Latest news with #AmericanRescuePlanActof2021
CNBC
4 days ago
- Business
- CNBC
Student loan forgiveness may soon be taxed again — here's how much borrowers could owe
President Donald Trump's "big beautiful bill," which Congress passed earlier this month, has tax implications for people who receive student loan forgiveness. Here's what borrowers expecting the loan relief should know. The American Rescue Plan Act of 2021 made student loan forgiveness tax-free at the federal level through the end of 2025. Trump's "big beautiful bill," while making other specific kinds of student loan relief tax-free, did not extend or make permanent that broader provision. In theory, lawmakers could move to protect the relief from taxes before the end of the year, but borrowers shouldn't count on it, experts say. "Republicans do not like [student loan] forgiveness, and are unlikely to make it tax-free," said higher education expert Mark Kantrowitz. Without action from Congress, student loan borrowers who get their debt forgiven under the U.S. Department of Education's income-driven repayment plans, or IDRs, would face a federal tax bill again starting in 2026. (IDR plans cap people's monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.) That tax bill at the end of repayment could be significant — the IRS typically counts forgiven debt as income, Kantrowitz said. More from Personal Finance:Trump's 'big beautiful bill' slashes CFPB funding78% say Trump's tariffs will make it harder to deal with debtTax changes under Trump's 'big beautiful bill' — in one chart The average loan balance for borrowers enrolled in an IDR plan is around $57,000, Kantrowitz said. For those in the 22% tax bracket, having that amount wiped out would trigger a tax burden of over $12,000, Kantrowitz estimates. Lower earners, or those in the 12% tax bracket, would still owe around $7,000. Borrowers could also be on the hook for state taxes following their student loan forgiveness. (Many states mirror the federal government's tax policy on student loans, meaning more states may start to levy the aid next year as well, experts say.) Consumer advocates have long criticized the practice of taxing borrowers on their student loan forgiveness. They say that borrowers who enroll in IDR plans tend to struggle to keep up with their bills, and that the government's policy often wipes away one's student debt just to saddle them with a tax debt. "Forcing borrowers to remain drowning in debt is cruel," said Persis Yu, deputy executive director and managing counsel at the Student Borrower Protection Center. The "big beautiful bill" did permanently make it so that student loan forgiveness in cases of death or disability are tax-free, Kantrowitz said. Employees who receive help from their company paying down their debt also won't owe any taxes in the future on that relief, due to the legislation, he added. The current allowable annual tax-free contribution from firms is $5,250, but that amount will increase with inflation. Public Service Loan Forgiveness has always been, and will continue to be, tax-free on the federal level, under its terms. (It's possible your state will tax you on the aid). That program allows government and certain non-profit workers to get their debt excused after a decade of payments.
Yahoo
15-07-2025
- Politics
- Yahoo
Biden-era emergency housing voucher program, lauded by local officials, slated to end in 2026
A poster at this summer's announcement that the Department of Housing and Urban Develpoment would be displacing the National Science Foundation by moving in to the NSF's office in Alexandria, Virginia. (Photo: U.S. Department of Housing and Urban Development. When Kelly Durrows was told two years ago that she qualified for an Emergency Housing Voucher, funded by federal recovery dollars, she assumed she would be added to another waiting list and wouldn't exit homelessness for another year or two. But four months later, a case worker in Reno handed her a key to her apartment in ending her 15 years of on and off homelessness in 2023. She has been stably housed ever since. The American Rescue Plan Act of 2021, signed into law by former President Joe Biden, included $5 billion in investments to create 70,000 emergency vouchers nationwide. More than 600 emergency vouchers are currently in use across Nevada according to the U.S. Department of Housing and Urban Development data. 'Normally each year, we're able to move about 10 people into permanent supportive housing,' said Catrina Peters, the homelessness services coordinator for Washoe County. The emergency housing vouchers 'allowed us to make 137 referrals' to get people off the streets, she said. The specialized vouchers were supposed to be funded through 2030, but jurisdictions around the country, including in Reno, were informed by HUD in March that they would receive a final allotment this year to cover 'those remaining amounts will be available to cover (EVA Housing Assistance Program) costs in 2026.' 'We did always kind of have that (2030) end date in mind,' Peters said, adding that 'the more recent correspondence to potentially end in the program in 2026 was quite a surprise.' 'We have extremely limited resources and extremely limited opportunities to serve these folks through other programs,' she said. 'Any reduction in a program impacts our ability to get people housed and out of homelessness.' Homelessness has steadily been on the rise in the state, as in most of the country. More than 10,100 people experienced homelessness in Nevada in 2024 – a 17% increase statewide – according to data released by HUD in December. 'We're seeing rents not increasing as dramatically as they have been in the previous years, but still continuing to rise,' Peters said. 'We have a lot of folks on fixed incomes who don't see a corresponding increase to their income.' Housing vouchers, already scarce, would be even harder to get under Trump's budget bill The end strategy for those emergency housing vouchers, Peters said, is to at some point have 'them moved into the existing housing authority pool, or kind of absorbed into that existing voucher pool,' which is the Housing Choice Vouchers program, formerly known as Section 8. More than 15,000 people receive standard housing vouchers statewide, with thousands on the waitlist hoping to qualify for a voucher. The regular housing voucher program is likely to face cuts as well. President Donald Trump 2026 fiscal budget proposed steep cuts across various agencies, including slashing the U.S. Department of Housing and Urban Development budget by more than 40%. 'I think if folks want to see a meaningful decrease in the number of people experiencing homelessness, people on the street, people living in cars, then we need to maintain these programs and not see any cuts,' Peters said. Durrows, 47, moved from California to Carson City about 15 years ago to live with her mom when she needed a place to stay while she was unemployed. Her mother died a few months later, and her stepfather asked her to move out. Durrows relocated to Reno, got a job as a housekeeper, and moved into a new apartment. But she lost her job and could no longer afford rent. That was her first time experiencing homelessness. Durrows bounced around to Georgia and Texas, but eventually came back to Reno for good in 2018. 'I barely slept. That's when the drugs came in. I barely could sleep because I had to stay up and keep my dog warm and keep burning fires, and I had to keep hand warmers up under the blankets.' Durrows briefly stayed at Reno's Cares Campus Emergency Shelter in 2023 and was eventually connected with Michael Adragna, a case manager. During that time, she qualified for an emergency housing voucher. Knowing there is a long wait list for unhoused people to get housing assistance, Durrows figured it was too good to be true 'When they told me that I was approved, I was like, 'Yeah, okay, I'm approved, but it's gonna take two, three years to get it,' ' Durrows said. But a few months later, she was in her new place. It's the first time in her life that she has ever 'felt planted,' she said. 'I quit doing drugs,' she said. 'I quit doing all this craziness.' Even after Durrow's first landlord decided not to renew the lease, she was able to secure another apartment using the same voucher. Adragna likened the emergency voucher to 'a golden ticket.' 'The alternative programs with the housing authority were kind of like being on a wait list to nowhere,' he said. Once people are on typical wait lists for various types of housing assistance, such as a housing choice voucher, Adragna said they could be on there 'for maybe two to three years.' What made these emergency vouchers more successful is they came with less stringent requirements from HUD, said Brenda Barnes, the social services manager for Clark County. 'These (vouchers) were more unique in regards to less deniability,' she said. 'There are background checks and various other types of requirements for different vouchers. Some require a disability. These were a little bit more flexible, which made them more accessible.' For the first time, the door to housing was open to people who typically don't qualify for housing assistance, such as people with criminal backgrounds who can't access traditional housing vouchers. 'It was exciting and amazing to see how quickly we utilized these vouchers' to help people 'who were falling through the gaps in other resources in the community,' Barnes said. Peters said that in Washoe County roughly 90% of those who qualified for the emergency vouchers received case management, and have remained stably housed. The vouchers, and the household stability they enable, allows the county 'to reduce community wide costs' associated with 'people who were previously using the emergency room heavily and previously had a lot of interactions with law enforcement.' The emergency voucher program is 'the last thing that should be cut,' Peters said.
Yahoo
23-06-2025
- Business
- Yahoo
Empty Detroit hospital building heading to auction
A vacant hospital building in northeast Detroit is up for grabs starting June 24 in an online auction. The building at 4777 East Outer Drive, less than a mile south of Eight Mile and near the Bel Air Luxury Cinema, opened in 1946 as Holy Cross Hospital and underwent several expansions over the years. It was purchased in 1996 by what was then St. John Health and renamed St. John NorthEast Hospital. St. John Health eventually closed the 295-bed hospital in 2004 amid dwindling patient counts. However, the building stayed open as a medical mall, hosting various clinics, social services entities and an urgent care. It most recently operated as the Conner Creek Health Center until shortly after September 2023, which is when the hospital site's owner, a limited liability company called Conner Creek Center, filed for bankruptcy. The company had bought the hospital property in 2015. A three-day auction for the hospital building and its 13.3-acre site is scheduled to begin Tuesday, June 24, and end Thursday, June 26. Bidding is to start at $400,000. The auction is marketed as a "lender owned redevelopment opportunity" being organized by the property's receiver, the Farmington Hills-based M. Shapiro Real Estate Group, which didn't return messages seeking comment for this article. The Conner Creek Health Center reportedly had nearly a dozen tenants as recently as 2020, including a residential substance abuse treatment facility. On the same day that Conner Creek Center filed for bankruptcy — Sept. 22, 2023 — the owner sold a roughly 3-acre portion of the hospital's parking lot to a group looking to build housing for low-income military veterans. More: Herman Kiefer developer has another property, an abandoned church, and it's for sale The group broke ground later that fall on the 50-unit Benjamin O. Davis Veterans Village, which is named for the first Black general officer in the U.S. Army. The city of Detroit is contributing $1.4 million in funding for the project from its share of the $1.9 trillion American Rescue Plan Act of 2021. Bob Beale, general manager of the veterans village project, said they hope to finish construction soon and open the village to residents before the end of the year. The Conner Creek property's bankruptcy did present some challenges to its own project, Beale said, as it essentially opened a $1.6 million hole in the budget. "So we paid basically all of their outstanding debts," he said of the hospital property's owner, "at least the outstanding debts that would affect the part of the property we were trying to purchase, with the anticipation they would pay us back. And instead of paying us back, they filed bankruptcy." Beale said the old hospital building itself appeared to be in decent condition the last time he saw it from inside, which was 2023. 'I am hoping that someone comes along and does something good with that property," he said. An attorney for Conner Creek Center LLC couldn't be reached for comment the afternoon of Friday, June 20. U.S. Bankruptcy Court documents identify the owners of the limited liability company as 99% the Dorothy E. McLemore Trust and 1% Andrew Gene McLemore Sr. Contact JC Reindl: 313-378-5460 or jcreindl@ Follow him on X @jcreindl This article originally appeared on Detroit Free Press: Empty Detroit hospital building heading to auction
Yahoo
12-06-2025
- Politics
- Yahoo
Former Alabama VA commissioner sues Gov. Kay Ivey over termination
Kent Davis, former commissioner of the Alabama Department of Veterans Affairs (right), speaks with reporters during a news conference alongside his attorney, Kenneth J. Mendelsohn, regarding a lawsuit he filed against Gov. Kay Ivey on Wednesday, June 11, 2025, for wrongful termination. (Ralph Chapoco/Alabama Reflector) Former Alabama Department of Veterans Affairs Commissioner Kent Davis filed a civil lawsuit against Gov. Kay Ivey on Wednesday, alleging his firing in October violated his free speech and due process rights. The lawsuit, filed in U.S. District Court for the Middle District of Alabama, also accused Ivey of wrongful termination, defamation and intentional interference with business relations because he has been unable to find other employment since getting terminated. 'I think anybody who reads through that complaint will see a pattern and practice of behavior there that I think we will go more into as we get into the facts of this case,' Davis said. 'Hopefully we will get to discovery, and there is going to be more that comes out in this case.' Ivey's office said in a statement Wednesday that they were 'extremely confident that Governor Ivey's necessary actions will stand any court test there may be.' The lawsuit is the latest clash that dates back to September, when Ivey accused Davis of mishandling grant funds from the American Rescue Plan Act of 2021, and filing what she characterized as a frivolous ethics complaint with the Alabama Ethics Commission that was later dismissed. Davis initially agreed to leave the position at the end of 2024, but later that month the State Board of Veterans Affairs asked him to withdraw that resignation, saying it found no evidence of wrongdoing. Ivey then moved to fire Davis, accusing him of manipulating the board. Davis and his attorneys argue that Ivey lacked the legal authority to fire Davis. 'The law was pretty clear that he was hired by the State Board of Veterans Affairs and could only be terminated by the State Board of Veterans Affairs, and only for cause,' said Kenneth Mendelsohn, an attorney representing Davis, on Wednesday. 'Initially, she tried to fire him without even going to the board, which certainly violated due process rights he had. And then she called a special meeting later to try and get the board to fire him, and they voted not to.' Ivey signed a bill in March removing most of the board's powers and reducing it to an advisory role within the governor's office. The Alabama Department of Veterans Affairs received $5 million from ARPA in June 2023 and an additional $2 million from the Alabama Department of Finance. The governor's office last year accused Davis of not presenting grant applications for mental health applications funded through ARPA until January, just months before a June 1 deadline. Ivey said that raised questions from other department heads about compliance and proper fund use. The Alabama Department of Mental Health terminated a contract with Veterans' Affairs in part due to these concerns. The Alabama Department of Finance later contacted Veterans Affairs with concerns about the grants, some of which the department said had little to no connection with veterans' mental health. Davis' lawsuit argues that Ivey's accusation that Davis mishandled ARPA funds 'was false and Ivey knew or at least should have known it was false.' 'In fact, all funds were preserved and returned to the Department of Finance and, as a result of Davis's efforts, the grant program was successful without using any grant funds,' the lawsuit said. According to the lawsuit, Davis decided to return the $7 million the agency received from ARPA to the Alabama Department of Finance. However, Davis wanted to continue with the grant program to allow organizations who were due to receive funding to continue to serve the mental health needs of veterans, according to the lawsuit. 'Simultaneous to Davis's efforts to salvage the grant process for veterans' mental health programs, the Alabama Department of Finance was investigating and responding to Commissioner Boswell's allegations regarding the ARPA funds,' the lawsuit states. According to the lawsuit, Davis filed an ethics complaint against Boswell last July, alleging that members of the State Board of Veterans Affairs had brought concerns about the ARPA grant program and other veterans issues. The Ethics Commission dismissed the ethics complaint in August. Ivey called the complaint frivolous. Davis is seeking monetary relief stemming from his termination and for retirement benefits he is due. 'When I look back, every step that I and my colleagues in the Alabama Department of Veterans Affairs do was by the book, in accordance with the law,' Davis said on Wednesday. 'And sometimes we were obligated by the law to take those steps. There is the old adage, 'No good deed goes unpunished.' Is that the point we have in this country, you follow the law, you do what you are obligated to do under the law, and you are punished as a result of it, you are retaliated against as a result of it? Maybe that is the point where we are in this country.'
Yahoo
23-05-2025
- Business
- Yahoo
State's food banks pan $5 million legislative proposal to tell people where food is
() The state's food banks are wary of legislation that seeks to allocate $5 million for a program proponents say is designed to reduce food insecurity and waste. 'Until there is more data to demonstrate that this concept will increase access to food for our most vulnerable neighbors, we are concerned that this approach could disrupt an established, high-performing food rescue system,' Beth Martino, the CEO of Three Square wrote in a March 27 letter opposing the proposal. Assembly Bill 476, which is scheduled to be heard by the Assembly Ways and Means Committee Saturday morning, would require the Division of Welfare and Supportive Services to create a 'Smart Surplus Supplemental Nutrition Assistance Program.' The program would seek to reduce food waste via technology by directing SNAP recipients to areas with a surplus of food where they can also get discounted rates. The legislation would allocate $5 million to administer the program. Between potential for major federal cuts and the state's shaky economic outlook, the fate of many bills that require new or additional spending remains uncertain. A Connecticut company founded by Priceline, r4 Technologies, has been used to develop the program elsewhere. The legislation 'proposes allocation for the development of AI to help grocers better assess needs,' said Jason Frierson, a former Speaker of the Nevada State Assembly and Nevada U.S. Attorney who is now a lobbyist with Cornerstone Government Affairs, which represents r4 Technologies. 'It allows the grocers to sell more food and helps to decrease waste so there is less food going to places that aren't being purchased. It also helps SNAP recipients get a better bang for their buck,' Frierson said. The company's program was launched for the first time last year in Delaware, funded by $1.5 million from the American Rescue Plan Act of 2021. Three Square Food Bank, which provides assistance in Clark, Esmeralda, Lincoln, and Nye counties, as well as the Food Bank of Northern Nevada opposed the legislation. Shane Piccinini, the government relations director for the Food Bank of Northern Nevada, wrote in his opposition testimony in March that he didn't understand how the legislation would improve access. 'Many Nevadans facing food insecurity, particularly seniors, struggle to reach grocery stores—even when food is offered at discounted prices,' he wrote. 'Our research shows that transportation is a major obstacle to accessing food, which is why many of our neighbors rely on local food pantries or direct delivery services provided by nonprofit organizations like the Food Bank of Northern Nevada.' AB 476 was first heard by the Assembly Health and Human Services Committee in March and hasn't received a vote yet. It is exempt from all deadlines. Since that March hearing, U.S. House Republicans passed a massive budget reconciliation bill that is now headed for the U.S. Senate — Donald Trump's 'One Big Beautiful Bill' — that slashes Medicaid, food assistance and other programs. Also since the bill's hearing in March, the body charged with making state revenue estimates that legislative budgeting can't exceed revised those estimates downward, citing projected negative impacts on Nevada's economy largely as a result of Trump's trade war. Democratic Assemblymember Tracy Brown May in the March hearing raised concern that deep cuts to federal assistance programs – only proposed at the time – would limit the availability of the service described in the bill. The legislation is sponsored by the Assembly Ways and Means Committee. Democratic Assemblymember Daniele Monroe-Moreno, who chairs the committee, said those currently eligible for SNAP benefits would be eligible to use the r4 Technologies application, but acknowledged that could change with shifts in federal policy. 'I wish I had a crystal ball and could say that any changes would not impact this program,' said Monroe-Moreno, who also chairs the Nevada State Democratic Party. 'I can't sit here and say that at this moment.'
