WASHINGTON (AP) — Teachers, social workers, nurses and other public workers would be cut off from a popular student loan cancellation program if the Trump administration finds their employer engaged in activities with a “substantial illegal purpose,” under a new federal proposal released last week.

The Education Department took aim at nonprofits or government bodies that work with immigrants and transgender youth, releasing plans to overhaul the Public Service Loan Forgiveness program.

Opponents fear the new policy would turn the loan forgiveness benefit into a tool of political retribution.

The proposal would give the education secretary the final say in deciding whether a group or government entity should be excluded from the program, which was created by Congress in 2007 to encourage more college graduates to enter lower-paying public service fields.

The proposal says illegal activity includes the trafficking or “chemical castration” of children, illegal immigration and supporting foreign terrorist organizations. “Chemical castration” is defined as using hormone therapy or drugs that delay puberty — gender-affirming care common for transgender children or teens.

President Donald Trump ordered the changes in March, saying the loan forgiveness program was steering taxpayer money to “activist organizations” that pose a threat to national security and do not serve the public.

The public will be given 30 days to weigh in on the proposal before it can be finalized. Any changes would take effect in July 2026.

Under current rules, government employees and many non-profit workers can get their federal student loans canceled after they’ve made 10 years of payments.

The program is open to government workers, including teachers, firefighters and employees of public hospitals, along with nonprofits that focus on certain areas.

The new proposal would exclude employees of any organization tied to an activity deemed illegal. The Education Department predicts that fewer than 10 organizations would be deemed ineligible per year.

It doesn’t expect a “significant reduction” in the percentage of borrowers who would be granted forgiveness under the program, according to the proposal.

The agency acknowledges that not all industries would be affected evenly. Schools, universities, health-care providers, social workers and legal services organizations are among those most likely to have their eligibility jeopardized, the department wrote.

A ban from the Education Department would last 10 years or until the employer completed a “corrective action plan” approved by the secretary.