The Fifth Circuit federal appeal court rejected the Justice Dept’s motion seeking to retain a lower court decision that had sidetracked the program last month, giving President Joe Biden another court stumbling block on his student loans transfer program, which multiple federal courts had also blocked as illegal.
Biden had declared that he would forgive an estimated $400 billion in student loans, which just shifts the debt to tens of millions toward other Americans to pay.
As previously reported by Breitbart News, In Nov., Judge Mark Pittman with the Northern District of Texas ruled that Biden and Education Sec. Miguel Cardona lacked the legal power to act.
The Job Creators Group and its new litigation leader, Karen Harned, filed the suit.
The judge cited House Minority Leader Nancy Pelosi’s admission that the president lacked such authority, adding that Americans “are also not dominated by an all-mighty executive with a pen and a cellphone.”
The Justice Department petitioned the Fifth Circuit Court of Appeals to grant a stay blocking the judge’s verdict in order to restore the program while the appeal is being heard.
A stay would not have had that impact because the program has already been declared invalid by another federal appeals court, the Eighth Circuit, but it would have brought the Education Department closer to its aim of resuming the debt transfers to Americans that do not have student debt and would have rebooted the program if the admin. could convince the Supreme Court to remain the Eighth Circuit’s ruling.
A three-judge Fifth Circuit panel comprising of Bush 43 appointment Jennifer Elrod, Obama appointee James Graves, and Trump appointee James Ho refused the application for a stay, upholding Pittman’s ruling repealing Biden’s debt transfer. The New Orleans-based court also ordered that the appeal be considered as soon as possible after both sides filed legal arguments.