Biden's student loan handout struck down by federal judge in Texas

Biden's plan aimed to cancel up to $20,000 in student loan debt

A federal judge in Texas struck down President Biden's student loan handout in a Thursday night ruling.

Biden's plan, which aims to cancel up to $20,000 in student loan debt for Pell Grant recipients in college and up to $10,000 for others who borrowed using federal student loans.

"Whether the Program constitutes good public policy is not the role of this Court to determine. Still, no one can plausibly deny that it is either one of the largest delegations of legislative power to the executive branch, or one of the largest exercises of legislative power without congressional authority in the history of the 
United States," United States District Judge Mark Pittman wrote. 

President Joe Biden

President Joe Biden speaks during a campaign event where he joined New York Gov. Kathy Hochul at Sarah Lawrence College in Yonkers, N.Y., Sunday, Nov. 6, 2022.  (AP Photo/Craig Ruttle / AP Newsroom)

"In this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government…The Court is not blind to the current political division in our country. But it is fundamental to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved. And having interpreted the HEROES Act, the Court holds that it does not provide ‘clear congressional authorization’ for the Program proposed by the Secretary," 

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President Biden speech

U.S. President Joe Biden addresses the 76th Session of the U.N. General Assembly on September 21, 2021 at U.N. headquarters in New York City.  (Timothy A. Clary-Pool/Getty Images / Getty Images)

Elaine Parker, President of Job Creators Network Foundation, which brought the lawsuit, reacted to the ruling on Thursday.

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"The court has correctly ruled in favor of our motion and deemed the Biden student loan program illegal. The judge criticized the Biden Administration program, calling it 'one of the largest exercises of legislative power without congressional authority in the history of the United States.' This ruling protects the rule of law which requires all Americans to have their voices heard by their federal government," Parker said. 

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President Joe Biden speaks at the White House

President Joe Biden speaks about the COVID-19 relief package in the State Dining Room of the White House, Monday, March 15, 2021, in Washington. (AP Photo/Patrick Semansky / AP Images)

"This attempted illegal student loan bailout would have done nothing to address the root cause of unaffordable tuition: greedy and bloated colleges that raise tuition far more than inflation year after year while sitting on $700 billion in endowments. We hope that the court’s decision today will lay the groundwork for real solutions to the student loan crisis."

White House Press Secretary Karine Jean-Pierre said that the Department of Justice has filed an appeal, adding that the Biden administration "strongly" disagrees with the decision.

"@POTUS and this Administration are determined to help working and middle-class Americans get back on their feet, while our opponents – backed by extreme Republican special interests – sued to block millions of Americans from getting much-needed relief," she added.