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Attorney General Bailey Leads 23 States Putting Biden Administration on Notice about Fourth Illegal Student Loan Scheme

JEFFERSON CITY, Mo. – Missouri Attorney General Andrew Bailey led a 23-state coalition in putting the Biden Administration’s Department of Education on notice about their fourth illegal attempt to saddle working Americans with someone else’s debt.

“We are 10-0 with the lawless Biden Administration in our fight to block their illegal redistribution of wealth. Missouri has successfully defended the American people’s tax dollars in court every time,” said Attorney General Bailey. “We are prepared for yet another court battle if Joe Biden tries again.”

The States urge the Department to withdraw the rule because:
1) It seizes authority for the Secretary that is not statutorily prescribed by the Higher Education Act, and is currently enjoined;
2) It violates separation-of-power principles under the major questions doctrine;
3) It includes flawed cost estimates;
4) It is based on a statutorily deficient negotiated rulemaking process; and
5) It seeks to implement a massive loan forgiveness scheme during a lame-duck Presidential administration.

The States assert in the letter, “Everyone from the Supreme Court, to President Joe Biden, to former Speaker of the House Nancy Pelosi has publicly acknowledged that you do not have the authority to forgive debt except in the limited ways Congress clearly outlined.  You must adhere to these warnings and follow the law.”

They continue, “The Proposed Rule states that ‘shortly after finalizing and implementing these regulations, the Department could identify borrowers who would be eligible for waivers . . . and then would expeditiously choose whether to exercise discretion to provide such relief as part of a one-time action.’ Such an outcome would fly in the face of the electorate’s decision to change the party in charge of the Executive Branch.”

The States urge the Biden Administration to withdraw the unauthorized rule to allow the new administration, changing January 20, 2025, to determine the best course of action moving forward.

Missouri is joined in the letter by Alabama, Alaska, Florida, Georgia, Indiana, Idaho, Iowa, Kansas, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, and West Virginia.

Read the full letter here

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