Sponsors (3)
The bill prioritizes protecting taxpayers from near-term increases in Title IV subsidy costs and creates short-term regulatory stability, but at the risk of politicizing policymaking and delaying or blocking regulatory updates that could protect students and yield long‑term benefits.
Taxpayers are protected from immediate new Title IV rules that would raise annual federal subsidy spending by $100M+ and from near-term regulatory changes that would increase subsidy costs.
Students and colleges/universities avoid economically significant new Title IV regulatory actions for now, giving short-term regulatory stability and predictable funding conditions for schools and borrowers.
Taxpayers receive clearer notice of congressional intent to limit taxpayer-funded student loan forgiveness and the title may increase public scrutiny and legislative debate over future student loan relief proposals.
Students and institutions may face delayed or blocked regulatory updates from the Secretary of Education that would curb fraud or otherwise protect student outcomes.
Borrower-protection and accountability regulations that require short-term spending but could produce long-term savings or better protections for students and taxpayers may be prevented.
The bill's partisan or prescriptive title language could bias public perception, narrow policymaking options, and discourage borrowers and advocates from supporting compromise relief measures.
Based on analysis of 2 sections of legislative text.
Prohibits the Education Secretary from issuing economically significant Title IV rules or executive actions that would increase a defined subsidy cost.
Official title: To limit the authority of the Secretary of Education to propose or issue regulations and executive actions.
Introduced February 4, 2025 by Glenn Grothman · Last progress February 4, 2025
Prohibits the Secretary of Education from drafting, proposing, issuing, or moving forward with any draft, proposed, or final regulation or executive action under Title IV that is “economically significant” and would increase a defined “subsidy cost.” It requires a preliminary determination for draft rules and outright bars issuance of economically significant proposed or final rules or executive actions that would raise subsidy costs, and defines “economically significant” as actions with $100 million or more in annual effects or other material adverse economic impacts. The change adds a statutory preclusion based on subsidy-cost effects in addition to existing cost analyses required by executive orders.