Twenty-five states filed a lawsuit against the Education Department on Tuesday over a new $100,000 cap on federal loans for graduate students.

The coalition of Democratic states claimed that the rule arbitrarily discriminated between “professional” students in education programs, such as medical or law school, and “graduate” students in other fields of study. The One Big Beautiful Bill Act set a $100,000 limit on graduate loans and a higher $200,000 cap on professional loans.