U.S. Representative Greg Steube from Florida has introduced a new bill named the No Loan Forgiveness for Terrorists Act. This legislation aims to formalize an executive order issued by former President Trump, which prevents employees of organizations involved in illegal activities from benefiting from the Public Service Loan Forgiveness program.
“If someone accepts a job with an organization that is actively undermining U.S. national security and federal law, they shouldn’t expect a thank you note and taxpayer-funded prize for their work,” said Rep. Steube. He emphasized that the executive order was a necessary step to safeguard the integrity of the loan forgiveness program and ensure it benefits only those serving in law enforcement or other deserving public service roles.
The initiative has received support in the Senate, where Senator Jim Banks of Indiana introduced similar legislation last month. “Taxpayers shouldn’t be forced to pay student loans for radicals who aid terrorists, mutilate children, or promote illegal immigration,” stated Senator Banks, supporting the codification of Trump’s order to prevent financial support for anti-American extremism.
The proposed bill seeks to amend the definition of a “public sector job” under the Higher Education Act. It would exclude time spent working with entities found guilty of violating federal laws related to immigration, terrorism support, child abuse, or discrimination patterns. These modifications are intended to align federal law with Trump’s executive order dated March 7, 2025, titled Restoring Public Service Loan Forgiveness.
The full text of the bill is available for review.
