A coalition of 24 states and the District of Columbia sued in federal court to challenge a Trump administration rule that limits access to federal student loans for borrowers pursuing certain graduate degrees in healthcare-related fields. The filing targets an Education Department policy shift that states say will exacerbate workforce shortages by reducing pipeline capacity. New York Attorney General Letitia James said the rule will “shut talented people out” of critical professions and leave communities with fewer healthcare providers. The lawsuit was triggered by two complex changes that together drew opposition from the American Nurses Association. The states’ legal challenge reflects how federal student aid policy is increasingly being contested through state-level litigation, as legal and compliance strategies become a key lever for protecting access to credential pathways in high-demand sectors.