A group of Democratic lawmakers led by Senate Majority Leader Charles Schumer
Chuck SchumerSenate nominates Senate first black secretary OVERNIGHT ENERGY: Senate Committee promotes Granholm nomination to lead Energy | EPA nominee Regan promises ‘urgency’ on climate change during confirmation hearing | Omar calls on Biden to block the pipeline being built in Minnesota. Biden’s approval stands at 49 percent in new Quinnipiac poll MORE (NY) and Sen. Elizabeth Warren
Elizabeth WarrenTop Democrats urge Yellen to tackle dark money groups against money: Biden mentions Dems, insists the big COVID account | Biden’s SEC choice overturned when GameStop drama unfolds Bezos steps down as Amazon’s CEO, Overnight Defense: Pentagon chief puts hundreds out of advisory panels Defense choice discusses Trump transition barriers | Aircraft carrier returning home MORE after ten months (Mass.) On Thursday again introduced a measure asking President Biden to forgive up to $ 50,000 in federal student debt per borrower.
The resolution of Schumer, Warren and Democratic Reps. Ayanna Pressley
Ayanna PressleyHouse Democrats press Biden over the distribution of vaccines for people of color Communities of color left behind in the deployment of vaccines Lawmakers remember actress Cicely Tyson MORE (Mass.), Ilhan Omar
Ilhan OmarHouse approves budget resolution for COVID-19 package OVERNIGHT ENERGY: Senate Committee promotes Granholm nomination to lead Energy | EPA nominee Regan promises ‘urgency’ on climate change during confirmation hearing | Omar calls on Biden to block the pipeline being built in Minnesota. Omar makes a whitewash of GOP a false resemblance to Greene. (Minn.), Alma Adams
Alma Shealey Adams Record number of black women elected to Congress in 2020 Armed Trump supporter arrested in North Carolina’s polling station From HBCUs to Capitol Hill: How Congress Can Play a Important Role MORE (NC) and Mondaire Jones (NY) are not legally binding, but will serve as a formal congressional approval of a popular but polarizing progressive proposal. A similar resolution was introduced in the previous Congress.
“We are not going to disappoint until we achieve this, until $ 50,000 debt is forgiven for every student in the country,” Schumer told a news conference Thursday. “Let’s get it done.”
Biden has come under increasing pressure from progressive and loan advocates to unilaterally wipe out a large portion of the $ 1.6 trillion student loan debt owned by the federal government, which owes more than 43 million people.
White House Press Secretary Jen Psaki
Jen PsakiOn The Money: Biden commits to 400 checks but is open to eligible limits | House approves budget resolution for COVID-19 package McConnell seeks to garner political votes on the budget votes. Overnight Health Care: Biden commits up to 400 checks but is open to restrictions | CDC Director: Vaccination of teachers ‘no prerequisite’ for safe school reopening | Coronavirus infections, hospitalizations that fall Psaki aims to explain Biden comments with praise for ‘the vast majority’ of FBI agents. reiterates Biden’s earlier support for $ 10,000 in student debt relief per borrower through legislation, but doubts he will take executive action to do so if Congress does not send a bill to him.
“Debt relief, of course, is a top priority for the president,” Psaki said, adding that Biden extended Trump’s interruption in federal investment and interest rate hikes until September hours after his inauguration.
“[Biden] has already taken a step through an executive action on the first day and he will look to Congress to take the next steps, ‘Psaki added.
Proponents of her case have been working to make the actual transcript of this statement available online.
“Data shows that the cancellation of the student loan debt will result in higher homeownership rates, more housing stability, improved credit values, higher incomes, higher GDP, more small businesses and more jobs,” Warren said. In December, Biden said a ‘moral obligation’ to eradicate student loan debt.
“The cancellation of student loan debt is good for you, whether you have a student loan debt or not, because it’s good for our economy,” Warren said.
Supporters of debt forgiveness say it will also help reduce the racial wealth gap, given the relatively higher rates of crime for student loans among black and Spanish borrowers.
“The student debt crisis has always been a matter of racial and economic justice, but for too long the story has excluded black and Latinx communities, and the ways in which this debt has exacerbated deep-seated racial and economic inequalities in our country,” Pressley said. said. , a member of the Home Financial Services Committee.
The resolution calls on Biden to instruct the education secretary to use the provisions of the Higher Education Act and forgive up to $ 50,000 in debt per borrower. It also asks Biden to order the IRS to waive tax on the canceled loans, as forgiven debt is typically considered taxable income in the US.
The plan proposed in the resolution will be erased about 80 percent according to federal possession students, according to an analysis by Beacon Policy Advisors, a DC research firm.
The passage of the resolution would be an important symbolic victory for debt forgiveness advocates, and could help increase the pressure on Biden to follow suit.
Nevertheless, Biden has already mastered the Republicans for signing dozens of executive actions shortly after taking office and is likely to be excited by the GOP for implementing a massive debt forgiveness plan himself.
Economists are divided over the potential benefits of broad loan forgiveness, as even liberal analysts believe that the elimination of student loans is not the most effective way to stimulate the economy.
Whether the education secretary has the legal power to forgive student debt is also disputed. Former Education Secretary Betsy DeVos
Betsy DeVos Former Trump officials find difficult job market intensified Forgiveness talks intensify as Trump approaches Azar in office 24 hours ago in exit letter to Trump says Capitol riots could ‘affect’ legacy MORE considering whether she has the power to forgive student loan debt during the start of the coronavirus pandemic in March, but Trump legal attorneys have determined it would be illegal, according to a memorandum issued last month.
However, Schumer expressed confidence that supporters of debt forgiveness could drive enough momentum to convince Biden to forgive a certain amount. Schumer added that he and Warren discussed the matter with Biden and his economic advisers a few weeks ago, and that the president did not object to their campaign.
“I told the president when we started this, we were going to try to bring the American people together to support him when he decided – hopefully – to do so. And he had no problem with that, “said Schumer.
Updated 12:24 pm