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FGA Legal Victory: The U.S. Supreme Court Rules Biden’s Student Loan Cancelation Unconstitutional

The Foundation for Government Accountability Applauds the Restoration of Fiscal Sanity and the Rule of Law, Recommends the REINS Act to Stop Future Executive Overreach

NAPLES, FL – Today, the Supreme Court of the United States ruled President Joe Biden’s executive action to cancel student loan debt unconstitutional in a 6-3 decision in the case Biden v. Nebraska. In February, the Foundation for Government Accountability (FGA) filed an amicus brief in the casechallenging the statutory and constitutional authority of the Biden administration’s costly student loan cancelation.

“Today, the Supreme Court restored fiscal sanity, the separation of powers, and the rule of law. FGA was honored to fight alongside state attorneys general in this legal battle to defend and uphold these fundamental American principles. This legal victory is a complete vindication of our arguments,” said Stewart Whitson, legal director for the Foundation for Government Accountability. “FGA argued from the beginning that President Biden lacked the authority to fulfill his campaign promise to ‘cancel’ student loan debt. His action was not only economically harmful and unjust, but today was also ruled unconstitutional.”

The lawsuit, originally filed in federal court in the Eastern District of Missouri, was brought by six states and the broader legal battle including student loan borrowers, 17 more states, and numerous organizations representing taxpayers and impacted Americans. FGA joined the fight on behalf of the hardworking men and women who chose not to go to college or made significant sacrifices to avoid incurring more debt than they could pay back, yet were going to be forced to pay for the loans of others.

“The Court stopped President Biden’s reckless executive overreach this time, but Congress can prevent massive administrative spending in the future by taking back control of Washington with the REINS Act—the reform that requires congressional approval of economically significant regulatory actions like a student loan bailout,” said Tarren Bragdon, FGA’s President and CEO. “If the REINS Act had been law, Congress could have stopped this student loan bailout scheme in its tracks, and they would have the power to stop future costly bureaucratic actions like it.”

For more FGA research on the REINS Act, visit our REINS page.

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The Foundation for Government Accountability (FGA) is a non-profit, multi-state think tank that promotes public policy solutions to create opportunities for every American to experience the American Dream. To learn more, visit TheFGA.org.

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