# 119-hr-10942: No Bonuses in Bankruptcy Act of 2026

119-hr-10942, No Bonuses in Bankruptcy Act of 2026, is a 119th Congress bill sponsored by Rep. Scanlon, Mary Gay [D-PA-5] (D-PA); status introduced; PRIA reads it as touching household money (as of 2026-11-04).

- Canonical: https://policyrisk.com/legislation/119-hr-10942
- As of: 2026-11-04
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-10942
- Congress: 119
- Title: No Bonuses in Bankruptcy Act of 2026
- Status: introduced
- Introduced: 2026-10-29
- Sponsor: Rep. Scanlon, Mary Gay [D-PA-5] (D-PA)
- Cosponsors: 0
- Policy area: unknown
- Touches household money: yes
- Last recorded action: 2026-11-04

## Summary

**Ban on bankruptcy bonuses for high-paid staff and insiders.** This bill would bar the allowance or payment of any bonus to a debtor employee with annual pay above $250,000, to insiders, and to any employee whose bonus would push their annual pay past $250,000. It defines “bonus” as extra pay that acts as retention, incentive, or reward and excludes sales commissions and collective bargaining payments. The term for employee includes consultants and contractors. Trustees would get a new avoidance tool to recover prohibited bonuses paid within 180 days before filing. The rule would apply only to bankruptcy cases begun after enactment.

## Provisions PRIA read

- Limits on bonuses for bankrupt employees: cost, low. If enacted, the bill would bar bankruptcy courts from allowing or paying bonuses to insiders and many employees of a debtor. It would prevent bonuses for any individual employed by the debtor whose annual rate of compensation exceeds $250,000. For an employee paid $250,000 or less, the bill would b…

## Related bills

- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7481: Department of Homeland Security Appropriations Act, 2026
- 119-hr-7973: Momnibus Act
- 119-hr-4714: End Polluter Welfare Act of 2025
- 119-hr-5658: Child Care for Every Community Act

## Sources
- [119-hr-10942 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/10942)

## Related
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-4714: End Polluter Welfare Act of 2025](https://policyrisk.com/legislation/119-hr-4714)
- [119-hr-5658: Child Care for Every Community Act](https://policyrisk.com/legislation/119-hr-5658)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-10942 (as of 2026-11-04).