Protecting Taxpayers from Student Loan Bailouts Act
Sponsored By: Representative Grothman
Introduced
Summary
Blocks Title IV regulations that officials judge to raise student-aid subsidy costs. This bill would force the Education Secretary to run extra economy-wide cost checks on draft Title IV rules and stop any proposed or final action deemed both "economically significant" and likely to increase subsidy costs.
Show full summary
- The Department of Education would face a new legal duty to assess whether a draft Title IV regulation is "economically significant" and whether it would raise a subsidy cost. If the Secretary finds it would increase subsidy costs, the rule cannot move forward.
- "Economically significant" is defined to include rules likely to affect the economy by $100 million or more per year or to materially harm the economy, a sector, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities.
- These required analyses would be added on top of existing cost reviews called for by Executive Orders 12866 and 13563. The Secretary is solely responsible for these determinations and the restriction applies to actions after enactment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Limits on major student loan rules
This bill would limit major student loan rules under Title IV. Before moving forward, the Education Secretary would have to judge draft rules for economic significance and subsidy costs. Economically significant means a likely yearly impact of at least $100 million, or other major harms to the economy, jobs, health or safety, or governments. If a draft rule, proposed rule, final regulation, or executive action is both economically significant and would raise subsidy costs, the Secretary could not issue it and could take no further action on that draft. These reviews would be in addition to Executive Orders 12866 and 13563 and would start after enactment.
Sponsors & CoSponsors
Sponsor
Grothman
WI • R
Cosponsors
Johnson (SD)
SD • R
Sponsored 2/4/2025
Van Drew
NJ • R
Sponsored 2/13/2025
Roll Call Votes
No roll call votes available for this bill.
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