Student debt borrowers could be harmed by GOP budget proposal: Cardona

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Education Secretary Miguel Cardona slammed House Speaker Kevin McCarthy for a Republican budget proposal the White House estimates would cut 22% from the nation’s budget and tighten funding for America’s schools, going as far as to call it an attempt to “undermine education.”

On a call with reporters Tuesday, Cardona said the budget cuts would hurt students and student loan borrowers in part by eliminating loan forgiveness, “pulling 60,000 educators and support staff from schools” and “derail(ing) the response to the youth mental health crisis in this country.”

“Today we face a moment of truth in education. One that calls for all of us to come together and raise the bar for our education system and our children,” Cardona said. “But while this administration is meeting the moment with urgency and resolve, it’s clear that Republicans are planning to meet it with staggering recklessness, prioritizing extreme politics over practice policies to help our nation’s students.”

McCarthy’s office did not immediately respond Tuesday to a message seeking comment.

What is McCarthy’s proposal?

McCarthy last week revealed the GOP’s plan to raise the debt ceiling, which proposes $4.5 trillion in cuts. The “Limit, Save, Grow Act” would in part reallocate unspent COVID-19 relief money and limit other government spending and return discretionary funding to fiscal year 2022 levels, McCarthy said.

“President Biden has a choice. Come to the table and stop playing partisan political games, or cover his ears, refuse to negotiate and risk bumbling his way into the first default in our nation’s history,” McCarthy said in a speech from the House floor Wednesday.

President Joe Biden opposes any spending cuts tied to raising the debt ceiling, which is needed for the U.S. government to continue to borrow and avoid a default.

Biden said Wednesday that he would veto McCarthy’s bill if it is sent to his desk. A vote is expected this week in the Republican-controlled House, where its fate is uncertain. The legislation is likely dead on arrival in the Democratic-controlled Senate.

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The GOP’s plan comes in response to a $6.9 trillion budget proposal from Biden, which would increase funding for Title I schools and help alleviate teacher shortages.

At the SXSW EDU conference in Austin, Texas, Cardona praised the administration for committing funding to diversifying the teaching profession.

“I’ve never seen this kind of commitment to education,” he said.

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What does the Education Department say would be impacted?

The Education Department said in a news release Tuesday that the budget cuts would affect the most disadvantaged students, including those who live in rural and low-income areas, those who are enrolled in special education programs, and those who need mental health support.

“The proposal would cut approximately $4 billion in funding for schools serving low-income children, impacting an estimated 26 million students and reducing program funding to its lowest level in almost a decade — a cut equivalent to removing more than 60,000 teachers and specialized instructional support personnel from classrooms,” the release reads.

The proposed funding reductions could also lower Pell Grant award amounts for students from low-income families who rely on them to attend college and slash the number of awards, according to the Education Department. The department also said the GOP’s proposal would also “eliminate” Biden’s student debt relief plan.