SCOTUS delivers blow to Biden’s massive student loan handout

Published

2 years ago

June 30, 2023

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close video Supreme Court blocks Biden’s student loan handout

The Supreme Court on Friday blocked the Biden administration’s student loan handout.

The Supreme Court ruled Friday that the Biden administration cannot go forward with its student loan debt handout program.

In a 6-3 decision, the court held that federal law does not allow the Secretary of Education to cancel more than $430 billion in student loan debt.

"The Secretary’s plan canceled roughly $430 billion of federal student loan balances, completely erasing the debts of 20 million borrowers and lowering the median amount owed by the other 23 million from $29,400 to $13,600," Chief Justice John Roberts wrote for the majority. "Six States sued, arguing that the HEROES Act does not authorize the loan cancellation plan. We agree."

President Biden strongly disagreed with the court's decision and will make an announcement later today detailing new actions to protect student loan borrowers, a White House source told Fox News Digital.

BIDEN STUDENT LOAN ‘REDISTRIBUTION’ COULD BENEFIT FELONS, GOP OFFICIALS CLAIM IN LETTER DEMANDING DETAILS

President Biden’s DOE is planning “workarounds” if the Supreme Court rules against student loan forgiveness. (AP Photo/Evan Vucci / AP Newsroom)

The White House source said Biden intends to blame Republicans for denying student borrowers the relief he promised to deliver to them.

Biden's student loan initiative, which had been on hold pending litigation, involved the federal government providing up to $10,000 in debt relief – and up to $20,000 for Pell Grant recipients – for people who make less than $125,000 a year. The program was expected to cost the government more than $400 billion.

Biden made the unprecedented push for debt cancelation in August 2022, and his administration accepted some 16 million applications before Republicans objected, and the program was put on hold.

SUPREME COURT RULES IN FAVOR OF COLORADO GRAPHIC DESIGNER WHO REFUSED TO CREATE SAME-SEX WEDDING WEBSITES

A visitor with a sign regarding student loan payments outside the U.S. Supreme Court in Washington, D.C., on Tuesday, June 27, 2023. (Al Drago/Bloomberg via Getty Images / Getty Images)

Republicans argued Biden lacked the authority to unilaterally forgive student loans. Estimates from the Congressional Budget Office said Biden's plan would cost taxpayers roughly $400 billion. Republicans were outraged at the total, arguing the forgiveness would be unfair to those who either paid their way through college, repaid their loans or never attended college in the first place.

The justices heard two separate challenges to the law. In one case, Department of Education v. Brown, the court said a pair of private borrowers who sought to challenge the loan forgiveness plan lacked standing to sue.

The second and more relevant case is Biden v. Nebraska, where six states sued challenging the loan forgiveness scheme. The court found that Missouri at least had standing to sue because the program would open a nonprofit government corporation set up by the state, called MOHELA, to face an estimated $44 million in annual fees. READ THE SUPREME COURT’S DECISION BELOW. APP USERS: CLICK HERE

Biden's administration had relied on a federal statute, called the HEROES Act, to enact the plan, claiming the law gave the secretary of education power to "waive or modify any statutory or regulatory provision applicable to the student financial assistance programs … as the secretary deems necessary in connection with a war or other military national emergency."

The court majority shot down that argument. "The authority to ‘modify’ statutes and regulations allows the Secretary to make modest adjustments and additions to existing regulations," Roberts wrote, "not transform them."

Roberts went on to say the Department of Education's "modifications" to the law "created a novel and fundamentally different loan forgiveness program" than what Congress intended in the HEROES Act. This program effectively granted loan forgiveness "to nearly every borrower in the country," Roberts said.

BIDEN VETOES CANCELING HIS $400 BILLION STUDENT LOAN HANDOUT, VOWS HE'S ‘NOT GOING TO BACK DOWN'

President Biden faced opposition to his student loan forgiveness program. (Anna Moneymaker/Getty Images / Getty Images)

"The Secretary's comprehensive debt cancelation plan cannot fairly be called a waiver — it not only nullifies existing provisions, but augments and expands them dramatically," the chief justice wrote. "It cannot be mere modification, because it constitutes ‘effectively the introduction of a whole new regime' … And it cannot be some combination of the two, because when the Secretary seeks to add to existing law, the fact that he has ‘waived’ certain provisions does not give him a free pass to avoid the limits inherent in the power to ‘modify.'"

"However broad the meaning of ‘waive or modify,’ that language cannot authorize the kind of exhaustive rewriting of the statute that has taken place here."

The court's three liberal justices dissented. "The majority overrides the combined judgment of the Legislative and Executive Branches, with the consequence of eliminating loan forgiveness for 43 million Americans. I respectfully dissent from that decision," Justice Elena Kagan wrote.

Biden's Education Department had already been exploring potential workarounds to offer handouts via other means in anticipation of a ruling against the administration.

Republicans unveiled their own plan to address student loans and high college costs in June, introducing a series of five bills. The plan from Senate Republicans supports programs aimed at making sure students understand the real cost of college and also shuts off loans for programs that do not result in salaries that are high enough to justify those loans.

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"This would prevent some of the worst examples of students being exploited for profit. It would force schools to bring down cost and to compete for students. What an idea," Sen. Tommy Tuberville, R-Ala., said of the bill. "It would also protect students from getting buried in debt they can never, ever pay."

Fox News' Mark Meredith contributed to this report.

World

Mexico and Canada agree to bolster US border security in return for tariff pause

Published

56 mins ago

February 4, 2025

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Mexico and Canada agree to bolster US border security in return for tariff pause

Both Canada and Mexico have agreed to strengthen border security with the United States in return for a 30-day pause in tariffs.

President Trump announced on Sunday he was imposing 25% taxes on goods from his country’s northern and southern neighbours.

Mexico was first to reach a deal with the White House. Its president, Claudia Sheinbaum, said she was sending 10,000 National Guard troops to the US border immediately in return for a tariff delay.

Mr Trump said the Mexican soldiers would be “specifically designated” to stop the flow of the synthetic opioid fentanyl into the US, as well as illegal migrants. Further negotiations will now be carried out, he added.

Ms Sheinbaum said she had a “good conversation” with him lasting at least 30 minutes just hours before the tariffs were due to begin.

She also extracted a concession from Mr Trump – after explaining the “seriousness” of high-powered weapons coming over the border from the US and getting into the hands of criminal groups.

“It gives them firepower,” she said. “We asked that the US also help our country by helping stop this arms trafficking… he agreed.”

Canada made similar moves. Prime Minister Justin Trudeau said almost 10,000 frontline personnel “are and will be working on protecting the border”.

He added on X that his country was appointing a “fentanyl czar”, drugs cartels would be listed as terrorists, and there would be “24/7 eyes on the border”.

There will also be a Canada-US joint strike force to “combat organised crime, fentanyl and money laundering”, Mr Trudeau announced.

Both Trudeau and Trump will view the deal as a win – Trump for seemingly forcing the US’s northern neighbour to act, and Trudeau for heading off sanctions with measures that for the most part (with the exception of the fentanyl czar) had already been announced in December.

Donald Trump said he was “very pleased with this initial outcome” and work will begin see how a “Final Economic Deal” with Canada can be structured.

Analysis: Has it all just been theatre?

First Mexico, now Canada. In another whirlwind day, both of America’s closest neighbours appear to have capitulated to President Trump.
The 25% tariffs on all goods from both countries were due to come into effect at midnight US Eastern time. But after calls between all three leaders, suddenly the tariffs were paused.

So what’s going on? Is this a clear signal of the power Trump wields? His blunt tool of using the threat of tariffs as a negotiating tool has paid off? Bullying tactics work? Well, maybe. At least that’s how Mr Trump wants everyone to think. Dance to my tune, or else.

And it’s absolutely the case that Mexico and Canada were in panic mode this weekend. But surely Donald Trump was panicking a little too when he saw the stock markets on Monday. He claimed this afternoon not to be taking any notice of their sharp falls. But we know he cares deeply about market reactions.

Here’s what’s interesting: the statement from Canadian Prime Minister Justin Trudeau sounded at first glance like it was announcing something new.
“Canada is implementing our $1.3bn border plan… nearly 10,000 frontline personnel are and will be working on protecting the border…”

But it’s not a new announcement. Look at the language – “are and will be”. In other words, “we’re doing this already Mr President, but if you want me to reiterate it to placate you, then I will…” All that Justin Trudeau has done today is reiterate a border plan he announced last December.

Mexico too has been doing an increasing amount in the fight against fentanyl though it could and probably now will do more.

So has it all been theatre this past 24 hours?

A show of brinkmanship from Donald Trump, which could have had a cliff-edge ending, but instead ended with him looking strong (and freaking out much of the developed world in the process) and his closest neighbours forced to reiterate their existing plans.

Regarding China, a 10% tariff – in addition to those already in place – is still set to go ahead, though the White House said Mr Trump is due to talk to President Xi Jinping.

The US president has, however, said 10% could be just the start.

“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said.

China has described fentanyl as America’s problem, and said it would challenge the tariffs at the World Trade Organisation, as well as taking other countermeasures.

But it also left the door open for talks.

What is the UK situation on tariffs?

President Trump hates trade deficits, and does not want to import more goods from another country than are sent there in return, says Sky’s economics and data editor, Ed Conway.

But Britain has bigger trade deficits than the US, Conway adds, and is one of the few countries in the world to import more goods from America than America imports from it.

In addition, because the UK is no longer part of the European Union, any tariffs imposed on Brussels will not affect London.

When asked about the UK, Mr Trump said: “I think that one can be worked out.”

Sir Keir Starmer said it was “early days”.

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