Twenty-five states and the District of Columbia sued the U.S. Department of Education over changes that limit federal loans for nursing degrees, arguing the federal decision will worsen workforce shortages. The dispute centers on the Education Department’s determination not to label nursing as a professional degree—an interpretation that affects whether students can access certain federal borrowing options. State attorneys general and governors argue the rule would reduce enrollments or increase barriers for prospective nurses. The lawsuit underscores how federal higher-education financial aid classifications can carry immediate downstream effects on critical health staffing pipelines.