Missouri Attorney General Andrew Bailey has spearheaded a coalition of seven states in a legal challenge against the Biden Administration’s recent student loan forgiveness initiative, known as the “SAVE” Plan. The lawsuit contends that this plan, which is projected to cost American taxpayers approximately $475 billion, surpasses the expense of the administration’s prior student loan strategy by $45 billion.
Attorney General Bailey criticized the administration’s approach, stating, “Joe Biden’s decision aims to unfairly distribute a significant financial burden onto the shoulders of working Missourians, accumulating to a half trillion dollars in college debt. The U.S. Constitution explicitly requires congressional approval for such measures, which the President has bypassed to fulfill his political objectives.” He emphasized the constitutional implications of the President’s actions and his commitment to uphold the Constitution’s integrity.
The legal filing highlights a recent precedent where the Supreme Court overturned a similar executive attempt to mandate certain demographics, including teachers and farmers, to bear the cost of others’ student loans, amounting to $430 billion. The Supreme Court’s decision underscored the limitation of presidential powers in unilaterally modifying significant aspects of the American economy. Despite this, the administration continues its efforts to implement its policies without legislative support, marking a concerning trend of governance without public consent.
This stance is reinforced by the Supreme Court’s decision in favor of Bailey’s prior legal challenge against the Biden Administration’s attempt at a unilateral wealth transfer through student loan forgiveness. The court’s ruling, favoring a 6-3 decision, invalidated the administration’s repayment scheme as unconstitutional due to its substantial fiscal impact and lack of congressional authorization.
Joining Missouri in this legal pursuit are the attorneys general from Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma, reflecting a broad opposition to the administration’s policy. This coalition underscores a significant legal and constitutional challenge to the “SAVE” Plan, marking another chapter in the ongoing debate over executive authority and student loan forgiveness.
The lawsuit can be read here.
