The $1.7 trillion omnibus funding package has been passed by the House of Representatives and the Senate and now heads to the president’s desk for his signature.
The bi-partisan legislation will fund the Biden Administration’s effort to cancel student debt for 40 million people, according to the Student Borrower Protection Center.
“Today, a bipartisan majority in Congress advanced the first year-long funding bill for the Department of Education since President Joe Biden boldly pledged to cancel student debt for 40 million Americans. Despite claims by some Republican lawmakers, this funding bill is clean and simple – a bipartisan show of financial support for the President’s promise to help all borrowers as they recover from the COVID-19 pandemic and navigate our badly broken student loan system,” said Mike Pierce, executive director for the SBPC.
This week’s votes make clear that lawmakers of both parties remain committed to supporting Education Department operations in 2023 as President Biden advances his historic effort to help American families struggling under the weight of unaffordable student debt, according to the SBPC.
In August, the Biden Administration announced it would forgive $10,000 in federal student loans for individuals earning less than $125,000 a year or married couples earning less than $250,000 combined. The plan would forgive $20,000 for Pell Grant recipients meeting the same criteria.
It is unclear how the omnibus funding will affect two court cases before the Supreme Court. The Court has agreed to hear oral arguments in both cases in late February or early March.
The Department of Education has paused payments to 30 days after litigation is resolved, or no later than June 30, 2023.
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Crystal Graham
