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U.S. Secretary of Education Betsy DeVos spoke at the 2017 Conservative Political Action Conference (CPAC) in National Harbor, Maryland. (Photo: Gage Skidmore/Flickr/cc)
A Washington, D.C. federal judge has delivered a "crushing defeat" of Education Secretary Betsy DeVos, ruling that the Trump-appointee illegally delayed Obama-era regulations to provide loan relief to students defrauded by for-profit colleges.
U.S. District Court Judge Randolph Moss, in a 57-page ruling (pdf) issued Wednesday, sided with consumer advocates and a coalition of 19 Democratic states attorneys general, determining that DeVos's actions to delay the borrower defense rule were "unlawful," "procedurally invalid," and "arbitrary and capricious."
In terms of DeVos's broader and deeply unpopular agenda for the Education Department, Politicocharacterized the decision as "the most significant legal setback to date for DeVos's efforts to dismantle the Obama administration's higher education policies."
\u201cBIG NEWS: We won our case against Betsy Devos for illegally delaying protections for students defrauded by predatory for-profit colleges. The judge called Devos' actions \u201cunlawful,\u201d \u201carbitrary and capricious\u201d and \u201cprocedurally invalid.\u201d https://t.co/4shqiocBsq\u201d— Public Citizen (@Public Citizen) 1536852311
"This is a major victory for student borrowers and for anyone who cares about having a government that operates under the rule of law, instead of as a pawn of the for-profit college industry," said Toby Merrill, director of Project on Predatory Student Lending, which partnered with Public Citizen and the states attorneys general to file suit on behalf of two former students at the for-profit New England Institute of Art (NEIA) in Brookline, Massachusetts.
Massachusetts Attorney General Maura Healey--who led the coalition of state attorneys general for the lawsuit--responding in a series of tweets, called the ruling "a total rejection of President [Donald] Trump and Betsy DeVos's agenda to cheat students and taxpayers."
"For years we've fought for needed protections for student borrowers. No matter what this administration throws at us, we will continue to stand up for students and families in Massachusetts," Healey added. "It is time for the #BorrowerDefenseRule to go into effect and give thousands of students the relief they've been waiting for."
Sen. Elizabeth Warren (D-Mass.)--who has spoken out against DeVos's attempts to delay the Obama-era rule and replace it with a policy that would "devastate students cheated by sham for-profit colleges"--celebrated the judge's decision on Twitter:
\u201cThis is a crushing defeat for @BetsyDeVosED, and a huge win for students who have been scammed by #4profit colleges. Way to go Maura!\u201d— Elizabeth Warren (@Elizabeth Warren) 1536796794
DeVos, in July, had unveiled her proposed re-write of the rule--which was immediately rejected by Healey, Warren, and consumer advocates. Public Citizen attorney Julie Murray, as Common Dreams reported, warned the proposal "would help predatory schools evade liability while cutting off federal loan relief to students who can ill afford it" and send a message to "predatory schools that crime pays."
While Judge Moss's Wednesday ruling did not include any directives for how the Education Department should proceed, all parties to the lawsuit are expected to return to the Washington, D.C. courthouse at 10:30am local time on Friday "to present oral argument regarding the appropriate remedies."
Trump and Musk are on an unconstitutional rampage, aiming for virtually every corner of the federal government. These two right-wing billionaires are targeting nurses, scientists, teachers, daycare providers, judges, veterans, air traffic controllers, and nuclear safety inspectors. No one is safe. The food stamps program, Social Security, Medicare, and Medicaid are next. It’s an unprecedented disaster and a five-alarm fire, but there will be a reckoning. The people did not vote for this. The American people do not want this dystopian hellscape that hides behind claims of “efficiency.” Still, in reality, it is all a giveaway to corporate interests and the libertarian dreams of far-right oligarchs like Musk. Common Dreams is playing a vital role by reporting day and night on this orgy of corruption and greed, as well as what everyday people can do to organize and fight back. As a people-powered nonprofit news outlet, we cover issues the corporate media never will, but we can only continue with our readers’ support. |
A Washington, D.C. federal judge has delivered a "crushing defeat" of Education Secretary Betsy DeVos, ruling that the Trump-appointee illegally delayed Obama-era regulations to provide loan relief to students defrauded by for-profit colleges.
U.S. District Court Judge Randolph Moss, in a 57-page ruling (pdf) issued Wednesday, sided with consumer advocates and a coalition of 19 Democratic states attorneys general, determining that DeVos's actions to delay the borrower defense rule were "unlawful," "procedurally invalid," and "arbitrary and capricious."
In terms of DeVos's broader and deeply unpopular agenda for the Education Department, Politicocharacterized the decision as "the most significant legal setback to date for DeVos's efforts to dismantle the Obama administration's higher education policies."
\u201cBIG NEWS: We won our case against Betsy Devos for illegally delaying protections for students defrauded by predatory for-profit colleges. The judge called Devos' actions \u201cunlawful,\u201d \u201carbitrary and capricious\u201d and \u201cprocedurally invalid.\u201d https://t.co/4shqiocBsq\u201d— Public Citizen (@Public Citizen) 1536852311
"This is a major victory for student borrowers and for anyone who cares about having a government that operates under the rule of law, instead of as a pawn of the for-profit college industry," said Toby Merrill, director of Project on Predatory Student Lending, which partnered with Public Citizen and the states attorneys general to file suit on behalf of two former students at the for-profit New England Institute of Art (NEIA) in Brookline, Massachusetts.
Massachusetts Attorney General Maura Healey--who led the coalition of state attorneys general for the lawsuit--responding in a series of tweets, called the ruling "a total rejection of President [Donald] Trump and Betsy DeVos's agenda to cheat students and taxpayers."
"For years we've fought for needed protections for student borrowers. No matter what this administration throws at us, we will continue to stand up for students and families in Massachusetts," Healey added. "It is time for the #BorrowerDefenseRule to go into effect and give thousands of students the relief they've been waiting for."
Sen. Elizabeth Warren (D-Mass.)--who has spoken out against DeVos's attempts to delay the Obama-era rule and replace it with a policy that would "devastate students cheated by sham for-profit colleges"--celebrated the judge's decision on Twitter:
\u201cThis is a crushing defeat for @BetsyDeVosED, and a huge win for students who have been scammed by #4profit colleges. Way to go Maura!\u201d— Elizabeth Warren (@Elizabeth Warren) 1536796794
DeVos, in July, had unveiled her proposed re-write of the rule--which was immediately rejected by Healey, Warren, and consumer advocates. Public Citizen attorney Julie Murray, as Common Dreams reported, warned the proposal "would help predatory schools evade liability while cutting off federal loan relief to students who can ill afford it" and send a message to "predatory schools that crime pays."
While Judge Moss's Wednesday ruling did not include any directives for how the Education Department should proceed, all parties to the lawsuit are expected to return to the Washington, D.C. courthouse at 10:30am local time on Friday "to present oral argument regarding the appropriate remedies."
A Washington, D.C. federal judge has delivered a "crushing defeat" of Education Secretary Betsy DeVos, ruling that the Trump-appointee illegally delayed Obama-era regulations to provide loan relief to students defrauded by for-profit colleges.
U.S. District Court Judge Randolph Moss, in a 57-page ruling (pdf) issued Wednesday, sided with consumer advocates and a coalition of 19 Democratic states attorneys general, determining that DeVos's actions to delay the borrower defense rule were "unlawful," "procedurally invalid," and "arbitrary and capricious."
In terms of DeVos's broader and deeply unpopular agenda for the Education Department, Politicocharacterized the decision as "the most significant legal setback to date for DeVos's efforts to dismantle the Obama administration's higher education policies."
\u201cBIG NEWS: We won our case against Betsy Devos for illegally delaying protections for students defrauded by predatory for-profit colleges. The judge called Devos' actions \u201cunlawful,\u201d \u201carbitrary and capricious\u201d and \u201cprocedurally invalid.\u201d https://t.co/4shqiocBsq\u201d— Public Citizen (@Public Citizen) 1536852311
"This is a major victory for student borrowers and for anyone who cares about having a government that operates under the rule of law, instead of as a pawn of the for-profit college industry," said Toby Merrill, director of Project on Predatory Student Lending, which partnered with Public Citizen and the states attorneys general to file suit on behalf of two former students at the for-profit New England Institute of Art (NEIA) in Brookline, Massachusetts.
Massachusetts Attorney General Maura Healey--who led the coalition of state attorneys general for the lawsuit--responding in a series of tweets, called the ruling "a total rejection of President [Donald] Trump and Betsy DeVos's agenda to cheat students and taxpayers."
"For years we've fought for needed protections for student borrowers. No matter what this administration throws at us, we will continue to stand up for students and families in Massachusetts," Healey added. "It is time for the #BorrowerDefenseRule to go into effect and give thousands of students the relief they've been waiting for."
Sen. Elizabeth Warren (D-Mass.)--who has spoken out against DeVos's attempts to delay the Obama-era rule and replace it with a policy that would "devastate students cheated by sham for-profit colleges"--celebrated the judge's decision on Twitter:
\u201cThis is a crushing defeat for @BetsyDeVosED, and a huge win for students who have been scammed by #4profit colleges. Way to go Maura!\u201d— Elizabeth Warren (@Elizabeth Warren) 1536796794
DeVos, in July, had unveiled her proposed re-write of the rule--which was immediately rejected by Healey, Warren, and consumer advocates. Public Citizen attorney Julie Murray, as Common Dreams reported, warned the proposal "would help predatory schools evade liability while cutting off federal loan relief to students who can ill afford it" and send a message to "predatory schools that crime pays."
While Judge Moss's Wednesday ruling did not include any directives for how the Education Department should proceed, all parties to the lawsuit are expected to return to the Washington, D.C. courthouse at 10:30am local time on Friday "to present oral argument regarding the appropriate remedies."
"Corporations get let off the hook, Musk gets insider information, and the American people get hosed."
The latest U.S. agency in the crosshairs of billionaire Elon Musk's Department of Government Efficiency is reportedly the Federal Trade Commission, an already-understaffed department tasked with preventing monopolistic practices and shielding consumers from corporate abuses.
Axios reported Friday that at least two DOGE staffers "now have offices at" the FTC. According to The Verge, two DOGE members "were spotted" at the agency's building this week and "are now listed in the FTC's internal directory."
The Verge noted that the FTC is "a fairly lean agency with fewer than 1,200 employees," a number that the Trump administration has already cut into with the firing of some of the department's consumer protection and antitrust staff.
At least two of Musk's companies, Tesla and X, have faced scrutiny in recent years from the FTC, which is now under the leadership of Trump appointee Andrew Ferguson, who previously pledged to roll back former chair Lina Khan's anti-monopoly legacy.
Emily Peterson-Cassin, corporate power director at the Demand Progress Education Fund, which referred to the operatives as Musk's "minions," said Friday that "DOGE is yet again raiding a federal watchdog tasked with protecting working Americans from Wall Street and Big Tech."
"The FTC has worked to stop monopolistic mergers that would have led to higher grocery prices and is now gearing up to go to court against Meta's social media monopoly," said Peterson-Cassin. "It's no surprise that at this moment, while the economy is in freefall and fraud is on the rise, DOGE is choosing to raid the federal watchdog that protects everyday Americans and threatens corporate monopolies and grifters."
News of DOGE staffers' infiltration of the FTC came as Trump's sweeping new tariffs continued to cause global economic turmoil and heightened concerns that companies in the U.S. will use the tariffs as a new excuse to jack up prices and pad their bottom lines.
Ferguson pledged in a social media post Thursday that under his leadership, the FTC "will be watching closely" to ensure companies don't view Trump's tariffs "as a green light for price fixing or any other unlawful behavior."
But Trump has hobbled the agency—and prompted yet another legal fight—by firing its two Democratic commissioners, a move that sparked fury and has already impacted the FTC's ability to pursue cases against large corporations.
Peterson-Cassin said Friday that "the only winners" of DOGE's targeting of the FTC "are Trump's billionaire besties like [Meta CEO] Mark Zuckerberg and especially Musk, who now stands to gain access to confidential financial information about every company ever investigated by the FTC, including the auto manufacturers, aerospace firms, internet providers, tech companies, and banks that directly compete with his own companies."
"Corporations get let off the hook, Musk gets insider information, and the American people get hosed," Peterson-Cassin added.
"The president single-handedly wiped out Americans' retirement savings overnight and subjected businesses to intense whiplash with his increasingly erratic and chaotic policies that continue to drive consumer and business uncertainty."
Alarm over U.S. President Donald Trump's tariffs continues to grow, with stocks plummeting and JPMorgan warning that "the risk of recession in the global economy this year is raised to 60%, up from 40%."
After China announced new 34% tariffs on all American goods beginning next week, The Associated Press reported Friday that "the S&P 500 was down 4.8% in afternoon trading, after earlier dropping more than 5%, following its worst day since Covid wrecked the global economy in 2020. The Dow Jones Industrial Average was down 1,719 points, or 4.3%, as of 1:08 p.m. Eastern time, and the Nasdaq composite was 4.9% lower."
Noting the state of Wall Street this week, Groundwork Collaborative executive director Lindsay Owens declared in a Friday statement that "Trump has officially brought the economy to its knees."
"The president single-handedly wiped out Americans' retirement savings overnight and subjected businesses to intense whiplash with his increasingly erratic and chaotic policies that continue to drive consumer and business uncertainty," she said. "To call this an economic downturn is an understatement; Trump is marching us straight into a depression."
Political and economic observers have been publicly wondering for weeks if Trump is intentionally crashing the economy. Further fueling those fears, he ramped up his trade war on Wednesday by announcing a minimum 10% tariff for imports, with higher levies for dozens of countries. Although he claimed those steeper duties are "reciprocal," his math "horrified" economists and has been called "crazy."
Responding in a Thursday note titled, There Will Be Blood, head of global economic research Bruce Kasman and other experts at JPMorgan wrote that "if sustained, this year's ~22%-point tariff increase would be the largest U.S. tax hike since 1968."
"The effect of this tax hike is likely to be magnified—through retaliation, a slide in U.S. business sentiment, and supply chain disruptions," states the note, which came before China's announcement.
As Bloomberg reported:
Several Wall Street firms on Thursday warned of a U.S. recession, with some making it their base case, after... Trump announced major levies on goods imported from countries around the world. Other economists, including those at JPMorgan, said the hit could be big, though they are taking a wait-and-see approach before revising their projections.
The announcement rocked global financial markets, and the S&P 500 suffered its worst day since 2020. Trump, speaking on Air Force One on Thursday afternoon, said he was open to reducing tariffs if trading partners were able to offer something "phenomenal."
"We are not making immediate changes to our forecasts and want to see the initial implementation and negotiation process that takes hold," the JPMorgan note says. "However, we view the full implementation of announced policies as a substantial macroeconomic shock not currently incorporated in our forecasts. We thus emphasize that these policies, if sustained, would likely push the U.S. and possibly global economy into recession this year."
The team also pointed out that the United States is in potential danger no matter how other countries are ultimately impacted, calling a "scenario where rest of world muddles through a U.S. recession possible but less likely than global downturn."
As Common Dreams reported last week, in anticipation of Trump's tariff announcement, Goldman Sachs published a research note projecting that the odds of a recession in the next year are 35%, up from 20%.
Other financial industry research firms that have recently warned of a possible recession include Barclays, BofA Global Research, Deutsche Bank, RBC Capital Markets, and UBS Global Wealth Management, according to Reuters.
"This is a game-changer, not only for the U.S. economy, but for the global economy. Many countries will likely end up in a recession," Olu Sonola, head of U.S. economic research at Fitch Ratings, said in a late Wednesday note about the levies. "You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time."
Experts have made similar comments to the press in the wake of the president's Rose Garden remarks on Wednesday. Time on Friday shared some from Brian Bethune, a Boston College economics professor:
"[Consumers] are not even going to the grocery store and paying more for vegetables because there's none available from Mexico, or going to Whole Foods, for example, and finding the big sections of fresh fruit are being shut down. They haven't really felt the full impact [yet], and they're already saying something isn't right," Bethune says.
However, while some economists... are more cautious in their discussion about a possible recession, Bethune says it's "inevitable." The question, he says, is just how long until it happens and for how long will it occur? He sees Trump's admission of there being " some pain" on the horizon as only proof of the inevitability.
"At least they [the Trump administration] are not pretending that it's not disruptive, but they're basically soft-selling it, reflecting their ignorance about the way business operates," Bethune claims.
Also on Friday, the Bureau of Labor Statistics released the latest U.S. jobs data. Although the unemployment rate rose from 4.1% to 4.2% in March, the economy added 228,000 jobs, which was better than expected.
However, economists warn of what lies ahead. As University of Michican economics professor Betsey Stevenson put it, "Today's jobs report is like looking at your vacation photos after you had a horrible car crash on the way home."
"Immigration. Medicaid. Workers' rights. Unions. Education. You name it—we're drawing the line," wrote one union.
In what one outlet has reported is slated to be the largest single-day action to resist the Trump administration since U.S. President Donald Trump's return to power, hundreds of thousands of people nationwide are planning to mobilize on Saturday to say: "Hands Off!"
A list of locations for the events, which are not all slated to start at the same time on Saturday, can be found here.
Trump and Musk "think this country belongs to them," according to a website for the Hands Off! events. "This is a nationwide mobilization to stop the most brazen power grab in modern history."
"They want to strip America for parts—shuttering Social Security offices, firing essential workers, eliminating consumer protections, and gutting Medicaid—all to bankroll their billionaire tax scam. They're handing over our tax dollars, our public services, and our democracy to the ultra-rich," according to the website's about page, which also notes nonviolent action is a "core principle" behind the events.
A spokesperson for the events told Common Dreams on Friday afternoon that the events have generated over 500,000 signups nationally, a number that is "growing rapidly," and there are over 1,000 events taking place on Saturday, a number that is "also growing steadily."
The actions are the latest warning sign for the Republican Party under Trump, who has allowed Elon Musk to play a core role in his administration, particularly in the administration's efforts to carry out cuts to federal personnel and spending.
Musk poured millions of dollars into a high-profile Wisconsin Supreme Court election that took place on April 1—helping to make it the most expensive judicial election in U.S. history by one tally—only to have his preferred candidate, judge Brad Schimel, lose.
"This is a huge signal from a battleground state that Americans are genuinely upset, genuinely angry, I think, with Trump and with Musk," said John Nichols, a correspondent for That Nation, when recapping the outcome of the race on Democracy Now!
Dozens of unions, watchdogs, and advocacy groups—such as Service Employees International Union (SEIU), Americans for Tax Fairness, and Accountable.US—are supporting the action as partners.
"People nationwide are rising up at hundreds of events to say one thing loud and clear: Hands Off!" wrote SEIU on the platform X, which is owned by Musk, on Friday. "Immigration. Medicaid. Workers' rights. Unions. Education. You name it—we're drawing the line."
The environmentalist iIll McKibben wrote on Bluesky on Wednesday: "Expect to see a lot of gray hair at the April 5 Hands Off rallies—we've been organizing like crazy at Third Act," a group that mobilizes Americans over the age of 60.
In early February, anti-Trump "Movement 50501" protests took place nationwide and protestors united under the slogan #TakedownTesla have also targeted Tesla, Musk's electric vehicle company, in recent weeks.