Biden’s second try at student loan cancellation moves forward with debate

President Joe Biden’s second attempt at student loan cancellation began moving forward Tuesday with a round of hearings to negotiate the details of a new plan. In a process known as negotiated rulemaking, 14 people chosen by the Biden administration are meeting for the first of three hearings on student loan relief. Their goal is to guide the Education Department toward a proposal after the Supreme Court rejected Biden’s first plan in June. The negotiators all come from outside the federal government and represent a range of viewpoints on student loans. The panel includes students and officials from a range of colleges, along with loan servicers, state officials and advocates including the NAACP. In opening remarks, Under Secretary of Education James Kvaal said the student debt crisis has threatened to undercut the promise of higher education. “Student loan debt in this country has grown so large that it siphons off the benefits of college for many students,” Kvaal said in prepared remarks. “Some loans made to young adults stretch into retirement with no hope of being repaid. These debt burdens are shared by families and communities.” Biden directed the Education Department to find another path to loan relief after the conservative court ruled that he couldn’t cancel loans using a 2003 law called the HEROES Act. The latest attempt will rest on a sweeping law known as the Higher Education Act, which gives the education secretary authority to waive student loans — although how far that power extends is the subject of legal debate. The department is going through the negotiated rulemaking process to change or add federal rules clarifying how the secretary can cancel debt.

Democratic Sen. Menendez says cash found in home was not bribe proceeds

Democratic U.S. Sen. Bob Menendez of New Jersey defiantly pushed back against federal corruption charges on Monday, saying nearly half a million dollars in cash authorities found in his home was from his personal savings, not from bribes, and was on hand for emergencies. Rejecting rising calls for him to resign, the influential chairman of the Senate Foreign Relations Committee said he believed he’d be cleared of charges that he took cash and gold in illegal exchange for helping Egypt and New Jersey business associates. “I recognize this will be the biggest fight yet, but as I have stated throughout this whole process, I firmly believe that when all the facts are presented, not only will I be exonerated, but I still will be New Jersey’s senior senator,” Menendez said at Hudson County Community College’s campus in Union City, where he grew up. He did not respond to questions and did not say whether he would seek reelection next year. Addressing allegations in the indictment unsealed Friday that authorities found cash stuffed in envelopes and clothing at his home, Menendez said that stemmed from his parents’ fear of confiscation of funds from their time in Cuba. “This may seem old fashioned, but these were monies drawn from my personal savings account based on the income that I have lawfully derived over those 30 years,” he said. Authorities recovered about 10 envelopes with tens of thousands of dollars in cash that had the fingerprints of one of the other defendants in the case on them, according to the indictment. Menendez also addressed his relationship with Egypt, which plays a central role in the indictment against him, suggesting he’s been tough on the country over its detention of Americans and other “human rights abuses.” “If you look at my actions related to Egypt during the period described in this indictment and throughout my whole career, my record is clear and consistent in holding Egypt accountable,” he said. Prosecutors say he met with Egyptian military and intelligence officials, passed along non-public information about employees at the U.S. Embassy in Cairo and ghostwrote a letter on behalf of Egypt asking his Senate colleagues to release a hold on $300 million worth of aid. He did not directly address those allegations Monday. The state’s Democratic leadership, including Gov. Phil Murphy, the state party chairmen and leaders of the Legislature, along with some of Menendez’s congressional colleagues, are calling on him to resign. In Washington, however, where his party holds a bare Senate majority, some of Menendez’s Democratic colleagues have stopped short of urging him to give up his seat, notably Majority Leader Chuck Schumer of New York, and Majority Whip Dick Durbin of Illinois.

A Supreme Court redistricting ruling gave hope to Black voters

The Supreme Court’s decision siding with Black voters in an Alabama redistricting case gave Democrats and voting rights activists a surprising opportunity before the 2024 elections. New congressional maps would have to include more districts in Alabama and potentially other states where Black voters would have a better chance of electing someone of their choice, a decision widely seen as benefiting Democrats. It’s been more than three months since the justice’s 5-4 ruling, and maps that could produce more districts represented by Black lawmakers still do not exist. Alabama Republicans are hoping to get a fresh hearing on the issue before the Supreme Court. Republican lawmakers in Louisiana never even bothered to draw a new map. Khadidah Stone, a plaintiff in the Alabama case, said the continuing opposition was “appalling” but “not surprising.” She noted that Alabama is where then-Gov. George Wallace blocked Black students from integrating the University of Alabama in 1963. “There is a long history there of disobeying court orders to deny Black people our rights,” she said. A similar dynamic is playing out in Florida, where Republicans are appealing a ruling favorable to Black voters to the Republican-majority state Supreme Court. Lawsuits over racially gerrymandered congressional maps in several other states, including Georgia, South Carolina and Texas, quickly followed the Supreme Court’s landmark Voting Rights Act decision in June. But the continued pushback from Republican legislatures in control of redistricting means there is great uncertainty about whether –- or how soon -– new maps offering equal representation for Black voters will be drawn.

McCarthy juggles a government shutdown and a Biden impeachment inquiry

House Speaker Kevin McCarthy is a man who stays in motion — enthusiastically greeting tourists at the Capitol, dashing overseas last week to the G7 summit of industrial world leaders, and raising funds back home to elect fellow Republicans to the House majority. But beneath the whirlwind of activity is a stubborn standstill, an imbalance of power between the far-right Republicans who hoisted McCarthy to the speaker’s role yet threaten his own ability to lead the House. It’s a political standoff that will be tested anew as the House returns this week from a long summer recess and McCarthy faces a collision course of difficult challenges — seeking to avoid a government shutdown, support Ukraine in the war and launch an impeachment inquiry into President Joe Biden. “They’ve got some really heavy lifting ahead,” said the No. 2 Republican in the Senate, John Thune, of South Dakota. McCarthy, of California, is going to “have his hands full trying to figure out how to navigate and execute,” he said. Congress has been here before, as has McCarthy in his nearly two decades in office, but the stakes are ever higher, with Republicans powered by an increasingly hard-right faction that is refusing to allow business as usual in Washington. With former President Donald Trump’s backing, McCarthy’s right-flank pushed him into the speaker’s office at the start of the year only after he agreed to a long list of conservative demands — including the ability to call a quick vote to “vacate the chair” and remove him from office. That threat of an abrupt ouster hovers over McCarthy’s every move, especially now. To start, Congress faces a deadline to fund the government by the end of the month, or risk a potentially devastating federal shutdown. There are just 11 working days for Congress to act once the House resumes Tuesday. McCarthy and his team are pitching lawmakers on a stopgap funding bill, through Nov. 1, to keep the government running under a 30-day continuing resolution, or CR, according to a leadership aide granted anonymity to discuss the private talks. But as McCarthy convenes lawmakers for a private huddle, even the temporary funding is expected to run into opposition from his right flank. Facing a backlash from conservatives who want to slash government funding, McCarthy may be able to ease the way by turning to another hard-right priority, launching a Biden impeachment inquiry over the business dealings of the president’s son, Hunter Biden.

Some states reject federal money to find and replace dangerous lead pipes

As the Biden administration makes billions of dollars available to remove millions of dangerous lead pipes that can contaminate drinking water and damage brain development in children, some states are turning down funds. Washington, Oregon, Maine and Alaska declined all or most of their federal funds in the first of five years that the mix of grants and loans is available, The Associated Press found. Some states are less prepared to pay for lead removal projects because, in many cases, the lead must first be found, experts said. And communities are hesitant to take out loans to search for their lead pipes. States shouldn’t “shrug their shoulders” and pass up funds, said Erik Olson, a health and food expert at the environmental group Natural Resources Defense Council. “It’s troubling that a state would decide to take a complete pass on the funding because part of the reason for the funding is to figure out whether you even have lead,” Olson said. The Biden administration wants to remove all 9.2 million lead pipes carrying water to U.S. homes. Lead can lower IQ and create behavioral problems in children. The 2021 infrastructure law provides $15 billion to find and replace them. That money will help a lot, but it isn’t enough to get all the toxic pipes out of the ground. State programs distribute the federal funds to utilities. The Environmental Protection Agency said it is reviewing state requests to decline funds but did not provide a full list of states that have said no so far. That information will be available in October, officials said. States that declined first-year funds can still accept them during the remaining four years. “EPA has been working closely with our state partners on utilizing Bipartisan Infrastructure Law funding that is available,” the agency said. Lead pipes are far more common in some states such as Michigan and Illinois, which each have hundreds of thousands. The harm there is clear. Flint’s lead crisis elevated lead in tap water to a national health issue. Residents of Benton Harbor, Michigan, drank water with too much lead for years until all their lead pipes were replaced. In response, however, Michigan is clamoring for as much money as it can get to remove lead. The states that declined funds have fewer problematic pipes, but that doesn’t mean lead isn’t an issue. There’s concern about lead in some Maine schools. Portland, Oregon, has struggled with high lead levels for years, although recent tests have been better and officials say the issue isn’t lead pipes, but household plumbing.

Biden goes west to talk about his efforts to combat climate change

President Joe Biden will travel to Arizona, New Mexico and Utah next week and is expected to talk about his administration’s efforts to combat climate change as the region endures a brutally hot summer with soaring temperatures, the White House said Monday. Biden is expected to discuss the Inflation Reduction Act, America’s most significant response to climate change, and the push toward more clean energy manufacturing. The act aims to spur clean energy on a scale that will bend the arc of U.S. greenhouse gas emissions. July has been the hottest month ever recorded. Biden last week announced new steps to protect workers in extreme heat, including measures to improve weather forecasts and make drinking water more accessible. Members of Biden’s administration also are fanning out over the next few weeks around the anniversary of the landmark climate change and health care legislation to extol the administration’s successes as the Democratic president seeks reelection in 2024. Vice President Kamala Harris heads to Wisconsin this week with Commerce Secretary Gina Raimondo to talk about broadband infrastructure investments. Secretary of Agriculture Tom Vilsack goes to Oregon to highlight wildfire defense grants, Transportation Secretary Pete Buttigieg will go to Illinois and Texas, and Secretary of Education Miguel Cardona heads to Maryland to talk about career and technical education programs. The Inflation Reduction Act included roughly $375 billion over a decade to combat climate change and capped the cost of a month’s supply of insulin at $35 for older Americans and other Medicare beneficiaries. It also helps an estimated 13 million Americans pay for health care insurance by extending subsidies provided during the coronavirus pandemic. The measure is paid for by new taxes on large companies and stepped-up IRS enforcement of wealthy individuals and entities, with additional funds going to reduce the federal deficit.

Bankruptcy Filings Rise 10%, and Courts Feel the Pinch

Personal and business bankruptcy filings rose 10 percent in the twelve-month period ending June 30, 2023, compared with the previous year. Bankruptcy totals are reported four times annually by the U.S. government. According to statistics released by the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 418,724 in the year ending June 2023, compared with 380,634 cases in the previous year. Business filings rose 23.3 percent, from 12,748 to 15,724 in the year ending June 30, 2023. Non-business bankruptcy filings rose 9.5 percent to 403,000, compared with 367,886 in the previous year. On a broader scale, according to the newest statistics released by the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 418,724 in the year ending June 2023, compared with 380,634 cases in the previous year. Bankruptcy totals for the previous 12 months are reported four times annually. Filings over any 12-month period have increased only rarely since filings peaked in 2010. Bankruptcies fell sharply after the pandemic began in early 2020, despite some early COVID-related disruptions to the economy.