Republicans Proposing Plan to Shake Up Pell Grants and Student Loans​​​

House Republicans are embarking on wholesale changes that could shake up the way students pay for college, advancing a conservative agenda to curtail the federal role in education financing, the Washington Post reported. If new proposals from the Republicans stand, the changes could make borrowing for college more expensive and limit who can get Pell Grants, which deliver vital financial aid to lower-income households. The legislation would restrict access to college financial aid, lowering loan limits for parents and some students. Republicans, who control both chambers of Congress with slim margins, are fleshing out plans to implement President Donald Trump’s agenda on taxes, energy and immigration through budget reconciliation — a process that would allow a bill to pass without any Democratic votes in the Senate. House committees are crafting the legislation, with a target of at least $1.5 trillion in spending cuts over 10 years. The House Committee on Education and the Workforce unveiled its contribution to the budget package Monday and scheduled an internal vote on the bill for Tuesday. The 103-page legislation delivers on some long-standing promises to simplify and streamline federal education lending. It largely mirrors the College Cost Reduction Act that created a road map for remaking the federal student aid program. Yet it goes further by curbing access to the largest federal grant program for low- and middle-income students: Pell Grants. The bill could face changes when Senate Republicans come to the negotiating table. It cuts more than $330 billion to support Trump’s tax cuts but is full of sweeping policies that some higher-education experts say are best suited for a reauthorization of the Higher Education Act. Read more.​​​​​​

Commentary: Examining the Examiners Report in the Silvergate Capital Case​​​

Four legal experts raised serious concerns about the integrity and independence of investigations conducted during chapter 11 proceedings in the first part of a special Creditors Rights Coalition commentary looking at the Silvergate Capital bankruptcy case. Prof. Stephen Lubben of Seton Hall University of Law was critical of the appointment of an “independent” director whose late-stage investigation relied on conflicted counsel. Prof. Bruce Markell of Northwestern University's Pritzker School of Law emphasized the importance of genuine independence in investigations, arguing that hiring debtor-affiliated counsel made the Special Investigation Committee’s findings inherently suspect and eroded trust in the process. Prof. Nancy Rapoport of UNLV School of Law highlights the ethical pitfalls when rules on conflicts are overlooked, particularly pointing out the psychological and professional pressures that can compromise a director’s independence. Al Togut of Togut, Segal & Segal LLP (New York) contextualizes the issue historically, warning that modern practice is regressing, with recurring use of hand-picked “independent” directors and conflicted law firms threatening the integrity of the bankruptcy system. Read more.​​​​​​

Subchapter V Experiences to Share? ABI Wants to Hear from You!

ABI is continuing its study of Subchapter V, and it needs your help! We are particularly interested in learning more about the real-world impact of Subchapter V. So our question is, do you have a story about a distressed business or creditor who has used or benefited from the subchapter? If so, could that case still happen under the lower debt cap for Subchapter V debtors? Any and all responses are welcome. Submit your story at https://abi.org/subvstories.
 

Continuing Jobless Claims Reach Highest Level Since November 2021, Initial Claims Hit 2-Month High​​​

Weekly claims for unemployment benefits hit their highest level in two months during the final full week of April while the number of Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021, YahooFinance.com reported. Data from the Department of Labor released today showed that 241,000 initial jobless claims were filed in the week ending April 26, up from 223,000 the week prior. Meanwhile, 1.916 million continuing claims were filed, up from 1.833 million the week prior and the highest level seen since November 2021. Read more.​​​​​​

Analysis: The Rush to Beat Tariffs Is Distorting the Economy​​​

The rush to get goods to the U.S. ahead of President Trump’s tariffs has already led to huge distortions in global trade patterns and economic data. It isn’t over yet, according to a Wall Street Journal analysis. Global businesses selling everything from booze to skin cream to telecom equipment have said they boosted shipments to the U.S. in the first few months of the year ahead of Trump’s “Liberation Day” levies at the start of April. U.S. imports surged more than 40% at an annualized rate in the first quarter, data showed Wednesday. That drove down gross domestic product by 0.3%. Now, there is a second leg to the rush. The president’s decision on April 9 to pause so-called reciprocal tariffs for 90 days on every trading partner except China has presented businesses around the world with a new deadline to beat. The stakes are high: Many Asian imports could face tariffs of more than 40% while goods from the European Union are in line for a 20% levy. (Subscription required.) Read more.​​​​​​

Congressional Watchdog Investigating Trump Efforts to Dismantle CFPB​​​

A congressional watchdog group is investigating President Trump’s efforts to dismantle the Consumer Financial Protection Bureau (CFPB) after some Senate Democrats requested the agency examine the ongoing actions and attempts to remove nearly all its staff, The Hill reported. The Government Accountability Office (GAO) replied to Democratic Sens. Elizabeth Warren (Mass.) and Andy Kim (N.J.) after they requested that the agency review the changes at the CFPB under the direction of the Department of Government Efficiency (DOGE). The investigation comes after the Trump administration has attempted to conduct mass layoffs at CFPB, cutting roughly 90 percent of its staff. A federal appeals court panel recently blocked the effort from moving forward by partially lifting a previous order that allowed the layoffs to proceed. Administration officials will appear before U.S. District Judge Amy Berman Jackson this week as she hears whether the agency’s layoffs violated an earlier order to stop the CFPB from being dismantled. Read more.​​​​​​

Unlock Bankruptcy Law Essentials from Top Industry Professionals with Restructuring Masterclass Program​​​

Restructuring Masterclass is an online, on-demand series of classes specifically designed to cover all the bankruptcy essentials. This program provides a foundation in bankruptcy law for both lawyers and business professionals alike, and sessions are taught by an outstanding faculty of experts who present practice tips and the basic concepts that every professional dealing with insolvency needs to know. Learning the fundamentals of bankruptcy law is an essential practice component for a variety of professions. Subscribe today at restructuringmasterclass.com to explore more than 40 expertly crafted courses, with new sessions being added monthly.​​​​​​

Third Circuit Invites Public Comments by May 15 for Reappointment of Bankruptcy Judge Carlota M. Böhm​​​

The current term of office of the Hon. Carlota M. Böhm, U.S. Bankruptcy Judge for the Western District of Pennsylvania in Pittsburgh, is due to expire on Nov. 27, 2025. The U.S. Court of Appeals for the Third Circuit is considering the reappointment of Judge Böhm to a new 14-year term of office. Members of the bar and the public are invited to submit comments for consideration by the court of appeals regarding the reappointment of Judge Böhm. All comments will be kept confidential and should be directed to one of the following addresses: by email at Bohm_Reappointment@ca3.uscourts.gov or by mail to Margaret A. Wiegand, Circuit Executive, 22409 U.S. Courthouse, 601 Market Street, Philadelphia, PA 19106. Comments must be received no later than May 15, 2025.​​​​​​

Application and Nomination Period for ABI’s 2025 “40 Under 40” Open Through June 30​​​

The ABI "40 Under 40" annual program continues to highlight the best up-and-comers in the industry. If you are, or know of, a dynamic insolvency professional who is committed to growth and excellence both professionally and in your community, this is one opportunity not to be missed! Applications are due June 30. Click here for more information and to submit a nomination or application. 

Access All Current ABI Titles Through ABI’s New Digital Book Subscription!​​​

One of the best collections of bankruptcy books is now available as an annual digital subscription! ABI’s bankruptcy library opens the door to a constantly evolving area of the law, and our books are continually being updated by top industry professionals. Auto-renewing annual subscriptions guarantee immediate access to this invaluable resource, which is comprised of fully searchable content that’s always available on any digital device. Convenient pricing plans for individual and institutional subscribers offer immediate and unlimited access to our entire digital library of books — nearly 100 treatises! Plus, you get advanced access to new and revised books as soon as they are published — all included in your annual subscription. Learn more!

Have an Idea for a Topic for an ABI Conference Session? Submit Your Proposal via ABI’s “Call for Abstracts” Page!​​​

ABI has launched an online portal for professionals to submit proposals for educational sessions at future ABI conferences. Submitters can describe their proposed topic, outline the session’s focus and learning goals, suggest speakers, and provide contact information via the portal’s detailed form. The portal can be accessed here.

All submissions will be reviewed by an internal Education Committee, which will contact the submitter to ask questions as needed and to discuss the status of the proposal. Submissions will be reviewed on a rolling basis.

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