House Democrats scale back $10,000 student loan forgiveness measure in their coronavirus spending package because it cost too much

• House Democrats are scaling back their efforts to provide student debt relief, Politico first reported.
• A new amendment to the HEROES Act would limit relief for people who had been in dire financial straits before March 13, the day President Trump declared a national emergency.
• The initial provision to forgive up to $10,000 in student loans was projected to cost between $250 billion and $300 billion, a larger price tag than Democrats had expected.
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House Democrats introduced an amendment to their coronavirus relief spending package on Thursday that significantly scaled back a provision enabling student debt relief.

Politico first reported the development, which would limit the number of people who qualify for debt relief. Initially, the HEROES Act would have forgiven up to $10,000 for all borrowers of federal and private student loans.

But after the revision, debt forgiveness would be restricted for people who had been "economically distressed" on March 12. It's the day before President Trump declared a national emergency due to the coronavirus pandemic.

Borrowers would be categorized in dire financial straits if their monthly payments amounted to zero. People in default or delinquent on their payments would also qualify for debt relief under the new amendment.

The Congressional Budget Office estimated the initial provision would have cost between $250 billion and $300 billion, a much heftier price tag than Democratic lawmakers had expected, Politico reported.

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Democrats like Sen. Elizabeth Warren had championed the move when the House proposal was unveiled on Tuesday. She wrote on Twitter the plan would "provide relief to millions of student borrowers crushed with debt."

Progressives are likely to be critical of the new amendment.

Other elements of the spending package have elicited some backlash. In particular, Democrats are trying to temporarily suspend a cap on the amount of state and local taxes that can be deducted from federal income taxes. The move would benefit mostly high-income taxpayers residing in highly-taxed states.

Currently, the CARES Act that Congress approved in March suspended interest, payments, and collection on student loans through September 30, according to The Washington Post. The Democratic bill would extend those breaks until Sept. 2021.

Republicans are staunchly opposed to the House legislation and they've attacked it as an unrealistic liberal wish list. Senate Majority Leader Mitch McConnell on Thursday also lambasted another provision that would send $1,200 stimulus checks to immigrants that had been shut of the initial wave of federal payments.

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But calls are mounting for lawmakers to enact further coronavirus relief measures to rescue a cratering economy and limit the financial pain for Americans.

McConnell said in a Fox News interview on Thursday there was a "high likelihood" of another large spending package to confront the pandemic.

More than 36 million have filed for unemployment in the last two months, underscoring the severity of the crisis as unemployment surges to levels unseen since the Great Depression.