Considered and Passed Senate

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3424 Considered and Passed Senate (CPS)]

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119th CONGRESS
  1st Session
                                S. 3424

     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.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           December 10, 2025

  Mr. Coons (for himself, Mr. Graham, Mr. Booker, and Mrs. Blackburn)
  introduced the following bill; which was considered, read the third
                            time, and passed

_______________________________________________________________________

                                 A BILL

     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.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bankruptcy Administration
Improvement Act of 2025''.

SEC. 2. FINDINGS.

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.

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.

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

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.

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--

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.
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