Republicans Prepare Lawsuits To Block Biden S Student Debt Plan

Comment Republican attorneys general and other top conservatives are quietly exploring a series of potential lawsuits targeting President Biden’s plan to cancel some student debt — challenges that could limit or invalidate the policy before it fully takes effect. In recent days, several GOP attorneys general from states including Arizona, Missouri and Texas have met privately to discuss a strategy that could see multiple cases filed in different courts around the country, according to a person familiar with the matter. their thoughts who spoke on the condition of anonymity to describe the confidential conversations. Other influential conservatives — including Sen. Ted Cruz (R-Tex.) and allies at the Heritage Foundation, a conservative think tank — are considering their own options as they criticize Biden’s debt relief plan, two additional people familiar with the said the matter. And a conservative advocacy group founded by a major Trump donor said it would file a lawsuit against the policy. “Conservative public interest law firms in our network are exploring filing lawsuits against him. They’re doing legal background research, trying to figure out who might be the most appropriate clients for them,” John Malcolm, director of the Meese Center at the Heritage Foundation, said in an interview. “They have to find a client with the stature and courage to take a lawsuit. There are several teams in our network that are exploring this right now.” How President Biden Decided to Go Big on Student Loan Forgiveness All sources cautioned that no decisions have been made — and as of Thursday morning, no lawsuits appeared to have been filed. But a legal battle could have stark financial consequences for millions of student borrowers, who rejoiced last week after Democrats kept a longstanding promise to write off some of their debt. The potential litigation also raises the prospect of a broader precedent-setting litigation over the scope of the president’s economic power. Such a lawsuit could reach the Supreme Court, putting her back in the spotlight after angering Democrats by stripping abortion protections and curtailing the Environmental Protection Agency’s power to respond to climate change. Under Biden’s plan, announced last week, the administration would forgive up to $10,000 in federal college debt — or $20,000 if borrowers also received Pell grants, which typically go to lower-income students. While the plan is less generous than some in the Democratic Party initially sought, it still marks a major financial boon for many borrowers — some of whom have expressed horror that they could lose the aid before it even arrives. “That would be terrible,” said Michael Lummus, 31, who works as a call center supervisor in Ohio, referring to the prospect of the courts blocking Biden’s plan. Lummus has struggled to pay off his $11,400 in student loans since dropping out of the University of Toledo, but most of his debt would disappear under the president’s plan. “It just seems like they’re constantly trying to keep borrowers in debt,” Lummus added. “I don’t make a lot of money … and before this, I felt like I would never pay off my loans.” The Biden administration has been adamant that its policy is legal. The Justice Department released a 25-page memo last week justifying the debt cancellation as “appropriate” under a 2003 law that gives the executive branch broad authority to review student loan programs. That law was passed after the terrorist attacks of September 11, 2001, and gave the president the power to cancel student debt in connection with national emergencies — which the White House says includes the ongoing pandemic. “The legality is very, very strong … The language of the Heroes Act states that in a national emergency the president can take action that includes suspending or canceling the debt,” said Laurence Tribe, a Harvard law professor close to the administration Biden. Who qualifies for Biden’s plan to cancel $10,000 in student debt? The White House did not immediately respond to a request for comment Wednesday night. Bharat Ramamurti, deputy director of the White House’s National Economic Council, told reporters last week that Biden was using the same authority the Trump administration had invoked to extend a freeze on student loan payments earlier in the pandemic. “This was not disputed in court. It has not been found unfit by a court. It is the same statute that the previous government used and that we used, that we are using now for this action,” Rammurthy said. He added: “We believe we are on strong legal ground.” Representatives for the attorneys general of Arizona, Missouri and Texas did not respond to requests for comment. The most recent talks between the GOP attorneys general and their staff took place on Wednesday, the person familiar with the matter said. Conservatives have called the debt relief plan fiscally irresponsible and unfair to the millions of Americans who never went to college or have already paid off their student loans. Republicans also said the plan is illegal because it removes spending powers given to Congress, arguing that the 2003 law was never intended to give the executive branch such unilateral, sweeping power. Cruz, who is running for president in 2020, has emerged as one of the plan’s leading GOP critics, but acknowledged in a radio interview released Wednesday that it remains unclear who would have legal “legacy” — or cause to challenge the decision – in court. A spokesman for Cruz declined to comment, referring a reporter to Cruz’s comments in that interview. Cruz said the courts are unlikely to find the average taxpayer competent to sue. It may be possible to find a claimant who earned slightly more than the amount necessary to qualify for debt forgiveness, according to the senator, but “it’s far from clear that a court would buy that argument.” And Cruz added that a lawsuit could be filed by a current student who would argue that the debt relief plan will cause colleges to raise tuition, unfairly subjecting students to higher fees. “The difficulty here is finding a plaintiff that the courts will find has standing,” Cruz said. “That could prove to be a real challenge.” Still, conservatives have struggled to find a claimant. The president of the Job Creators Network — founded by Bernie Marcus, the GOP donor who started Home Depot — said Wednesday that he is already putting together a legal team and working with outside counsel to prepare a lawsuit. “We’re taking it on … we’re in the middle of our line of plaintiffs,” Alfredo Ortiz, CEO of the Jobs Creator Network, recently told Fox News. “Once they release all the details on this, we will take it to court.” Separately, some legislators have noticed their own intervention in such a case. Rep. Byron Donalds (R-Fla.) told the Washington Post he is exploring options to sue Biden over the policy. Some independent legal experts say a legal challenge could prove successful. Jed Handelsman Shugerman, a professor at Fordham Law School, said the Justice Department memo justifying the policy because of the coronavirus did not fit either the nature of the sweeping action or the way the White House defended it. In unveiling the plan, Biden talked mostly about fixing a broken higher education system and placed less emphasis on offering emergency relief because of the pandemic. Sugarman stressed that he supports student debt forgiveness and wants the administration to change its legal argument so it won’t be struck down by the Supreme Court. Application for student loan forgiveness coming in October, White House says “If they continue with that argument and that interpretation of the statute, they’re likely to lose 6 to 3, and they’re likely to lose by more than 6 to 3,” Sugarman said. With no change in the administration’s strategy, Sugarman said, “I anticipate that this good policy will be properly struck down by the courts on legal terms.” Adam Minsky, a Boston attorney who specializes in student debt issues, said it’s hard to predict exactly where the Supreme Court will end up on the issue, but that the main legal question is likely to be whether a plaintiff has standing to sue. Litigation could lead to an emergency injunction that would halt the policy once it goes into effect, he said, creating chaos for tens of millions of borrowers — possibly right before midterm elections this fall. “It would be a mess,” Minsky said. “There may be a number of judges who say they overdid it.”

title: “Republicans Prepare Lawsuits To Block Biden S Student Debt Plan Klmat” ShowToc: true date: “2022-11-26” author: “Janet Guerra”

Comment Republican attorneys general and other top conservatives are quietly exploring a series of potential lawsuits targeting President Biden’s plan to cancel some student debt — challenges that could limit or invalidate the policy before it fully takes effect. In recent days, several GOP attorneys general from states including Arizona, Missouri and Texas have met privately to discuss a strategy that could see multiple cases filed in different courts around the country, according to a person familiar with the matter. their thoughts who spoke on the condition of anonymity to describe the confidential conversations. Other influential conservatives — including Sen. Ted Cruz (R-Tex.) and allies at the Heritage Foundation, a conservative think tank — are considering their own options as they criticize Biden’s debt relief plan, two additional people familiar with the said the matter. And a conservative advocacy group founded by a major Trump donor said it would file a lawsuit against the policy. “Conservative public interest law firms in our network are exploring filing lawsuits against him. They’re doing legal background research, trying to figure out who might be the most appropriate clients for them,” John Malcolm, director of the Meese Center at the Heritage Foundation, said in an interview. “They have to find a client with the stature and courage to take a lawsuit. There are several teams in our network that are exploring this right now.” How President Biden Decided to Go Big on Student Loan Forgiveness All sources cautioned that no decisions have been made — and as of Thursday morning, no lawsuits appeared to have been filed. But a legal battle could have stark financial consequences for millions of student borrowers, who rejoiced last week after Democrats kept a longstanding promise to write off some of their debt. The potential litigation also raises the prospect of a broader precedent-setting litigation over the scope of the president’s economic power. Such a lawsuit could reach the Supreme Court, putting her back in the spotlight after angering Democrats by stripping abortion protections and curtailing the Environmental Protection Agency’s power to respond to climate change. Under Biden’s plan, announced last week, the administration would forgive up to $10,000 in federal college debt — or $20,000 if borrowers also received Pell grants, which typically go to lower-income students. While the plan is less generous than some in the Democratic Party initially sought, it still marks a major financial boon for many borrowers — some of whom have expressed horror that they could lose the aid before it even arrives. “That would be terrible,” said Michael Lummus, 31, who works as a call center supervisor in Ohio, referring to the prospect of the courts blocking Biden’s plan. Lummus has struggled to pay off his $11,400 in student loans since dropping out of the University of Toledo, but most of his debt would disappear under the president’s plan. “It just seems like they’re constantly trying to keep borrowers in debt,” Lummus added. “I don’t make a lot of money … and before this, I felt like I would never pay off my loans.” The Biden administration has been adamant that its policy is legal. The Justice Department released a 25-page memo last week justifying the debt cancellation as “appropriate” under a 2003 law that gives the executive branch broad authority to review student loan programs. That law was passed after the terrorist attacks of September 11, 2001, and gave the president the power to cancel student debt in connection with national emergencies — which the White House says includes the ongoing pandemic. “The legality is very, very strong … The language of the Heroes Act states that in a national emergency the president can take action that includes suspending or canceling the debt,” said Laurence Tribe, a Harvard law professor close to the administration Biden. Who qualifies for Biden’s plan to cancel $10,000 in student debt? The White House did not immediately respond to a request for comment Wednesday night. Bharat Ramamurti, deputy director of the White House’s National Economic Council, told reporters last week that Biden was using the same authority the Trump administration had invoked to extend a freeze on student loan payments earlier in the pandemic. “This was not disputed in court. It has not been found unfit by a court. It is the same statute that the previous government used and that we used, that we are using now for this action,” Rammurthy said. He added: “We believe we are on strong legal ground.” Representatives for the attorneys general of Arizona, Missouri and Texas did not respond to requests for comment. The most recent talks between the GOP attorneys general and their staff took place on Wednesday, the person familiar with the matter said. Conservatives have called the debt relief plan fiscally irresponsible and unfair to the millions of Americans who never went to college or have already paid off their student loans. Republicans also said the plan is illegal because it removes spending powers given to Congress, arguing that the 2003 law was never intended to give the executive branch such unilateral, sweeping power. Cruz, who is running for president in 2020, has emerged as one of the plan’s leading GOP critics, but acknowledged in a radio interview released Wednesday that it remains unclear who would have legal “legacy” — or cause to challenge the decision – in court. A spokesman for Cruz declined to comment, referring a reporter to Cruz’s comments in that interview. Cruz said the courts are unlikely to find the average taxpayer competent to sue. It may be possible to find a claimant who earned slightly more than the amount necessary to qualify for debt forgiveness, according to the senator, but “it’s far from clear that a court would buy that argument.” And Cruz added that a lawsuit could be filed by a current student who would argue that the debt relief plan will cause colleges to raise tuition, unfairly subjecting students to higher fees. “The difficulty here is finding a plaintiff that the courts will find has standing,” Cruz said. “That could prove to be a real challenge.” Still, conservatives have struggled to find a claimant. The president of the Job Creators Network — founded by Bernie Marcus, the GOP donor who started Home Depot — said Wednesday that he is already putting together a legal team and working with outside counsel to prepare a lawsuit. “We’re taking it on … we’re in the middle of our line of plaintiffs,” Alfredo Ortiz, CEO of the Jobs Creator Network, recently told Fox News. “Once they release all the details on this, we will take it to court.” Separately, some legislators have noticed their own intervention in such a case. Rep. Byron Donalds (R-Fla.) told the Washington Post he is exploring options to sue Biden over the policy. Some independent legal experts say a legal challenge could prove successful. Jed Handelsman Shugerman, a professor at Fordham Law School, said the Justice Department memo justifying the policy because of the coronavirus did not fit either the nature of the sweeping action or the way the White House defended it. In unveiling the plan, Biden talked mostly about fixing a broken higher education system and placed less emphasis on offering emergency relief because of the pandemic. Sugarman stressed that he supports student debt forgiveness and wants the administration to change its legal argument so it won’t be struck down by the Supreme Court. Application for student loan forgiveness coming in October, White House says “If they continue with that argument and that interpretation of the statute, they’re likely to lose 6 to 3, and they’re likely to lose by more than 6 to 3,” Sugarman said. With no change in the administration’s strategy, Sugarman said, “I anticipate that this good policy will be properly struck down by the courts on legal terms.” Adam Minsky, a Boston attorney who specializes in student debt issues, said it’s hard to predict exactly where the Supreme Court will end up on the issue, but that the main legal question is likely to be whether a plaintiff has standing to sue. Litigation could lead to an emergency injunction that would halt the policy once it goes into effect, he said, creating chaos for tens of millions of borrowers — possibly right before midterm elections this fall. “It would be a mess,” Minsky said. “There may be a number of judges who say they overdid it.”