Biden v. Nebraska

In August 2022, President Biden announced a student debt relief plan under the HEROES Act, canceling up to $20,000 for Pell Grant recipients and $10,000 for others earning below income thresholds. Six Republican-led states, led by Nebraska, sued, arguing the plan exceeded statutory authority and would harm state revenues. On June 30, 2023, the U.S. Supreme Court ruled 6-3 that the Secretary of Education lacked clear congressional authorization for such sweeping loan forgiveness. The majority held the states had standing through Missouri's loan servicer. The decision blocked relief for over 40 million borrowers and marked a major application of the major questions doctrine.

The Supreme Court held 6-3 that the Biden administration's student loan forgiveness program exceeded the Secretary of Education's authority under the HEROES Act. Chief Justice John Roberts wrote the majority opinion, finding the states had standing and that the program was an impermissible exercise of executive power. Justices Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson dissented.

Whether the HEROES Act grants the Secretary of Education authority to implement broad student loan debt cancellation, and whether the plaintiff states have standing to challenge the program.

The ruling blocked debt relief for an estimated 43 million Americans, fueling public debate over student debt, executive overreach, and higher education affordability. It prompted the Biden administration to pursue alternative relief through negotiated rulemaking and the SAVE repayment plan, while becoming a key issue in the 2024 elections and ongoing legal battles over administrative power.