The Trump administration is forging ahead with plans to eject some nonprofits from a popular student loan forgiveness programme if their work is deemed to have a "substantial illegal purpose" " a move that could cut off some teachers, doctors and other public workers from federal loan cancellation. New rules finalised Thursday give the Education Department expanded power to ban organisations from the Public Service Loan Forgiveness program. The Trump administration said it's necessary to block taxpayer money from lawbreakers. Critics say it turns the programme into a tool of political retribution. Set to take effect in July, the policy is aimed primarily at organisations that work with immigrants and transgender youth. It grants the education secretary power to exclude groups from the program if they engage in activities including the trafficking or "chemical castration" of children, illegal immigration and supporting terrorist organisations.

"Chemical castration" is defined as using hormone therapy or drugs that delay puberty " gender-affirming care common for transgender children or teens. It amounts to a major reworking of a programme that has cancelled loans for more than 1 million Americans and was created by Congress in 2007 to steer more college graduates into lower-paying public sector jobs. The Trump administration has yet to identify specific groups it intends to target, but it estimates fewer than 10 would be barred per year. The programme "was meant to support Americans who dedicate their careers to public service " not to subsidise organisations that violate the law, whether by harbouring illegal immigrants or performing prohibited medical procedures that attempt to transition children away from their biological sex," Education Undersecretary Nicholas Kent said in a statement.