World
SCOTUS vs POTUS: Another Jolt For President Joe Biden's Administration
Swarajya Staff
Jul 01, 2023, 05:07 PM | Updated 05:07 PM IST
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The US Supreme Court has dealt a major blow to President Joe Biden's student loan relief programme, ruling it as unauthorised under the Heroes Act.
In a 6-3 decision led by Chief Justice John Roberts, the court's conservative majority determined that the administration did not have the power to cancel $430 billion of student loan principal.
The decision has significant implications, as the program aimed to eliminate billions of dollars in debt for millions of Americans.
In a separate decision, the court's conservative justices sided with a Christian website designer who argued against being compelled to serve a same-sex couple.
Justice Neil Gorsuch, writing for the majority, asserted that the First Amendment prohibited the state of Colorado from forcing the designer to create content that conflicted with her beliefs.
This decision has sparked debate, with Justice Sonia Sotomayor dissenting and characterising it as a "grave error" and the first instance in which a business was granted a constitutional right to refuse service to a protected class.
The Supreme Court's ruling against the student loan relief program represents a setback for President Biden's economic policy, as the program aimed to forgive up to $10,000 in debt for eligible individuals.
The Congressional Budget Office estimated the program's cost at over $400 billion. Despite the setback, the Biden administration intends to explore alternative avenues for providing student debt relief under the Higher Education Act.
Additionally, the Department of Education plans to refrain from reporting missed payments to credit agencies for a year.
President Biden criticised the Supreme Court's decision, calling it "wrong" and asserting that it misinterpreted the constitution.
Meanwhile, former Vice President Mike Pence, a Republican presidential candidate, praised the ruling as a reminder of the importance of electing leaders who support religious freedom.
Senate Democratic leader Chuck Schumer expressed his disappointment, stating that the court's decision represented a regression in terms of human rights and equal protection in the United States.
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