Protecting Taxpayers from Student Loan Bailouts Act

The Protecting Taxpayers from Student Loan Bailouts Act would limit the Department of Education's authority to create new regulations and executive actions related to federal student aid programs. Specifically, the bill would prohibit the Department from issuing proposed rules, final regulations, or executive actions if the Department determines that the action is economically significant (meaning it would have an annual economic effect of $100 million or more, or materially harm the economy, jobs, competition, or other major sectors) and would increase subsidy costs to the government.

If enacted, this bill could restrict the Department's ability to implement major changes to student loan programs without additional congressional approval. This could affect various student aid initiatives, loan forgiveness programs, or repayment plan modifications that the Department might otherwise pursue through regulatory action. The bill is currently in the House and has not yet been voted on by the full chamber.