A coalition of 25 states and the District of Columbia has filed a lawsuit against the Trump administration, contesting a new rule that imposes limits on federal student loans for graduate students in healthcare fields such as nursing.

The move highlights growing tensions over federal education policy and its potential impact on addressing workforce shortages in key industries.

The lawsuit, reported by CNBC, argues that the loan caps could deter students from pursuing advanced degrees in healthcare, exacerbating existing shortages in nursing and related professions.

The administration's rule, which took effect recently, restricts the amount of federal financial aid available to graduate students in these fields, a decision critics say undermines efforts to expand access to higher education.

The legal action comes amid broader discussions about the role of federal funding in shaping workforce development.

Healthcare sectors have long faced staffing challenges, and the new loan restrictions may further complicate efforts to train and retain professionals in these areas.