The White House’s proposed student loan forgiveness plan is expected to cost US taxpayers up to $400 billion
President Joe Biden speaks at the White House in Washington, DC, November 30, 2022. © AP / Patrick Semansky
A US federal court has struck down President Joe Biden’s request to overturn a previous ruling which blocked the rollout of his massive student debt relief program, potentially setting up a showdown at the Supreme Court as the White House pursues multiple appeals.
A three-judge panel at the US Court of Appeals for the 5th Circuit rejected the administration’s latest request on Wednesday, saying that a prior order to halt the debt forgiveness scheme would stand.
The earlier ruling by District Judge Mark Pittman said Biden’s plan to cancel billions of dollars in student debt was an “unconstitutional exercise of Congress’s legislative power,” deciding in favor of two plaintiffs who argued the program was unlawful and did not follow “proper rulemaking processes.”
While the 5th Circuit Court refused to vacate Pittman’s decision on Wednesday, it did order that Biden’s appeal be heard on an accelerated basis.