Republican U.S. Senate candidate Adam Laxalt rebuked President Joe Biden for his multi-billion student debt bailout plan on Wednesday and blamed his Democrat opponent Sen. Catherine Cortez Masto (D-NV) for enabling Biden’s agenda.
“The Biden/Masto $300 billion student debt bailout is unconstitutional, immoral, and fundamentally bad policy. It will line the pockets of the wealthiest Americans and fuel the flames of inflation, layering further pain on the back of Nevada families already struggling to get by,” the Trump-endorsed former Nevada attorney general said in a statement.
Biden’s plan involves forgiving debts of up to $20,000 dollars for students who went to college on Pell grants and $10,000 for students who did not receive Pell grants and only applies to individuals earning less than $125,000 or couples filing joint earnings of $250,000. The Penn Wharton Budget Model estimates Biden’s plan will cost at least $300 billion.
The Biden/@CortezMasto $300B student debt bailout is unconstitutional, immoral, & fundamentally bad policy.
It will line the pockets of the wealthiest Americans & fuel the flames of inflation, layering further pain on the back of Nevada families already struggling to get by.
1/6— Adam Paul Laxalt (@AdamLaxalt) August 24, 2022
“This massive bailout is an insult to all the parents who saved up to send their kids to college, and to those students who worked hard during summer months and while in college to pay for their classes,” Laxalt continued. “Further, it’s a slap in the face to the tens of millions of Americans who couldn’t afford or decided not to attend college. That they are now being forced to pay off the student debt of the largely well-off is wrong and fundamentally un-American.”
He noted that “for the past year, Nevadans have borne the brunt of the failed Biden-Cortez Masto agenda.”
“Families across our state are struggling to get by amid 40-year-high inflation, record gas prices, and shortages of baby formula and other key essentials,” he said.
Sen. Catherine Cortez Masto, a Democrat from Nevada, speaks in Washington, DC, on Wednesday, June 22, 2022. (Ting Shen/Bloomberg)
“Instead of providing much needed relief, Biden and his enablers like Senator Cortez Masto are doubling down, forcing Nevada workers and families to foot a massive student debt bailout, worsening the inflation crisis. Voters will hold her accountable this fall,” he added.
In a seemingly out-of-character move, Cortez Masto also pushed back on Wednesday against Biden’s student loan debt transference to American taxpayers. The vulnerable incumbent suggested the government subsidize student loans with taxpayer funds instead of outright transferring the debt to those who perhaps have not taken student debt or have already fulfilled their debt obligations.
“I don’t agree with today’s executive action because it doesn’t address the root problems that make college unaffordable,” Cortez Masto admitted in a statement. “We should be focusing on passing my legislation to expand Pell Grants for lower income students, target loan forgiveness to those in need, and actually make college more affordable for working families.”
Laxalt said in response that Cortez Masto only went against Biden “to save her skin in a tight re-election.” As Breitbart News previously reported, Masto’s slight divergence from Biden is notable because she has refused to answer questions about whether she will campaign with the unpopular president during her reelection campaign. According to a poll over the weekend, Biden’s approval rating is underwater and has not recovered since it sank in the spring.
Don’t be fooled.@CortezMasto’s came out against Biden’s student loan theft for one reason – to save her skin in a tight re-election.
She votes with Biden 95% of the time & every time he needs her vote to transform America into a progressive nightmare, she’s his rubber stamp.
— Adam Paul Laxalt (@AdamLaxalt) August 25, 2022
“Don’t be fooled @CortezMasto’s came out against Biden’s student loan theft for one reason — to save her skin in a tight re-election. She votes with Biden 95% of the time & every time he needs her vote to transform America into a progressive nightmare, she’s his rubber stamp,” Laxalt tweeted.
According to the Nevada Independent, roughly 350,000 Nevadans (11.3 percent) had a combined $11.8 billion in student loan debt with an average debt of $33,743 per person. Additionally, the state has one of the highest student loan default rates in the country (18 percent).
Nevada also has one of the higher inflation rates in the United States (15.4 percent). Jason Furman, an economic adviser for former President Barack Obama, notably criticized Biden’s decision as a “reckless” act that would only pour “gasoline” on economic inflation.
Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless. Doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse.
— Jason Furman (@jasonfurman) August 24, 2022
He also challenged the White House’s claim that Biden’s student debt forgiveness would provide relief to American households grappling with 40-year high inflation.
“The stimulus is relatively small (a multiplier of ~0.1). So the inflation impact is likely to be about 0.2-0.3pp,” he wrote. “That is $150-200 in higher costs for a typical household.”
Disclosure: Breitbart News is represented by Cooper & Kirk, PLLC. Adam Laxalt is a partner at Cooper & Kirk. He is not actively engaged or working on any matters for Breitbart News.
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