Department of Education v. Brown

Docket: 22-535

Opinion Date: June 30, 2023

Judge: Samuel A. Alito, Jr.

Areas of Law: Civil Procedure, Government & Administrative Law

Before the resumption of federal student-loan repayments that had been suspended during the coronavirus pandemic, the Secretary of Education announced a Plan that would discharge $10,000-$20,000 of an eligible borrower’s debt. The Secretary invoked the 2003 Higher Education Relief Opportunities for Students Act (HEROES Act), which authorizes the Secretary “to waive or modify any provision” applicable to federal student financial assistance programs as “necessary” to ensure that recipients of student financial assistance are no worse off “financially in relation to that financial assistance because” of a national emergency or disaster, 20 U.S.C. 1098. The Act exempts rules promulgated under it from otherwise-applicable negotiated rulemaking and notice-and-comment processes. Borrowers who did not qualify for the Plan's maximum relief alleged that the Secretary was required to follow those rulemaking procedures.

The Supreme Court held that the borrowers lacked Article III standing, having failed to establish that any injury they suffer from not having their loans forgiven is fairly traceable to the Plan.

The Department also claims authority to forgive loans under the Higher Education Act (HEA), 20 U.S.C. 1082(a)(6). The borrowers cannot show that their purported injury of not receiving HEA loan relief is fairly traceable to the Department’s decision to grant relief under the HEROES Act. They are not claiming that they are injured by not being sufficiently included among the Plan’s beneficiaries but argue the Plan is unlawful and instead seek HEA debt forgiveness. The Department’s authority to grant HEA loan relief is not affected by whether the Plan is lawful. Any incidental effect of the Plan on the likelihood that the Department will undertake loan forgiveness under a different statute is too speculative to show that the absence of HEA-based loan forgiveness is fairly traceable to the Plan.

303 Creative LLC v. Elenis

Docket: 21-476

Opinion Date: June 30, 2023

Judge: Neil M. Gorsuch

Areas of Law: Civil Rights, Communications Law, Constitutional Law

Smith, wanting to expand her graphic design business to include wedding websites, worried that the Colorado Anti-Discrimination Act would require her to create websites celebrating marriages that defy her belief that marriage should be between one man and one woman. Smith intends to produce a story for each couple using her own words and original artwork, combined with the couple’s messages. The Tenth Circuit affirmed the denial of Smith’s request for an injunction.

The Supreme Court reversed. The First Amendment prohibits Colorado from forcing a website designer to create expressive designs conveying messages with which the designer disagrees. The First Amendment protects an individual’s right to speak his mind regardless of whether the government considers his speech “misguided.” Generally, the government may not compel a person to speak preferred messages. The wedding websites Smith seeks to create involve her speech and are pure speech protected by the First Amendment. Colorado seeks to put Smith to a choice prohibited by precedent. If she wishes to speak, she must either speak as Colorado demands or face sanctions for expressing her own beliefs.

Public accommodations laws are vital to realizing the civil rights of all Americans; governments have a “compelling interest” in eliminating discrimination in places of public accommodation. States may protect gay persons, just as they protect other classes of individuals. However, public accommodations laws are not immune from the demands of the Constitution. Smith does not seek to sell an ordinary commercial good but intends to create “customized and tailored” expressive speech “to celebrate and promote the couple’s wedding.” Speakers do not shed their First Amendment protections by accepting compensation or employing the corporate form to disseminate their speech. Smith will gladly conduct business with those having protected characteristics when the product she is creating does not violate her beliefs.

Biden v. Nebraska

Docket: 22-506

Opinion Date: June 30, 2023

Judge: John G. Roberts, Jr.

Areas of Law: Education Law, Government & Administrative Law

The Higher Education Act governs federal financial aid, 20 U.S.C. 1070(a), and authorizes the Secretary of Education to cancel or reduce loans held by some public servants and borrowers who have died, become permanently and totally disabled, are bankrupt, or whose schools falsely certify them, close down, or fail to pay lenders. Under the Higher Education Relief Opportunities for Students Act (HEROES Act), the Secretary “may waive or modify" any statutory or regulatory provision applicable to the loan programs as the Secretary deems "necessary in connection with a war or other military operation or national emergency.” As the COVID–19 pandemic was ending, the Secretary invoked the HEROES Act to issue “waivers and modifications” reducing or eliminating most borrowers' federal student debt. States challenged the plan. The Eighth Circuit issued a nationwide preliminary injunction.

The Supreme Court found that the plan exceeded the Secretary’s authority, first holding that at least Missouri had standing. The plan would cost the state's nonprofit government corporation about $44 million a year in fees.

The HEROES Act allows the Secretary to “waive or modify” existing statutory or regulatory provisions but does not allow the Secretary to rewrite the Education Act to the extent of canceling $430 billion of student loan principal. The Secretary may make modest adjustments to existing provisions, not transform them. The Act includes narrowly-delineated situations that qualify a borrower for loan discharge; the Secretary has extended such discharge to nearly every borrower. The plan constitutes “effectively" a "whole new regime.” The question is not whether something should be done; it is who has the authority to do it. The basic and consequential tradeoffs inherent in mass debt cancellation are ones that Congress would likely have intended for itself.

News & Notes on Google Local Services Ads: June 2023

Justia Amplify Team

The most recent Google Partner newsletter included key information for lawyers and law firms using Google LSAs as part of their well-rounded legal marketing strategy. Keep reading this post for more details.

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