Texan Federal Judge Strikes Down Biden's Student Debt Program as 'Unlawful'

President Joe Biden's effort to forgive student loan debt was dealt a significant setback after a federal judge in Texas ruled that the program is unconstitutional and must end.

U.S. District Court Judge Mark Pittman issued an order on Thursday striking down the program that was expected to grant $20,000 in loan debt relief to over 40 million Americans who earn less than $125,000 per year. The program has brought court challenges from critics who say it's unfair to taxpayers and is legally questionable. The judge's ruling is the latest in a string of legal complications as Biden seeks to keep a key campaign promise.

Pittman, who was appointed by former President Donald Trump, wrote in his ruling that Biden's program is "an unconstitutional exercise of Congress's legislative power and must be vacated."

White House press secretary Karine Jean-Pierre said in a statement Thursday evening that the Department of Justice had filed an appeal and that the Biden administration would "never stop fighting for hardworking Americans most in need – no matter how many roadblocks our opponents and special interests try to put in our way."

Jean-Pierre said that 16 million borrowers had been approved for relief by the Department of Education, and that their information will be held so it can be processed after the appeal.

The ruling from Pittman concerns a lawsuit that's separate from a legal challenge brought by six Republican-led states seeking to halt the program. The lawsuit that was the subject of Pittman's ruling was filed in October by Myra Brown and Alexander Taylor, two Texas residents who have student loan debt but are ineligible under the rules of Biden's relief program.

Their lawsuit agued that the Biden administration did not follow requirements intended to give the public a chance to weigh in before enacting the program. It also argued the Biden administration was on shaky legal grounds by justifying the program on the Higher Education Relief Opportunities for Students (HEROES) Act, which was passed in 2003 to prevent military personnel deployed after the 9/11 attacks from falling behind on their loans.

"The Court is not blind to the current political division in our country," Pittman wrote in his order. "But it is fundamental to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved. And having interpreted the HEROES Act, the Court holds that it does not provide 'clear congressional authorization' for the Program..."

Biden's program, announced in August, allows single borrowers earning less than $125,000 to cancel $10,000 worth of loan debt, and married couples with a joint income of $250,000 to eliminate $20,000. Pell Grant recipients are eligible for up to $20,000 in relief. The program also comes with a price tag as high as $400 billion.

The lawsuit argues that millions of Americans are arbitrarily excluded by the program. Brown, who has $17,000 in debt, is ineligible because her debt is privately held, and Taylor does not qualify for the full amount of debt forgiveness because he did not receive a Pell Grant when he was in college, the lawsuit states.

During the coronavirus pandemic, the Trump administration suspended repayment of federal student loans as an economic relief measure. Biden continued the suspension after taking office and faced pressure from his base to forgive all or some of the debt to help households saddled with student loans.

Update 11/10/22, 10:35 p.m. ET: This story has been updated with a statement from the White House.