NCLA Site Search

Unforgivable Student Loan Forgiveness

March 1, 2023

Focus Area:

Scope of Authority / Nondelegation

The structure of the Constitution allows only Congress to legislate, only the Executive to enforce laws, and only the Judiciary to decide cases. But the Administrative State evades the Constitution’s avenues of governance when executive agencies issue regulations without statutory authorization from Congress.

Scope of Authority / Nondelegation

The President does not have the legal authority to forgive student loans on his own. Only Congress can enact laws authorizing debt-forgiveness programs. And only Congress has the power of the purse to pay for debt forgiveness. That is why NCLA has filed a lawsuit on behalf of its client, Cato Institute, urging the U.S. District Court for the District of Kansas to stop the Department of Education (ED)’s student-loan-debt-cancellation plan.

Two related lawsuits against the half-trillion-dollar loan cancellation plan, Biden v. Nebraska and Dept. of Education v. Brown, have made it to the Supreme Court and will be argued on February 28, 2023. NCLA and Cato have both filed separate amicus briefs arguing the program is both unlawful and unfair. This cancellation plan, however, is merely the most prominent part of ED’s recent unconstitutional attempts at student-loan-debt-cancellation.

Since October 2020, ED has paused monthly payments and interest accrual for all student-loan borrowers, regardless of their economic situation. The forgone interest alone has cost taxpayers over $100 billion, and in January, ED announced yet a new plan to transform income-driven repayment plans into grants, which will cost another half-trillion dollars over the next decade. Like the loan-cancellation plan being argued in the Supreme Court, both the ongoing pause and the repayment proposal are unconstitutional agency actions that fail to address the unsustainable cost of higher education.

Join us March 1, 2023 as NCLA Senior Litigation Counsel Russ Ryan moderates a discussion on this thorny issue with NCLA Litigation Counsel Sheng Li and Neal McClusky, Director of the Center for Educational Freedom at the Cato Institute.

View Description

Unforgivable Student Loan Forgiveness

The President does not have the legal authority to forgive student loans on his own. Only Congress can enact laws authorizing debt-forgiveness programs. And only Congress has the power of the purse to pay for debt forgiveness. That is why NCLA has filed a lawsuit on behalf of its client, Cato Institute, urging the U.S. District Court for the District of Kansas to stop the Department of Education (ED)’s student-loan-debt-cancellation plan.

Two related lawsuits against the half-trillion-dollar loan cancellation plan, Biden v. Nebraska and Dept. of Education v. Brown, have made it to the Supreme Court and will be argued on February 28, 2023. NCLA and Cato have both filed separate amicus briefs arguing the program is both unlawful and unfair. This cancellation plan, however, is merely the most prominent part of ED’s recent unconstitutional attempts at student-loan-debt-cancellation.

Since October 2020, ED has paused monthly payments and interest accrual for all student-loan borrowers, regardless of their economic situation. The forgone interest alone has cost taxpayers over $100 billion, and in January, ED announced yet a new plan to transform income-driven repayment plans into grants, which will cost another half-trillion dollars over the next decade. Like the loan-cancellation plan being argued in the Supreme Court, both the ongoing pause and the repayment proposal are unconstitutional agency actions that fail to address the unsustainable cost of higher education.

Join us March 1, 2023 as NCLA Senior Litigation Counsel Russ Ryan moderates a discussion on this thorny issue with NCLA Litigation Counsel Sheng Li and Neal McClusky, Director of the Center for Educational Freedom at the Cato Institute.

'Peekaboo' Prosecutions: How a Private Corporation Is Acting as a Govt-Backed Star Chamber

December 13, 2022

Focus Area:

Due Process Violations

The due process of law guarantees a right to be held to account only through the processes of an impartial court—something administrative tribunals violate every day.

Due Process Violations

Scope of Authority / Nondelegation

The structure of the Constitution allows only Congress to legislate, only the Executive to enforce laws, and only the Judiciary to decide cases. But the Administrative State evades the Constitution’s avenues of governance when executive agencies issue regulations without statutory authorization from Congress.

Scope of Authority / Nondelegation

Imagine a world where Congress empowers a private corporation to secretly investigate and punish members of a particular industry. Enter the Public Company Accounting Oversight Board (PCAOB) — often derided as “peekaboo” due to its acronym and infamous secrecy. This private version of the Securities and Exchange Commission receives funding that never requires an appropriation from Congress and employs personnel who are exempt from laws designed to keep regulators in check.

This private regulator’s activity is secretly performed by staff employees with no meaningful supervision by any president-appointed government official. There is no jury and no multi-member hearing panel that includes your industry peers.

NCLA Senior Litigation Associate Russ Ryan will moderate a panel of distinguished experts to discuss the myriad problems posed by such an obviously unconstitutional private enforcement mechanism, as well as what must be done to restore our fundamental civil liberties.

About our Panel

Mike Carvin, a partner at Jones Day, is one of the leading appellate and trial lawyers challenging state and federal regulations on constitutional and statutory grounds, with 11 Supreme Court arguments and numerous high-profile victories, including Free Enterprise Fund v. PCAOB, in which the Supreme Court that held the PCAOB unconstitutional on account of the board members being improperly insulated from Presidential removal authority.

Andrew Vollmer, a senior affiliated scholar at the Mercatus Center, was the deputy general counsel at the Securities and Exchange Commission from 2006 to early 2009 as well as serving for many years as a partner in the securities litigation and enforcement practice of Wilmer Cutler Pickering Hale and Dorr LLP.

View Description

'Peekaboo' Prosecutions: How a Private Corporation Is Acting as a Govt-Backed Star Chamber

Imagine a world where Congress empowers a private corporation to secretly investigate and punish members of a particular industry. Enter the Public Company Accounting Oversight Board (PCAOB) — often derided as “peekaboo” due to its acronym and infamous secrecy. This private version of the Securities and Exchange Commission receives funding that never requires an appropriation from Congress and employs personnel who are exempt from laws designed to keep regulators in check.

This private regulator’s activity is secretly performed by staff employees with no meaningful supervision by any president-appointed government official. There is no jury and no multi-member hearing panel that includes your industry peers.

NCLA Senior Litigation Associate Russ Ryan will moderate a panel of distinguished experts to discuss the myriad problems posed by such an obviously unconstitutional private enforcement mechanism, as well as what must be done to restore our fundamental civil liberties.

About our Panel

Mike Carvin, a partner at Jones Day, is one of the leading appellate and trial lawyers challenging state and federal regulations on constitutional and statutory grounds, with 11 Supreme Court arguments and numerous high-profile victories, including Free Enterprise Fund v. PCAOB, in which the Supreme Court that held the PCAOB unconstitutional on account of the board members being improperly insulated from Presidential removal authority.

Andrew Vollmer, a senior affiliated scholar at the Mercatus Center, was the deputy general counsel at the Securities and Exchange Commission from 2006 to early 2009 as well as serving for many years as a partner in the securities litigation and enforcement practice of Wilmer Cutler Pickering Hale and Dorr LLP.

How the SEC and FTC Stack the Deck in Their Favor with ALJs

November 8, 2022

Focus Area:

Due Process Violations

The due process of law guarantees a right to be held to account only through the processes of an impartial court—something administrative tribunals violate every day.

Due Process Violations

Agencies wield tremendous power over almost all aspects of American life, enacting thousands of regulations every year that have the force of law. Many agencies, like the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC), use agency employees with the title of “administrative law judge” (ALJ) to enforce this staggering edifice of agency-made rules. These are not impartial Article III judges, but agency enforcers with an intractable bias in favor of their employer.

Under these circumstances, the process is the punishment. Agency enforcement can be brutal, often destroying the lives, reputations, and businesses of enforcement targets long before any wrongdoing is ever established. Further, in-house adjudication—where your judge’s boss is also your prosecutor—confers an staggering homecourt advantage for agencies (90% for SEC and 100% for FTC).

In 2016-17, Michelle Cochran endured one such administrative trial and was facing a second still-unconstitutional proceeding after the Supreme Court ruled in 2018 that the first judge had not been constitutionally appointed. Her suit in federal court—and a later suit by Axon—raised the question: Who decides constitutional questions?

Should it be unaccountable ALJs insulated from removal whose very competence to adjudicate is at issue, or Senate-confirmed Article III judges making an unbiased review of the constitutionality of the proceeding before it takes place?

For years, Michelle Cochran and Axon Enterprise Inc. fought to have that question answered all the way to the United States Supreme Court.

View Description

How the SEC and FTC Stack the Deck in Their Favor with ALJs

Agencies wield tremendous power over almost all aspects of American life, enacting thousands of regulations every year that have the force of law. Many agencies, like the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC), use agency employees with the title of “administrative law judge” (ALJ) to enforce this staggering edifice of agency-made rules. These are not impartial Article III judges, but agency enforcers with an intractable bias in favor of their employer.

Under these circumstances, the process is the punishment. Agency enforcement can be brutal, often destroying the lives, reputations, and businesses of enforcement targets long before any wrongdoing is ever established. Further, in-house adjudication—where your judge’s boss is also your prosecutor—confers an staggering homecourt advantage for agencies (90% for SEC and 100% for FTC).

In 2016-17, Michelle Cochran endured one such administrative trial and was facing a second still-unconstitutional proceeding after the Supreme Court ruled in 2018 that the first judge had not been constitutionally appointed. Her suit in federal court—and a later suit by Axon—raised the question: Who decides constitutional questions?

Should it be unaccountable ALJs insulated from removal whose very competence to adjudicate is at issue, or Senate-confirmed Article III judges making an unbiased review of the constitutionality of the proceeding before it takes place?

For years, Michelle Cochran and Axon Enterprise Inc. fought to have that question answered all the way to the United States Supreme Court.

Why the Govt Can't Use Social Media to Do Its Dirty Work

September 29, 2022

Focus Area:

Due Process Violations

The due process of law guarantees a right to be held to account only through the processes of an impartial court—something administrative tribunals violate every day.

Due Process Violations

Scope of Authority / Nondelegation

The structure of the Constitution allows only Congress to legislate, only the Executive to enforce laws, and only the Judiciary to decide cases. But the Administrative State evades the Constitution’s avenues of governance when executive agencies issue regulations without statutory authorization from Congress.

Scope of Authority / Nondelegation

Administrative Speech Controls

The Administrative State tries to squelch speech, especially through licensing, speech bans, and speech mandates. Licensing requires one to get the government’s permission prior to speaking. Nothing was more clearly forbidden by the First Amendment than prior restraints on speech, but such controls are now commonplace.

Administrative Speech Controls

NCLA joined the Missouri and Louisiana attorneys general in suing President Biden, Anthony Fauci, and HHS for their role in government-sponsored censorship. Discovery in State of Missouri ex rel. Schmitt, et al. v. Biden, et al. revealed just how much of Big Tech censorship is compelled or coerced by government actors behind the scenes—from the FBI to the White House, including public health autocrats like Fauci. This collusion between private companies and the government rises to the level of state action and poses a danger to free speech and the future of scientific inquiry.

NCLA Senior Litigation Counsel John Vecchione moderates a panel discussion with Jenin Younes, Litigation Counsel, who has led NCLA’s high-impact cases against government abuse during the pandemic; Mark Changizi, cognitive theoretical scientist and NCLA client, whose Twitter account was censored at the behest of bureaucrats at HHS; and Jill Hines, Co-Director of Health Freedom Louisiana, whose two social media accounts have experienced extensive censorship due to her Covid-19 viewpoints.

View Description

Why the Govt Can't Use Social Media to Do Its Dirty Work

NCLA joined the Missouri and Louisiana attorneys general in suing President Biden, Anthony Fauci, and HHS for their role in government-sponsored censorship. Discovery in State of Missouri ex rel. Schmitt, et al. v. Biden, et al. revealed just how much of Big Tech censorship is compelled or coerced by government actors behind the scenes—from the FBI to the White House, including public health autocrats like Fauci. This collusion between private companies and the government rises to the level of state action and poses a danger to free speech and the future of scientific inquiry.

NCLA Senior Litigation Counsel John Vecchione moderates a panel discussion with Jenin Younes, Litigation Counsel, who has led NCLA’s high-impact cases against government abuse during the pandemic; Mark Changizi, cognitive theoretical scientist and NCLA client, whose Twitter account was censored at the behest of bureaucrats at HHS; and Jill Hines, Co-Director of Health Freedom Louisiana, whose two social media accounts have experienced extensive censorship due to her Covid-19 viewpoints.

SCOTUS Has 'Major Questions' About 'Pen & Phone' Lawmaking

August 10, 2022

Focus Area:

Unreasonable Searches

The Fourth Amendment forbids warrantless searches and seizures of information, yet the Administrative State violates this right to privacy through administrative subpoenas and warrants, automated information collection devices, civil investigative demands, and “voluntary” requests for information.

Unreasonable Searches

In a blockbuster 6-3 decision on June 30, the U.S. Supreme Court rejected the Environmental Protection Agency’s claim of sweeping regulatory authority under the Clean Air Act in the case West Virginia v. Environmental Protection Agency. Invoking the “major questions doctrine,” the high court stated that EPA could not “point to ‘clear congressional authorization’” to devise carbon emissions limits that would shut down many power plants and reconfigure the entire industry.

NCLA President and General Counsel Mark Chenoweth moderates the discussion with NCLA Senior Litigation Counsel Rich Samp, who co-authored NCLA’s amicus brief, and Jonathan Brightbill, of Winston & Strawn, who helped draft the repeal of the Obama-era rule at issue and then argued that portion of the case in the DC Circuit.

Learn what we can do to stop the greatest threat to civil liberties—the Administrative State.

View Description

SCOTUS Has 'Major Questions' About 'Pen & Phone' Lawmaking

In a blockbuster 6-3 decision on June 30, the U.S. Supreme Court rejected the Environmental Protection Agency’s claim of sweeping regulatory authority under the Clean Air Act in the case West Virginia v. Environmental Protection Agency. Invoking the “major questions doctrine,” the high court stated that EPA could not “point to ‘clear congressional authorization’” to devise carbon emissions limits that would shut down many power plants and reconfigure the entire industry.

NCLA President and General Counsel Mark Chenoweth moderates the discussion with NCLA Senior Litigation Counsel Rich Samp, who co-authored NCLA’s amicus brief, and Jonathan Brightbill, of Winston & Strawn, who helped draft the repeal of the Obama-era rule at issue and then argued that portion of the case in the DC Circuit.

Learn what we can do to stop the greatest threat to civil liberties—the Administrative State.

Why Is SCOTUS Putting Off Chevron Deference Cases?

July 27, 2022

Focus Area:

Scope of Authority / Nondelegation

The structure of the Constitution allows only Congress to legislate, only the Executive to enforce laws, and only the Judiciary to decide cases. But the Administrative State evades the Constitution’s avenues of governance when executive agencies issue regulations without statutory authorization from Congress.

Scope of Authority / Nondelegation

Despite making SCOTUSblog’s “Petitions We’re Watching” on multiple occasions this term, the U.S. Supreme Court failed to act on three different cert petitions in which NCLA asks to reconsider Chevron deference.

Our expert panelists, NCLA Senior Litigation Counsel Rich Samp and renowned appellate litigators Roman Martinez from Latham & Watkins and John Tienken from Cooper & Kirk, discuss the curious fate of Chevron deference pending these three cert petitions.

Learn what we can do to stop the greatest threat to civil liberties—the Administrative State.

View Description

Why Is SCOTUS Putting Off Chevron Deference Cases?

Despite making SCOTUSblog’s “Petitions We’re Watching” on multiple occasions this term, the U.S. Supreme Court failed to act on three different cert petitions in which NCLA asks to reconsider Chevron deference.

Our expert panelists, NCLA Senior Litigation Counsel Rich Samp and renowned appellate litigators Roman Martinez from Latham & Watkins and John Tienken from Cooper & Kirk, discuss the curious fate of Chevron deference pending these three cert petitions.

Learn what we can do to stop the greatest threat to civil liberties—the Administrative State.

In NCLA Relentless Case, Supreme Court Overturns Chevron DeferencePress Release >>
+