A Republican bill with 1 Republican cosponsor · See the cosponsor
Last activity — Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 16.
Introduced, nothing more yet
Formally proposed, and not yet handed to a committee.
Nearly every bill is sent to a committee within days. Introduction alone is not a sign of support, of momentum, or of any likelihood of passing — any member may introduce any bill.
Its path through Congress
- 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
- Scored +2
Does this give the federal government more power?
The Act increases the authority of the Department of the Treasury over student aid functions.
The opposite· 3 of 7
- Scored -3
Does this give people more protection from unfair business practices?
The removal of debt collection exemptions may reduce protections for borrowers with delinquent or defaulted loans.
- Scored -2
Would people in their twenties and thirties be better off under this?
Young adults heavily reliant on student loans may face more aggressive collection practices.
- Scored -2
Would households on low incomes be better off under this?
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
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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))
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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))
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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
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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))
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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. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — Low-income households often rely on federal student aid and may be disproportionately affected by changes in debt collection. Would students be better off under this? — Changes to student aid management and debt collection exemptions may negatively impact student financial stability. Would people in their twenties and thirties be better off under this? — Young adults heavily reliant on student loans may face more aggressive collection practices.
- Education And Technology
- Does this make college cost less? — The elimination of certain debt collection exemptions may increase the financial burden on students with defaulted loans. Does this reduce what student borrowers owe or repay? — The shift in management and removal of exemptions could negatively impact debt relief and management processes.
- Economy And Finance
- Does this give people more protection from unfair business practices? — The removal of debt collection exemptions may reduce protections for borrowers with delinquent or defaulted loans.
- Governance And Ideology
- Does this give the federal government more power? — The Act increases the authority of the Department of the Treasury over student aid functions. Does this protect the right to fair treatment by the courts? — The termination of certain debt collection exemptions may affect due process for borrowers in default.
- 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