119-hr3412

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3412 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3412

 To suspend and reform the authority under the Higher Education Act of 
1965 for the Secretary of Education to carry out an administrative wage 
 garnishment program.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 14, 2025

 Ms. Pressley introduced the following bill; which was referred to the 
 Committee on Education and Workforce

_______________________________________________________________________

 A BILL

 To suspend and reform the authority under the Higher Education Act of 
1965 for the Secretary of Education to carry out an administrative wage 
 garnishment program.

 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 ``Ending Administrative Garnishment 
Act of 2025''.

SEC. 2. SUSPENSION OF WAGE GARNISHMENT.

 

Section 488A of the Higher Education Act of 1965 (20 U.S.C. 1095a) 
is amended by adding at the end the following:
 ``

    (f) Suspension of Authority.--
 ``

    (1) In general.--Beginning on the date of enactment of 
 the Ending Administrative Garnishment Act of 2025, the 
 authority provided under subsection

    (a) to garnish the 
 disposable pay of an individual shall be suspended until the 
 date the Secretary submits to the Committee on Health, 
 Education, Labor, and Pensions of the Senate and the Committee 
 on Education and Workforce of the House of Representatives the 
 certification described in paragraph

    (2) .
 ``

    (2) Certification.--Not earlier than 1 year after the 
 date of enactment of the Ending Administrative Garnishment Act 
 of 2025, the Secretary shall submit to the Committee on Health, 
 Education, Labor, and Pensions of the Senate and the Committee 
 on Education and Workforce of the House of Representatives a 
 certification that either--
 ``
        (A) the Secretary has implemented a process 
 through which--
 ``
            (i) individuals who have had their 
 disposable pay improperly garnished in 
 violation of this section, or of any other 
 instruction by the Secretary, are able to have 
 their refund processed and returned to them not 
 later than one calendar week after the date of 
 such violation;
 ``
            (ii) the Secretary can independently 
 cease or suspend the administrative wage 
 garnishment program authorized under this 
 section at any time, at the sole discretion of 
 the Secretary, including suspension of the 
 garnishment of any individual student loan 
 borrower or a cohort of borrowers; and
 ``
            (iii) the Secretary obtains a quarterly 
 verification from each employer through which 
 garnishment is carried out under this section 
 that all information necessary to implement 
 garnishment under this section with respect to 
 an individual employee is accurate, including 
 an estimate of the amount scheduled to be 
 garnished in the subsequent quarter, and the 
 name, address, phone number, and email address 
 for both the employee and the employer; or
 ``
        (B) the Secretary is unable to implement the 
 process described in subparagraph
        (A) and has 
 determined that the garnishment of the disposable pay 
 shall not apply to individuals as authorized under 
 subsection

    (a) .
 ``

    (3) Data collection.--
 ``
        (A) In general.--If the Secretary submits a 
 certification under paragraph

    (2) that the Secretary 
 has implemented the process described in paragraph

    (2)
        (A) , the Secretary, upon submission of such 
 certification, shall establish a centralized database 
 containing--
 ``
            (i) the addresses, occupations, 
 employers, and other collectible demographic 
 data of individuals whose disposable pay was 
 subject to garnishment under this section on 
 the day before the date of enactment of the 
 Ending Administrative Garnishment Act of 2025; 
 and
 ``
            (ii) the addresses, occupations, 
 employers, and other collectible demographic 
 data of individuals whose disposable pay is 
 subject to garnishment under subsection

    (a) .
 ``
        (B) Report.--Not later than 90 days after the 
 date the Secretary establishes the database under 
 subparagraph
        (A) , and not less often than annually 
 thereafter, the Secretary shall submit a report to the 
 Committee on Health, Education, Labor, and Pensions of 
 the Senate and the Committee on Education and Workforce 
 of the House of Representatives summarizing the 
 information contained in the database and evaluating 
 the exercise of the Secretary's authority under 
 subsection

    (a) .
 ``

    (g) Right of Action Against Employer.--The employer shall be 
liable for, and the Secretary, the guaranty agency, or an individual, 
as appropriate, may sue the employer in a State or Federal court of 
competent jurisdiction to recover, any amount that such employer 
improperly withholds from wages due an employee following receipt by 
such employer of notice of suspension or revocation of the withholding 
order, and actual damages, plus attorneys' fees, costs, and, in the 
court's discretion, punitive damages.
 ``

    (h) Department Action After Improper Garnishment.--Not later than 
10 days after the date the Secretary receives an individual's 
disposable pay that has been improperly garnished, the Secretary shall 
pay the borrower twice the actual amount of wages garnished. 
Notwithstanding 

section 432

    (a)

    (2) , an injunction against the Secretary 
may be issued to enforce this subsection.
 ``
            (i) Limits on Use.--The Secretary may not garnish the disposable 
pay of an individual under this section with respect to a loan that has 
been outstanding for more than 10 years.''.
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