The Biden White House is up to its old tricks, and the administration’s media and academic allies have joined in with the same weak arguments.
If you supported or benefited from the Paycheck Protection Program during the COVID era, you have no standing to censure President Joe Biden’s unlawful student loan forgiveness program.
PPP loans were originally conceived as forgivable debts.
Treasury Secretary Steven Mnuchin described it as follows: the notion is that the majority of the money would be forgiven by taxpayers.
This was not intended to be a loan. It was envisioned as a grant.
American Institute of Certified Public Accountants acknowledged that although the legal form of the PPP loan is debt, some believe the loan is, in substance, a government grant and stated that it is permissible to consider the loan money to be a conditional grant.
This distinguishes them from student loans, which were intended to be repaid.
Congress structured PPP as a loan because it was the quickest method to get the money out the door.
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Exploring the Limits of Presidential Authority
Tell banks to lend the money to small businesses, and then have the Small Business Administration and Treasury reimburse the banks.
This would be quicker than Uncle Sam attempting to cut checks, and speed was of the essence in the early days of the pandemic, when panic was widespread.
Nobody asked the Supreme Court whether student loans should be forgiven. The Supreme Court was asked if the president had the authority to absolve a half-trillion dollars in loans or if only Congress had that power.
The Biden administration was aware that it lacked authority. Rep. Nancy Pelosi was also aware of this, as she recently stated:People believe that the President of the United States has the authority to forgive debts.
He does not. He can postpone. He can delay. However, he lacks this capacity. This requires an act of Congress.
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