Topline
Democrats on the House Appropriations Committee sent a letter to Secretary of Defense Pete Hegseth on Friday, scrutinizing him over costly maintenance and “emergency” painting of his government-owned home.
The letter, written by Rep. Rosa DeLauro, D-Conn., and Rep. Debbie Wasserman Schultz, D-Fla., said the Army told the Appropriations Committee about plans to “exceed the $35,000 threshold for operation, maintenance and repair” of a government home that will be occupied by Hegseth, who also owns a house in Tennessee.
The Democrats said the total requirement for the housing work was $137,297, with $49,900 of the figure needed for an “emergency” paint job.
The letter to Hegseth asks the secretary why the emergency paint job was necessary, what rent he will pay for the house and asks him to provide a list of former secretaries of defense who needed government-furnished housing with the same costs needed to maintain his own home before occupancy and annual rent was paid.
The specifications of the home are not clear, though Democrats said in a statement Friday the house had 4,000 square feet of space.
It’s unusual but not unheard-of for defense secretaries—who are technically civilians—to live in government housing: Former Defense Secretary Robert Gates, who served the Bush and Obama administrations, was the first in the role to live in military housing, the Stars and Stripes newspaper reported, noting he paid $6,500 a month for an “old but spacious 19th century home” in Washington, DC.
It is common for secretaries of defense to live in private housing, according to Military.com, as former Biden administration Secretary of Defense Lloyd Austin lived in a nearly $3 million, 8,700-square foot house in Great Falls, Virginia, while holding the position, Task and Purpose reported.
Military homes with maintenance and repair costs over $35,000 require military branches to report what housing units have costs above the threshold and provide a “detailed justification” for whichever authority is responsible for reimbursing the costs.
The Department of Defense did not immediately respond to Forbes’ request for comment.
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Crucial Quote
“The highly paid TV personality wants the public to cover this and other living expenses at a time when many servicemembers and their families reside in unacceptable housing conditions that include mold, lead paint, and other hazards,” Democrats wrote in the letter. Military families have raised concerns about lead paint, mold and insufficient repairs for military housing. An investigation by Reuters in 2019 found more than 100 military bases with housing had overall negative satisfaction scores on surveys that noted thousands of reports of mold, pest infestations and housing-related health problems.
Forbes Valuation
We estimate Hegseth and his wife are worth about $3 million—a figure that includes cash, investments and $700,000 in home equity. The secretary’s salary is $235,100, or about one-tenth of the over $2 million annual salary he made as a host at Fox. Forbes estimates Hegseth and his wife’s main asset, a 77-acre home in Goodlettsville, Tennessee, is worth about $3.2 million today. The home was purchased for a little over $3.4 million three years ago, with the Hegseths now doling out over $19,000 per month on the $2.5 million remaining mortgage cost.
Key Background
Hegseth has been the subject of intense scrutiny from Democrats throughout his nomination and confirmation as defense secretary. Democrats expressed concerns over a sexual misconduct allegation levied against Hegseth (which he denies), as well as excessive drinking accusations linked to his time as president of Concerned Veterans for America in 2016. Democrats have also criticized Hegseth for his views on women in the military, as the secretary has publicly said women should not be in combat roles. Republican Sens. Mitch McConnell, Lisa Murkowski and Susan Collins voted against confirming Hegseth, siding with Democrats and their issues with Hegseth. Murkowski said she could not “in good conscience” support his nomination. Hegseth, who has denied many of the allegations against him, was confirmed by the Senate after Vice President JD Vance broke a 50-50 tie.
Further Reading
Pete Hegseth Sworn In As Defense Secretary After JD Vance Cast Tie-Breaking Vote—Here’s What To Know (Forbes)
Key Facts
Department of Education Job Cuts: The Education Department announced Tuesday it plans to lay off approximately 50% of its workforce and shutter some offices, after approximately a quarter of the Office of Student Aid’s employees had already previously been laid off or accepted buyouts, according to CNN.The job cuts could hamper the agency’s ability to process payments or to manage a potential increase in defaults as some affordable payment plans end, CNN notes, with a former Education Department staffer telling the outlet that workers who would typically write emails warning borrowers before they default “have been fired,” adding, “It’s almost like the government doesn’t even want to get paid.”
Department of Education Dismantling: It’s still unclear what could happen to the federal student loans program if the Department of Education is officially dissolved by Congress: Trump has said he doesn’t think the student loans program should be under the Education Department and floated it could be moved to the Small Business Administration, Treasury or Commerce Department.
The changeover would not affect borrowers’ loans themselves, but there could be a period in which it would be difficult to get applications processed, or a greater number of errors in the system as accounts are transferred over, experts told NBC 10 Philadelphia.
Public Service Loan Forgiveness: Trump signed an executive order March 7 that seeks to limit the Public Service Loan Forgiveness program, which allows public servants to be eligible for loan forgiveness after 10 years of service, saying in his order that employees who work for organizations opposed to his policies—like groups that support transgender rights or undocumented immigrants—should not be eligible for the loan forgiveness.
Trump’s executive order targeting the Public Service Loan Forgiveness program only seeks proposed revisions to the program at this time, and requires Congressional approval, so borrowers who are public servants are not yet affected.
SAVE Plan: The Biden-era plan to allow lower monthly payments based on borrowers’ income appears finished; the Saving on a Valuable Education (SAVE) Plan was blocked in federal court in February and the Trump administration is unlikely to try to revive it, with one staffer at the Office of Student Aid telling CNN, “We’ve been told ‘SAVE’ is not coming back in any way, shape, or form.”
Income-Driven Repayment Plans: The Trump administration also paused applications to other income-driven repayment plans for at least three months, according to a memo obtained by The Washington Post, and suggested other plans based on borrowers’ incomes could also be unlawful.
The Education Department’s lawyers will decide when the applications will reopen, CNN reported, noting any income-driven plans that come back “are expected to be more costly for borrowers.”
Consumer Financial Protection Bureau: The Trump administration and Elon Musk’s Department of Government Efficiency are taking steps to dismantle the CFPB, a consumer protection agency that’s taken numerous steps against predatory behavior by student loan companies, with the Student Borrower Protection Center reporting the agency has obtained more than $5 billion in relief for Americans with student debt and taken steps that have led to the Department of Education canceling $188.8 billion in debt for borrowers.
The Trump administration appears to be halting the agency’s work on investigating student loan issues: It fired the CFPB’s student loan ombudsman as part of cuts to the agency’s workforce—a move that the former ombudsman, Julia Barnard, said in a statement would “cost real people real money”—and withdrew a lawsuit against a Pennsylvania-based loan servicer, which the Biden administration alleged unlawfully collected student loans that borrowers had discharged when filing for bankruptcy.
Crucial Quote
Colleen Campbell, the executive director of the Office of Student Aid’s Office of Loan Portfolio Management, said in a public LinkedIn post in February announcing her new role that the change was “somewhat bittersweet,” noting she had already lost “many” of the employees she oversees, with “more to come.” “I’m afraid of what the coming days, weeks, months, years will bring not just for me and the Department, but for the borrowers we serve,” Campbell wrote. “I’ve dedicated my career to the work of supporting college affordability and a student aid system that supports our most vulnerable, and it is heartbreaking to see that dissolving before my eyes.” In an updated post on LinkedIn Wednesday, Campbell announced she had opted to leave the Education Department.
What Other Student Loan Programs Could Be Affected?
It’s still unclear what other impacts student loan borrowers could face, though more programs could be under threat, both from the Trump administration and Congress’ Republican majority. A number of student loan programs have been identified as being under review, both by the White House—when it froze federal spending, though that’s since been blocked in court—and in a memo from the GOP-controlled House Ways and Means Committee. The reviews include potentially capping the amount of student loans the government can issue, phasing out loan programs covering graduate students and borrowers’ parents, modifying Pell Grants and ending Biden-era programs that provide student loan forgiveness to borrowers who were defrauded by their school or whose schools closed. Lawmakers also suggested they were looking into ending a tax deduction for interest on student loans and subsidies that prevent borrowers from paying interest while they’re still in school. None of those changes have been formalized yet, however, and it’s unclear if any will ultimately end up happening.
Big Number
43 million. That’s the approximate number of Americans who had outstanding federal student loans as of fiscal year 2024, according to the Department of Education.
Does Doge Have Access To Student Loan Data?
One major source of concern for borrowers since Trump’s inauguration is whether Musk and his associates at DOGE have access to borrowers’ private student loan data, as reports have indicated. A federal judge blocked DOGE’s access to some Education Department data in a ruling Feb. 24, in response to a lawsuit brought by unions representing federal workers, student loan recipients and veterans who receive benefits or have student loans. That ruling bars the Education Department from sharing private information about the plaintiffs in the case with DOGE officials, and is only temporary until a more lasting order can be issued, however. A different judge previously denied a more sweeping effort by students in the University of California system to block DOGE from accessing student loan data. That ruling is only temporary while the litigation moves forward, however, so a different ruling against DOGE could still be issued in the future. That means DOGE reportedly does have some access to data as of now, though it’s still unclear the full scope of what officials have accessed and how any information is being used.
If Doge Mishandles Student Loan Data, Can Your Loans Be Forgiven?
The reports on DOGE accessing student loan data sparked a number of claims on social media that borrowers should use Musk’s access to their data to try and have their loans forgiven, claiming DOGE violated the Family Educational Rights and Privacy Act (FERPA) and borrowers have the right to challenge their loans in response. There’s no factual basis for those claims, however. FERPA, which broadly prohibits educational institutions from disclosing students’ personal school records without their or their parents’ consent, doesn’t have any private right of action, which means students or borrowers cannot bring lawsuits under the law if they believe their private information has been shared. While it is possible to file a complaint with the government alleging a FERPA violation, those claims will be investigated and enforced by the Education Department—which is unlikely to find any fault or grant relief in this case, given that the department is managed by Trump appointees. Even if any violations were found, the law doesn’t allow for any financial relief to students or borrowers, and instead only says the school or institution that disclosed the information should have their funding revoked.
What Does Project 2025 Say?
Trump has publicly distanced himself from the far-right policy blueprint Project 2025, and there is no indication he is following its proposals directly. Many of Trump’s actions in office have lined up with policies proposed in Project 2025, however, including the dismantling of the Education Department. Project 2025 proposes the Office of Student Aid should be moved to the Treasury Department if the Education Department is abolished, though it would only oversee collections and defaults of loans. Most of the federal student loan portfolio should be spun off into a new “government corporation” that would be managed by a board of presidentially appointed trustees, Project 2025 proposed. The policy agenda does not advocate for any form of student loan forgiveness, writing, “Borrowers should expect to repay their loans.”
Key Background
Student loans and debt relief have become a growing political issue, as Democrats like Sen. Elizabeth Warren, D-Mass., have encouraged full student loan forgiveness and made the issue into a central concern for Democrats. The Biden administration imposed a sweeping plan to forgive up to $10,000 of borrowers’ student loans, but the Supreme Court ultimately struck down the policy, ruling in June 2023 the administration exceeded its authority in imposing it. As a result, the Biden administration instead made a series of more targeted moves on student loan forgiveness that focused on specific groups of borrowers, saying in January it had approved $188.8 billion in loan forgiveness for 5.3 million borrowers during Joe Biden’s presidency. Republicans have ramped up their opposition to student loan forgiveness as a result of Democrats’ advocacy for it, with Republican attorneys general filing the lawsuits that ultimately led courts to strike down Biden’s most sweeping proposals, like the universal debt relief plan and the SAVE plan.
Trump Takes Birthright Citizenship To Supreme Court: Here’s Where Trump And Musk Are Winning—And Losing—In Court
Topline
The Trump administration asked the Supreme Court Thursday to partially halt court rulings blocking President Donald Trump’s order dismantling birthright citizenship, following a string of court rulings halting the order and other steps taken by Trump and cost-cutting czar Elon Musk.
Key Facts
The Trump administration asked the Supreme Court to stop appeals court rulings that blocked Trump’s order to end birthright citizenship, which would deny U.S. citizenship to children born in the U.S. if their parents are undocumented or on temporary visas.
The administration asked the Supreme Court to block the nationwide orders issued by lower courts, so that the court orders would only apply in states covered by those courts.
If the court sides with the administration, Trump’s order would take effect and bar citizenship from anyone born to non-permanent residents in states that aren’t under the jurisdiction of those courts.
The request was the second notable legal move Thursday in the ongoing cases against the Trump administration, after Judge William Alsup ordered the Departments of Defense, Veterans Affairs, Energy, Treasury and Agriculture to reinstate probationary employees who were terminated as part of the Trump administration’s mass firings of federal workers, ruling during a hearing Thursday that the directive from the Office of Personnel Management to fire them was “unlawful.”
Plaintiffs, including Democratic attorneys general, federal workers, labor unions, nonprofits and other groups have brought dozens of lawsuits challenging the Trump administration’s activities in the weeks since Trump’s inauguration, as Republicans’ control of the White House and Congress has made legal action Democrats’ primary way of challenging Trump’s policies.
Most of the lawsuits are still playing out in court, though a number of temporary rulings have been issued that either block policies while litigation moves forward, or allow various orders to stay in place until there’s a more lasting ruling.
Permanent rulings have only been issued so far in two cases—concerning two specific federal workers’ firings—but those rulings could also be overturned by higher courts on appeal.
That means all litigation is still subject to change: Judges who have ruled in the Trump administration’s favor so far could still issue future rulings that block their policies, and vice versa, and rulings both for and against the government are likely to be appealed to higher courts.
