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U.S. NEWS Friday 4 OctOber 2024
Biden's student loan cancellation free to move forward as court

order expires

By COLLIN BINKLEY ment that the policy would
AP Education Writer hurt the state's income tax
WASHINGTON (AP) — Presi- revenue, but he found that
dent Joe Biden's latest at- Missouri has "clear stand-
tempt at student loan can- ing" to sue.
cellation is free to move Missouri is suing on behalf
ahead — at least tempo- of MOHELA, a student loan
rarily — after a judge in servicer that was created
Georgia decided that a by the state and is hired by
legal challenge should be the federal government to
handled by a court in Mis- help collect student loans.
souri. In the suit, Missouri argues
Biden's plan has been on that cancellation would
hold since September af- hurt MOHELA's revenue be-
ter seven Republican-led cause it's paid based on
states challenged it in fed- the number of borrowers it
eral court in Georgia. But serves.
on Wednesday, a federal In their lawsuit, the Repub-
judge decided not to ex- lican states argue that the
tend the pause and instead Education Department
dismissed Georgia from had quietly been telling
the lawsuit, finding that it President Joe Biden speaks about student loan debt, April 8, 2024, in Madison, Wis. loan servicers to prepare
lacked the legal right, or Associated Press for loan cancellation as
standing, to sue. early as Sept. 9, bypassing
U.S. District Court Judge J. free to finalize a rule paving who have been repay- tion. That plan would have a typical 60-day waiting
Randal Hall opted to send the way for cancellation, ing their loans for 20 or 25 eliminated up to $20,000 period for new federal rules
the suit to Missouri, one of though it would likely take years, and those who went for 43 million Americans. to take effect.
the remaining states in the days or weeks to carry out. to college programs that The Supreme Court reject- The courts are now asking
case. On Thursday, those Biden's plan would cancel leave graduates with high ed Biden's first proposal in the Missouri court to act
states filed a request asking at least some student loan debt compared to their in- a case brought by Repub- quickly saying the Educa-
the Missouri court to block debt for an estimated 30 comes. lican states including Mis- tion Department could "un-
the plan. million borrowers. Biden told the Education souri, which now takes the lawfully mass cancel up to
Without a new obstacle, It would erase up to $20,000 Department to pursue can- lead in the latest lawsuit. hundreds of billions of dol-
the Biden administration in interest for those who cellation through a federal In his order Wednesday, lars in student loans as soon
could push the proposal have seen their original bal- rulemaking process after Hall said Georgia failed to as Monday."
toward the finish line as ances increase because of the Supreme Court reject- prove it was significantly Also joining the suit are Ala-
soon as Friday. The Educa- runaway interest. It would ed an earlier plan using harmed by Biden's new bama, Arkansas, Florida,
tion Department would be also provide relief to those a different legal justifica- plan. He rejected an argu- North Dakota and Ohio.q

Remember the shortage of medical

gowns during COVID? Feds spending

$350 million for stockpile

By AMANDA SEITZ the many purchases the In total, about 250 million
Associated Press Administration for Strate- gowns should be manu-
WASHINGTON (AP) — Six gic Preparedness and Re- factured under the deal.
U.S. companies will spend sponse has made in recent It'll leave the stockpile with
at least $350 million to man- years to restock the emer- about a 90-day supply of
ufacture medical gowns gency coffers, assistant sec- the gowns should another
to store in the Strategic retary Dawn O'Connell said. emergency hit. The agen-
National Stockpile, years The administration wants cy has also stockpiled 1.5
after doctors and nurses to "make sure the country billion gloves and 1.1 billion Workers carry boxes at a Strategic National Stockpile warehouse
working in hospitals found would never be caught in masks. in Oklahoma City, Okla., April 7, 2020. Associated Press
themselves without the the same position they were The Strategic National
equipment while COVID-19 in 2020, when the stockpile Stockpile is supposed to the globe. purchase the products on
raged. was opened on one of keep a robust supply of The early days of the pan- their own, without help from
The purchase of the gowns our worst days, one of our medicines, vaccines, medi- demic were marked by im- the federal government.
is one of the final steps to- worst months, and people cal equipment and supplies ages of doctors and nurses Some states even bought
ward shoring up the per- couldn't find what they at the ready for disasters wrapping themselves in too much, leaving them with
sonal protective equipment needed in it," O'Connell and pandemics. trash bags. People turned a glut of hastily purchased
in the stockpile after it was said. But that didn't happen to cloth masks after medical medical equipment, some
depleted just weeks into the A range of U.S. companies in 2020, when COVID-19 masks became virtually im- of them cheaply made or
COVID pandemic. Equip- were selected to manufac- started its spread in an out- possible to find. Companies expired. States, an Asso-
ment had not been regu- ture the gowns, including a break that would ultimately illegally gouged the price of ciated Press investigation
larly restocked in the years California lacrosse equip- kill more than 1.2 million some medical necessities, found, have trashed millions
before the crisis began. ment maker and a New people in the United States like gloves or masks. And of gloves, masks and gowns
The new gowns are among York embroidery studio. and millions more around many states were left to in recent months.q