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This bill would make it harder for the Secretary of Education to create or change major higher education rules if those changes would cost the federal government more money. In simple terms, before the Department of Education could move forward with certain large rules or executive actions, it would have to check whether they would increase the cost of federal student aid programs. If they would raise that cost, the secretary could not continue with the rule. The bill is aimed at keeping new education policies from leading to bigger federal spending, especially for student loan programs.
- It applies to major rules, final regulations, and executive actions connected to federal higher education law.
- For draft rules, the Education Secretary would first have to decide whether the rule would increase the subsidy cost to the government.
- If a draft rule would increase that cost, the secretary would have to stop and could not take further action on it.
- The bill defines “economically significant” as a rule likely to have an annual effect of $100 million or more, or one that could have a major impact on the economy, jobs, competition, public health, safety, or government entities.
Official Summaries
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.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 937 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 937
To limit the authority of the Secretary of Education to propose or
issue regulations and executive actions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 4, 2025
Mr. Grothman (for himself and Mr. Johnson of South Dakota) introduced
the following bill; which was referred to the Committee on Education
and Workforce
_______________________________________________________________________
A BILL
To limit the authority of the Secretary of Education to propose or
issue regulations and executive actions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Taxpayers from Student
Loan Bailouts Act''.
SEC. 2. LIMITATION ON AUTHORITY OF SECRETARY OF EDUCATION TO PROPOSE OR
ISSUE REGULATIONS AND EXECUTIVE ACTIONS.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.) is amended by inserting after section 492 (20 U.S.C.
1098a) the following:
``SEC. 492A. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR
ISSUE REGULATIONS AND EXECUTIVE ACTIONS.
``(a) Draft Regulations.--Beginning after the date of enactment of
this section, a draft regulation implementing this title (as described
in section 492(b)(1)) that is determined by the Secretary to be
economically significant shall be subject to the following requirements
(regardless of whether negotiated rulemaking occurs):
``(1) The Secretary shall determine whether the draft
regulation, if implemented, would result in an increase in a
subsidy cost.
``(2) If the Secretary determines under paragraph (1) that
the draft regulation would result in an increase in a subsidy
cost, then the Secretary may take no further action with
respect to such regulation.
``(b) Proposed or Final Regulations and Executive Actions.--
Beginning after the date of enactment of this section, the Secretary
may not issue a proposed rule, final regulation, or executive action
implementing this title if the Secretary determines that the rule,
regulation, or executive action--
``(1) is economically significant; and
``(2) would result in an increase in a subsidy cost.
``(c) Relationship to Other Requirements.--The analyses required
under subsections (a) and (b) shall be in addition to any other cost
analysis required under law for a regulation implementing this title,
including any cost analysis that may be required pursuant to Executive
Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and
review), Executive Order 13563 (76 Fed. Reg. 3821; relating to
improving regulation and regulatory review), or any related or
successor orders.
``(d) Definition.--In this section, the term `economically
significant', when used with respect to a draft, proposed, or final
regulation or executive action, means that the regulation or executive
action is likely, as determined by the Secretary--
``(1) to have an annual effect on the economy of
$100,000,000 or more; or
``(2) adversely to 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.''.
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