong Contract Parts I & II: July 7 & 14
  • Who Has the Power? A Mapping Tool to Build our Movement: July 16
  • Webinar: Building Power Through Coordinated Bargaining and Contract Alignment: July 21
  • Stewards’ Workshop: Build a Steward Network: July 23
  • Secrets of a Successful Organizer: Sept. 8, 15, 22
  • North Carolina Troublemakers School: Sept. 20
  • Milwaukee Troublemakers School: Oct. 4
Two black women in sunglasses, one with a headscarf, hold signs saying ‘More work, less pay, NO WAY’

Philadelphia Municipal Workers Strike Before July 4 Celebrations

by Paul Prescod

Nine thousand blue-collar workers who make Philadelphia run went on strike July 1.

After sacrificing through the pandemic and years of bruising inflation, they say they’re on strike so they can afford to live in the city they serve.

Already, uncollected garbage is piling up as the workers, members of AFSCME District Council 33, defend their strike lines.

SHOW FULL ARTICLE

A graphic with a white and blue background image of people demonstrating outside what appears to be the steps and pillars of a courthouse. They are holding up large white signs on wooden posts. The Labor Notes slingshot logo is on the top left hand corner of the image, and the cutout photos of our cohosts Natascha Elena Uhlmann and Danielle Smith are on either side of the image. Between them is the text, "How to win a strong contract," the title of this podcast episode.

LISTEN: Labor Notes Podcast—"How to Win a Strong Contract"

by Labor Notes Staff

What's the secret of winning a strong contract? Hint: You won't find it at the negotiations table!

In our "Winning a Strong Contract" workshop series, we talk about how we can build power away from the table to win our demands in bargaining.  

Labor Notes Organizer Lisa Xu joins pod co-hosts Danielle Smith and Natascha Elena Ulhmann for an overview of the workshop, including concepts like the campaign mountain and campaign power spiral.

SHOW EPISODE

You can also listen to The Labor Notes Podcast on SpotifyApple Podcasts and on our YouTube channel. Please rate and review our podcast wherever you listen!

"Winning a Strong Contract Parts I & II" will be running the next two Mondays (July 7 and July 14th), and you can sign up at labornotes.org/events.

Graphic shows woman with guitar and says Anne Feeney, 1951-2021.

Social Justice Artists: Apply for an Anne Feeney Hellraiser Grant

by Natascha Elena Uhlmann

Friends and family of legendary folk musician and “hellraiser” Anne Feeney have come together to announce a new round of grants for artists “on the frontlines of the fight against fascism.”

The Anne Feeney Hellraiser Memorial Fund will provide three grants of up to $1,000 for emerging artists of any discipline who create art in support of social movements for justice.

LEARN MORE AND APPLY

Reactions to the GOP Budget Legislation 

Economic Policy Institute president Heidi Shierholz denounces passage of GOP budget bill: 

The Republican budget will gut Medicaid, slash food aid for families, and shutter rural hospitals—just to give tax breaks that will go overwhelmingly to the wealthy. It is a staggering upward redistribution of income.

The bill also turbocharges an authoritarian-style immigration regime—funding internment camps, mass surveillance, and waves of deportations that will kill millions of jobs.

SHOW FULL EPI STATEMENT

North America’s Building Trades Unions (NABTU) President Sean McGarvey issued the following statement on the Senate Republican Proposed Budget Bill: 

If enacted, this stands to be the biggest job-killing bill in the history of this country. Simply put, it is the equivalent of terminating more than 1,000 Keystone XL pipeline projects.

In some cases, it worsens the already harmful trajectory of the House-passed language, threatening an estimated 1.75 million construction jobs and over 3 billion work hours, which translates to $148 billion in lost annual wages and benefits.

SHOW FULL NABTU STATEMENT

Upcoming Events

Visit labornotes.org/events for updates. Nobody will be turned away from a Labor Notes event, virtual or in-person, for lack of funds—if the registration fee is a barrier, email us.

Workshop: Winning a Strong Contract Parts I & II

We will cover the basics of building a Contract Action Team (CAT), putting together an escalating campaign (potentially culminating in a strike), and dynamics between the bargaining committee, CAT, and the membership.

When: Mondays, July 7 & 14
Time: 7 p.m. - 8:30 p.m. ET / 4 p.m. - 5:30 p.m. PT
Where: This is an online workshop and will be held via Zoom.

Registration fee
$15 - Regular Registration

REGISTER HERE

Prerequisites for this workshop: We strongly encourage workshop participants to also first attend our upcoming "Secrets of a Successful Organizer" workshop series in June. 

A large gathering of workers in purple, black, blue and other dark colored shirts. They're standing on the bleachers at a gymnasium.

Who Has the Power? A Mapping Tool to Build our Movement

This workshop will teach skills to analyze power in the present moment to strategically build the workers movement we need. We’ll be joined by labor educator Stephanie Luce.

This is an advanced workshop for those organizers who are already part of a union or other worker organizations.

When: Wednesday, July 16
Time: 7:30 p.m. to 9:00 p.m. Eastern (4:30 p.m. to 6:00 p.m. Pacific)
Where: This is an online workshop and will be held via Zoom.

Registration fee
$10 - Regular Registration

REGISTER HERE

Webinar: Building Power Through Coordinated Bargaining and Contract Alignment

Join us for a discussion about how unions are coordinating bargaining and even aligning their contracts to maximize leverage in negotiations.

We'll also discuss takeaways for workers seeking to align contracts leading up to the UAW's call for unified action on May Day 2028.

When: Monday July 21
Time: 7 p.m. to 8:30 pm ET
Registration: $10

This panel will feature:
- Francisco Ortiz, the president of United Teachers Richmond in California

- Jane Fox, a unit chair in UAW Local 2325, the Association of Legal Aid Attorneys

- Chris Spurlock, a steward in Teamsters Local 135 at Zenith Logistics, a third-party operator for Kroger

REGISTER HERE

Workers gathered in a classroom.

Stewards’ Workshop: Build a Steward Network

Stewards are the backbone of the union! Learn how to build a strong stewards structure that helps workers use their power in the workplace to effectively fight the boss.

When: Wednesday, July 23
Time: 7:30 p.m. to 9:00 p.m. Eastern (4:30 p.m. to 6:00 p.m. Pacific)
Where: This is an online workshop and will be held via Zoom.

Registration fee
$10 - Regular registration

REGISTER HERE

Secrets of a Successful Organizer 

Secrets of a Successful Organizer is Labor Notes' core organizing training, in three sessions full of lively participatory exercises. We welcome first-timers and repeat attendees looking to sharpen their skills.

These workshops are based on our widely acclaimed book Secrets of a Successful Organizer. These trainings will be held via Zoom.

When: Mondays, September 8, 15 and 22
Time: 7:30 p.m. to 9:30 p.m. Eastern / 4:30 p.m. to 6:30 p.m. Pacific
Cost: $15 for the whole series. Includes access to all three sessions.


REGISTER HERE

Workers sit at a table in a lunch discussion. There are "Secrets of a Successful Organizer" handouts with the bulleye logo on the cover, interspersed between a bowl of food, drinks and snacks.

North Carolina Troublemakers School

Join labor activists from around North Carolina—and the whole region—to strategize, share skills, and learn how to organize to win.

Whether you're new to unions or are an experienced union activist, there's something there for you. We encourage local unions to send a group of members.

Date: September 20
Time: 10 am - 5 pm
Location: Jordan High School, 6806 Garrett Rd., Durham, NC

Registration fee
$35 - Regular registration
$15 - Low-income registration 

REGISTER HERE
 

Milwaukee Troublemakers School

Bringing together union members, labor activists, and local officers, a Labor Notes Troublemakers School is a space for building solidarity, and sharing successes, strategy, and inspiration.

It’s a real shot in the arm for newbies and seasoned activists alike.

When: 9:30 a.m. - 4 p.m. on Saturday, October 4, 2025
Where: Steamfitters Local 601
3300 S 103rd Street
Milwaukee, WI 53227

Registration fee
$30 - Regular registration
$15 - Low-income registration 

REGISTER HERE

Event We Recommend: UALE 2025 Women's Southern Summer School

At the Southern Summer School, women workers come together to learn about labor and leadership development, experience labor history and culture, and share stories.

Contact Amanda Pacheco with questions at amanda_pacheco@ibew.org.

When: Thursday, July 31 to Sunday, Aug. 3
Where: Port Authority
200 Port Authority Way, Charleston, SC
Registration Price: $230

REGISTER HERE

KEEP IN TOUCH!

Subscribe to receive our monthly magazine ($30 a year). 

Order a bundle subscription of five copies a month ($50 a year) or more to give out to your stewards and co-workers.
A picture of workers speaking at a crowded rally.
Keep the organizing going. Donate to Labor Notes. Help us keep on reporting and organizing. Make a one-time donation or become a monthly donor at labornotes.org/donate.
A massive gathering of workers with their fists up and chanting energetically.
Write for Labor Notes. When you discover a good tactic, share the news! Thousands of readers in other workplaces can put the information to use. Email editors@labornotes.org.
A composite image of labor notes merch including a black hoodie and red T-shirt with the Labor Notes slingshot logo, and the covers of three Labor Notes books, namely, "How to Jump-Start Your Union," "Secrets of a Successful Organizer," and "The Legal Rights of Union Stewards."
Visit the Labor Notes Store for books, knit caps, hoodies, T-shirts and more! Check it out at labornotes.org/store.

Friday, July 4, 2025

Layoffs at UPS and Microsoft Highlight Economic Shifts and Technological Upheaval

This week brought sobering news for American workers as both United Parcel Service (UPS) and Microsoft announced significant job cuts, signaling deeper transformations in the logistics and tech industries. These developments reflect a broader shift toward automation, artificial intelligence, and corporate restructuring—at the expense of labor stability.

At UPS, up to 20,000 jobs are on the chopping block as the company executes what it calls a “network reconfiguration.” The company is closing 73 U.S. facilities as it pulls back from overreliance on Amazon deliveries and responds to declining package volumes. Instead of abrupt firings, UPS has begun offering voluntary buyout packages to its full-time drivers. These packages include pension and health benefits, but the move has drawn sharp criticism from the International Brotherhood of Teamsters. Union leadership argues that the company is violating the spirit, if not the letter, of its national contract, which mandates the creation of 22,500 new union jobs.

The company's restructuring comes amid ongoing automation in shipping and warehousing, rising costs, and global economic instability. Earlier this year, UPS closed major hubs in Ohio, Pennsylvania, Massachusetts, and Wisconsin—moves that signal a long-term realignment in how the company manages logistics. Some analysts see this as the largest transformation of UPS’s infrastructure in decades, one designed to cut costs and compete more aggressively with Amazon and FedEx. But the timing, just months after a much-publicized contract negotiation with the Teamsters, has many workers feeling blindsided.

While UPS sheds labor in the physical world, Microsoft is doing the same in the digital. This week, the company confirmed it will cut approximately 9,000 employees—about 4 percent of its global workforce—as it pivots even more aggressively into artificial intelligence. The layoffs affect sales, marketing, and engineering divisions, but some of the most significant cuts came from the Xbox gaming division. Entire studios have been shuttered, including The Initiative, and long-anticipated projects such as the “Perfect Dark” reboot and Rare’s Everwild have been quietly canceled.

Microsoft leadership has said the cuts are intended to reduce management layers and “streamline for innovation,” but internally, the mood is grim. One executive was criticized for suggesting that laid-off staff should use Microsoft Copilot and ChatGPT to deal with the emotional fallout and rewrite their résumés. The post was quickly deleted, but it underscores the growing disconnect between executive leadership and a fatigued workforce. The tech giant is reportedly spending close to $80 billion on AI infrastructure this fiscal year, and workers are feeling the cost.

This is not the first round of layoffs at Microsoft in 2025. The company had previously let go of thousands of employees in January and March as it accelerated AI hiring and scaled down non-essential departments. Workers in online forums and internal Slack groups have expressed confusion and frustration over repeated restructuring that often comes with little transparency or warning.

These two major corporate announcements offer a powerful case study in the forces reshaping the modern economy. At UPS, the pressure comes from changing consumer behavior, automation, and strained labor-management relations. At Microsoft, it’s about replacing human capital with machine learning and making deep structural changes to chase higher profits in an AI-first world. In both cases, the workers pay the price.

For students and faculty in higher education—especially those studying labor relations, supply chain management, computer science, and organizational behavior—these events are a stark reminder that stability in the job market is no longer a given. The old promises of lifelong employment or career ladders within major corporations are being eroded by technological disruption and financialization.

Universities may trumpet partnerships with Microsoft or logistics giants like UPS, but they must also reckon with what these partnerships mean for the future of work. Are students being trained for careers that may not exist in five years? Are institutions complicit in funneling talent into systems that undervalue human labor?

Layoffs at this scale are not isolated events. They are structural. And for millions of Americans—workers, students, graduates—they represent not just temporary hardship, but a preview of the next economic reality.

Sources: Reuters, The Times UK, ABC7, Supply Chain Dive, Polygon, The Verge, Reddit, Teamsters.org

Thursday, July 3, 2025

Layoffs at Stanford, University of Oregon, Michigan State, Vanderbilt University Medical Center, Harvard Kennedy School

In recent weeks, several prominent institutions of higher education—including Stanford University, the University of Oregon, Michigan State University, Vanderbilt University Medical Center, and Harvard Kennedy School—have enacted rounds of layoffs, signaling broader structural challenges in the U.S. academic and healthcare sectors. Despite their elite reputations, substantial endowments, and billions in annual revenue, these institutions are shedding jobs, restructuring departments, and quietly retreating from long-standing commitments to faculty, staff, and students.

The reasons cited vary: declining enrollments in some programs, budget shortfalls, revenue realignment, digital transitions, and post-pandemic financial recalibrations. But the broader narrative is one of institutional austerity and technocratic realignment—driven not by scarcity but by strategic choices that often prioritize financial optimization over community stability.

Stanford University: "Voluntary" Departures and "Organizational Review"

In May 2024, Stanford University initiated what it called a "voluntary separation program" for staff across its libraries and various administrative departments. The move came amid a sweeping “organizational review” led by consultants and senior management. While Stanford did not initially label the departures as layoffs, internal communications revealed pressure on departments to cut personnel costs amid shifting budget priorities. Meanwhile, construction of new capital projects continued, and executive pay remained untouched. Critics see this as part of a Silicon Valley-inspired push toward leaner, more corporate university models.

University of Oregon: Retrenchment and Program Consolidation

The University of Oregon’s recent layoffs hit multiple academic and support units, including information technology, library services, and even academic advising. Faculty members in the College of Arts and Sciences have expressed concern about being asked to do more with fewer resources, especially as administrative spending has not faced equivalent cuts. The administration defended the move as necessary due to a structural deficit, though critics argue it reflects misplaced priorities, particularly as Oregon increases its investments in athletics and public-private development ventures.

Michigan State University: Fallout from Scandal and Financial Strain

Michigan State University, still grappling with reputational damage and legal costs from high-profile scandals, has trimmed staff in several support areas while quietly shelving plans for new academic initiatives. Some layoffs have come in student affairs and auxiliary services, disproportionately affecting non-tenured staff and hourly workers. Union leaders have pushed back against the lack of transparency and what they view as an erosion of the university’s mission in the name of risk mitigation and corporate-style management.

Vanderbilt University Medical Center: Layoffs in a Profitable Sector

Perhaps the most controversial layoffs have occurred at Vanderbilt University Medical Center (VUMC), a health system that reported strong financials in previous years. In June 2025, VUMC laid off more than 100 employees, including nurses, administrative personnel, and technicians. The center cited the need to reduce costs amid “changing patient volumes” and “shifts in healthcare delivery.” Yet critics point to a broader trend among elite medical centers: aggressive expansion, high executive compensation, and an overreliance on precarious labor—even as core medical services are under strain. The layoffs at VUMC come amid growing public scrutiny of hospital labor practices and the commodification of healthcare within nonprofit medical institutions.

Harvard Kennedy School: Cutting Diversity and Public Policy Staff

At Harvard Kennedy School, layoffs have disproportionately affected staff involved in diversity initiatives and student services, raising questions about the university’s commitment to equity and public interest education. In May 2025, at least 20 staff positions were eliminated, including roles related to community engagement, public service programming, and DEI (Diversity, Equity, and Inclusion) work. The cuts occurred just as Harvard faced external criticism over its tepid response to national and international crises. While the school defended the layoffs as part of a broader “strategic restructuring,” students and faculty protested what they saw as a retreat from the school’s mission of fostering ethical and inclusive leadership.

A Symptom of Deeper Malaise

These layoffs are not isolated incidents. They are part of a larger transformation within higher education and affiliated medical centers—one shaped by managerialism, austerity policies, declining public investment, and a technocratic ethos that often sidelines human costs. Even as tuition rises and research funding grows in some areas, universities and academic health centers increasingly rely on contingent labor while outsourcing vital functions and reducing core services.

What’s being lost is not just jobs, but trust—between institutions and their workers, students, and the broader public. As layoffs mount in places once considered recession-proof and mission-driven, a pressing question remains: what kind of future are these institutions building, and for whom?

Sources

  • Stanford Daily, May 2024

  • Oregon Public Broadcasting, June 2024

  • Lansing State Journal, April 2024

  • Nashville Scene, June 2025

  • Harvard Crimson, May 2025

  • The Chronicle of Higher Education

  • Internal communications and faculty council statements

  • National Nurses United reports on hospital layoffs

  • Interviews with laid-off staff and faculty union representatives


For more investigative reporting on U.S. higher education and academic labor, follow the Higher Education Inquirer.

“The Payback”: Kashana Cauley’s Fictional Rebellion Echoes a Real-Life Debt Hero

 

Kashana Cauley’s second novel, The Payback (out July 15, 2025), might read like a brilliantly absurd heist movie—but its critique of debt peonage, surveillance capitalism, and broken educational promises is dead serious. With its hilarious yet harrowing depiction of three underemployed retail workers taking on the student loan-industrial complex, The Payback arrives not just as a much-anticipated literary event, but as a cultural reckoning.

The protagonist, Jada Williams, is relentlessly hounded by the “Debt Police”—a dystopian twist that, while fictional, feels terrifyingly close to home for America’s 44 million student debtors. But instead of accepting a life of financial bondage, Jada and her mall coworkers hatch a plan to erase their student debt and strike back against the system that sold them a future in exchange for permanent servitude.

This wild caper—praised by Publishers Weekly, Bustle, The Boston Globe, and others for its intelligence and audacity—may be fiction, but it echoes the real-life story of one bold man who did exactly what Jada dreams of doing.

The Legend of Papas Fritas

In the mid-2000s, a Chilean man known only by his pseudonym, Papas Fritas (French Fries), pulled off one of the most radical and symbolic acts of debt resistance in modern history. A former art student at Chile’s prestigious Universidad del Mar—a private for-profit institution later shut down for corruption and fraud—Papas Fritas discovered that the university had falsified financial documents to secure millions in profits while leaving students in mountains of debt.

His response? He infiltrated the school’s administrative offices, extracted records documenting approximately $500 million in student loans, and burned them. Literally. With no backup copies.

He then turned the ashes into an art installation called “La Morada del Diablo” (The Devil’s Dwelling), displayed it publicly, and became an instant folk hero. For many Chileans, who had taken to the streets in the early 2010s protesting an exploitative and privatized higher education system, Papas Fritas was more than a trickster—he was a vigilante philosopher, an artist of revolt.

His act raised questions that still haunt us: What is the moral value of debt acquired through deception? Should the victims of predatory institutions be forced to pay for their own exploitation?

Fiction Meets Resistance

In The Payback, Cauley’s characters don’t just want debt relief—they want retribution. And like Papas Fritas, they understand that justice in an unjust system may require transgression, even sabotage. Cauley, a former Daily Show writer and incisive New York Times columnist, doesn’t shy away from this. Her prose is electric with rage, joy, absurdity, and clarity.

She also knows exactly what she’s doing. Jada’s plan to eliminate debt isn’t merely about numbers—it’s about dignity, possibility, and reclaiming a future that was sold for interest. Cauley’s fiction, like Papas Fritas’s fire, is not just a spectacle—it’s a warning, and a dare.

In an America where student debt totals over $1.7 trillion, where debt servicers act like bounty hunters, and where the promise of higher education has become a trapdoor, The Payback delivers catharsis—and inspiration.

Hollywood, take note: this story demands a screen adaptation. But more importantly, policymakers, debt collectors, and university administrators should take heed. The people are reading. And they’re getting ideas.

Preorder The Payback
Signed editions are available through Black-owned LA bookstores Reparations Club, Malik Books, and Octavia’s Bookshelf. National preorder links are now live. Read it before the Debt Police knock on your door.

Because as both Cauley and Papas Fritas remind us: sometimes, the only moral debt is the one you refuse to pay.

Tuesday, July 1, 2025

Neg Reg Day 2: Still Turning Borrowers into Political Pawns (Student Borrower Protection Center)

 

Day 2 of the U.S. Department of Education (ED)'s Neg Reg aimed at weaponizing Public Service Loan Forgiveness (PSLF) was… just as damning as Day 1. Here’s the recap:


Session Summary:

The session got SPICY right off the bat. ED began the day by presenting their newly revised language. Here are some key moments:


  • Abby Shafroth, legal aid negotiator, stated CLEARLY for the record that this Neg Reg is not about protecting PSLF; it’s about the Department of Education (ED) using it as a tool to coerce nonprofits and universities to further the Trump Administration’s own goals. The government’s response was not convincing. Watch her remarks here.
  • Betsy Mayotte, the negotiator representing consumers, brought more fire: “When reading the statute of PSLF, I don’t see where the Education Secretary has the authority to remove employer eligibility definition from a 501(c)(3) or government organization…but my understanding of the regulations and executive order is that they cannot be contrary to the statute. There are no ifs, ands, or buts under government or 501(c)(3).” Watch the exchange here.
  • In a heated discussion on ED’s proposal to exclude public service workers who provide gender-affirming care to transgender minors, Abby further flagged that no one in the room had any medical expertise, so no one had qualifications to weigh in on medical definitions like “chemical and surgical castration.”
  • The non-federal negotiators held a caucus to talk about large employers that fall under a single federal Employer Identification Number. They are CONCERNED that the extreme breadth of this rule could potentially cut out thousands of workers only because a subset of people work on issues disfavored by this Administration—all without any right to appeal. Negotiators plan to submit language that would allow employers to appeal a decision to revoke PSLF eligibility by ED.
  • Borrowers and other experts and advocates came in HOT with public comment today—calling out ED for using this rulemaking to unlawfully engage in viewpoint discrimination and leave borrowers drowning in debt, unable to keep food on their tables, or provide for their families.


Missing From the Table:

Today, our legal director, Winston Berkman-Breen, who was excluded from the committee (but still gave powerful public comment yesterday!) has some thoughts on what was missing from the conversation:


For two days now, negotiators have raised legitimate questions and important concerns about the Secretary of Education’s authority to disqualify certain government and 501(c)(3) employers from PSLF. And for two days now, ED’s neg reg staff—inlcuding the moderator!—have engaged in bad faith negotiations.


Jacob, ED’s attorney, asserted that the Secretary has broad authority in its administration of the PSLF program—true, but only to an extent. The Secretary cannot narrow the program beyond the basic requirements set by Congress. When pushed for specific authority, Tamy—the federal negotiator—simply declined.


It doesn’t stop there—ED representatives sidestepped, dismissed, or outright ignored negotiators’ questions and concerns. That’s because this isn’t a negotiation—it’s an exercise in gaslighting. ED is proposing action that exceeds the Secretary’s statutory authority and likely violates the U.S. Constitution—all the while telling negotiators to fall in line.


The kicker? By pushing this proposal, ED itself is engaged in an activity with “substantial illegal purpose.” Let that sink in.


Public Comment Mic ðŸŽ¤ Drops:

And Satra D. Taylor, a student loan borrower, Black woman, and SBPC fellow, who was also not selected by ED to negotiate, shared more thoughts during public comment:


“I am disheartened and frustrated by what I have witnessed over the last few days… It has become clear that this Administration is intent on… making college once again exclusive to white, male, and wealthy individuals. These political attacks, disguised as rulemaking, are inequitable and target communities from historically marginalized backgrounds. The PSLF program has provided a vital incentive for Americans interested in serving our country and local communities, regardless of their political affiliation. The Department’s efforts to engage in rulemaking and to change PSLF eligibility are directly related to the goal of Trump’s Executive Order and exceed the Administration’s authority…”

Watch Satra's Public Comment

That’s it for Day 2, we’ll be back again tomorrow for the LAST DAY of this Neg Reg charade.


In solidarity,


Brandon Herrera

Communications and Digital Strategist

Student Borrower Protection Center