[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3424 Enrolled Bill (ENR)]
S.3424
One Hundred Nineteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Saturday,
the third day of January, two thousand and twenty six
An Act
To amend titles 11 and 28, United States Code, to modify the
compensation payable to trustees serving in cases under chapter 7 of
title 11, United States Code, to extend the term of certain temporary
offices of bankruptcy judges, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bankruptcy Administration
Improvement Act of 2025''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Congress has amended the laws governing bankruptcy fees as
necessary to ensure that the bankruptcy system remains self-
supporting, while also fairly allocating the costs of the system
among those who use the system.
(2) Because of the importance for the bankruptcy system to be
self-funded, at no cost to taxpayers, Congress has closely
monitored the funding needs of the bankruptcy system, including by
requiring periodic reporting by the Attorney General regarding the
United States Trustee System Fund.
(3) Because the system governing bankruptcies of various types
is interconnected, Congress has established fees, including filing
fees, quarterly fees in chapter 11 cases, and other fees, that
together fund the courts, judges, United States trustees, and
trustees serving in bankruptcy cases under chapter 7 of title 11,
United States Code.
(4) Trustees serving in bankruptcy cases under chapter 7 of
title 11, United States Code, are vital to the functioning of the
bankruptcy system, as they provide services at the front lines of
the bankruptcy process, administering thousands of cases.
(5) Chapter 7 bankruptcy trustees provide valuable returns of
assets to government creditors, including the Internal Revenue
Service, the Department of Agriculture, the Small Business
Administration, and other Federal, State, and municipal
governments.
(6) Due to the work of the chapter 7 bankruptcy trustees,
millions of dollars are also disbursed annually to private
creditors of all types, including medical providers, unsecured
creditors, small businesses, and micro-enterprises such as domestic
support providers.
(7) Despite the essential role of chapter 7 bankruptcy
trustees, since 1994 the amount of compensation paid to these
trustees has not been increased. As in 1994, bankruptcy trustees
receive only $60 per case (composed of $45 from subsection
330(b)(1), and $15 from subsection 330(b)(2), of title 11, United
States Code) in nearly 90 percent of chapter 7 cases, and
bankruptcy trustees receive no compensation at all for cases in
which the filing fee is waived by the bankruptcy court.
(8) Since 1994, there have been significant increases in
salaries, attorney fees, budget appropriations, filing fees, and
court-related fees associated with chapter 7 bankruptcies. In
contrast, the $60 paid to chapter 7 trustees has remained the same
and has not even been increased for inflation. In 2021, Congress
attempted to implement a mechanism that would give chapter 7
trustees a raise, but the trustees only received increased
compensation for 1 fiscal year. Based on Consumer Price Index
estimates, the $60 paid to trustees in 1994 would be the equivalent
of over $125 today.
(9) This Act and the amendments made by this Act--
(A) increase the compensation of chapter 7 bankruptcy
trustees to the level that is appropriate, overdue, and
proportionate with the level that was intended in 1994, by
increasing the total compensation of trustees to $120 per case;
(B) ensure adequate funding of the United States trustee
system through the increase of certain fees, which will also
apply to districts that are not part of a United States trustee
region as required by existing law; and
(C) support the preservation of existing bankruptcy
judgeships that are urgently needed to handle existing and
anticipated increases in business and consumer caseloads.
(10) This Act will not alter the filing fee under chapter 7 of
title 11, United States Code, and will not modify, impair, or
supersede the current authority of the district courts of the
United States, or of bankruptcy courts, to waive the payment of
filing fees by indigent individuals.
SEC. 3. TRUSTEE COMPENSATION.
(a) Compensation of Officers.--Section 330 of title 11, United
States Code, is amended--
(1) in subsection (b)(1) by striking ``$45'' and inserting
``$105''; and
(2) by striking subsection (e).
(b) Remainder of Fees.--Notwithstanding any other provision of law,
the remainder of fees collected under section 1930(a)(1)(A) of title
28, United States Code, after compensating trustees under section
330(b)(1) of title 11, United States Code, shall be deposited as
follows:
(1) $63.51 in the special fund of the Treasury established
under section 1931 of title 28, United States Code.
(2) $25.00 in the special fund established in accordance with
section 10101(b) of the Deficit Reduction Act of 2005 (28 U.S.C.
1931 note).
(3) $51.49 in the United States Trustee System Fund established
under section 589a of title 28, United States Code.
(c) United States Trustee System Fund.--Section 589a of title 28,
United States Code, is amended--
(1) in subsection (b)(1)(A), by striking ``40.46 percent of the
fees collected'' and inserting ``$51.49 of the fees collected in
each case''; and
(2) in subsection (f)(1)--
(A) in subparagraph (D) by striking ``Fourth'' and
inserting ``Second'';
(B) by striking subparagraphs (B) and (C); and
(C) by redesignating subparagraph (D) as subparagraph (B).
SEC. 4. BANKRUPTCY FEES.
(a) Quarterly Fees.--Section 1930(a)(6)(B) of title 28, United
States Code, is amended--
(1) in clause (i), by striking ``5-year'' and inserting ``10-
year''; and
(2) in clause (ii)--
(A) in subclause (I)--
(i) by inserting ``the greater of'' before ``0.4''; and
(ii) by striking ``and'' at the end and inserting
``or''; and
(B) in subclause (II), by striking ``0.8'' and inserting
``0.9''.
(b) Period for Deposits.--Section 589a(f) of title 28, United
States Code, as amended by section 3(c)(2), is amended by striking
``2026'' each place it appears and inserting ``2031''.
(c) Deposits of Certain Fees for Fiscal Years 2026 Through 2031.--
Notwithstanding section 589a(b) of title 28, United States Code, for
each of fiscal years 2026 through 2031--
(1) the fees collected under section 1930(a)(6) of title 28,
United States Code, less the amount specified in subparagraph (2)
of this subsection, shall be deposited as specified in section
589a(f) of title 28, United States Code, as amended by this Act;
and
(2) $5,400,000 of the fees collected under section 1930(a)(6)
of title 28, United States Code, shall be deposited in the general
fund of the Treasury.
SEC. 5. EXTENSION OF TERM OF CERTAIN TEMPORARY OFFICES OF BANKRUPTCY
JUDGE.
(a) Bankruptcy Administration Improvement Act of 2020.--Section 4
of the Bankruptcy Administration Improvement Act of 2020 (28 U.S.C. 152
note) is amended--
(1) in subsection (a)(2)--
(A) in subparagraph (A)(i), by striking ``5 years'' and
inserting ``10 years''; and
(B) in subparagraph (B)(i), by striking ``5 years'' and
inserting ``10 years'';
(2) in subsection (b)(2)--
(A) in subparagraph (A)(i), by striking ``5 years'' and
inserting ``10 years'';
(B) in subparagraph (B)(i), by striking ``5 years'' and
inserting ``10 years'';
(C) in subparagraph (C)(i), by striking ``5 years'' and
inserting ``10 years'';
(D) in subparagraph (D)(i), by striking ``5 years'' and
inserting ``10 years'';
(E) in subparagraph (E)(i), by striking ``5 years'' and
inserting ``10 years''; and
(F) in subparagraph (F)(i), by striking ``5 years'' and
inserting ``10 years'';
(3) in subsection (c)(2)--
(A) in subparagraph (A)(i), by striking ``5 years'' and
inserting ``10 years''; and
(B) in subparagraph (B)(i), by striking ``5 years'' and
inserting ``10 years'';
(4) in subsection (d)(2)--
(A) in subparagraph (A)(i), by striking ``5 years'' and
inserting ``10 years''; and
(B) in subparagraph (B)(i), by striking ``5 years'' and
inserting ``10 years'';
(5) in subsection (e)(2)(A), by striking ``5 years'' and
inserting ``10 years''; and
(6) in subsection (f)(2)(A), by striking ``5 years'' and
inserting ``10 years''.
(b) Bankruptcy Judgeship Act of 2017.--Section 1003(b)(2)(A) of the
Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note) is amended by
striking ``5 years'' and inserting ``10 years''.
SEC. 6. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.
(a) In General.--Except as provided in subsection (b), the
amendments made by this Act shall take effect on the first day of the
calendar quarter that first occurs on or after the date of enactment of
this Act.
(b) Exceptions.--
(1) Compensation of officers.--Section 3 and the amendments
made by section 3 shall apply to any case under title 11, United
States Code, commenced on or after October 1 that first occurs
after the date of enactment of this Act--
(A) under chapter 7 of title 11, United States Code; or
(B) under chapter 11, 12, or 13 of title 11, United States
Code, that is converted to a case under chapter 7 of title 11,
United States Code.
(2) Bankruptcy fees.--Section 4 and the amendments made by
section 4 shall apply to--
(A) any case commenced or pending under chapter 11 of title
11, United States Code, on the first day of the calendar
quarter that first occurs on or after the date of enactment of
this Act; and
(B) quarterly fees payable under section 1930(a)(6) of
title 28, United States Code, as amended by section 4, for
disbursements made in any calendar quarter that begins on or
after the date of enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.