Gary Palmer says student loan forgiveness plan is “placing the nation on a path toward fiscal insolvency”

Brandon Moseley - March 1, 2023

On Tuesday, the U.S. Supreme Court heard oral arguments in the case of the Joe Biden student loan bailout. Congressman Gary Palmer, the Chairman of the House Republican Policy Committee (RPC), denounced Biden’s plan as “fiscally irresponsible.”

The Supreme Court heard oral arguments in Department of Education v. Brown and Biden v. Nebraska.

“This fiscally irresponsible policy by the Biden administration is rightfully receiving scrutiny before the Supreme Court,” Palmer stated. “A decision, devoid of Congressional approval, to use $400 billion in deficit spending to bail out student loans shows disregard for the 210 million Americans without student debt and for the rule of law in this country.”

“While this decision is currently halted, it is another example of this administration’s misguided policies placing the nation on a path toward fiscal insolvency,” said Palmer. “With our current national debt over $31 trillion and our deficit at $1.4 trillion, the time to restrain federal spending is long past due. This policy, along with other questionable Biden administration actions, is also another direct assault against Constitutional separation of powers.”

Members of Congress maintain that under the Constitution, the President does not have the power to appropriate money or forgive student loans.

“I call on President Biden to stop usurping the legislative authority of Congress and instead work with Congress for the benefit of all Americans to reduce our debt and reduce the burden that debt imposes on American families,” said Palmer.

“Student loan forgiveness is regressive, inequitable, and it will not stimulate the economy,” the House Republican Policy Committee wrote. “Instead, it will create an incentive for students to accumulate more debt and award as much as $192 billion to the top 20 percent of income earners. Forgiveness is fundamentally unfair because it will ultimately be paid by taxpayers—many who have faithfully paid off their student loans, worked hard to pay for college, or chose not to go to college at all.”

White House Deputy Press Secretary Olivia Dalton defended the program on Tuesday in an address to reporters.

“Well, look, the bottom line is: We’re confident in our legal authority, which is why we’ve taken the case all the way to the Supreme Court on behalf of 40 million Americans who need a little bit more breathing room, who need an opportunity to get back on their feet coming out of this pandemic and preparing to restart their loan payments,” Dalton said. “So, you know, we are focused on — on — on that. We’re focused on, and we’re confident in our legal auth- — authority to carry out this program, which is why we rolled it out in the first place. And I think you heard the administration’s lawyers making a very strong case in the court today.”

“Well, look, I think what’s important to remember is that the emergency ending doesn’t change the legal justification for the program,” Dalton said. “There was a national emergency. Millions of borrowers were nega- — negatively impacted by the pandemic and faced the risk of default on their student loans due to that emergency. And, you know, our position is: Congress gave the Secretary of Education the authority to take steps to prevent that harm, and he’s doing that.”

It could be months before the Supreme Court releases their final opinion on these two cases.

Palmer is in his fifth term representing Alabama’s Sixth Congressional District.