US Federal 2025-2026 Regular Session

US Federal House Bill HB886

Introduced

1/31/25

Refer

1/31/25

Caption

Beat Bad Bureaucrats ActThis bill prohibits the Small Business Administration (SBA) from garnishing Social Security payments to victims of identity theft on account of certain delinquent SBA loans obtained fraudulently during the COVID-19 pandemic. Specifically, the SBA may not garnish an individual’s Social Security payments related to a covered loan if (1) the individual’s name was used to fraudulently obtain the loan, and (2) the individual has reported the identity theft to the SBA. Under the bill, covered loans are Disaster Loans granted in response to COVID-19 between January 31, 2020, and December 31, 2021 (e.g., Economic Injury Disaster Loans) and loans granted under the Paycheck Protection Program. The prohibition on garnishment does not apply if the SBA determines that an individual is not a victim of identity theft. Further, the SBA must post instructions on how to report identity theft on its public website and include them in the written notice provided to delinquent borrowers before garnishing their pay. 

Impact

If enacted, HB886 would align the SBA's practices with the growing recognition of identity theft as a significant issue affecting many Americans. The bill aims to prevent further financial hardship for victims who are already facing challenges due to fraudulent activities. Specifically, it would require the SBA to revise its regulations to ensure that victims are appropriately informed about how to report identity theft and protect their benefits from illegal garnishment.

Summary

House Bill 886, known as the Beat Bad Bureaucrats Act, seeks to protect individuals from having their social security benefits garnished by the Small Business Administration (SBA) in cases where loans were taken out fraudulently in their names due to identity theft. The bill emphasizes the importance of safeguarding victims' rights, particularly those impacted by such financial crimes. It introduces provisions that prohibit the SBA from garnishing social security payments intended for these individuals while ensuring that exceptions only apply when it is confirmed that the individual is not a victim of identity theft.

Contention

While the intent of HB886 is to provide necessary protections for victims of identity theft, discussions surrounding the bill may raise concerns about the broader implications for loan recovery processes. Critics might argue that prohibiting garnishment in cases where identity theft is involved could complicate the enforcement of loan repayments. Proponents counter that ensuring victims are shielded from undue financial penalties is paramount and that the bill fills a critical gap in the existing regulatory framework regarding identity theft and its victims.

Congress_id

119-HR-886

Policy_area

Commerce

Introduced_date

2025-01-31

Companion Bills

No companion bills found.

Previously Filed As

US HB138

Private Student Loan Bankruptcy Fairness Act of 2023 This bill modifies the treatment of certain student loans in bankruptcy. Specifically, it allows private student loans to be discharged in bankruptcy regardless of whether a debtor demonstrates undue hardship. Under current law, student loans may be discharged in bankruptcy only if the loans impose an undue hardship on the debtor.

US SB1666

Improving Social Security’s Service to Victims of Identity Theft Act

US HB80

Drain the Intelligence Community Swamp Act of 2025This bill revokes the security clearances of 51 individuals who signed a statement titled Public Statement on the Hunter Biden Emails and dated October 19, 2020. It also (1) specifies that a security clearance may not be granted or renewed for any of them, and (2) requires the Departments of Defense and Justice to investigate these individuals.    

US HB5345

Improving Social Security’s Service to Victims of Identity Theft Act

US HB825

Assisting Small Businesses Not Fraudsters ActThis bill prohibits individuals convicted of certain financial crimes from receiving assistance from the Small Business Administration (SBA).Specifically, the bill prohibits individuals who have been convicted of a crime involving financial misconduct or a false statement with respect to certain COVID-19 loans (e.g., Paycheck Protection Program loans, Restaurant Revitalization Fund grants, and Shuttered Venue Operators grants) from receiving any financial assistance from the SBA (other than a disaster loan).The prohibition includes SBA assistance to small businesses that have an owner, officer, director, or key employee who has been convicted of such a crime.

US S1645

Requires annual report on New Jersey College Loans to Assist State Students (NJCLASS) Loan Program to include information on borrower delinquency and administrative wage garnishments.

US HB878

Katrina and Leslie Schaller ActThis bill extends the Supplemental Security Income (SSI) program to include Guam. (SSI is a federal assistance program designed to help aged, blind, and disabled individuals with limited income and resources meet their basic needs. Guam has been excluded from SSI since Congress created the program in 1972.)Under the bill, the Social Security Administration may waive or modify statutory requirements relating to the provision of SSI benefits as necessary to adapt the program to the needs of Guam.The bill also eliminates an existing cap on payments to Guam under SSI, the Temporary Assistance for Needy Families (TANF) program, and other assistance programs.   

Similar Bills

No similar bills found.