Latest news with #DemocraticStates
E&E News
4 days ago
- Business
- E&E News
Democratic states sue Trump administration over NSF cuts
A coalition of Democratic-led states is suing the Trump administration to stop the National Science Foundation from imposing a financial cap on research projects and canceling grants that seek to increase diversity in science, technology, engineering and math. The lawsuit, filed Wednesday in the U.S. District Court for the Southern District of New York, argues that the administration in April began terminating projects that focused on increasing the participation of women, minorities and people with disabilities. Earlier this month, the administration announced that it would also limit the amount it will pay for the indirect costs of projects, including laboratory space, equipment and facility services. The moves come as the Trump administration proposes the smallest National Science Foundation budget in decades — with $4.7 billion in cuts mainly focused on research related to climate change, clean energy and 'woke social, behavioral and economic sciences,' according to the White House. Advertisement The 16 Democratic attorneys general who joined the lawsuit argued that the moves jeopardize the United States' status as a catalyst for research.
Argaam
5 days ago
- Business
- Argaam
Federal trade court blocks Trump's emergency tariffs
A federal court struck down on May 28 many of the tariffs imposed by US President Donald Trump, describing them as 'illegal'. A three-judge panel at the US Court of International Trade in Manhattan issued its ruling early Wednesday morning, marking a victory for Democratic-led states and a group of small businesses. In their lawsuit, these companies and states claimed that Trump misused the emergency law to justify the tariffs. However, the Republican President's administration can still appeal the decision before the federal court. This ruling is considered one of the biggest legal and political defeats Trump has faced so far, amid a wave of lawsuits challenging the executive orders he has issued since taking office in January. Global markets witnessed prolonged volatility when Trump announced the blanket tariffs on April 2, wiping out trillions of dollars in market value before recovering weeks later following the suspension of the higher tariffs and the beginning of trade negotiations. The court ruled that President Trump did not have the authority to impose blanket tariffs on most countries around the world — a decision that nullifies the tariffs that sparked a global trade war and threatened to destabilize the global economy. In its decision, the court noted that it does not find that the International Emergency Economic Powers Act (IEEPA) confers such absolute authority and nullifies the challenged tariffs imposed thereunder.
Bloomberg
5 days ago
- Business
- Bloomberg
Trump's Global Tariffs Deemed Illegal, Blocked by Trade Court
The vast majority of President Donald Trump's global tariffs were deemed illegal and blocked by the US trade court, dealing a major blow to a pillar of his economic agenda. A panel of three judges at the US Court of International Trade in Manhattan issued a unanimous ruling Wednesday which sided with Democratic-led states and small businesses that accused Trump of wrongfully invoking an emergency law to justify the bulk of his levies. The court gave the administration 10 days to 'effectuate' its order, but didn't provide any specific directions of steps it must take to unwind the tariffs.
Daily Mail
5 days ago
- Business
- Daily Mail
BREAKING NEWS Trump's tariffs dealt catastrophic blow as judge rules worldwide trade levies 'illegal'... sending markets soaring
President Donald Trump 's global tariffs were declared illegal and blocked by a federal court on Wednesday in a massive blow to his administration. The ruling from a three-judge panel at the New York-based Court of International Trade came after several lawsuits from Democratic-led states and a group of small businesses argued Trump had wrongfully invoked an emergency law to justify the levies. The court agreed. 'The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,' the court wrote, referring to the 1977 International Emergency Economic Powers Act. The Trump administration is expected to appeal. Trump left U.S. trade policy dependent on his whims and unleashed economic chaos when he announced a series of tariffs on countries around the world. At least seven lawsuits challenged the tariffs, the centerpiece of Trump´s trade policy. Tariffs must typically be approved by Congress, but Trump argues he has the power to act because the country´s trade deficits amount to a national emergency. The ruling was a massive setback from the president who is facing numerous lawsuits challenging his use of his executive power.
Forbes
23-05-2025
- Business
- Forbes
Court Blocks Trump From Transferring Student Loan Portfolio — What It Means For Borrowers
A federal court in Massachusetts issued a major order on Thursday blocking President Donald Trump and Education Secretary Linda McMahon from dismantling the Department of Education and transferring the federal student loan portfolio to another agency. The court concluded that the administration's unilateral actions without approval by Congress were unlawful. The ruling also instructs the department to reinstate scores of fired employees, which could have implications for thousands of federal student loan borrowers. 'The Department's role in education across the nation cannot be understated: it administers the federal student loan portfolio, provides research and technological assistance to states and their educational institutions, disburses federal education funds, and monitors and enforces compliance with numerous federal laws,' reads the decision. 'Congress enacted these laws to promote equality and anti-discrimination in schools, assist students with special needs and disabilities, ensure student privacy, and much more.' Here's what the ruling does, and what it might mean for millions of federal student loan borrowers. The ruling was issued after a group of Democratic-led states, school districts, and labor unions filed legal challenges against the Trump administration over efforts to dismantle the U.S. Department of Education and transfer the federal student loan portfolio to another federal agency. The groups had argued that such actions were illegal without approval by Congress, as Congress established the department and its mandatory functions through legislation. In March, President Trump issued an executive order calling for the Department of Education to be dismantled. 'Closing the Department of Education would provide children and their families the opportunity to escape a system that is failing them,' said Trump in the order. 'Closure of the Department of Education would drastically improve program implementation in higher education. The Department of Education currently manages a student loan debt portfolio of more than $1.6 trillion. This means the Federal student aid program is roughly the size of one of the Nation's largest banks, Wells Fargo. But although Wells Fargo has more than 200,000 employees, the Department of Education has fewer than 1,500 in its Office of Federal Student Aid.' Some student loan borrower advocacy groups noted that it was odd that, shortly following this statement about the relatively small number of department staff, the Trump administration announced massive layoffs and staff buyouts at the Department of Education to further shrink its workforce. As a result, the Office of Federal Student Aid was effectively cut in half. 'Today's reduction in force reflects the Department of Education's commitment to efficiency, accountability, and ensuring that resources are directed where they matter most: to students, parents, and teachers,' said Secretary of Education Linda McMahon in a statement at the time. 'This is a significant step toward restoring the greatness of the United States education system.' Critics argued that the layoffs essentially amounted to a dismantling of the Department of Education from within. Shortly thereafter, President Trump unexpectedly announced that the administration would transfer the department's federal student loan portfolio to the Small Business Administration. 'I've decided that the SBA, the Small Business Administration, headed by Kelly Loeffler, will handle will all of the student loan portfolio,' Trump said to reporters at the White House in March. The transfer will happen 'immediately,' he said, although it would be impossible for such a significant administrative change to happen instantly. As of May, the federal student loan portfolio remains at the Department of Education. In the decision issued on Thursday by a federal district court judge in Massachusetts, the court ordered the Trump administration to halt all efforts at shutting down the Department of Education or transferring the federal student loan portfolio to other agencies. 'The Agency Defendants are enjoined from carrying out the reduction-in-force announced on March 11, 2025; from implementing President Trump's March 20, 2025 Executive Order; and from carrying out the President's March 21, 2025 Directive to transfer management of federal student loans and special education functions out of the Department,' said the court in the ruling. 'The Agency Defendants are enjoined from implementing, giving effect to, or reinstating the March 11, 2025, the President's March 20, 2025 Executive Order, or the President's March 21, 2025 Directive under a different name.' The court also ordered the department to reinstate all staff who had been fired pursuant to the March 'reduction in force' directive. 'The Agency Defendants shall reinstate federal employees whose employment was terminated or otherwise eliminated on or after January 20, 2025, as part of the reduction in-force announced on March 11, 2025 to restore the Department to the status quo such that it is able to carry out its statutory functions,' said the court. 'The dramatic cuts to FSA will undermine FSA's ability to monitor and fix existing and new servicing issues,' reasoned the court, noting that student loan servicing problems are no longer being actively monitored by the department. 'And in the longer term, 'FSA is now like a house of cards' incapable of withstanding 'any coming shocks to the federal student loan system,' wrote the judge. Indeed, the Department revealed in a court filing last week that there is backlog of nearly two million applications for income-driven repayment plans, a type of federal student loan program that offers borrowers affordable student loan payments and a path to eventual student loan forgiveness. And department officials have barely put a dent in a separate backlog of nearly 50,000 PSLF Buyback applications, a new component of the Public Service Loan Forgiveness program. 'It is outrageous and unacceptable that at a time when the Department of Education is being gutted, with its main energy and focus on acting as a debt collection agency, millions of borrowers are being denied their legal right to an affordable repayment option,' said Randi Weingarten, President of the American Federation of Teachers, which sued the Trump administration in March over stalled IDR applications. The new court ruling may be welcome news for many federal student loan borrowers. The court ordered the Trump administration to 'file a status report with this Court within 72 hours of the entry of this Order, describing all steps the Agency Defendants have taken to comply with this Order, and every week thereafter until the Department is restored to the status quo prior to January 20, 2025,' suggesting there will be rigorous court oversight of the administration's compliance. However, the administration is almost certain to appeal the ruling. In the meantime, House Republicans on Thursday passed sweeping reconciliation legislation that would fundamentally reshape the federal student loan system. Among other provisions, the bill would repeal several popular student loan forgiveness and repayment programs. Advocacy groups have argued that if the legislation is enacted, it could have devastating consequences and increase the monthly payments for millions of student loan borrowers as they forced to change repayment plans. It is unclear whether the Department of Education could successfully implement such massive systemwide changes effectively with a severely diminished staff.
