On The Money — New attempts to block student loan relief

Various battles heat up over student loan forgiveness

The political and legal battle over President Biden’s student loan forgiveness plan has hit its biggest roadblock yet with a temporary legal hold on the program leaving borrowers in further limbo. 

It has also opened up the potential for more opposition by Republicans, but the White House is vowing to fight back after a federal appeals court ruled on Friday that the program should be halted. 

• Friday’s order from an appeals court stops the administration from disbursing relief while the court considers a challenge from six Republican-led states.
  
• The order marks a temporary victory for Republicans until a larger panel can weigh in, but it could lead to more actions against student loan forgiveness.  

“This fight is far from over. Whoever loses the appeals court decision will inevitably appeal and won’t likely be decided until the Supreme Court weighs in,” said Robert Moran, a former senior policy adviser in the Education Department under former President George W. Bush. 

Bad timing for Biden: While the order doesn’t stop individuals from applying for relief, the block could take away from the Democrats’ campaign message with two weeks until Election Day.  

The Hill’s Alex Gangitano explores the issue here. 

Event Invite

The State of American Education, Wednesday, Oct. 26 starting at 10:30 a.m. ET / LIVE IN D.C. AND STREAMING NATIONALLY

While many students have returned to an in-person classroom, the effects of pandemic learning are significant. What will it take to address the scale of education loss across the country, and what type of investments and interventions are needed to make a difference? Assistant Education Secretary Roberto Rodriguez, Utah Gov. Spencer Cox, Leading Now’s Caitlin Sullivan and more join The Hill for a conversation on how students are faring in 2022 and the state of U.S. education. RSVP today.

BIG PRICE DROP 

US sees record slowdown in home prices

U.S. home prices saw a record slowdown in August, falling by 2.6 percent as the Federal Reserve moves aggressively to raise rates — making it more costly to afford a mortgage. 

The S&P CoreLogic Case-Shiller Index released Tuesday shows a 13 percent annual gain in August for home prices, but a sharp 2.6 percent drop from July to August.

• That’s the largest monthly drop on record, with July’s drop ranking second.
  
• Meanwhile, the 20-City Composite index, which measures price growth in major U.S. metros, posted a 13.1 percent year-over-year gain, down from 16 percent the previous month. 

Adam Barnes has more here. 

WHAT MONEY CAN’T BUY

JPMorgan chief says geopolitics more concerning than a recession

JPMorgan Chase CEO Jamie Dimon said Tuesday he is more concerned about today’s geopolitics than a looming recession, following remarks warning that an economic downturn is likely in the next year. 

“There’s a lot of stuff on the horizon which is bad and could … put the United States in a recession,” Dimon said on a panel at the Future Investment Initiative in Riyadh, Saudi Arabia.  

“That’s not the most important thing for what we think about. We’ll manage right through that. I would worry much more about the geopolitics of the world today.” 

• In particular, Dimon said he is concerned about the relationships between Russia and Ukraine and the U.S. and China.
  
• “That would have me far more concerned than whether there’s a mild or slightly severe recession,” he added. 

The Hill’s Brad Dress explains here. 

LOOK FOR THE LITTLE FLAG 

White House ups ‘Made in America’ requirements for federal procurements 

The Biden administration on Tuesday is announcing it will increase requirements for federally procured goods to be sourced domestically, a step officials say will boost U.S. manufacturing and supply chains. 

The administration will unveil an update saying that 60 percent of federally procured content must be made in the United States, up from 55 percent under the Buy American Act. 

The administration views the change as a way to increase domestic manufacturing, strengthen supply chains by reducing reliance on foreign goods and put a greater focus on U.S.-made products. 

“This increase in the domestic content threshold is a key part of the Administration’s strategic approach to leveraging federal purchasing power to invest in American industry and all of America’s workers,” Livia Shmavonian, the director of the White House’s Made in America Office, said in a statement to The Hill. 

Here’s more from The Hill’s Brett Samuels. 

Good to Know

Top House progressives backed off their position questioning President Biden’s Ukraine policy on Tuesday afternoon, withdrawing a letter released Monday that perplexed and angered many Democrats. 

“The Congressional Progressive Caucus hereby withdraws its recent letter to the White House regarding Ukraine,” Rep. Pramila Jayapal (D-Wash.), the caucus chairwoman, wrote in a statement, representing a stunning shift in their call for a diplomatic push to end the Russia-Ukraine war. 

Other items we’re keeping an eye on: 

• The COP27 international climate summit doesn’t begin until November, but one of the conference’s sponsors, Coca-Cola, is already drawing the ire of climate advocates, who note the company’s outsized role in the carbon-intensive production of single-use plastics.
  
• Sen. Ron Wyden (D-Ore.) is urging the Federal Trade Commission (FTC) to request top security clearance and collaborate closely with the intelligence community so it can effectively protect Americans’ data from foreign hacks. 

That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news. We’ll see you tomorrow.