Power of the purse

Topics

• OBBBA student loan caps take effect, ending Grad PLUS for new borrowers

Bills

No direct record in this edition.

Court cases

No direct record in this edition.

Practice questions

• As of July 1, 2026, the federal Grad PLUS Loan Program no longer exists for new graduate borrowers. What was the primary borrowing limit under Grad PLUS before it was eliminated?
• The One Big Beautiful Bill Act (OBBBA) created two separate federal borrowing tiers for graduate students starting July 1, 2026. A student in a master's program in social work and a student in a law school program face different annual caps. What are those caps?
• Congress passed the One Big Beautiful Bill Act (OBBBA) through the budget reconciliation process, not through regular Senate floor procedure. What is the most important procedural difference between reconciliation and regular Senate legislation?
• During the Senate debate over the One Big Beautiful Bill Act (OBBBA) in June and July of 2025, the Senate Parliamentarian struck several student loan provisions from the bill during what is called the "Byrd bath." What does the Byrd Rule prohibit in a reconciliation bill?
• On July 1, 2025, the Senate passed the One Big Beautiful Bill Act (OBBBA) by a vote of 51 to 50. Three Republican senators voted against the bill: Rand Paul of Kentucky, Thom Tillis of North Carolina, and Susan Collins of Maine. What role did Vice President JD Vance play in that result?
• The OBBBA loan caps affect a larger share of master's degree students than professional degree students, even though professional programs are more expensive.
• The Congressional Budget Office (CBO) estimates the OBBBA's graduate loan caps will save taxpayers $44 billion over ten years. Supporters also say the caps will pressure schools to lower tuition. Critics counter that the savings come at the cost of degree access. What is the core mechanism by which loan caps could push down graduate tuition?
• The Department of Education published the RISE (Reimagining and Improving Student Education) Final Rule on May 1, 2026, to implement the OBBBA's loan caps. A coalition of 25 states and the District of Columbia sued the Department, not over the loan caps themselves, but over how the Department defined "professional degree program." What legal argument did the states make?
• Judge Howell's June 24, 2026, order stopped the OBBBA's student loan caps from taking effect on July 1, 2026.
• The Grad PLUS Loan Program was created by Congress in 2005 through the Deficit Reduction Act, which was itself a budget reconciliation bill. What problem was Congress trying to solve when it created Grad PLUS, and why is it significant that reconciliation was also used to eliminate it in 2025?
• A concurrent budget resolution by itself releases the money described in its targets.
• Put a simplified federal bill path in order.
• Which pairing accurately describes the Constitution's divided military roles?
• Which congressional action normally provides legal authority to spend federal money?
• What did the House Budget Committee's 20–14 vote do?
• Reconciliation instructions direct committees to develop later legislation consistent with budget targets.
• Which institution holds the federal power of the purse?
• Authorizing legislation and appropriations always perform the same legal function.
• Why can appropriations committees hear testimony from government institutions?
• Congress may fund judicial security while remaining unable to dictate the outcome of individual cases.
• Congress can influence military operations through appropriations decisions.
• A war-powers resolution and a defense appropriation are the same congressional tool.