A US federal judge has blocked Joe Biden’s scheme to forgive thousands of dollars in student loan debt for millions of Americans, dealing a blow to a White House policy targeting a primary concern of younger voters.
In an order handed down on Thursday, Mark Pittman, a judge in the northern district court of Texas, ruled that Biden’s plan to forgive student loan debt was “unlawful”.
Pittman, who was nominated by former president Donald Trump, said the programme was “either one of the largest delegations of legislative power to the executive branch, or one of the largest exercises of legislative power without congressional authority in the history of the United States”.
A US Department of Justice spokesperson said the government will appeal against the decision.
The decision comes as the Democratic party celebrates a stronger than anticipated performance in midterm elections on Tuesday, when an overwhelming Republican “red wave” predicted by pollsters did not materialise. Young voters turned out in force, helping to boost Democrats in some important races, and campaigners have said that the student debt relief was one of several issues that motivated them.
The plan proposed by the Biden administration would scrap up to $10,000 in debt for individuals earning up to $125,000. The non-partisan Congressional Budget Office has estimated it will cost more than $400bn.
Elaine Parker, president of Job Creators Network Foundation, the organisation that filed the Texas lawsuit on the plaintiffs’ behalf, said in a statement that the court had “correctly ruled” in their favour and that the decision “protects the rule of law”. Job Creators Network was founded by Republican donor Bernie Marcus.
The case in Texas stems from a challenge brought against the US Department of Education by two individuals who attended universities in that state. The plaintiffs argued the debt forgiveness programme violated US law because the government agency made “arbitrary decisions” on matters including which individuals — as well as which type and quantity of debt — would be included in the programme, without seeking public comment.
One plaintiff, Myra Brown, said she was excluded from the initiative because it does not apply to loans held commercially that are not in default, while another, Alexander Taylor, did not qualify for the full debt forgiveness because he did not receive a federal grant that is typically given to students in dire financial need. Taylor argued it was “unfair” for the calculation of his debt forgiveness to be based on his parents’ financial conditions years ago.
“If the Department is going to pursue debt forgiveness, plaintiffs believe that their student loan debt should be forgiven too,” the complaint said.
The case is among a string of legal challenges brought against Biden’s programme, which drew cheers from progressive Democrats when it was announced in August. Republicans and some moderate Democrats said they were worried it could potentially exacerbate inflation.
Additional reporting by Kiran Stacey