Limiting Education Secretary's Power

Official: Protecting Taxpayers from Student Loan Bailouts Act

IntroducedFebruary 4, 2025

Why This Matters

This bill restricts the Secretary of Education from issuing new rules that could lead to higher costs for taxpayers. It ensures that any significant regulations are carefully evaluated before being implemented.

If you are a taxpayer, this bill could prevent new education rules that might increase your costs.

Affects: Taxpayers and families who rely on federal education programs may be directly impacted by this bill.

Summary

Protecting Taxpayers from Student Loan Bailouts Act This bill limits the authority of the Department of Education (ED) to propose or issue regulations and executive actions related to federal student aid programs. The bill prohibits ED from issuing such a proposed rule, final regulation, or executive action if ED determines that the rule, regulation, or action (1) is economically significant, and (2) would result in an increase in a subsidy cost. Economically significant refers to a regulation or executive action that is likely to (1) have an annual effect on the economy of $100 million or more; or (2) adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities.

What changes is this bill making?

1. This bill would limit the Secretary of Education's ability to create new regulations. 2. The Secretary cannot propose rules that increase costs to taxpayers. 3. Any regulation deemed economically significant must undergo strict analysis. 4. If a proposed regulation raises costs, the Secretary cannot move forward with it. 5. The bill aims to protect taxpayers from potential financial burdens.

Who is affected?

Taxpayers and families who rely on federal education programs may be directly impacted by this bill.