2-Consecutive Big Blow: After Curtailing Affirmative Action, Now SCOTUS Rejects Biden Student Loan Forgiveness Plan

This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version.

DC 10.43am / Chadron Nebraska 9.43am / London 3.43 pm

Supreme Court (SCOTUS) has said President Biden does not have to authority for his nearly half-trillion dollar plan to forgive student loan debt, the latest blow from a Supreme Court (SCOTUS) that has been dismissive of this administration’s bold claims of power.

This White House tweets, is brilliant idea by Megan Coyne. Prior to joining the Biden administration as the deputy director of platforms in August, Coyne worked as a social media director for New Jersey Governor Phil Murphy. She joined his office for about 4.5 years after graduating from Rutgers University in 2019 where she studied political science. The New Jersey Globe dubbed Coyne the "voice of New Jersey

Most important part of yesterday's (Thursday, June 29th) SCOTUS decision, which kills affirmative action in education without actually saying it does, is Justice Jackson's dissent, which is a barn burner from its opening sentences & well worth reading.

SCOTUS has made it harder for people of color to overcome their often criminally underfunded neighborhood schools to gain access to the sorely needed high education institutions that give them a chance improving their future. Minutes ago, another big blow.

From Moore v Harper, Curtailing Affirmative Action, and minutes ago rejects Biden’s student loan forgiveness plan, same 6-3.

The vote was 6 to 3 along ideological lines, with Chief Justice John G. Roberts Jr. writing for the court’s dominant conservatives.

Biden contended his administration had the authority to forgive student loan debt under the Higher Education Relief Opportunities for Students Act of 2003. The law allows the education secretary to waive or modify loan provisions in response to a national emergency, such as the coronavirus pandemic.

But the challenge brought together controversial issues: an ambitious program aimed at fulfilling a campaign promise for Biden’s political base; heightened suspicion by the Supreme Court’s conservative supermajority about the ability of federal agencies to act without specific congressional authorization; and the power of Republican-led states to use the judiciary to stop a president’s priorities before they take effect.

Biden and Education Secretary Miguel Cardona proposed a plan that would eliminate up to $10,000 of student debt for borrowers earning up to $125,000 annually, or up to $250,000 for married couples. Those who received Pell Grants, a form of financial aid for low- and middle-income students, would be eligible for an additional $10,000 in forgiveness. About 20 million borrowers could see their balances wiped clean.

U.S. Solicitor General Elizabeth B. Prelogar, who defended the program at oral arguments, said Cardona’s actions are not only justified by the law, but they are also exactly what Congress had in mind when it passed the Heroes Act in the wake of the 9/11 terrorist attacks.

But the Supreme Court majority disagreed.

“The Secretary asserts that the HEROES Act grants him the authority to cancel $430 billion of student loan principal. It does not,” Roberts wrote. “We hold today that the Act allows the Secretary to ‘waive or modify’ existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground up.”

But the court has rejected the administration’s expansive arguments in the past. The court lifted a pandemic-era moratorium on rental evictions put in place by the Centers for Disease Control and Prevention. It threw out a coronavirus vaccination-or-testing mandate imposed on large businesses by the Occupational Safety and Health Administration. And in a ruling unrelated to the pandemic, it cited the “major questions” doctrine to limit the Environmental Protection Agency’s options for combating climate change.

The challenge to the student loan program was brought by Republican-led states in one case, and two individuals from Texas in another. In both cases, the Justice Department questioned whether the plaintiffs had legal standing to file their suits.

To qualify to challenge the loan-forgiveness effort, the plaintiffs must show they have suffered a specific, rather than generalized, injury that can be remedied by relief from a federal court. It is not enough just to object to the size of the program or even to allege that the president has exceeded his authority.

A panel of the U.S. Court of Appeals for the 8th Circuit gave the states a toehold to continue their litigation, finding that the Missouri Higher Education Loan Authority, a quasi-independent entity, could suffer losses from the program change that would hurt Missouri, one of the challenger states. A different court said the two borrowers, Myra Brown and Alexander Taylor, have standing to proceed because Taylor doesn’t qualify for $20,000 of forgiveness, while Brown is ineligible altogether.

The administration objected to both those decisions. The Missouri loan authority is independent of the state in many ways and chose not to sue on its own, the Justice Department said. The challenge by Brown and Taylor would not benefit them, the government argued, but instead would mean that no one gets relief from the loan forgiveness program.

From the time Biden was elected, activists and some congressional Democrats have waged a relentless campaign to get him to fulfill his promise to cancel at least part of the $1.6 trillion in federal student debt.

Biden initially directed the Education and Justice Departments to produce memos on his administrative power to forgive loans but expressed skepticism. Senate Majority Leader Charles E. Schumer (D-N.Y.), Sen. Elizabeth Warren (D-Mass.) and Rep. Ayanna Pressley (D-Mass.) were adamant that Biden could use the same authority to cancel debt that President Donald Trump’s administration used to temporarily waive student loan payments during the pandemic, a pause that has been extended multiple times and remains in effect.

The legal battles have left millions of student loan borrowers in limbo. More than half of eligible people had applied for the forgiveness program before it was halted by the courts, with the Education Department approving some 16 million applications.

Biden’s debt relief program has been a divisive issue on Capitol Hill. On June 7, Biden vetoed a Republican-led resolution to strike down the controversial program and restart loan payments for tens of millions of borrowers. The measure passed the Senate with the backing of Sens. Joe Manchin III (D-W.Va.), Jon Tester (D-Mont.) and Kyrsten Sinema (I-Ariz.). Despite Biden’s veto, the resolution shows the likely difficulty of getting any future debt relief plan through Congress.

The cases are Biden v. Nebraska and U.S. Department of Education v. Brown.

This is a developing story. It will be updated.

==========END————

Thank you, as always, for reading. If you have anything like a spark file, or master thought list (spark file sounds so much cooler), let me know how you use it in the comments below.

If you enjoyed this post, please share it.

If a friend sent this to you, you could subscribe here 👇. All content is free, and paid subscriptions are voluntary.

————

-prada- (Adi Mulia Pradana) is a Helper. Former adviser (President Indonesia) Jokowi for mapping 2-times election. I used to get paid to catch all these blunders—now I do it for free. Trying to work out what's going on, what happens next. Arch enemies of the tobacco industry, (still) survive after getting doxed.

(Very rare compliment and initiative pledge. Thank you. Yes, even a lot of people associated me PRAVDA, not part of MIUCCIA PRADA. I’m literally asshole on debate, since in college). Especially after heated between Putin and Prigozhin.

========

Thanks for reading Prada’s Newsletter. I was lured, inspired by someone writer, his post in LinkedIn months ago, “Currently after a routine daily writing newsletter in the last 10 years, my subscriber reaches 100,000. Maybe one of my subscribers is your boss.”  After I get followed / subscribed by (literally) prominent AI and prominent Chief Product and Technology of mammoth global media (both: Sir, thank you so much), I try crafting more / better writing.

To get the ones who really appreciate your writing, and now prominent people appreciate my writing, priceless feeling. Prada ungated/no paywall every notes-but thank you for anyone open initiative pledge to me.

(Promoting to more engage in Substack) Seamless to listen to your favorite podcasts on Substack. You can buy a better headset to listen to a podcast here (GST DE352306207). Listeners on Apple Podcasts, Spotify, Overcast, or Pocket Casts simultaneously. podcasting can transform more of a conversation. Invite listeners to weigh in on episodes directly with you and with each other through discussion threads. At Substack, the process is to build with writers. Podcasts are an amazing feature of the Substack. I wish it had a feature to read the words we have written down without us having to do the speaking. Thanks for reading Prada’s Newsletter.