- Kevin McCarthy unveiled his bill to raise the debt ceiling on Wednesday.
- It included banning student-loan forgiveness and ending the payment pause.
Education Secretary Miguel Cardona isn't thrilled with Speaker of the House Kevin McCarthy's proposal to raise the debt ceiling.
On Wednesday, McCarthy unveiled the text of his legislation to raise the debt ceiling by $1.5 trillion, or until March 31, 2024, whichever happens first. The 320-page bill included $4.5 trillion in spending cuts, including strengthened work requirements on welfare programs, rescinding unspent pandemic funds, and banning student-loan forgiveness.
Cardona took issue with the latter. "Speaker McCarthy declared that he will force a catastrophic default and plunge America into recession unless he can claw back school relief dollars and prevent millions of hardworking Americans – including over 83,000 borrowers in his own district – from getting the student debt relief they need coming out of the pandemic," he said in a Wednesday statement.
"It's a shame for students and working families across the country that Republican lawmakers, many of whom benefitted from hundreds of thousands of dollars in small business loan forgiveness, continue to fight hypocritically to deny critical student debt relief to millions of their own constituents," Cardona added, referring to loan forgiveness from the pandemic-era Paycheck Protection Program.
—Secretary Miguel Cardona (@SecCardona) April 20, 2023
To be sure, McCarthy's bill is highly unlikely to be signed into law because even if it makes it to President Joe Biden's desk, it'll probably be vetoed. But the programs included in the legislation show where Republicans' priorities lie — and they're continuing to oppose any student-debt relief efforts. Along with banning Biden's plan to cancel up to $20,000 in student debt for federal borrowers, the bill also proposed ending the student-loan payment pause and blocking Cardona from implementing a reformed income-driven repayment plan.
Currently, Biden's broad debt relief is paused following two conservative-backed lawsuits that blocked the implementation of the plan, and the Supreme Court is expected to issue a final decision of the legality of the relief by June. But even if the relief doesn't go through, federal borrowers are still expected to resume payments this year — and it's unclear if the department has the resources to implement announced reforms to targeted repayment plans by then.
Despite GOP opposition, though, Biden has maintained confidence in his debt relief's legality and blasted McCarthy's efforts to prevent millions of borrowers from receiving student-loan forgiveness this year.
"Let's get this straight: MAGA House Republicans are holding the economy hostage to prevent student debt relief from happening, while making it easier for the rich to cheat on their taxes," Biden wrote on Twitter on Thursday. "Shows you whose side they're on."