Bill · H.R. 9609· House(119-HR-9609)
Less Bureaucracy, Better Student Aid Act
- Introduced
- 7/9/2026
- Last activity
- 7/15/2026 — Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 16.
- Sponsored by
- Tim Walberg
- Cosponsors
- - 1 - 0
- Introduced
What this bill would do
The "Less Bureaucracy, Better Student Aid Act" transfers the management of federal student loans and student aid eligibility from the Department of Education to the Department of the Treasury. This transfer includes functions related to defaulted debt, non-defaulted debt, and various financial assistance programs like Pell Grants and Work-study. The Secretary of the Treasury will take over these responsibilities along with the associated personnel, assets, and funds. The effective dates for these transfers will be jointly determined by the Secretaries of Education and the Treasury. The Act also includes provisions for the transition and the continued validity of existing legal documents and proceedings.
Yes
Does this give the federal government more power?+2
The Act increases the authority of the Department of the Treasury over student aid functions.
The opposite· 3 of 7
Does this give people more protection from unfair business practices?-3
The removal of debt collection exemptions may reduce protections for borrowers with delinquent or defaulted loans.
Would people in their twenties and thirties be better off under this?-2
Young adults heavily reliant on student loans may face more aggressive collection practices.
Would households on low incomes be better off under this?-2
Low-income households often rely on federal student aid and may be disproportionately affected by changes in debt collection.
Who it would affect, and how
Potential Positive Impacts for People
-
Maintenance of Existing Benefits: The Act ensures that current legal documents, such as grants, loans, and contracts, remain in effect according to their original terms, preventing immediate disruption to current recipients. (Section 8(a))
-
Continuity of Pending Applications: Individuals with pending applications for benefits, service, or financial assistance will have their proceedings continue as they were before the Act was passed. (Section 8(b))
-
Protection of Ongoing Legal Actions: Existing lawsuits or legal proceedings involving student aid functions will not be stopped by this change in management. (Section 8(c))
Potential Negative Impacts for People
-
Changes to Debt Collection: The Act terminates the ability to exempt certain delinquent or defaulted Federal student loan debt from the Debt Collection Improvement Act. (Section 9(a))
-
Staffing Restrictions: The Director of the Office of Management and Budget must ensure that the Act does not result in a net increase in full-time employees at the impacted federal agencies. (Section 5(a))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households-2Good For Students-2Good For Young Adults-2
- Education And Technology
- Improves College Affordability-2Improves Student Loan Relief-2
- Economy And Finance
- Improves Consumer Protection-3
- Governance And Ideology
- Increases Federal Power+2Improves Due Process-1
- 8/31/2026
- 1 Cosponsor added.
- 7/15/2026
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 16.
- 7/9/2026
- Referred to the Committee on Education and Workforce, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Introduced in House
Michael RulliRepublican · Ohio