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The Renewing Opportunity in the American Dream, or ROAD, to Housing Act of 2025 is a bill aimed at increasing the supply of affordable housing in the U.S.
The bill is the first bipartisan markup for housing in over a decade.

UNITED STATES – JULY 29: From left, Chairman Tim Scott, R-S.C., Sen. Tina Smith, D-Minn., and ranking member Sen. Elizabeth Warren, D-Mass., attend the Senate Banking, Housing and Urban Affairs Committee markup of the ROAD to Housing Act, in Dirksen building on Tuesday, July 29, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Tom Williams | Cq-roll Call, Inc. | Getty Images

A Senate committee approved a major housing bill this week, with a range of provisions that could make it easier for people to buy a home.
On Tuesday, the Senate Committee on Banking, Housing, and Urban Affairs unanimously voted to advance the Renewing Opportunity in the American Dream to Housing Act of 2025, which aims to increase the supply of affordable housing.

The bill sponsored by Sen. Tim Scott, R-S.C., chairman of the committee, and Sen. Elizabeth Warren, D-Mass., a ranking member, is the first bipartisan markup for housing in over a decade. 
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The bill has been released to the Senate floor, but it has not yet been scheduled for debate.
Here’s what renters and home buyers need to know about the bill.

The ROAD to Housing Act is ‘not a panacea’

According to its text, the ROAD to Housing Act of 2025 aims to boost the country’s housing supply, improve affordability, help reduce homelessness, expand access to homeownership, increase oversight and efficiency of federal regulations and housing programs.

The housing market has been increasingly unaffordable for many Americans. The median sale price in June was $435,000 — a record high for the month, according to the National Association of Realtors. Interest rates have also remained elevated, keeping sellers from listing their homes and potential buyers on the sidelines.
“Many households aren’t even forming because they can’t afford to own or even rent,” said Mark Zandi, chief economist at Moody’s Analytics. 
In 2023, half of renters in the U.S., or 22.6 million tenants, were “cost burdened,” meaning they were spending more than 30% of their income on rent and utilities, according to a recent report by the Joint Center for Housing Studies at Harvard University.

While industry groups and local elected officials have expressed support for the housing package, it’s “not a panacea,” said Alys Cohen, director of federal housing advocacy at the National Consumer Law Center. 
What’s more, the bulk of the provisions are aimed at making the process of building more housing easier for local governments, changes that could eventually add more supply and ease prices. Still, some provisions in the bill directly impact individuals and communities.
“It’s a series of measures, some of which are bold, some of which are modest, some of which will be helpful, some of which may be harmful. The hope is that overall, it’s a significant step forward,” Cohen said.

‘A potpourri of different efforts’

The ROAD to Housing Act is “a potpourri of different efforts” to increase the supply of housing, Zandi said. 
A provision in the housing package would simplify the construction of manufactured housing by eliminating the federal requirement of a permanent chassis, or foundation, and expanding lending and financing options.
Formerly known as mobile homes, manufactured housing consists of factory-built homes that are transported in one or more sections. As of now, it must be installed onto a permanent chassis, according to the Department of Housing and Urban Development.
Such homes are more affordable to make and sell, and are popular in the South, “where the housing shortages are particularly acute,” said Zandi. 
With a few changes in lending and regulation, “we might see more manufactured housing, and that could be very, very helpful for improving homeownership,” he said.

Other provisions could impact individuals more directly, said Cohen. 
For example, the bill permanently authorizes the Community Development Block Grant Disaster Recovery program by the HUD, which provides resources to states, tribes and communities to rebuild housing after a natural disaster. 
Individuals can get aid from the Federal Emergency Management Agency after a disaster, but if they need funds to rebuild, the CDBG-DR program provides the necessary funds. 
As of now, Congress has to authorize it regularly, or after a disaster, said Cohen.
It is “one of the most significant accomplishments” of the package, said Cohen.

It’s a series of measures, some of which are bold, some of which are modest, some of which will be helpful, some of which may be harmful. The hope is that overall, it’s a significant step forward.

Alys Cohen
director of federal housing advocacy at the National Consumer Law Center

Another provision helps low-income and rural homeowners who have USDA direct loan mortgages to qualify for financial relief. 
When people have mortgages backed by the government, if they need a payment reduction on their mortgage, one of the ways to do that is by extending the term of the loan, said Cohen. Currently, direct loan borrowers with USDA loans do not have that option. 
“This bill fixes that problem,” she said. 
However, it remains unclear if the bill in its totality “will meet the needs of many of the people who need it the most,” such as “underserved communities and households of color,” Cohen said. More

Borrowers who remain in the so-called SAVE forbearance could see their education debt grow by $219 a month now that interest accrual is resuming, according to one expert’s calculations.
Most borrowers will be better off quickly finding a new repayment plan, experts said.

U.S. Secretary of Education Linda McMahon attends to testify before a Senate Appropriations hearing on U.S. President Donald Trump’s budget request for the Department of Education, on Capitol Hill in Washington, D.C., U.S., June 3, 2025. REUTERS/Annabelle Gordon
Annabelle Gordon | Reuters

An interest-free payment pause on student loan bills that has benefited millions of borrowers has come to an end.
Starting Friday, borrowers who remain in the so-called SAVE forbearance will see their education debt grow again if they don’t make payments large enough to cover the accruing interest.

“Any borrower enrolled in the SAVE Plan needs to start thinking about their next step,”  said Elaine Rubin, director of corporate communications at Edvisors, which helps students navigate college costs and borrowing.
Here’s what to know about the end to the reprieve.

Why the SAVE interest-free pause is ending

The Biden administration rolled out the Saving on a Valuable Education, or SAVE, plan in summer 2023. The federal student loan repayment plan’s terms were the most generous to date; under its rules, many borrowers’ monthly bills would have dropped by as much as half.
Nearly 7.7 million federal student borrowers enrolled in SAVE, the Education Department said in its press release last month.
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But just as many of the plan’s benefits were going into effect, Republican-led legal challenges blocked the program. Unlike the Biden administration, Trump officials have not fought in the courts to preserve SAVE, and recently, Congress repealed the plan altogether.
The Trump administration has called the SAVE plan illegal. In a July 9 announcement ending the interest-free pause, it said the U.S. Department of Education “lacks the authority to put borrowers into a zero percent interest rate status.”
Borrowers enrolled in the forbearance will not be charged interest retroactively, the department said.
(CNBC spoke to one borrower who did see interest accrue on her debt during the break, so check your balance to make sure that didn’t happen to you.)

Staying in forbearance could be costly

While borrowers can stay in the forbearance, at least for now, doing so will be costly with interest accruing again as of Aug. 1.
A typical borrower could see their federal student debt grow by $219 a month in interest charges alone if they stayed put in the payment pause, according to calculations from higher education Mark Kantrowitz.
That assumes they owe the average outstanding federal student loan balance of around $39,000, and have the average interest rate of roughly 6.7%.

Another plan will likely mean a higher bill, though

Most borrowers will be better off quickly finding a new repayment plan, experts said.
Most agree that the best option at the moment is the Income-Based Repayment plan. IBR, like SAVE, is an income-driven repayment plan that caps borrowers’ monthly bills at a share of their discretionary income, with the aim of making payments affordable.
IBR may be one of a dwindling number of repayment options left to borrowers, after recent court actions and the passage by Congress of President Donald Trump’s “big beautiful bill.” That legislation phases out other income-driven repayment plans.

The new law establishes another IDR repayment plan, known as RAP, but that plan won’t be operational until next year. And for now, most borrowers won’t be able to afford the bills under the currently available Standard Repayment Plan, which divides your debt into fixed payments over a decade.
But even borrowers who enroll in IBR could have their monthly bills double, compared with on SAVE.
That’s because the SAVE plan calculated payments based on 5% of a borrower’s discretionary income. IBR takes 10% — and that share rises to 15% for certain borrowers with older loans.

Still, very low-income borrowers could have a monthly bill of just $13 under IBR.
There are tools available online to help you determine how much your monthly bill would be under different repayment plans.
Borrowers worried they can’t afford their monthly payments should also see if they are eligible for any payment pauses where interest still won’t accrue — such as the unemployment deferment if you have direct subsidized loans. (Those who’ve taken out loans before July 1, 2027 should maintain access to that option under the new law.) More

President Donald Trump’s ‘big beautiful bill’ includes a new charitable deduction worth up to $1,000 for single filers or $2,000 for married couples filing jointly.
Starting in 2026, the new tax break is available even if you don’t itemize deductions.
If you don’t itemize and you are planning a smaller gift for 2025, you may reconsider the timing, experts say.

Riska | E+ | Getty Images

President Donald Trump’s “big beautiful bill” includes trillions of dollars of tax breaks, including a new charitable deduction for most filers — and there’s an easy way to maximize it, experts say.
When filing taxes, you claim the greater of your itemized tax breaks or the standard deduction. But 90% of filers don’t itemize, according to the latest IRS data, which means they can’t take the charitable deduction.

This changes in 2026 with a new charitable tax break for non-itemizers, worth up to $1,000 for single filers and $2,000 for married couples filing jointly. The deduction only applies to cash gifts.
“This is a big deal,” said Justin Miller, partner and national director of wealth planning at Evercore Wealth Management.
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Trump’s new charitable deduction is similar to a temporary measure enacted during the pandemic, which was worth up to $300 for single filers or $600 for joint filers for 2021. Roughly 48 million filers claimed that deduction on their 2021 returns, according to IRS data.
With a bigger charitable deduction coming for non-itemizers in 2026, here are some key things to know, according to financial experts.

This giving strategy is a ‘no-brainer’

If you don’t itemize deductions and plan on making a smaller year-end charitable gift this year, you might reconsider the timing if there is flexibility, experts say.
“It seems like a no-brainer to just do it in January and capture a little benefit that you wouldn’t otherwise achieve,” said certified financial planner Edward Jastrem, chief planning officer at Heritage Financial Services in Westwood, Massachusetts.
By donating funds in 2026 rather than 2025, you could be eligible for the new charitable deduction for non-itemizers. Of course, you should consider whether it aligns with your overall financial planning strategy.

You need a ‘written acknowledgement’

“I would caution all taxpayers claiming these deductions that they still need to keep appropriate records,” Miller said.
Gifts of any amount require a bank record or written receipt from the organization, including the charity name, amount and date of the contribution, according to the IRS.
If you donate $250 or more, you need what’s known as a “contemporaneous written acknowledgement,” or CWA, with further detail from the organization.
You must have the CWA on or before the earlier of:

the date you file your return for the year of the donation or
your return’s due date, including extensions

“If you are ever audited, and you don’t get that letter, you can’t fix it,” which could disallow the deduction, Miller said. More

Labubu dolls from Pop Mart have become the “it” item around the globe.
Pop Mart’s stock, which trades in Hong Kong, has taken off as the toy has become a worldwide sensation.
People use the hard-to-find doll as a fashion accessory, and some are scooping up the company’s other collectibles.

Labubu dolls on display at Pop Mart’s new store in Las Vegas July 12, 2025.
Kara Gildea | Las Vegas Review-Journal | Tribune News Service | Getty Images

In recent months, Shay Tomi began seeing plush monster dolls attached to purses and strollers around San Francisco. During recent travels, the 28-year-old noticed more hanging from belt loops. Online, she was fed videos of people unboxing creatures of their own.
These objects, as she would come to learn, have a name: Labubu. After years of rising brand awareness in China, they’re taking the U.S. by storm as a hot fashion accessory and hard-to-get collectable.

It’s caught the attention of shoppers, brands and even politicians who want to ride the trend. One retail analyst christened Labubu as the “it” item globally.
“All of the sudden, everyone has it,” said Tomi, who works in finance. “Then, you kind of had to get one.”
Indeed, Tomi got in on the craze: She has four Labubus that take turns hanging from her purse, sometimes dressed in a miniature grey sweatsuit that she bought from a third-party seller. She also got her boyfriend hooked. His Labubus often sport a basketball jersey designed to match the Los Angeles Lakers.
Tomi isn’t alone. Data and anecdotal evidence shows just how much Labubus are taking off in the U.S. — in turn providing a boon for shares of Pop Mart, its China-based parent, and boosting interest in the collectable company’s other products.

‘Astronomical’ growth

Sales of the company’s plush toys, a business arm that includes some Labubu products, skyrocketed more than 1,200% between 2023 and 2024. With that growth, plush toys accounted for more than a fifth of total revenue in 2024, up from less than 4% a year prior. Impressive, when one considers most of the products cost about $30, though prices vary.

In North America, Pop Mart said revenue surged more than 550% between 2023 and 2024. What’s more, sales in the region climbed about 900% in the first quarter of 2025 compared with the same period a year ago — far outpacing the comparable figure for global growth, according to a Goldman Sachs analysis.
That’s prompted a seismic shift in where the company’s consumer base lives. In 2021, Bank of America found virtually all revenue came from mainland China. Nearly half of revenue is set to come from outside the Asian country this year, per forecasts from the bank.

Foot traffic has taken off in the nearly one year since Pop Mart opened a store in San Diego, according to estimates from Placer.ai. Searches in the U.S. for the word Labubu are on track to hit their highest level on record this month, Google Trends data shows. An Intuit Credit Karma survey found Labubus and other backpack accessories were among the most-asked for items heading into the new school year.
For fanatics like Jonathan Fierro, Labubus have opened their eyes — and wallets — to a company they might have glossed over before. The 29-year-old’s Labubus account for just a handful of the dozens of total products from Pop Mart he owns.

In addition to Labubus, Fierro’s discovered Pop Mart’s Hirono and Twinkle Twinkle toys as other favorites. He now budgets about three-fourths of his monthly “fun” money to spend on the company’s various items.
“It was like the gateway drug to Pop Mart,” the digital media manager said of Labubus. “You really enter a whole other world with so many other fun things.”
Shares of Pop Mart’s stock, which is listed in Hong Kong, have soared more than 500% from 12 months ago. While the stock pulled back earlier this month as investors questioned the sustainability of the company’s current growth rate, Pop Mart’s market cap dwarfs that of U.S. toymakers such as Hasbro and Mattel.

The company declined to make an executive available for this story. But Emily Brough, Pop Mart’s head of intellectual property licensing for the Americas, told CNBC Make It that Labubus have seen “astronomical” sales growth.
To be sure, the doll is starting well behind legacy brands. Labubus accounted for about $423 million of Pop Mart’s global revenue in 2024, according to Brough. By comparison, Mattel said its famous Barbie brand raked in around $1.35 billion that year.

‘The toy fad that wasn’t’

Consumers and toy industry followers credit Lisa, a performer in girl group Blackpink and actress in the latest season of “The White Lotus,” with raising the toy’s profile globally. Rihanna and Simone Biles are also among the other celebrities that have showed off their Labubus, which come in a variety of themes and colors.
Brands jumped in as the product gained notoriety. United Airlines shared a video of the dolls riding a conveyor belt. Olive Garden posted a series of pictures showing a light-blue Labubu with the Italian chain’s breadsticks, salad and pasta.

Influencer Francis Dominic carries three Labubu toys at Paramount+’s world premiere of “Dexter: Resurrection” at Alice Tully Hall at Lincoln Center on July 9, 2025 in New York City.
Angelina Katsanis | Afp | Getty Images

Social media users share content displaying how they wear, decorate and unbox the dolls. A hair stylist filmed a TikTok video adding extensions to a Labubu that has more than 200,000 likes. 
The buzz has made its way to the political sphere, with Daniel Lurie, the San Francisco mayor and Levi Strauss heir, sharing the news about Pop Mart bringing a store to the city. “Now, I can see first-hand what my kids have been talking about with these Labubus,” he said in a TikTok video set to the sound of Sabrina Carpenter’s song “Espresso.”
The toy’s cultural grip isn’t just prevalent on social media platforms. Last month, people strutted through lower Manhattan’s Washington Square Park with the dolls attached to bags, belt loops and dog harnesses in a makeshift fashion show. Life-sized Labubu costumes have been spotted everywhere from nightclubs to protests.
“I’ve been talking about this as the toy fad that wasn’t,” said Chris Byrne, an independent analyst and consultant known as the “Toy Guy.” “What’s happened with Labubu is it has become much more of a fashion accessory than a toy.”

Labubu plush figures are on display at the opening of Germany’s first Labubu store in the Alexa shopping center.
Jens Kalaene | Picture Alliance | Getty Images

‘Lafufus,’ blind boxes and resellers

Byrne pointed to the exclusivity of the dolls — which typically sell out quickly and can be hard to find in stores — as helping drum up interest. Labubus have become a status symbol for adults with a lower price tag than alternatives like Hermes Birkin bags, he said.
The boom in popularity makes sense in this economic moment, he added. When people feel negatively about their financial outlook, Byrne said they shift toy spending to products that they believe to be “collectables.”

Shoppers line up outside Pop Mart’s new store in Las Vegas July 12, 2025.
Kara Gildea | Las Vegas Review-journal | Tribune News Service | Getty Images

Labubus, like other items that can be bought in “blind boxes,” also give the impression of having a value that outweighs the actual price, Byrne said.
Another driver of online interest is a controversial question: Are Labubus, with their perky ears and pointy teeth, ugly? Owners interviewed by CNBC acknowledged that while the dolls could indeed be seen as hard on the eyes, that is, in a way, what makes them lovable.
“They remind me of my dog,” said Jake Alexander, a 25-year-old real estate professional who dresses his dolls up in jewelry from Cartier and Van Cleef & Arpels.
“He is so ugly in the face,” Alexander said of his Cavalier King Charles Spaniel. “It’s the cutest thing ever.”
While resellers can fetch a premium, the secondary market hasn’t taken off to the same extent it had previously for a doll like Beanie Babies, Bryne said, explaining that the internet’s rise has made supply seem less scarce.

Labubu toys are seen at a souvenir store in Krakow, Poland on July 23, 2025.
Jakub Porzycki | Nurphoto | Getty Images

Still, enthusiast Josh Brantley Cole said he turned to third-party sellers to avoid the hubbub of trying to buy directly from Pop Mart. When purchasing through unofficial channels, consumers need to do their homework to ensure authenticity, Cole said. Otherwise, they may end up with off-brand dupes known as “lafufus,” he said.
First, buyers need an accurate QR code and serial number, he said. Next, he added, the box’s colors should match the related color scheme for the doll. A final giveaway has been the number of teeth — an actual Labubu, he said, should have nine. 
Being in his 40s, Cole admitted that seeing other adult men walking around with Labubus on their person is a “weird” sight. Still, the Los Angeles-based actor said he’d prefer having an affinity for this product over a more serious dependency like alcohol or gambling.
“It’s an addiction that isn’t bad for you,” Cole said. “Luckily, I can afford this addiction.”
— CNBC’s Ashton Jackson, Valentina Duarte and Nick Wells contributed to this report.

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The Federal Reserve kept rates unchanged at the end of its July meeting.
The central bank’s interest-rate policy has far-reaching implications for many types of consumer loans and savings rates.
From credit cards, car loans, mortgages, savings accounts and student debt, here’s how the Fed’s decision influences your wallet.

Five ways the Fed affects your finances

1. Credit cards
Many credit cards have a variable rate, so there’s a direct connection to the Fed’s benchmark.
With a rate cut likely postponed until at least September, the average credit card annual percentage rate is currently just over 20%, according to Bankrate — not far from last year’s all-time high. In 2024, banks raised credit card interest rates to record levels, and some issuers said they are keeping those higher rates in place.

“Rates have slowly increased recently as banks guard against the risks they see in an uncertain economy, and I think the growth is likely to continue until the Fed moves,” said Matt Schulz, chief credit analyst at LendingTree. 
“Any jumps are unwelcome news for cardholders already being pushed to the edge by high interest rates and rising prices,” he added.
2. Mortgages
Mortgage rates don’t directly track the Fed, but are largely tied to Treasury yields and the economy. As a result, experts say, concerns over tariffs and ongoing uncertainty about future costs have kept those rates within the same narrow range for months.
The average rate for a 30-year, fixed-rate mortgage was 6.81% as of July 28, while the 15-year, fixed-rate was 6.06%, according to Mortgage News Daily. 

Adjustable-rate mortgages, or ARMs, and home equity lines of credit, or HELOCs, are pegged to the prime rate, and are also elevated.
Those higher rates, along with much higher home prices, have been a relentless obstacle for would-be buyers. “Until mortgage interest rates begin to decline meaningfully, growth in the mortgage market is expected to remain modest,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.
3. Car loans
Auto loan rates are tied to several factors, but the Fed is one of the most significant.
With the Fed’s benchmark holding steady, the average rate on a five-year new car loan is 7.3%, near a record high, while the average auto loan rate for used cars is 10.9%, according to Edmunds.
But car prices are also rising — in part due to pressure from Trump’s tariffs on imported vehicles and car parts — leaving car buyers with bigger monthly payments and a growing affordability issue. Now, the share of new-car buyers with a car payment of more than $1,000 a month is at an all-time high.

GMC SUVs parked outside a GMC Buick dealership in Edmonton, Alberta, Canada, on March 22, 2025.
Artur Widak | Nurphoto | Getty Images

“Consumers are stretching their budgets to the limit, taking on significantly longer loans and bigger monthly payments just to get into a new car, and this is all before we’ve seen tariffs fully manifest in vehicle pricing,” said Joseph Yoon, consumer insights analyst at Edmunds.
Regardless of the Fed’s stance on interest rates, “it won’t immediately change the deeply entrenched affordability challenges in the market,” he added.
4. Student loans
Federal student loan rates are set once a year, based in part on the last 10-year Treasury note auction in May. They are fixed for the life of the loan, so most borrowers are somewhat shielded from Fed moves and recent economic uncertainty.
As of July 1, the interest rates on undergraduate federal student loans for the 2025-26 academic year are 6.39%.
Although borrowers with existing federal student debt balances won’t see their rates change, many are now facing other headwinds with fewer federal loan forgiveness options and a popular repayment plan currently on hold.
5. Savings
On the upside, top-yielding online savings accounts still offer above-average returns and currently pay more than 4%, according to Bankrate.
While the central bank has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate — so holding that rate unchanged has kept savings rates above the rate of inflation, which is a major advantage for savers.
“It’s not a good time to be a borrower, but it’s a great time to be a saver — lean into that,” Greg McBride, chief financial analyst at Bankrate, recently told CNBC.
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Recent changes to the federal student loan system have created challenges for borrowers trying to access debt relief under the Public Service Loan Forgiveness program.
PSLF allows certain not-for-profit and government employees to have their federal student loans canceled after a decade.
A Biden-era program aimed at helping borrowers claim the aid, known as PSLF Buyback, has stalled under the Trump administration, with 65,448 applications pending as of late June.

Kilito Chan | Moment | Getty Images

Katy Punch has worked as a librarian in North Carolina for more than a decade — a stretch of time that makes her eligible to get her federal student debt excused under the Public Service Loan Forgiveness program.
PSLF, which President George W. Bush signed into law in 2007, allows certain not-for-profit and government employees to have their federal student loans canceled after 120 payments, or 10 years.

However, recent changes to the student loan system have made it difficult, if not impossible, for public servants to access that relief.
Under the Biden administration, Punch, like millions of other borrowers, enrolled in the Saving on a Valuable Education repayment plan. But when SAVE became mired in political challenges brought by GOP-led states, Punch’s monthly loan payments were paused in a forbearance during the summer of 2024 — and, along with it, her progress toward PSLF.
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The timing for Punch couldn’t have been more frustrating: When the Biden administration put SAVE borrowers into forbearance, she was just five payments away from getting her roughly $30,000 student debt balance wiped away. But her loans have now been in the SAVE forbearance for around a year.
“It feels like I’m having the rug pulled out from under me when I was so close to the finish line,” said Punch, 38.

The Biden administration created a program that should have been perfect for people like Punch: PSLF Buyback. The opportunity allows borrowers who’ve hit 120 months of qualifying employment to submit a request to the Education Department to retroactively pay for any months they missed because of a forbearance or deferment.

I was so close to the finish line.

Katy Punch

However, buyback applications have piled up under the Trump administration.
Punch submitted her buyback request in November. Around eight months later, she still hasn’t heard anything.
“I will gladly pay the five months, but the Department of Education will not let me,” Punch said.

Buyback ‘functionally unavailable’ due to backlog

Tens of thousands of borrowers find themselves stuck in the same predicament as Punch.
Roughly 65,448 PSLF buyback requests were pending with the U.S. Department of Education as of the end of June, according to recent court documents. The bottleneck has only worsened since May, when close to 59,000 applications were under review by the Trump administration.
“The Biden Administration introduced the Public Service Loan Forgiveness buy-back program to allow borrowers to ‘buy’ eligibility into the program — weaponizing a legal discharge plan for political purposes,” said Ellen Keast, deputy press secretary at the Education Department.
“The Department is working its way through this backlog while ensuring that borrowers have submitted the required 120 payments of qualifying employment,” Keast said.

The numbers show that PSLF and the buyback option are “functionally unavailable,” said Randi Weingarten, president of the American Federation of Teachers. (The Education Dept. has regularly shared the data on pending buyback requests as part of a lawsuit AFT filed against it. The teacher’s union alleges the agency is blocking borrowers from their rights.)
“It is clear that this administration has no intention of helping working people,” Weingarten said.
The backlog means that borrowers who believe they’re entitled to student loan forgiveness are still stuck carrying their debt and possibly making payments, said higher education expert Mark Kantrowitz.
“It is inappropriate for the U.S. Department of Education to slow-walk the forgiveness,” Kantrowitz said.
At its current rate, it would take the federal government more than two years to process the current applications, he said, “even as the backlog continues to grow due to new applications.”

With the layoffs, there are fewer staff to review, calculate buyback payments and process applications for borrowers.

Stephanie Sampedro
former Education Dept. employee

The Trump administration’s mass terminations at the Education Dept. are to blame, at least in part, for the pileup, said Stephanie Sampedro, who used to work in the Federal Student Aid office at the agency.
The department announced a reduction in force on March 11 that gutted the agency’s staff by half. 
“With the layoffs, there are fewer staff to review, calculate buyback payments and process applications for borrowers,” said Sampedro, who was part of those March terminations.
“Waiting for debt relief hurts everyone,” Sampedro added. “People are stressed and trying to plan for the future with total uncertainty.”

Financial fallout from delayed student loan forgiveness

While the Education Department works through the buyback pileup, borrowers can either stay in the SAVE forbearance, where their debt will continue to accrue interest starting again in August, or enroll in another PSLF-eligible repayment plan where they’re required to make monthly payments.
Yet borrowers who believe they’re eligible for loan forgiveness now — or, in Punch’s case, since November — may not want to spend months switching into a new repayment plan and then making payments on a debt they shouldn’t owe anymore.
In the meantime, the delayed student loan forgiveness can trigger a cascade of financial consequences for borrowers, consumer advocates said. Research has found student loan payments make it harder for people to save for their futures, open businesses and start families.
Recently, Punch feels like her life is on hold while she waits to hear if her debt will be excused.
If the Trump administration forgives her loans, she said, she’d be able to save more for retirement and salt away money toward her child’s education down the line. She could also finally get some of the repairs and needed improvements done on her house that she’s put off because of her student debt.
“I have dedicated my life to serving in public libraries,” Punch said. “That something I earned has been delayed is really upsetting.”
Are you also waiting for student loan forgiveness under PSLF buyback? If you’re willing to share your experience for a story, I’d love to hear from you at [email protected].

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Sen. Josh Hawley, R-Mo., on Monday introduced a bill to send tariff rebate checks to American families, similar to the stimulus checks sent during the Covid-19 pandemic.
If enacted, the measure would provide a minimum of $600 per adult and dependent child, or $2,400 for a family of four.
The proposal comes after President Donald Trump on Friday told reporters he was “thinking about a little rebate” for Americans from tariff revenue.
Earlier this year, Trump and Elon Musk floated a $5,000 dividend check for Americans, funded by savings from the so-called Department of Government of Efficiency. However, that idea has not happened.

Senator Josh Hawley (R-MO) reacts, on the day where a potential government shutdown looms during the holidays, after a spending bill backed by U.S. President-elect Donald Trump failed in the U.S. House of Representatives, on Capitol Hill in Washington, U.S., December 20, 2024.
Nathan Howard | Reuters

Sen. Josh Hawley, R-Mo., on Monday introduced a bill to send tariff rebate checks to American families, which would be similar to the stimulus checks sent during the Covid-19 pandemic.
If enacted, the American Worker Rebate Act of 2025 would provide “at least” $600 per adult and dependent child, or $2,400 for a family of four, according to a statement from Hawley. The bill allows for a larger rebate if tariff revenue exceeds projections.

Whatever the final amount, the benefit would be reduced by 5% for joint filers with an adjusted gross income above $150,000 or single filers earning more than $75,000.
The Senate bill comes after President Donald Trump on Friday told reporters the administration was “thinking about a little rebate” for Americans from tariff revenue.
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“Like President Trump proposed, my legislation would allow hard-working Americans to benefit from the wealth that Trump’s tariffs are returning to this country,” Hawley said in a statement.
However, it’s unclear whether the proposal has broad Republican support, particularly among fiscally conservative lawmakers.

Earlier this year, Trump and Elon Musk floated a $5,000 dividend check for Americans, funded by savings from the so-called Department of Government of Efficiency. However, that idea has not happened.

Tariff revenue surplus

The Treasury Department reported an unexpected surplus for June, with a boost from tariff revenue. Customs duties totaled roughly $27 billion for the month, compared with $23 billion in May. The duties reflect a 301% gain from June 2024.   

I would prefer that the revenue was used for deficit reduction rather than just cutting checks to people.

Alex Durante
Tax Foundation senior economist

The tariff rebate check proposal comes as a chorus of lawmakers and policy experts voice concerns about the federal budget deficit.
“I don’t think [a rebate] would be particularly good policy,” Tax Foundation senior economist Alex Durante told CNBC on Friday. “I would prefer that the revenue was used for deficit reduction rather than just cutting checks to people.”
Enacted in early July, Trump’s “one big beautiful” tax-and-spending package could add an estimated $3.4 trillion to the deficit through 2034, according to a conventional score released by the Congressional Budget Office this week.

Rebates could ‘magnify inflationary effects’

The motivation for sending the direct payments would be different than they were during the Covid pandemic, when many households were losing income or unable to work, said Joseph Rosenberg, senior fellow at the Urban-Brookings Tax Policy Center’s tax and income supports division.
Now, the federal government is imposing tariffs that will cost U.S. households, and this would be a way of helping those individuals and families, Rosenberg said.
Tariffs are a tax imposed by foreign nations, paid by domestic companies that import goods or services. U.S. consumers are expected to pay higher prices via companies negatively impacted by the trade policy.
An analysis from The Budget Lab at Yale released Monday found Trump’s tariffs could cost U.S. households an average of $2,400 in 2025.

Because Congress just passed the very expensive “big beautiful” budget and tax legislation, rebates to individuals could exacerbate the effects on the federal budget deficit, he said.
The rebates would reinforce the inflationary effects of the tariffs that already exist, Rosenberg said.
“People will go out and spend some of that money, and that would further put upward pressure on prices and probably magnify inflationary effects,” Rosenberg said.
Pandemic-era fiscal stimulus contributed to an increase in inflation of about 2.6 percentage points in the U.S., according to 2023 research from the Federal Reserve Bank of St. Louis. More

President Donald Trump’s blanket tariffs scheduled for Aug. 1 could bring higher prices on certain foods, according to a new Tax Foundation analysis.
The tariffs aim to drive demand for American products, but some goods don’t have a domestic substitute or have limited U.S. production, the analysis found.
Many U.S. food imports already face tariffs ranging from 10% to 30%, but those could exceed 30% in some countries if Trump’s Aug. 1 plan goes into effect.

Dowell | Moment | Getty Images

President Donald Trump’s blanket tariffs scheduled to begin on Aug. 1 could soon bring higher prices on certain foods, according to some experts.
Tariffs are a tax imposed by foreign nations, paid by domestic companies that import goods or services. U.S. consumers are expected to pay higher prices via companies negatively impacted by the trade policy.

One of the goals of Trump’s tariffs is to drive demand for American products. But certain items, such as Brazilian coffee, aren’t produced domestically. Other imports, like bananas, have limited U.S. production, which wouldn’t meet American demand, according to a Tax Foundation analysis published Monday.
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In some cases, U.S. consumers may decide to pay more for these imported food products rather than choosing a substitute, wrote Tax Foundation senior economist Alex Durante.
In 2024, U.S. food product imports totaled about $221 billion. Most of these products already face tariffs ranging from 10% to 30%. However, levies could exceed 30% for some countries if Trump’s Aug. 1 tariffs go into effect, the Tax Foundation found.
“We could see some large movements in prices over the next few months if the administration holds firm to that Aug. 1 deadline,” Durante told CNBC.

The top five imported foods by volume that could face tariffs are liqueurs and spirits, baked goods, coffee, fish and beer, which account for roughly 21% of total U.S. food imports, according to the Tax Foundation analysis.
Grocery prices were about 2.4% higher than one year ago, according to the latest inflation report based on June data. But the full impact of Trump’s tariffs is not yet reflected, experts say.
“It’s way too soon for the administration to be doing a victory lap because most of their planned tariff increases have not gone into effect yet,” Durante told CNBC.
A separate analysis by The Budget Lab at Yale, also from Monday, estimated that tariff price increases to date will raise food costs by 3.4% in the short-run, and that prices will stay 2.9% higher in the long-run. Fresh produce could initially be 6.9% more expensive while stabilizing at 3.6% higher, the analysis found.

“The Administration has consistently maintained that the cost of tariffs will be borne by foreign exporters who rely on access to the American economy, the world’s biggest and best consumer market,” White House spokesperson Kush Desai told CNBC in a statement.
Desai also shared a July analysis from the White House’s Council of Economic Advisers, which showed the prices of imported goods, as measured by the personal consumption expenditure price index, fell from December through May. More