Protecting Taxpayers from Student Loan Bailouts Act

# Protecting Taxpayers from Student Loan Bailouts Act – Summary **What the Bill Would Do** This bill would restrict the Department of Education's ability to create new rules or take executive actions related to federal student loan programs if those actions would cost taxpayers money or have significant economic effects. Specifically, the Department could not implement policies that are considered "economically significant" (affecting the economy by $100 million or more annually or materially impacting jobs, competition, or other sectors) if they would increase government spending on student aid. The bill is designed to prevent what its sponsor views as costly student loan forgiveness programs or debt relief initiatives without congressional approval. **Who It Affects** This legislation would primarily affect student loan borrowers, the Department of Education, and taxpayers.

Borrowers could see limitations on potential loan forgiveness or relief programs that the administration might otherwise implement. The bill essentially requires Congress to vote on any major student aid changes rather than allowing the Department to act independently through executive action. **Current Status** The bill was introduced by Rep. Glenn Grothman (R-WI) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives.