On Friday, after a lawsuit filed by six Republican-led states was rejected by a district court judge for lack of standing, a federal appeals court, the Eight Circuit, has granted a stay.
This means any cancellation of debts is halted until the court rules on the state’s injunction request. The court set Monday as the deadline for the government to respond to the submission by the states and Tuesday as the deadline for the states to respond.
“The ruling does not change the trial court’s rejection of the complaint, nor does it indicate that the case has validity,” according to White House press secretary Karine Jean-Pierre late Friday afternoon. Jean-Pierre added, “It essentially blocks debt discharge until a judge decides.”
One of two things can happen in the upcoming days; either the court can issue an injunction and the pause will last longer or it can dismiss the case and the program can carry on.
The federal appeals courts is expected to announce a ruling possibly as early as next week.
In a document sent to the Eight Circuit court on Thursday night, the suing states maintain their conviction that their claims are likely to win on the merits and that they have raised substantial or close questions on whether they have the standing to bring this action.
Once a debt is canceled, the states will be unable to redress the full extent of all the injuries they are experiencing, according to state attorneys from Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina, who have filed the existing lawsuit.
Mr. Biden responded by stating, “Republican member of Congress and Republican governors are trying everything possible to deny this assistance, including their voters.
Establishing standing, which is the ability to sue another party for harm in court, was always expected to be asignificant obstacle for those opposed to Mr. Biden’s debt relief plan. Several lawsuits filed against the government by individuals and organizations have already been dismissed for lack of standing.
The Biden administration has already reduced its strategy to prevent legal challenges. Late in September, the Department of Education announced that some Federal Family Education Loans could no longer be combined into forgivable direct federal loans. Now, hundreds of thousands of borrowers who believed they were eligible for student loan forgiveness will not have their debts eliminated due to this modification.
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