H.R. 937 — Protecting Taxpayers from Student Loan Bailouts Act

This section establishes new limitations on the Secretary of Education's authority to develop or issue draft regulations, proposed or final regulations, or executive actions implementing title IV of the Higher Education Act of 1965 (i.e., federal student financial assistance programs). (1) For economically significant draft regulations (i.e., those likely to have an annual economic effect of $100 million or more, or to materially adversely affect the economy, a sector, productivity, jobs, environment, public health or safety, or state/local/tribal governments), the Secretary must determine whether implementation would increase a subsidy cost (e.g., federal costs for loan guarantees or grants); if so, the Secretary must take no further action. (2) The Secretary may not issue any economically significant proposed rule, final regulation, or executive action determined to increase a subsidy cost. (3) These subsidy cost analyses are in addition to any other required regulatory cost analyses (e.g., under Executive Order 12866 or 13563).