Federal student loans: The federal student loan portfolio reaches almost $1.8 trillion, and a new repayment perk could cost taxpayers at least $5 billion more.
Pennsylvania budget: Gov. Josh Shapiro signs a $50.8 billion budget that bridges the state's deficit in part by delaying payments and pulling unspent money from government accounts.
Washington income tax: A new poll shows Washington voters oppose the state's new income tax by a three-to-one margin as a repeal measure heads toward the November ballot.
Minnesota ICE deportation: Federal officials deport a convicted sex offender despite a unanimous pardon from Minnesota's Board of Pardons, including Gov. Tim Walz.
Illinois gun ban: A federal appeals court upholds Illinois' assault weapons ban in a case that appears headed to the U.S. Supreme Court.
Taxpayers stay on the hook for $1.8 trillion in student loans
Photo: Joshua Jen / Unsplash / Edited in Canva
What we found: The federal student loan portfolio now stands at almost $1.8 trillion, and taxpayers backstop the losses. The Committee for a Responsible Federal Budget estimates a new policy that quadruples the interest rate discount for borrowers on auto-pay could cost taxpayers at least $5 billion. Its president, Maya MacGuineas, calls it "debt cancellation by another name." Cato Institute research fellow Andrew Gillen told The Center Square that under recent reforms, Congressional Budget Office estimates show the government's projected losses could fall from about 20 cents per dollar lent to about 3 cents.
The stakes: Every dollar the government loses on student lending is a dollar taxpayers cover. About 7.5 million borrowers are now moving out of the defunct SAVE plan and into new repayment options during a 90-day transition that began July 1.
The backstory: The changes renew a long-running debate over whether Washington, D.C., should serve as one of the nation's largest student lenders. In 2024, the Committee for a Responsible Federal Budget projected President Joe Biden's cancellation plans could cost taxpayers $870 billion to $1.4 trillion.
Where it stands: The Project on Predatory Student Lending sued the U.S. Department of Education on July 1, claiming the agency committed to canceling over $23 billion in debt for about 1.5 million borrowers but has provided limited information about how much of that relief is complete.
3 States
Pennsylvania: Gov. Josh Shapiro signed a $50.8 billion budget that bridges a multibillion-dollar deficit in part by delaying payments and pulling $4.5 billion in unspent money from government accounts over two years. Dissenting Republican Rep. Russ Diamond says the accounting moves push $2.6 billion off the books and warns the state is headed toward a drained rainy day fund or a tax increase.
Washington: A new Cygnal poll shows voters oppose the state's new income tax 67% to 21%, and 57% sided with opponents' argument that the tax will eventually reach all Washingtonians, even though it starts with incomes above $1 million. A repeal initiative backed by more than 511,000 signatures is expected to qualify for the November ballot, making Washington a test of whether a "millionaire's tax" can survive a statewide vote.
Minnesota: U.S. Immigration and Customs Enforcement deported Tou Lue Vang, a convicted sex offender, despite a unanimous pardon from the state Board of Pardons that includes Gov. Tim Walz. Secretary of State Marco Rubio said he revoked Vang's legal status, clearing the way for removal and showing a state pardon does not guarantee protection from federal immigration enforcement.
2 Issues
Elections: The 2026 Senate map is moving. In North Carolina, Democrat Roy Cooper's lead over Republican Michael Whatley has tightened to 4 points in a race that could set spending records between $500 million and $1 billion. In Michigan, Abdul El-Sayed leads establishment-backed U.S. Rep. Haley Stevens ahead of the Aug. 4 Democratic primary, and in South Carolina, Gov. Henry McMaster appointed Darline Graham Nordone, sister of the late Sen. Lindsey Graham, as his short-term replacement while voters choose his successor in an Aug. 11 special primary.
Foreign policy: U.S. strikes against Iran are intensifying, with precision strikes hitting coastal defense systems and missile sites in an effort to curb Iranian attacks on commercial ships transiting the Strait of Hormuz. The U.S. reinstated a full naval blockade on Iranian ports, and the Trump administration has asked Congress for $87.6 billion to cover the conflict's costs, including more than $70 billion in military expenses, according to a White House supplemental appropriations request.
1 Number
$1.4 trillion
That's how much the federal government has borrowed in the first nine months of fiscal year 2026, according to a new Congressional Budget Office report. The figure already exceeds the entire federal deficit of the previous fiscal year, and Committee for a Responsible Federal Budget President Maya MacGuineas says total borrowing will likely reach $2 trillion or more this year.
Appeals court reverses judge, upholds Illinois gun ban
A federal appeals panel reversed a district judge who found Illinois' 2023 gun and magazine ban unconstitutional — a week after the U.S. Supreme Court agreed to hear a separate Illinois gun ban case. The States breaks down both opinions and what the decision means for gun owners, taxpayers, and similar laws nationwide.
California Attorney General Rob Bonta
Bonta is leading 12 states suing to block Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery, arguing the merger would mean higher prices, lower content quality, and fewer movies and TV shows. The Writers Guild of America filed a similar suit in the same court this week. The U.S. Department of Justice approved the deal on June 12, so the case tests whether state attorneys general can block a merger federal regulators cleared.
How much more does a gallon of gas cost on average in Democratic-controlled states than in Republican-controlled states, according to a new Institute for Energy Research report?
We're asking because the report finds the gap comes from decades of accumulated state policy choices, mostly driven by just four states: California, Hawaii, Washington, and Oregon.
Enjoy the Weekly Brief?
If this newsletter helps you stay informed, share it with someone who'd appreciate it too. The best way to support our journalism is to spread the word.
First time reading? Subscribe here.