Bill · S. 3424· Senate(119-S-3424)
Bankruptcy Administration Improvement Act of 2025
- Introduced
- 12/10/2025
- Last activity
- 2/6/2026 — Became Public Law No: 119-76.
- Sponsored by
- Christopher Coons
- Cosponsors
- - 1 - 2
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
What this bill would do
The Bankruptcy Administration Improvement Act of 2025 aims to modify compensation for trustees serving in chapter 7 bankruptcy cases. It increases the total compensation for these trustees from $60 to $120 per case. The bill also adjusts various bankruptcy fees and updates the United States Trustee System Fund. Additionally, it extends the terms of certain temporary bankruptcy judgeships from five years to ten years. These changes are intended to ensure the bankruptcy system remains self-supporting.
Yes· 3 of 5
Does this make the government pay for what it commits to?+2
The bill ensures the bankruptcy system remains self-supporting through adjusted fee structures and deposits.
Does this make it easier to run a small business?+2
The bill supports the preservation of bankruptcy judgeships which help handle increasing business caseloads.
Would households on low incomes be better off under this?+2
The bill maintains the authority of bankruptcy courts to waive filing fees for indigent individuals.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Trustee Compensation: The act increases the total compensation for chapter 7 bankruptcy trustees from $60 to $120 per case (Section 2, Finding 9A; Section 3, Subsection a). This is intended to provide pay that is appropriate and proportionate compared to 1994 levels.
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Preservation of Bankruptcy Judgeships: The bill supports the preservation of existing bankruptcy judgeships, which are noted as being urgently needed to handle increasing business and consumer caseloads (Section 2, Finding 9C).
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Extended Terms for Judges: The act extends the term of certain temporary offices of bankruptcy judges from five years to ten years (Section 5).
Potential Negative Impacts for People
-
Increased Quarterly Fees: The bill modifies the calculation of quarterly fees under section 1930(a)(6) of title 28, United States Code (Section 4, Subsection a). This change includes adjusting the fee percentages or amounts used to fund the system.
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Treasury Deposits: For fiscal years 2026 through 2031, $5,400,000 of the fees collected under section 1930(a)(6) shall be deposited into the general fund of the Treasury (Section 4, Subsection c, Clause 2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Fiscal Responsibility+2Improves Small Business Support+2Reduces National Debt+1
- Demographic And Interest Groups
- Good For Business Owners+2Good For Low Income Households+2
- Public Law(2/7/2026)
The text as it became law
- Enrolled Bill
The final version, on its way to the President
- 2/6/2026
- Signed by President.
- Became Public Law No: 119-76.
- 2/3/2026
- Presented to President.
- 1/12/2026
- Motion to reconsider laid on the table Agreed to without objection.
- Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H627)
- On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H627)
- DEBATE - The House proceeded with forty minutes of debate on S. 3424.
- Considered under suspension of the rules. (consideration: CR H626-628)
- Mr. Cline moved to suspend the rules and pass the bill.
- 12/11/2025
- Message on Senate action sent to the House.
- Held at the desk.
- Received in the House.
- 12/10/2025
- Passed/agreed to in Senate: Introduced in the Senate, read twice, considered, read the third time, and passed without amendment by Unanimous Consent.
- Introduced in the Senate, read twice, considered, read the third time, and passed without amendment by Unanimous Consent. (consideration: CR S8629-8630; text: CR S8630)
- 3 Cosponsors added.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Marsha BlackburnRepublican · Tennessee
Cory BookerDemocrat · New Jersey
Lindsey GrahamRepublican · South Carolina