Protecting Taxpayers from Student Loan Bailouts Act

Protecting Taxpayers from Student Loan Bailouts Act

This bill limits the authority of the Department of Education (ED) to propose or issue regulations and executive actions related to federal student aid programs.

The bill prohibits ED from issuing such a proposed rule, final regulation, or executive action if ED determines that the rule, regulation, or action (1) is economically significant, and (2) would result in an increase in a subsidy cost. Economically significant refers to a regulation or executive action that is likely to (1) have an annual effect on the economy of $100 million or more; or (2) adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities.

Bill 118 HR 4711, also known as the Protecting Taxpayers from Student Loan Bailouts Act, aims to prevent the use of taxpayer funds to bail out student loan borrowers. The bill was introduced in the House of Representatives and is currently under consideration.

The main purpose of this bill is to ensure that the federal government does not use taxpayer money to forgive or cancel student loan debt. The bill states that any loan forgiveness or cancellation programs must be funded through existing federal student aid programs and not through additional taxpayer dollars.

Additionally, the bill includes provisions to increase transparency and accountability in student loan forgiveness programs. It requires the Department of Education to report annually to Congress on the number of borrowers who have had their loans forgiven or cancelled, as well as the total amount of taxpayer funds used for these programs. Overall, the Protecting Taxpayers from Student Loan Bailouts Act seeks to protect taxpayers from bearing the burden of student loan debt forgiveness while still providing relief to borrowers through existing federal programs. The bill is currently being reviewed by the House of Representatives and may undergo changes before being voted on.