A nationwide injunction was imposed by a federal appeals court temporarily blocking the Biden administration’s student loan debt reduction program.
The injunction was imposed by the 8th U.S. Circuit Court of Appeals in St. Louis after six red-states, Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina argued against the program citing tax implications and lack of congressional approval.
The Supreme Court has already been petitioned to quickly block the program but thus far has declined to do so. But this injunction likely sets up a Supreme Court battle as only they can overrule the decision:
“We GRANT the Emergency Motion for Injunction Pending Appeal. The injunction will remain in effect until further order of this court or the Supreme Court of the United States.” said the appeals court in it’s ruling.
This decision is the most recent in a long line of setbacks for the student reduction program. The program was already on hold after a federal district judge ruled it unconstitutional last week.
The Biden administration’s student loan forgiveness program would forgive up to $10,000 in federal student loans for most eligible borrowers and up to $20,000 for Pell Grant recipients. The student loan forgiveness program was intended to fulfill a campaign promise made by Joe Biden but has been challenged in court by conservatives since its announcement.