The debt ceiling proposal from House Republicans would cut President Biden’s student loan relief program in half and undermine potential future student debt relief initiatives.
Why it’s important Although the bill is anticipated to be rejected outright by the Democratic-controlled Senate, it represents the latest Republican attempt to undermine Vice President Biden’s comprehensive student debt plan, a major campaign pledge.
The bill has been threatened with a White House veto.
The United States may not be able to “continue to satisfy all of the government’s obligations” by the end of the month if Congress does not raise or suspend the debt ceiling before then, Treasury Secretary Janet Yellen warned on Monday.
Driving the news: The sweeping GOP proposal, which includes other spending cuts, would block Biden’s historic student loan relief plan that’s been in jeopardy, in addition to his revised loan repayment plan.
House Speaker Kevin McCarthy (R-Calif.) last week lauded the House GOP’s bill — which narrowly passed the chamber in a party-line vote — saying it would prohibit Biden’s “student loan giveaway for the wealthy.”
The plan would also lift the pause on federal student loan payments, currently in place until June 30 as the Supreme Court is set to decide on the constitutionality of Biden’s marquee program.