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October 12, 2022 By Troy Young

Massive New Federal Program Could Cost Taxpayers More than $1 Trillion, Violating Constitutional Separation of Powers

When President Biden announced this summer that he would use executive power to cancel hundreds of millions of dollars of student debt the Wisconsin Institute for Law & Liberty (WILL) took notice. The “One-Time Student Loan Debt Relief Plan” promised to cancel debts owed to the U.S. Treasury by tens of millions of borrowers, all without authorization of such a program by Congress or federal law. The U.S. Department of Education is expected to begin canceling debts this fall, potentially costing U.S. taxpayers more than $1 Trillion.

The Wisconsin Institute for Law & Liberty (WILL) filed a federal lawsuit against the Biden Administration recently on behalf of the Brown County Taxpayers Association (BCTA), challenging the new federal student debt forgiveness program.

From WILL:

“The lawsuit alleges that the federal student loan forgiveness program violates the constitutional separation of powers- as it was unilaterally created by the executive branch without authority- as well as the constitutional guarantee of equal protection under the law, due to official documents that outline the program’s preference toward specific races.

“WILL is also asking the court to enter a temporary restraining order to prevent President Biden and federal officials from canceling any debt before a decision is reached in the lawsuit. The lawsuit is part of a national initiative launched by WILL, the Equality Under the Law Project, which fights to protect against racial discrimination and violations of constitutional liberties. The lawsuit was filed in the United States District Court for the Eastern District of Wisconsin in Green Bay.

“The President has no authority to order a wholesale forgiveness of student loans, costing taxpayers over a trillion dollars,” said WILL President and General Counsel, Rick Esenberg. “Whether this plan is good for America is for Congress to decide. We understand the procedural challenges, but we cannot stand idly by while the President shreds our separation of powers. This can’t become the new normal for Democrats or Republicans. We will fight for the rule of law and take this issue all the way to the United States Supreme Court if necessary.”

Read WILL’s entire report here.

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