Biden v. Nebraska

On June 30, 2023, the U.S. Supreme Court decided Biden v. Nebraska, striking down the Biden administration’s plan to cancel up to $20,000 in federal student loan debt for millions of borrowers. Invoking the HEROES Act of 2003, the Secretary of Education argued the COVID-19 national emergency permitted such relief. Six states, led by Nebraska and Missouri, sued, contending the program vastly exceeded statutory authority and would harm state revenues. In a 6-3 decision, the Court held that the Act’s text did not authorize sweeping loan forgiveness. Writing for the majority, Chief Justice Roberts applied the major questions doctrine, reasoning that a program of such economic and political magnitude required clear congressional authorization. The dissent, led by Justice Kagan, argued that the plain language of the HEROES Act granted the Secretary broad power to “waive or modify” loan provisions. The decision nullified the debt relief, affecting over 40 million borrowers.

The Supreme Court, in a 6-3 decision, ruled the Biden administration's student loan forgiveness program unlawful. The majority held that the HEROES Act did not authorize the Secretary to implement such extensive debt cancellation. The lower courts' injunctions were affirmed, and the program was permanently vacated.

Whether the HEROES Act of 2003 grants the Secretary of Education the authority to establish a large-scale student loan forgiveness program that would cancel hundreds of billions of dollars in debt, or whether such an action, under the major questions doctrine, requires explicit congressional authorization.

The ruling immediately halted debt relief for approximately 43 million Americans, exacerbating financial burdens and igniting renewed debate on college affordability. It significantly reinforced the major questions doctrine, constraining future executive agency actions by demanding unambiguous statutory authorization for policies with vast economic impact. Politically, the decision marked a major defeat for President Biden’s domestic policy agenda and intensified partisan divisions over the scope of administrative power.