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COVID-19

Biden's "Pandemic is Over" Remark Jeopardizes Student Debt Relief and COVID Funding

Strategic Insights

— 2 min read

In a potentially disastrous move, President Joe Biden declared the COVID-19 pandemic "over" during a 60 Minutes interview, sparking a heated debate over the implications for his administration's twin goals of student debt relief and coronavirus aid. The remarks have set the stage for a months-long impasse over COVID testing funds and may even bolster Republican efforts to challenge the president's student debt relief efforts.

Key Takeaways:

  • The White House has struggled to secure funding for COVID-19 testing and vaccines due to Republican opposition, with efforts to obtain at least $22 billion in extra coronavirus aid stonewalled for over six months.
  • The Biden administration's student debt relief policy relies on the authority granted under the HEROES Act of 2003, which allows the Education Secretary to waive or modify student-loan balances in connection with a national emergency like COVID-19.
  • Republicans are likely to increase pressure on the White House to lift the 90-day public health emergency declaration, which has allowed 16 million low-income Americans to gain health insurance through Medicaid over the past two years.
  • Top Senate Republicans are skeptical about the need for additional COVID funding, with Sen. John Cornyn stating, "If it's over, then I wouldn't suspect they need any more money."
  • Persis Yu, managing counsel at the Student Borrower Protection Center, argues that authority for debt relief under the HEROES Act likely still stands because Americans are still financially recovering from the pandemic.
  • The Biden administration has the authority to carry out its one-time $20,000 loan forgiveness policy under the Higher Education Act, which gives the Education Secretary the ability to compromise or waive balances.

Statistics:

  • The Biden administration has requested at least $22 billion in extra coronavirus aid.
  • Republicans have stonewalled this effort for over six months.
  • 16 million low-income Americans have gained health insurance through Medicaid over the past two years due to the 90-day public health emergency declaration.
  • The HEROES Act of 2003 grants the Education Secretary authority to waive or modify student-loan balances in connection with a national emergency like COVID-19.
  • The president's student debt relief policy relies on the authority granted under the HEROES Act.

Sources:

  • CBS News, "President Joe Biden 60 Minutes interview transcript," September 18, 2022
  • Insider, "Financial relief for millions of Americans relies on the existence of COVID-19 as a national emergency," September 19, 2022
  • Kaiser Family Foundation, "What will happen to Medicaid enrollees' health coverage after the public health emergency?"
  • Business Insider, "Lawsuits challenging Biden's student loan debt forgiveness plan are gaining momentum," August 2022
  • Business Insider, "The Trump administration's Education Department said canceling student loan debt is '100% illegal'," August 2022
  • Warrent.senate.gov, "Letter to Senator Elizabeth Warren re admin debt cancellation," (no date provided)

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