SCOTUS Drops Two Momentous Decisions Before Its Summer Vacation
SCOTUS strikes down Biden’s student debt plan, limits LGBTQ protections.
As we have talked about before on our podcast, the president (any president) cannot cancel large amounts of student debt.
And we discussed in this episode, why we felt, and knew SCOTUS would find in favor, that a web designer can refuse to create websites for same-sex weddings. Al this coming down Friday, 6/30.
Both landmark decisions were decided by a 6–3 vote.
The high court dropped the rulings on the last day of its term. So, let’s dig into what the justices did before heading off for their summer vacation.
Student debt relief scores an F
The Supreme Court struck down the Biden administration’s plan to forgive an estimated 43 million eligible borrowers up to $20,000 in student debt.
(put your smartphone sideways as you calculate that one - potentially $860,000,000,000 - though only 26 million borrowers had already signed up for the relief)
SCOTUS ruled that the president needed congressional approval to direct his Education Secretary to cancel so much student debt.
The court’s decision rejected the administration’s justification that its plan was legal under a 2003 law that lets the Department of Education issue student debt relief in a national emergency.
An appeals court had already halted the program. But, does it mean that when student loan repayments start up again in October after a three-year pause for Covid, debt relief won’t be available.
Critics claimed it could fuel inflation and mostly helped people who were already privileged.
Despite the loss, President Biden vowed to find other ways to ease the burden of American student loan borrowers, who collectively owe $1.77 trillion in education debt, per the Education Data Initiative, saying his administration is already working to enact a different debt relief program under another law.
(Because, as we all know, these students signed these college loans under duress.)
Free speech wins out
SCOTUS also decided that Christian graphic designer Lorie Smith, who says she’d like to get into the wedding website business, has the right to refuse to design websites for same-sex couples.
The conservative majority ruled that…
She is exempt from a Colorado state law that makes it illegal for businesses to refuse service to clients based on sexual orientation. Why? Because her profession is a creative one.
Forcing her to make a website with content she’s opposed to would violate her First Amendment right to freedom of speech.
(We thought the decision might go the way of freedom of religion - who knew?)
In their dissent, the 3 justices called the decision a “license to discriminate” and said it would have “the immediate, symbolic effect” of giving LGBTQ people second-class status. Critics worry it could allow bigoted businesses to deny service to other minorities as well.
As we note in our episode, this may also OPEN the door to businesses who see an opportunity to drive business their way. Let the open market do its thing, and see how it all evens out. It’s pretty amazing when you see it in action, with little government interference.