# 119-s-3424: Bankruptcy Administration Improvement Act of 2025

119-s-3424, Bankruptcy Administration Improvement Act of 2025, is a 119th Congress bill sponsored by Sen. Coons, Christopher A. [D-DE] (D-DE); status became_law; PRIA reads it as touching household money (as of 2026-07-25).

- Canonical: https://policyrisk.com/legislation/119-s-3424
- As of: 2026-07-25
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-3424
- Congress: 119
- Title: Bankruptcy Administration Improvement Act of 2025
- Status: became_law
- Introduced: 2025-12-10
- Sponsor: Sen. Coons, Christopher A. [D-DE] (D-DE)
- Cosponsors: 3
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-07-25

## Summary

**This law focuses on** **raising Chapter 7 trustee compensation** to create a steadier, per-case funding system for bankruptcy administration. It also reallocates fee receipts and extends temporary bankruptcy judgeships to keep courts staffed for growing caseloads. - Chapter 7 trustees will receive higher per-case pay capped at about $120, changing how trustee compensation is calculated and paid. - The United States Trustee System Fund is moved from a percentage split to a fixed per-case amount of $51.49 to stabilize its revenue. Remaining fee receipts are rerouted to a Treasury special fund and the Deficit Reduction Fund to support the overall funding mix. - Temporary bankruptcy judge positions and related authorizations are extended by 10 years, and the law phases in changes to avoid disrupting ongoing cases while preserving indigent filing fee waivers.

## Cosponsors (3)

- Sen. Graham, Lindsey [R-SC] (R-SC), 2025-12-10T00:00:00.000Z
- Sen. Booker, Cory A. [D-NJ] (D-NJ), 2025-12-10T00:00:00.000Z
- Sen. Blackburn, Marsha [R-TN] (R-TN), 2025-12-10T00:00:00.000Z

## Provisions PRIA read

- Longer terms for bankruptcy judges: benefit, medium. The law extends several “5‑year” periods to “10 years,” including temporary bankruptcy judge positions. Judge‑term changes start on the first day of the calendar quarter after enactment. It also sets start dates for other sections: most changes begin the next quarter; trustee‑pay and fee‑split rule…
- Bankruptcy funding rules through 2031: mixed, medium. Each year from FY2026 to FY2031, $5.4 million of Chapter 11 quarterly fees goes to the Treasury’s general fund. The law also changes key United States Trustee System Fund dates from 2026 to 2031, keeping current funding rules in place longer. These shifts change how fee money supports the program,…
- Higher trustee pay and new fee split: mixed, low. The law raises Chapter 7 trustee base pay to $105 per case (up from $45). After trustee pay, per‑case fees are split as $63.51 to a Treasury special fund, $25.00 to the Deficit Reduction Fund, and $51.49 to the U.S. Trustee System Fund. These rules apply to cases that start on or after the October…
- New formula for Chapter 11 fees: mixed, low. The law updates how quarterly U.S. Trustee fees are set in Chapter 11 cases. It uses a 10‑year reference instead of 5 years, adds “the greater of” before 0.4, switches “and” to “or,” and raises a threshold from 0.8 to 0.9. It applies to Chapter 11 cases pending or starting in the first calendar qua…

## Related bills

- 119-s-5066: Health Equity and Accountability Act of 2026
- 119-s-4744: Take Care of America’s Veterans Act
- 119-s-1241: Sanctioning Russia Act of 2025
- 119-s-1884: Holocaust Expropriated Art Recovery Act of 2025
- 119-s-1659: Bankruptcy Administration Improvement Act of 2025
- 119-s-3966: TREY'S Law

## Sources
- [119-s-3424 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/3424)

## Related
- [119-s-5066: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-s-5066)
- [119-s-4744: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-s-4744)
- [119-s-1241: Sanctioning Russia Act of 2025](https://policyrisk.com/legislation/119-s-1241)
- [119-s-1884: Holocaust Expropriated Art Recovery Act of 2025](https://policyrisk.com/legislation/119-s-1884)
- [119-s-1659: Bankruptcy Administration Improvement Act of 2025](https://policyrisk.com/legislation/119-s-1659)
- [119-s-3966: TREY'S Law](https://policyrisk.com/legislation/119-s-3966)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-3424 (as of 2026-07-25).