Enrolled Bill

[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.

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.

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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and
                                               President of the Senate.