Tuesday, September 27, 2022

"U.S. Education Department sued over Biden's student loan cancellation plan"

 From Reuters, September 27L

Conservative group Pacific Legal Foundation filed a federal lawsuit Tuesday against the U.S. Department of Education with the intent of stopping President Joe Biden's student loan cancellation plan.

The lawsuit, which was filed in the U.S. District Court for the South District of Indiana, comes a day after the Congressional Budget Office (CBO) said that Biden's plan to cancel some student loan debt will cost $400 billion.

"Congress did not authorize the executive branch to unilaterally cancel student debt," said Caleb Kruckenberg, an attorney at Pacific Legal Foundation. "It's flagrantly illegal for the executive branch to create a $500 billion program by press release, and without statutory authority or even the basic notice and comment procedure for new regulations."

Biden said in August the U.S. government will forgive $10,000 in student loans for millions of debt-saddled former college students, keeping a pledge he made in the 2020 campaign for the White House.

Critics of the plan raised concerns over its inflationary impact while the White House said the plan was fiscally justified because the federal deficit was on track for a $1.7 trillion reduction for fiscal 2022 compared with the prior year. The smaller deficit is largely due to the end of many COVID-19 aid programs and unexpectedly higher revenues.

The Education Department did not immediately respond to a request for comment.....

....MUCH MORE

Here's the PLF press release,  I don't think this is their first rodeo:

If you are on deadline and need immediate assistance, or need a comment 
from a PLF attorney, please contact our media team at media@pacificlegal.org.

And here is the PLF's explanation for filing the lawsuit.

Fighting lawless student loan cancellations to restore separation of powers

I don't think the Administration can win this one, last year Speaker Pelosi said:

Pelosi: Biden Lacks Authority to Cancel Student Debt

And Forbes leans on the non-binding but point-blank memo from the Department of Education's General Counsel, since removed from the Education Department's website but available at the Internet Archive.

Reason plays a gotcha card: "If the pandemic is over, then how is the supposed emergency move justified?"

You can just imagine the heads exploding when the President made that comment.

Maybe though, the whole point was simply to have President Biden make the announcement and force his political opponents into the taking candy from babies role.