Supreme Court Justice Amy Coney Barrett on Thursday rejected an appeal from a Wisconsin taxpayers group seeking to stop the Biden administration’s student debt cancellation program.
Barrett did not comment in turning away the appeal from the Brown County Taxpayers Association, which also has lost rounds in lower federal courts. The group wrote in its Supreme Court filing that it needed an emergency order to put the program on hold because the administration could begin canceling outstanding student debt as soon as Sunday.
Barrett oversees emergency appeals from Wisconsin and neighboring states. She acted on her own, without involving the rest of the court.
U.S. District Judge William Griesbach had earlier dismissed the group’s lawsuit, finding they didn’t have the legal right, or standing, to bring the case. A panel of appellate judges refused to step in with an emergency order.
Eligible borrowers can apply to have up to $20,000 of debt canceled.
Other legal challenges to the program are pending.
(AP)
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2 Responses
The program may be struck down in other pending lawsuits but the Wisconsin argument was clearly flawed since the plaintiffs would have a claim, and even then arguably so, if they refused to opt out of the program. Sort of illogical to argue that you will have to pay state taxes on the forgiven debt (which Wisconsin requires) given that you would only have to incur the tax obligation if you deliberately chose to allow your debt to be forgiven rather than choosing to opt out (in which case you wouldn’t have any tax obligation and incur no harm).
The issue was a temporary injunction, which is an “extraordinary” remedy. The substantive matter has yet to be litigated, though it does appear the Congress in its infinite wisdom, did authorize the president to cancel debts during an emergency, and President Trump (not Biden) did declare an emergency.