A group of Democratic lawmakers in both the House and Senate want to block the Department of Education’s final rules implementing the One Big Beautiful Bill Act (OBBBA), which eliminates the SAVE plan, limits graduate and parent borrowing, and replaces existing repayment options before the July 1, 2026 effective date.
Representative Suzanne Bonamici (D-Ore.) presented a joint proposal (PDF file) Title: To formally reject ED rule on May 7, 2026Student Education-Reimagining and Reforming the Federal Student Loan Program Final Regulations”
The proposal invokes the Congressional Review Act (CRA), which allows Congress to overturn agency regulations issued within the previous six months with a simple majority in each house.
Cosponsors include Senators Jeff Merkley (D-Ore.) and Angela Alsobrooks (D-Md.), and Representatives John Manion (D-N.Y.) and Lauren Underwood (D-Ill.).
What does the final rule do: The final OBBBA rules do the following –
What are the MLAs saying: bonamisi said in a statement: “It is also absurd to take away more affordable student loan repayment plans at a time when families are struggling to cover costs as prices for gas and other basic needs have skyrocketed as a direct result of Trump’s reckless economic policy. These changes to the federal lending system are unacceptable and I will do everything I can to oppose them.“
Merkley said the rule would harm public service sectors: “By failing to classify nurses, teachers, firefighters, social workers, accountants, architects, and others who have earned ‘professional’ degrees from student loan debt, the Trump Administration is undermining the future of vital professions. At the same time, it is driving up the cost of student loans for all businesses by setting up expensive student loan repayment plans.“
How the CRA process works: The CRA allows Congress to block agency regulations (such as those issued by the Department of Education) issued within the last six months and requires only a simple majority in both the House and Senate for passage. The proposal then goes to the President for signature, and a veto requires a two-thirds override in each house. If enacted, the agency cannot issue substantially similar rules without new congressional authorization.
How it connects: This is the second CRA motion filed by Democrats against ED rule-making in recent weeks. Last month, lawmakers introduced a separate proposal to repeal the department’s Public Service Loan Forgiveness (PSLF) employer eligibility rule, effective July 1.
With unified Republican control over Congress and the White House, these proposals are less likely to pass, but the filing creates a paper trail that Democrats can follow.
For borrowers, the practical reality is that SAVE is ending, RAP and the new Tiered Standard scheme are coming online, and new lending limits will apply to loans disbursed after July 1.
what happens next: The proposal has been sent to the committee. Until the rule is rescinded, borrowers should plan as if the OBBBA changes will take full effect on July 1, 2026, including reviewing repayment plan options before the SAVE prohibition ends and confirming the loan limit before the new academic year.
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