Us Congress 2025-2026 Regular Session

Us Congress House Bill HB886

Introduced
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 HB3784

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

US HB3765

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

US SB2392

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

US SB38

Veteran Entrepreneurship Training Act of 2023 This bill provides statutory authority for the Boots to Business Program, which provides entrepreneurship training to individuals including veterans and active members of the Armed Forces, to be administered by the Small Business Administration.

US HB9610

To amend the Small Business Act to waive the accrual of interest and payments for certain disaster loans for a year, and for other purposes.

US SB72

Debt Cancellation Accountability Act of 2023 This bill prohibits the Department of Education from providing class-based loan forgiveness unless funds have been specifically requested and appropriated for this purpose. Class-based loan forgiveness refers to the cancellation, waiver, assumption, discharge, reduction, or other forgiveness of any obligation due on Federal Family Education Loans, Federal Direct Loans, or Federal Perkins Loans (1) on a class-wide basis and for a class of two or more loan borrowers, and (2) that totals more than $1 million. The prohibition does not apply to targeted loan forgiveness programs explicitly established under the Higher Education Act of 1965 and in effect before January 1, 2022, if the loan forgiveness is granted for a single borrower on a case-by-case basis.

US HB5848

To prohibit the Administrator of the Small Business Administration from directly making loans under the 7(a) loan program, and for other purposes.

US HB4666

To require the Inspector General of the Small Business Administration to submit a quarterly report on fraud relating to certain COVID-19 loans.

US HB154

Securing our Elections Act of 2023 This bill establishes certain photo identification requirements for voting in federal elections. Specifically, the bill prohibits a state or local election official from providing a ballot for a federal election to an individual who does not present valid photo identification. Next, the bill outlines the availability of provisional ballots and the requirements for counting those ballots. In particular, an individual who does not present a valid photo identification must be permitted to cast a provisional ballot. However, an election official may not determine that the individual is eligible under state law to vote in the election unless, not later than three days after casting the provisional ballot, the individual presents (1) the identification required, or (2) an affidavit attesting that the individual does not possess the identification because of a religious objection to being photographed. An election official may not allow for voting methods other than in-person voting unless the individual submits the ballot with (1) a copy of their photo identification, or (2) the last four digits of their Social Security number with an affidavit attesting that the individual is unable to obtain a copy of a valid photo identification after making reasonable efforts to obtain a copy. This prohibition shall not apply to overseas military voters. The bill also requires an election official to provide an individual with a valid photo identification without charge if that individual presents an affidavit attesting to an inability to afford or otherwise obtain a valid photo identification.

Similar Bills

No similar bills found.