Federal Debt Collection Procedures

When you owe money to the federal government — an unpaid student loan, a tax overpayment the IRS wants back, a delinquent SBA loan, or an overpayment of Social Security benefits — the government has collection powers that private creditors simply don't have. Federal debt collection is governed by the Federal Debt Collection Procedures Act (FDCPA, 28 U.S.C. §§ 3001–3308) (not to be confused with the Fair Debt Collection Practices Act, a separate consumer protection law) and the Debt Collection Improvement Act (31 U.S.C. §§ 3701–3720E), which centralized government-wide collections at the Treasury Department. The government's most powerful tool is the Treasury Offset Program (TOP): Treasury can intercept federal payments — your tax refund, Social Security check, federal salary, or federal contractor payment — and apply them to your delinquent federal debt without going to court, collecting roughly $7+ billion per year this way. Beyond offset, agencies can pursue administrative wage garnishment (up to 15% of disposable pay without a court order), refer debts to the DOJ for judicial collection, and report delinquent debts to credit bureaus. Debts more than 120 days delinquent must be referred to Treasury for cross-servicing and TOP offset. Understanding these rules matters if you've received any federal payment — overpayments are aggressively recovered, and the government's collection toolkit is far broader than a private creditor's.

Current Law (2026)

Legal Authority

• 28 U.S.C. § 3001-3003 — Federal Debt Collection Procedures Act (exclusive civil procedures for the United States to recover debts; defines "debt" as any amount owed to the U.S.; applicable in federal court)
• 28 U.S.C. § 3101-3105 — Pre-judgment remedies (attachment, receivership, garnishment; United States may seek pre-judgment remedies to secure payment of a debt pending litigation)
• 28 U.S.C. § 3201-3206 — Post-judgment remedies (judgment liens, writs of execution, garnishment of property; priority of United States as creditor)
• 31 U.S.C. § 3711 — Collection and compromise (federal agencies must aggressively collect debts; authority to compromise debts; referral for litigation; write-off of uncollectible debts)
• 31 U.S.C. § 3716 — Administrative offset (federal agencies may offset federal payments to collect delinquent debts; includes tax refund offset, Social Security offset, federal salary offset)
• 31 U.S.C. § 3718 — Cross-servicing (delinquent debts over 120 days must be referred to Treasury's Bureau of the Fiscal Service for centralized collection)
• 31 U.S.C. § 3720D — Administrative wage garnishment (federal agencies may garnish up to 15% of a debtor's disposable pay without a court order; hearing rights; hardship provisions)

How It Works

When you owe money to the federal government — whether from a defaulted student loan, an overpayment of benefits, a delinquent SBA loan, or an unpaid fine — the government has powerful collection tools that exceed what private creditors can do. Federal debt collection operates through both administrative mechanisms and judicial remedies.

Before going to court, federal agencies have substantial administrative collection powers. The most significant is the Treasury Offset Program (TOP): when a federal debt becomes delinquent, the creditor agency refers it to Treasury, which intercepts other federal payments owed to the debtor — income tax refunds (the most common offset), Social Security benefits (up to 15% for most debts), federal salary, retirement benefits, and other federal payments. TOP collects over $7 billion annually and is the government's most effective collection tool. Agencies may also impose administrative wage garnishment — garnishing up to 15% of disposable pay from a debtor's non-federal employer without obtaining a court judgment first, exceeding the protections debtors have against private creditors under the Consumer Credit Protection Act. Under the Debt Collection Improvement Act, federal agencies must refer delinquent debts to Treasury's Bureau of the Fiscal Service within 120 days of delinquency; Treasury then uses private collection agencies, the offset program, and other tools to collect on behalf of the originating agency, ensuring delinquent federal debts don't fall through the cracks.

The Federal Debt Collection Procedures Act (28 U.S.C.) provides the exclusive procedures for the United States to collect debts through federal court litigation. The government has priority over most other creditors — dating to the earliest days of the republic — can obtain pre-judgment remedies (attachment, garnishment, receivership) to prevent debtors from dissipating assets before judgment, and can enforce judgment liens against real property for 20 years (renewable). Despite these powerful tools, debtors have due process rights: before offset or garnishment, the agency must provide written notice and an opportunity for review, allowing debtors to challenge the existence or amount of the debt, request a payment plan, or claim financial hardship. Social Security benefits have special protections — the first $750/month (indexed) is protected from offset, and offset is limited to 15%.

How It Affects You

If you owe any federal debt and are expecting a federal payment: The Treasury Offset Program is the government's most-used collection tool — it operates automatically without a court order, intercepting tax refunds, Social Security checks, federal salaries, and contractor payments. You will receive a Notice of Intent to Offset from Treasury before the first intercept, specifying the debt amount and which agency referred it. This notice gives you the right to: (1) request a review or hearing to dispute the debt's existence or amount within the specified period; (2) negotiate a payment plan; or (3) prove financial hardship to reduce the offset amount. Don't ignore the notice — the opportunity to dispute or negotiate is much easier before the intercept than after. Social Security benefits have partial protection: the first $750/month cannot be offset, and the offset cannot exceed 15% of your monthly benefit. For other federal payments (salary, refunds), offset can be 100% of the payment. If your tax refund is intercepted and you file jointly, your spouse may be able to claim their portion back by filing an "injured spouse" form (IRS Form 8379).

If you defaulted on a federal student loan: Federal student loan default triggers an aggressive response cascade. Your loan servicer reports the default to credit bureaus; Treasury can offset your tax refund and Social Security benefits; the federal government can administratively garnish up to 15% of your disposable wages without a court order, with only a 30-day notice and hearing right. Interest and fees continue to accrue throughout collection. The good news: federal student loans uniquely offer two paths out of default that private creditors don't. Rehabilitation: make 9 consecutive voluntary on-time payments within 10 months (payment amounts are based on income) and your loan is removed from default status — the default notation is removed from your credit report (though the late payments remain). You can only rehabilitate once per loan. Consolidation into a new Direct Consolidation Loan gets you out of default faster (2-3 months) but does NOT remove the default notation from your credit report, and you must make a few payments or agree to an income-driven repayment plan before consolidation. Contact studentaid.gov or call 1-800-4-FED-AID to start either process.

If you received an overpayment of government benefits: Federal agencies — VA, SSA, OPM, HHS — aggressively recover benefit overpayments, even years later. You have two key rights when you receive an overpayment notice: (1) the right to appeal the overpayment determination (dispute that an overpayment occurred, or dispute the amount) — deadlines are typically 30-60 days from the notice; (2) the right to request a waiver — if the overpayment was not your fault AND repayment would defeat the purpose of the program or be against equity and good conscience (the standard varies by agency), the agency must waive recovery. SSA, VA, and OPM all have formal waiver processes. If your appeal or waiver is denied, you can request a repayment plan (typically 1-2% of the outstanding balance per month is a common initial offer). For SSA overpayments specifically, the recovery rate from Title II Social Security benefits has fluctuated: SSA reduced the default recovery rate from 100% to 10% on March 25, 2024, then reinstated 100% in March 2025 under the Trump administration, and after public pushback reduced it to 50% effective April 25, 2025; SSI overpayment recovery remains capped at 10%.

If you're a federal employee with a delinquent federal debt: Federal agencies can offset your salary to collect delinquent federal debts through salary offset — but with more protections than private creditors receive. Your agency must give at least 30 days advance written notice before the first deduction and must offer you a hearing to dispute the debt or request a repayment schedule. The offset cannot exceed 15% of your disposable pay per pay period (in most cases), which is the same cap as administrative wage garnishment from civilian employers. If you dispute the debt before the offset begins, the offset is stayed pending review. Note: if you owe the agency you work for, your agency handles the offset directly; if you owe a different federal agency, Treasury coordinates the cross-agency collection through the Centralized Receivables Service.

State Variations

• Federal debt collection is governed exclusively by federal law — state collection exemptions generally do not apply to the United States as a creditor
• However, Social Security benefits may have additional state-level protections in state-court proceedings
• State tax refund offset programs exist separately from the federal TOP program and may offset state payments for state debts

Implementing Regulations

• 31 CFR Part 285 — Debt collection authorities (§ 285.11 — administrative wage garnishment)

• 31 CFR Part 5 — Treasury debt collection regulations (§§ 5.3, 5.13 — adoption of Federal Claims Collection Standards, administrative wage garnishment procedures)

• 31 CFR Part 212 — Garnishment of accounts containing federal benefit payments (§ 212.4 — initial action upon receipt of garnishment order)

• 28 CFR Part 11 — DOJ Debt Collection (14 sections across 3 subparts — DOJ's agency-specific implementation of the Debt Collection Improvement Act covering private counsel referrals (Subpart A), salary and administrative offset (Subpart B), and administrative wage garnishment (Subpart C); authority: 28 U.S.C. § 509, 31 U.S.C. § 3711, 5 U.S.C. § 301):

  • § 11.2 — Private counsel program: the Assistant AG for Administration designates districts that participate in a program where private attorneys are retained on contingency or fixed-fee basis to collect delinquent DOJ debts; private counsel must comply with the FDCPA and Privacy Act; contingency fees are paid from collections (self-funding), not appropriations — handles mainly non-tax, non-criminal debts below the threshold for DOJ Civil Division litigation
  • § 11.10 — Scope of offset: DOJ Components may offset debts from any DOJ payment owed to a debtor; must follow 31 CFR Part 901 procedures — notice, opportunity to respond, and referral to Treasury's Bureau of the Fiscal Service for cross-agency intercept
  • § 11.12 — Centralized offset referral: debts more than 120 days past-due must be referred to BFS for the Treasury Offset Program; TOP intercepts federal payments (tax refunds, Social Security, vendor payments) government-wide; referral is mandatory once debts age past 120 days
  • § 11.13 — Non-centralized offset: when TOP offset is not available or appropriate, DOJ may directly contact the paying agency after providing debtor notice and dispute opportunity
  • § 11.21 — Administrative wage garnishment: DOJ may garnish non-federal wages for delinquent non-tax debts — limited to 15% of disposable pay; requires 30-day advance notice and hearing opportunity; no court authorization needed; employer compliance is mandatory under 31 U.S.C. § 3720D; employers cannot terminate an employee solely because of a federal wage garnishment order

  Part 11 reflects DOJ's dual role: as a collecting agency for its own program debts and as the government's litigation arm for judicial collection when administrative remedies are exhausted. The private counsel program (§ 11.2) is notable as a self-funding mechanism where collections pay the collectors, reducing reliance on appropriated enforcement staffing.

• 29 CFR Part 20 — Department of Labor Federal Claims Collection: DOL's agency-specific implementation of the Federal Claims Collection Standards (31 U.S.C. § 3711), covering debts arising from DOL programs (OSHA penalties, unemployment insurance overpayments, workers' compensation overpayments, grant overpayments, and other DOL program debts). Six subparts cover the full collection toolkit:

  • Subpart A — Disclosure to Credit Reporting Agencies: DOL must report delinquent debts over $100 to credit bureaus after 60 days of delinquency; advance notice and opportunity to dispute required before reporting; continues until debt is paid, compromised, or deemed uncollectible
  • Subpart B — Administrative Offset (§§ 20.11–20.29): DOL may recover debts by withholding any payment the federal government owes to the debtor — including tax refunds (through Treasury Offset Program), federal contract payments, federal benefit payments, and payments from other agencies; debtors receive written notice of the proposed offset and 30 days to dispute; offset may proceed without court order
  • Subpart C — Interest, Penalties and Administrative Costs: interest accrues on delinquent debts at the Treasury Fiscal Service rate (updated annually); an administrative penalty of 6% per year applies after 90 days of delinquency; administrative costs (collection costs, referral fees) are added to the debt; interest and penalties continue until full payment
  • Subpart D — Salary Offset (§§ 20.43–20.59): for current federal employees who owe debts to DOL (or whose DOL debts are being cross-serviced), DOL may direct the employee's employing agency to withhold up to 15% of disposable pay per pay period; employees have the right to advance notice, to inspect the debt record, to make a written response, and to a hearing before an impartial official; voluntary repayment agreements are offered before involuntary deduction
  • Subpart E — Federal Income Tax Refund Offset (§§ 20.60–20.70): debts delinquent over 90 days and over $25 are referred to the IRS for offset against federal income tax refunds through the Treasury Offset Program; debtors receive advance notice including the opportunity to enter a repayment agreement to avoid offset
  • Subpart F — Administrative Wage Garnishment (§§ 20.71–20.85): for non-federal employees who owe delinquent DOL debts, DOL may issue a wage garnishment order directly to the debtor's private employer — without a court judgment; garnishment is limited to 15% of disposable pay; employer must honor the garnishment order or face liability; the debtor gets advance notice and a hearing right

• 5 CFR Part 179 — Claims Collection Standards (OPM) (30 sections across 3 subparts — OPM's implementation of the Federal Claims Collection Standards for debts owed to OPM, covering three distinct collection tools: general collection, salary offset, and administrative offset; implements 31 U.S.C. §§ 3701, 3711, 3716, 3720 and 5 U.S.C. § 5514):

  • General collection (Subpart A, § 179.101): OPM's Chief Financial Officer and delegates are authorized to collect, compromise, terminate, or refer to DOJ all claims for money and property arising from OPM programs; the delegation chain flows from the Director through the CFO to designated staff
  • Salary offset (Subpart B, §§ 179.201–179.218): OPM may deduct debts from a federal employee's paycheck under 5 U.S.C. § 5514; before any deduction starts, the creditor agency (or OPM as creditor) must send the employee written notice at least 30 calendar days in advance (§ 179.206); the notice must state the debt amount, the collection schedule, and the employee's rights; employees may request a hearing to contest the debt's existence, amount, or repayment schedule (§ 179.207); as an alternative, the employee may propose a voluntary repayment agreement — paying by installments rather than paycheck deduction (§ 179.209); a special review is available at any time if the employee's financial circumstances change materially (§ 179.210); OPM issues certifications to the paying agency confirming the debt and directing deductions (§ 179.208); interest, penalties, and administrative costs are assessed under 31 U.S.C. § 3717 (§ 179.214); involuntary payments do not waive the employee's right to dispute the debt later (§ 179.217); OPM will also serve as hearing official for other agencies when an OPM employee owes a debt to another agency (§ 179.216)
  • Administrative offset (Subpart C, §§ 179.301–179.305): OPM may recover debts by withholding amounts the federal government owes the debtor — contract payments, travel reimbursements, grants, and other government payments; certified mail notice is required before any offset; debtors have 30 days to dispute the debt's existence or amount after receiving notice (§ 179.305); OPM may coordinate with Treasury's offset program to reach tax refunds and other federal payments; OPM retirement, life insurance, and health insurance debts are handled separately by the Associate Director for Retirement and Insurance, not under Part 179 (§ 179.204)

• 7 CFR Part 3 — USDA Debt Management (57 sections across 9 subparts — USDA's agency-specific implementation of the Federal Claims Collection Standards; applies to all debts arising from USDA programs including farm loans, crop insurance overpayments, rural development loans, and commodity program payments):

  • Subpart B — Collection and Compromise (13 sections): USDA must aggressively pursue every debt and send a written demand letter within 30 days; demand letters must state the basis for the debt, payment deadline, and USDA's intent to report to credit reporting agencies after 60 days of delinquency (§ 3.12); agencies must not issue new loans or guarantees to anyone delinquent on a non-tax federal debt — USDA CFO may grant exceptions; collateral may be liquidated including non-judicial foreclosure; installment plans allowed when the debtor cannot pay in full — USDA requires a financial statement and will charge interest, penalties, and administrative costs (§ 3.17)
  • Subpart D — Administrative Offset (8 sections): USDA may recover debts by withholding payments the agency owes to the debtor — including contract payments, grants, and program benefits; offsets must comply with 31 CFR Part 901 and require advance notice and an opportunity to review the debt record
  • Subpart E — Administrative Wage Garnishment (4 sections): USDA may issue wage garnishment orders to non-federal employers to recover delinquent debts; garnishment is limited to 15% of disposable pay; debtors receive a 30-day notice and hearing right before garnishment begins
  • Subpart G — Federal Salary Offset (18 sections): for debts owed by current federal employees, USDA uses involuntary payroll deduction; deductions are limited to 15% of disposable pay per pay period unless the employee agrees to a higher rate; employees receive advance notice, the right to inspect agency records, and the right to a hearing before an impartial official; installment repayment plans are preferred when the debtor cooperates

• 5 CFR Part 2418 — FLRA Debt Collection — the Federal Labor Relations Authority's implementation of the Debt Collection Improvement Act and Federal Claims Collection Standards for debts owed to the FLRA and for offsetting FLRA payments to collect debts owed to other federal agencies. The FLRA is a small independent agency (approximately 140 employees) that adjudicates federal sector labor disputes; its debt collection rules reflect the standard whole-of-government debt collection toolkit, but serve as a useful compact illustration of how every federal agency implements the uniform federal debt collection framework. Key provisions:

  • § 2418.10 — Treasury Offset Program (TOP) referral: the FLRA refers eligible delinquent debts (over 180 days delinquent) to the Treasury Financial Management Service for centralized collection through TOP; TOP intercepts tax refunds, federal payments, and other amounts payable to the debtor by the federal government; debtors receive notice before TOP referral and have an opportunity to dispute or make arrangements
  • § 2418.11 — Tax-refund offset: past-due FLRA debts are referred to the Treasury Offset Program for collection by offset of federal tax refunds and other federal payments; FLRA must refer the debt to Treasury's cross-servicing program in most cases before attempting this tool independently
  • § 2418.12 — Salary offset: FLRA may offset a federal employee's salary to collect debts owed to the United States; salary offsets are referred to the Financial Management Service for collection through the Treasury Offset Program
  • § 2418.13 — Administrative wage garnishment: FLRA may issue wage garnishment orders to non-federal employers for delinquent debts under 31 U.S.C. § 3720D; garnishment is limited to 15% of disposable pay per pay period; advance notice and a hearing right apply
  • § 2418.14 — Credit bureau reporting: delinquent FLRA debts are reported to credit reporting agencies under 31 U.S.C. § 3711(e) and OMB Circular A-129; advance notice is required before reporting
  • § 2418.16 — DOJ referral for >$100K debts: FLRA must refer debts with principal balances over $100,000 (or a higher amount authorized by the Attorney General) to the Department of Justice for approval of any compromise; the DOJ referral threshold prevents agencies from independently writing off large debts without DOJ review
  • § 2418.19 — Cross-servicing for other agencies: other federal agencies may collect their own delinquent debts from payments the FLRA issues (e.g., attorney fee awards, arbitration settlements paid through FLRA) by submitting those debts to the Treasury Offset Program; when centralized offset is not available, agencies may request that FLRA manually offset its payments

  Part 2418 illustrates how the Debt Collection Improvement Act of 1996 standardized federal debt collection across all agencies: every agency must use the same TOP referral framework, credit bureau reporting, wage garnishment authority, and DOJ referral threshold. The practical result is that a person who owes any federal agency money — whether a tax debt, student loan overpayment, FLRA penalty, or OSHA fine — faces the same government-wide offset network regardless of which agency holds the debt.

• 40 CFR Part 13 — EPA Claims Collection Standards — the Environmental Protection Agency's implementation of the Federal Claims Collection Standards (FCCS) under 31 U.S.C. § 3711, governing collection of debts arising from EPA's environmental enforcement and grant programs. EPA debt collection is distinctive because EPA's primary debts are not payroll-related or loan-based but arise from environmental enforcement: civil penalties under the Clean Air Act, Clean Water Act, RCRA, CERCLA, and TSCA, as well as CERCLA cost recovery actions against responsible parties for Superfund cleanup expenditures and recovery of misused or unspent grant funds. Key provisions:

  • Collection authority and standards: EPA may use the full toolkit of FCCS/DCIA collection tools — administrative offset (intercepting federal payments owed to the debtor), Treasury Offset Program referral for tax refund offset, administrative wage garnishment for non-federal employee debtors, credit bureau reporting, and DOJ referral for litigation of large or contested claims; the standards in Part 13 parallel those in the governmentwide FCCS at 31 CFR Part 900
  • CERCLA cost recovery: EPA's largest receivables are cost recovery claims against potentially responsible parties (PRPs) for Superfund cleanup expenditures; CERCLA § 107 provides EPA with a statutory right to recover all response costs from PRPs; outstanding cost recovery claims are tracked through DOJ's Debt Referral System; Superfund cost recovery claims can remain active for decades while litigation proceeds
  • Civil penalty collection: environmental civil penalties assessed through EPA administrative orders and federal court judgments are debts subject to Part 13 procedures; penalties not paid within 30 days typically move to DOJ for civil litigation; the statute of limitations for collection of judgment debts is 20 years under 28 U.S.C. § 3001
  • Grant fund recovery: misused, unexpended, or improperly awarded EPA grant funds are collectible debts; EPA program offices identify disallowed costs through grant monitoring; the disallowed costs become debts to be collected using Part 13 tools

  EPA debt collection is more complex than most agency debt programs because the underlying obligations arise from judicial and administrative enforcement actions, not simple overpayments or loans.

• 24 CFR Part 17 — HUD Administrative Claims Collection — the Department of Housing and Urban Development's comprehensive debt collection and claims procedures, one of the largest agency implementations (49 sections across three substantive subparts), covering three distinct legal regimes that produce HUD receivables: tort claims under the Federal Tort Claims Act, property damage claims by military personnel, and salary offset for federal employees:

  Subpart A — Federal Tort Claims (§§ 17.1–17.39, 11 core sections):

  • § 17.1 — Scope and purpose: HUD acts as its own FTCA administrative claims adjudicator for tort claims arising from the acts or omissions of HUD employees acting within the scope of their employment; before filing in federal district court, claimants must exhaust the administrative remedy under 28 U.S.C. § 2675 — presenting the claim to HUD's Office of General Counsel and allowing HUD 6 months to act
  • § 17.3 — Presentation of claims: FTCA administrative claims must be filed on SF-95 (Claim for Damage, Injury, or Death) or in writing specifying a sum certain; the 2-year FTCA statute of limitations (28 U.S.C. § 2401(b)) runs from the date of injury or the date the claimant discovered the injury; late claims are permanently barred regardless of merit
  • § 17.9 — Investigation: HUD's General Counsel investigates each claim by reviewing employee records, incident reports, and applicable law; the investigation determines whether the employee was acting within scope of employment and whether the act or omission is actionable under the FTCA's discretionary function exception or other bars
  • § 17.11 — Final disposition: HUD has 6 months to act on a claim; it may offer a settlement, deny the claim, or allow the 6-month period to expire (constructive denial); after denial or constructive denial, the claimant has 6 months to file in federal court; acceptance of a settlement offer is final and bars any judicial action on the same occurrence
  • § 17.15 — Award payment: claims settled for $2,500 or less may be paid by HUD from its own appropriations; claims over $2,500 must be paid from the Judgment Fund administered by DOJ (31 U.S.C. § 1304); this threshold means HUD has limited financial exposure for small FTCA settlements but must refer larger claims to DOJ for payment authorization

  Subpart B — Military Personnel and Civilian Employee Claims (§§ 17.50–17.89, 11 core sections):

  • These provisions implement the Military Personnel and Civilian Employees Claims Act (31 U.S.C. § 3721), which allows federal agencies to reimburse employees for loss or damage to personal property incident to service — covering items like personal vehicles damaged on government business, clothing destroyed in work-related incidents, or personal effects damaged during government-directed moves; HUD employees may file claims for such losses with the HUD Claims Officer; maximum award is $40,000 (or $100,000 for losses resulting from hostile action)

  Subpart C — Salary Offset (§§ 17.100–17.185, 27 sections):

  • § 17.100 — Scope: implements 5 U.S.C. § 5514, which authorizes federal agencies to recover debts owed by federal employees through deductions from pay; HUD may recover debts owed to HUD by HUD employees (or collect debts owed to other agencies by HUD employees at those agencies' request)
  • § 17.110 — Notice to employee: before any involuntary deduction, HUD must provide the employee written notice at least 30 days in advance containing: the nature and amount of the debt, HUD's intent to collect by salary offset, the employee's right to inspect and copy agency records, the employee's right to enter a voluntary repayment agreement, and the employee's right to a hearing
  • § 17.120 — Hearing: the employee may request a hearing before a hearing official (who must be independent of HUD's creditor office) to contest the debt's existence, amount, or proposed repayment schedule; the hearing official's written decision is final within the executive branch; employees who request a hearing in timely fashion stay the involuntary deduction pending the hearing decision
  • § 17.130 — Voluntary repayment agreements: before involuntary offset begins, employees may negotiate a voluntary repayment schedule; HUD must consider whether an installment plan is appropriate based on the employee's financial circumstances; voluntary agreements are preferred over involuntary offset when the employee is cooperative and the repayment schedule is reasonable
  • § 17.140 — Deduction schedule: involuntary deductions may not exceed 15% of disposable pay per pay period unless the employee consents to a higher rate; where the debt will be paid in full in three or fewer installments, HUD may deduct proportionately larger amounts; deductions continue until the debt is satisfied or the employee separates from federal service
  • § 17.150 — Separation of employee: if an employee with an outstanding salary offset debt separates before the debt is fully collected, HUD must certify the debt to the Office of Personnel Management for deduction from any lump-sum leave payment, severance pay, or retirement annuity; debts that cannot be recovered through separation benefits are referred to the Treasury Offset Program for collection from tax refunds and other federal payments
  • § 17.160 — Interest, penalties, and administrative costs: interest accrues on delinquent debts at the Treasury Current Value of Funds Rate; a 6% per annum penalty applies after 90 days of delinquency; administrative costs of collection are added to the principal; interest and penalties continue through salary offset collection

  HUD's Part 17 is notable for its breadth: most agencies' debt collection regulations focus on a single collection mechanism (salary offset or FTCA claims or administrative offset). Part 17's three-subpart structure reflects HUD's varied exposure — as a major real estate and urban development agency with thousands of employees, it faces FTCA claims from public housing tenants and program participants, property damage claims from employees on official travel, and the full range of salary offset situations common to large federal agencies. Recent rulemakings: Part 17 was substantially restructured in 2010 and aligned with the Debt Collection Improvement Act's centralized Treasury servicing requirements; no major amendments since.

• 22 CFR Part 213 — USAID Claims Collection — the U.S. Agency for International Development's comprehensive debt collection regulations, notable as one of the most detailed agency implementations of the Federal Claims Collection Standards (with 22 matching FCCS statutory authority citations — the highest USC overlap in the debt collection arena). USAID's debts arise from foreign assistance programs: grants to foreign governments and NGOs for development projects, loans under foreign aid programs, domestic contracts and cooperative agreements, and recovery of unauthorized expenditures by implementing partners. Key provisions:

  • §§ 213.10–213.12 — Aggressive collection and interest: USAID must take timely action on all claims; interest accrues on delinquent debts at the Treasury Current Value of Funds Rate; administrative costs and late payment penalties are added; interest continues to accrue even during periods when the debtor has requested waiver or review — a notable provision that prevents debtors from using administrative challenges as interest-free delay tactics
  • § 213.13 — Waivers of indebtedness: the USAID CFO may grant waivers under specific statutory authorities; for overseas personal injury claims and certain foreign assistance administrative overpayments, waivers are available when collection would be inequitable or against the purpose of the assistance program; the waiver authority distinguishes USAID debt collection from domestic agency programs
  • § 213.14–213.16 — Cross-servicing and credit reporting: USAID has entered a cross-servicing agreement with Treasury's Bureau of the Fiscal Service — the Fiscal Service handles TOP referrals, credit bureau reporting, private collection agency referrals, and administrative wage garnishment on USAID's behalf; credit bureau reporting occurs through this cross-service arrangement after required advance notice
  • § 213.17 — Liquidation of collateral: where USAID holds a security instrument (as it sometimes does for development loan programs), the CFO may liquidate collateral through power of sale; proceeds are applied first to outstanding charges, then interest, then principal
  • § 213.18 — Suspension of loan eligibility: USAID may suspend or revoke eligibility for future loans, loan guarantees, licenses, or privileges for entities with delinquent debts — a significant tool given USAID's large grant and cooperative agreement portfolio; implementing partners with outstanding debt become ineligible for new awards until the debt is resolved
  • §§ 213.30–213.40 (Subpart C) — Administrative and salary offset: USAID uses administrative offset to recover debts from payments due to the debtor — including USAID contract and grant payments; salary offset applies to federal employees who owe debts; the 30-day advance notice and hearing right requirements apply before involuntary offset begins
  • §§ 213.50–213.60 (Subpart D) — Compromise of claims: the USAID CFO may compromise a claim for up to $100,000 (principal, excluding interest); claims over $100,000 require DOJ concurrence; compromise is appropriate when recovery of the full amount is unlikely, when the debtor cannot pay in full but can pay a lesser amount, or when the cost of collection would exceed the benefit; USAID's foreign assistance context sometimes creates cases where full collection would damage U.S. foreign policy objectives — compromise authority provides flexibility
  • Subpart H — Mandatory Treasury Transfer: delinquent debts over 120 days must be transferred to Treasury Fiscal Service for cross-servicing unless an exception applies; this governmentwide requirement ensures that USAID doesn't carry aged receivables without active collection action
  • §§ 213.70–213.80 (Subpart F) — Discharge and reporting: when a debt is determined uncollectible after all reasonable collection efforts, USAID discharges the debt (closes the collection record); if the discharged amount exceeds $600 and the debtor is a U.S. person, USAID must file IRS Form 1099-C (Cancellation of Debt), making the discharged amount potentially taxable income to the debtor; USAID also reports written-off debts to Treasury per governmentwide requirements

  USAID debt collection presents unique practical challenges that domestic agency programs don't face: foreign government debtors are immune from many standard U.S. collection tools; international NGO implementing partners may have no U.S.-jurisdiction assets; audit disallowances (costs found unallowable in post-award audits) of grants to overseas organizations can be difficult to recover when the grantee has no U.S. presence. The Part 213 framework applies U.S. domestic debt collection law to the extent possible, but USAID's international context means diplomatic and programmatic considerations sometimes override pure debt recovery strategy. Settlement is a key tool — EPA frequently settles Superfund cost recovery and civil penalty debts at negotiated amounts rather than full pursuit, balancing recovery against the PRP's ability to pay. The "ability to pay" analysis is a formal EPA procedure that reduces penalties and cost recovery demands when full collection would be economically infeasible.

• 31 CFR Part 256 — Obtaining Payments from the Judgment Fund and Under Private Relief Bills (24 sections — the Bureau of the Fiscal Service's procedures for paying federal court judgments and settlements from the Judgment Fund (31 U.S.C. § 1304), the standing indefinite appropriation that funds the federal government's largest payment obligations). The Judgment Fund is not an "agency budget" — it is a permanent appropriation that Congress created so agencies don't have to seek supplemental appropriations every time they lose a lawsuit. Nearly all significant FTCA settlements, contract disputes, employment discrimination judgments, and constitutional tort judgments are paid from the Judgment Fund:

  • § 256.1 — Purpose: Part 256 establishes the procedures for the Fiscal Service to process requests for payment from the Judgment Fund; any federal court judgment or settlement against the United States (or its agencies, officers, or employees acting in their official capacity) that is legally payable from the Fund must follow these procedures; "private relief bills" — Acts of Congress directing specific payments to named individuals — are processed under separate procedures in Subpart G
  • § 256.10 — Requesting agency: the federal agency whose action (or employee's action) gave rise to the judgment initiates the payment request; the requesting agency is the agency that was the defendant or whose program generated the liability; FTCA claims against HUD are processed by HUD, against DOD by the relevant military department, against DOJ by DOJ, etc.
  • § 256.11 — Required documentation: to obtain payment, the requesting agency must submit to the Fiscal Service: (a) a certified copy of the final judgment or court order; (b) an agency certification that the judgment is final, valid, and legally payable from the Judgment Fund; (c) the payment amount, including interest computed under 28 U.S.C. § 1961 (post-judgment interest); (d) payee identification information; and (e) a Judgment Fund Case Number (assigned by the Fiscal Service when the claim is registered)
  • § 256.21 — Interest on judgments: post-judgment interest accrues from the date of judgment entry at the Treasury bill rate (28 U.S.C. § 1961); the Fiscal Service computes interest based on the date of judgment and the applicable T-bill rate; interest is paid from the Judgment Fund separately from the principal amount
  • § 256.31 — Reimbursement to the Judgment Fund: certain judgments must be reimbursed by the agency whose action caused the liability — the Judgment Fund is a pass-through, not a final cost absorber, for some categories. Specifically, agencies must reimburse the Fund for: (a) employment discrimination judgments under Title VII and the ADEA; (b) back pay awards for merit system protection cases; (c) contract disputes judgments; and (d) judgments under specific statutes that require agency reimbursement; FTCA judgments are generally not reimbursed — the Judgment Fund absorbs FTCA costs as a final matter, which distributes the cost of government tort liability to the government generally rather than penalizing individual agency budgets
  • §§ 256.40–256.70 — Interest and litigation costs: the Judgment Fund also covers attorney fees awarded against the United States (under EAJA, Title VII, or other fee-shifting statutes) and litigation costs taxed by the court; a separate appropriation (28 U.S.C. § 2414) covers certain DOJ settlement costs; the Fiscal Service tracks all Judgment Fund payments by agency and provides annual reports to Congress

  The Judgment Fund is one of the federal government's largest and least-publicized spending programs. In fiscal year 2022, Treasury paid approximately $3.7 billion from the Judgment Fund — covering FTCA settlements, contract judgments, tax refund judgments, and other court-ordered payments. Because no individual agency must "own" this cost (except for reimbursable categories), the Judgment Fund can create a moral hazard — agencies whose conduct generates large tort liability or contract disputes don't always bear the full budgetary cost of that conduct. Congressional proposals to expand reimbursement requirements have periodically been introduced to create stronger agency-level accountability.

Other Agency Debt Collection Implementations

The DCIA framework requires every federal agency to implement its own administrative claims collection regulations under 31 U.S.C. § 3711. Structurally these are near-identical — demand letters within 30 days, administrative offset, credit bureau reporting, compromise authority up to $100,000, and DOJ referral for litigation — but each agency's version applies to the specific types of debts that agency generates:

• 45 CFR Part 30 — HHS Claims Collection (36 sections across 5 subparts): HHS's rules covering all debts arising out of HHS programs — Medicare overpayments, Medicaid FFP repayments, grants, loans, and program-specific liabilities across HHS's 11 operating divisions (NIH, FDA, CDC, CMS, SAMHSA, etc.); delinquent debts over $100 are reported to credit bureaus; debts 180+ days delinquent must be transferred to Treasury for cross-servicing; HHS may compromise debts (accept less than the full amount) without DOJ approval where the debt does not exceed $100,000 exclusive of interest and penalties; beyond $100,000, DOJ approval is required; HHS has additional authorities specific to Medicare and Medicaid overpayment recovery that operate under separate statutory frameworks (42 U.S.C. §§ 1395ddd, 1396b)

• 45 CFR Part 1177 — National Endowment for the Arts Claims Collection: NEA's agency-specific debt collection rules implementing 31 U.S.C. § 3711 for debts arising from grant overpayments, improper payments, and other NEA program liabilities; follows the standard DCIA structure with initial demand letters, offset, credit bureau reporting, and Treasury referral

• 45 CFR Part 2506 — AmeriCorps (CNCS) Debt Collection: the Corporation for National and Community Service's rules for recovering AmeriCorps education award overpayments, grant misuse by AmeriCorps State and National grantees, and other CNCS program debts; the AmeriCorps education award is managed through the National Service Trust — misuse or improper issuance of education awards triggers these collection procedures

• 41 CFR Part 105-55 — GSA Collection of Claims Owed the United States (34 sections — the General Services Administration's agency-specific implementation of the DCIA debt collection framework for debts arising from GSA programs; authority: 31 U.S.C. § 3711 and Treasury/DOJ joint collection standards at 31 CFR Part 900):

  • § 105-55.009 — Aggressive collection: GSA will aggressively collect all debts arising from GSA activities — overpayments on Multiple Award Schedule contracts, improper payments to GSA employees and contractors, erroneous rent credits under building occupancy agreements, and other GSA program debts; initial demand letter within 30 days of the debt being identified
  • § 105-55.010 — Demand letters: written demand must inform the debtor of the nature and amount of the debt, the basis for the debt, the deadline for payment, the consequences of non-payment (offset, credit reporting, collection agency referral), and the right to dispute the debt
  • § 105-55.011 — Administrative offset: GSA may withhold amounts from any federal payments owed to a debtor — including GSA contract payments, MAS vendor payments, and employee salary — to satisfy the debt; amounts owed to GSA by MAS contractors can be offset against future contract invoices
  • § 105-55.012 — Private collection contractors: GSA may contract with private collection agencies to collect delinquent debts; GSA may also work with entities that locate and recover unclaimed assets on behalf of the government
  • §§ 105-55.020–105-55.025 — Compromise authority: GSA may compromise debts up to $100,000 (exclusive of interest and penalties) without DOJ approval; for amounts above $100,000, GSA must refer to DOJ for compromise authorization; in deciding whether to compromise, GSA considers ability to pay, legal defenses, and the cost of continued collection
  • §§ 105-55.026–105-55.030 — Suspension and termination: collection may be suspended when the debtor cannot be located or has insufficient assets; collection must be terminated when the cost of continued collection exceeds the amount recoverable, when the debt is legally uncollectible, or after a 3-year suspension period without collection

• 41 CFR Part 105-56 — GSA Salary Offset for Federal Employee Indebtedness (33 sections — the General Services Administration's procedures for collecting debts owed to the United States by offset from the salaries of current GSA employees; authority: 5 U.S.C. § 5514 and 31 U.S.C. §§ 3711, 3716; updated 78 FR 29247 (2013)):

  • § 105-56.004 — Pre-offset notice: GSA must provide written notice at least 30 days before the first salary deduction; the notice must specify the nature and amount of the debt, GSA's intent to collect by offset, the amount of each proposed deduction (normally not more than 15% of disposable pay per pay period), the employee's right to inspect agency records, the employee's right to enter a voluntary repayment agreement, and the employee's right to a hearing
  • § 105-56.005 — Employee response: upon receiving the pre-offset notice, the employee may (a) enter a voluntary repayment agreement with GSA for a repayment schedule that may extend over the remaining time of government service; or (b) petition for a pre-offset hearing to contest the existence or amount of the debt
  • §§ 105-56.006–105-56.008 — Hearings: employees may request either an oral hearing (before a neutral hearing official) or a paper hearing (decision on written submissions alone); the hearing must be requested before the offset begins; filing a hearing petition automatically stays the offset pending the hearing; after the hearing, the hearing official issues a written decision within 60 days
  • § 105-56.010 — Deductions: salary offset may begin after the hearing decision or after the employee fails to timely request a hearing; normal deductions are 15% of disposable pay per period but may be more with the employee's consent or if the debt would be uncollectible in full before retirement
  • § 105-56.013 — Cross-agency coordination: GSA participates in the Centralized Salary Offset (CSO) program through which agencies notify Treasury when their employees owe debts to other federal agencies; Treasury coordinates the offset notification flow so that a federal employee who owes a debt to another agency (not their employing agency) can have their salary offset at their employing agency through this central clearinghouse

• 45 CFR Part 1150 — NEA Collection of Claims (29 sections across 4 subparts — a more comprehensive claims collection regulation than 45 CFR Part 1177, covering not only general debt collection but also salary offset for NEA employees, tax refund offset through Treasury, and administrative offset against NEA payments to debtors; authority: 5 U.S.C. § 5514 and 31 U.S.C. § 3711):

  • Subpart A — General Provisions (16 sections): initial demand letters within 30 days; credit bureau reporting for delinquent debts; private collection contractors; DOJ referral; cross-servicing with Treasury for debts over 180 days delinquent; compromise authority up to $100,000 without DOJ approval
  • Subpart B — Salary Offset (6 sections): NEA may collect from the pay of current NEA employees using the same salary offset procedures as 41 CFR Part 105-56; pre-offset notice, voluntary repayment, and hearing rights apply; 15% of disposable pay cap per period
  • Subpart C — Tax Refund Offset (2 sections): for debts over $25 that are delinquent more than 180 days, NEA may refer the debt to Treasury for offset against any federal tax refund due to the debtor; tax refund offset is one of the most effective collection tools for individuals who do not have federal employment income
  • Subpart D — Administrative Offset (5 sections): NEA may offset NEA grant payments, cooperative agreement payments, and other amounts due to debtors against debts they owe the government; written notice and hearing rights apply before the first administrative offset

• 6 CFR Part 11 — DHS Claims Collection: the Department of Homeland Security's agency-wide debt collection rules, administered by DHS's Chief Financial Officer; covers debts arising from DHS programs including FEMA grants, customs duties and penalties, TSA fines, CBP assessments, and other DHS-administered liabilities; the CFO manages collection activity for debts under $10,000 while debts over $10,000 require involvement of the Office of the General Counsel; interest, penalties, and administrative costs accrue on delinquent debts under 31 U.S.C. § 3717 (§ 11.10); compromise authority follows standard DCIA rules — amounts over $100,000 exclusive of interest require DOJ referral; collection can be suspended or terminated when further collection is not cost-effective or the debtor cannot be located (§ 11.12); only the General Counsel may refer debts to DOJ for litigation (§ 11.13)

The substantive rules across all three agencies (HHS, NEA, AmeriCorps) and GSA are functionally identical, implementing the government-wide DCIA framework (31 CFR Part 900–904) through agency-specific regulations. The variation is in the underlying program context: HHS handles billion-dollar Medicaid and Medicare overpayment flows, GSA handles contract and property-related debts from its vast procurement and real property portfolio, while NEA and AmeriCorps deal with smaller grant-based debts where the practical challenge is recovering funds from nonprofit organizations that may have already spent misallocated grants. The salary offset provisions (Parts 105-56 and 1150 Subpart B) are the most employee-facing aspect of agency debt collection — the point at which the government's creditor status directly intersects with the federal employment relationship.

• 12 CFR Part 1208 — FHFA Debt Collection (54 sections across 3 subparts): the Federal Housing Finance Agency's implementation of the DCIA and Federal Claims Collection Standards for debts owed to the United States arising from FHFA programs and for salary offset of FHFA employees. FHFA is distinctive among debt-collection-regulation subjects because it is a safety-and-soundness financial regulator — not a program agency disbursing loans or grants — whose primary debts arise from civil monetary penalties and assessments against regulated entities (Fannie Mae, Freddie Mac, and the twelve Federal Home Loan Banks) rather than from benefit overpayments or grants:

  • Subpart A — General Provisions (§§ 1208.1–1208.5): establishes FHFA's authority under 5 U.S.C. § 5514 and 31 U.S.C. §§ 3701–3720D; FHFA must refer delinquent debts over $25 that are 180+ days delinquent to Treasury for cross-servicing; delinquent debts must be reported to consumer reporting agencies; FHFA may use private collection agencies under Treasury contracts; the standard DOJ referral threshold ($100,000 for compromise without DOJ approval) applies
  • Subpart B — Salary Offset Where FHFA Is the Creditor Agency (§§ 1208.20–1208.33): before deducting from an employee's salary, FHFA must provide written notice of intent specifying the debt amount, the proposed offset schedule, and the employee's rights; employees may request to inspect FHFA records relating to the debt (§ 1208.22), request a hearing before an impartial official to contest the debt or the proposed schedule (§ 1208.23), or propose a voluntary repayment agreement as an alternative to involuntary deduction (§ 1208.25); a special review process is available at any time if the employee's financial circumstances change materially (§ 1208.26); interest, penalties, and administrative costs accrue on the outstanding balance during collection (§ 1208.30); payments made under protest do not waive the employee's right to challenge the debt (§ 1208.33)
  • Subpart C — Administrative Offset (§§ 1208.40–1208.48): FHFA may offset amounts owed to a debtor by FHFA — including grant disbursements, contract payments, and other disbursements — to collect debts owed to the United States; before the first administrative offset, FHFA must provide written notice and an opportunity to review the agency's records; the offset is coordinated with Treasury's TOP for debtors who receive other federal payments

  FHFA's debt portfolio differs from most agencies: most FHFA debts arise from civil monetary penalty proceedings against regulated institutions (under 12 U.S.C. §§ 4631–4641), not from individual benefit or loan overpayments. The practical result is that Part 1208 is used primarily for intra-agency employee salary offset situations (FHFA has roughly 1,000 employees) rather than for large-scale program debt collection. Civil penalties assessed against Fannie Mae, Freddie Mac, or FHLBs are collected through separate statutory mechanisms under HERA rather than through the general DCIA framework.

• 17 CFR Part 204 — SEC Rules Relating to Debt Collection (the Securities and Exchange Commission's administrative offset procedures implementing the Debt Collection Act, codified at 31 U.S.C. § 3716; authority: 31 U.S.C. § 3716; 15 U.S.C. § 78d): the SEC, like other federal agencies, may offset federal payments to recover debts owed to the United States arising from SEC enforcement — civil penalties, disgorgement orders, and other SEC-assessed liabilities — without first obtaining a court judgment. Key features:

  • § 204.1 — Applicability and scope: Part 204 applies to administrative offset against payments owed by the United States to any person who owes a claim to the SEC; "claim" includes civil penalties, disgorgement, prejudgment interest, and other SEC-assessed amounts arising from enforcement proceedings; the Debt Collection Act administrative offset authority supplements (but does not replace) the SEC's ability to seek judicial enforcement of disgorgement orders in federal court
  • § 204.11 — Jeopardy procedure: the SEC may effect an administrative offset prior to completing the normal 30-day notice and review procedures if it determines that collection would be jeopardized by delay — for example, if the debtor is about to transfer assets outside U.S. jurisdiction or dissipate assets; the jeopardy procedure accelerates offset without waiting for administrative review to conclude
  • § 204.2 — Definitions: "administrative offset" means withholding funds payable by the United States (including funds payable by a disbursing official) to or on behalf of a debtor to satisfy a claim; the SEC uses this authority primarily to intercept federal contract payments, regulatory fee refunds, or other government payments that might otherwise be owed to a firm that also owes an SEC enforcement judgment

  SEC administrative offset is a secondary collection tool — most SEC enforcement judgments are collected through court-supervised disgorgement mechanisms, receiverships, or the SEC's Fair Fund distribution process. Part 204 is invoked when a debtor is entitled to a federal payment from the government (as a federal contractor or grant recipient) and an offsetting SEC debt exists, allowing the SEC to net the government's obligation against the debtor's enforcement liability without additional litigation.

• 41 CFR Part 105-56 — Salary Offset for Indebtedness of Federal Employees to the United States (General Services Administration) (33 sections — GSA's salary offset regulation implementing 5 U.S.C. § 5514, which authorizes federal agencies to deduct from an employee's disposable pay to collect a delinquent federal debt; authority: 5 U.S.C. § 5514; 31 U.S.C. § 3716). GSA, as the federal government's property and administrative services manager with approximately 12,000 employees, uses salary offset when an employee owes money to GSA (overpaid salary, travel advance not accounted for, unpaid obligations under government travel card programs, or similar employment-related debts). Part 105-56's framework is representative of the standard salary offset procedural protections required across federal agencies:

  • § 105-56.001 — Scope: covers internal GSA collections — debts owed by GSA employees to GSA or to other federal agencies where GSA is the paying agency; applies when the debt is recovered from the employee's disposable pay (after mandatory deductions); excluded debts include IRS tax claims, student loan offsets, and child support — all of which have their own statutory collection mechanisms
  • § 105-56.004 — Pre-offset notice: GSA must give the employee written notice at least 30 days in advance of the first deduction; the notice must state: the nature and amount of the debt, GSA's intent to collect by salary deduction, the rate of deduction, the employee's right to inspect and copy agency records related to the debt, the right to enter a voluntary repayment agreement, and the right to petition for a hearing to dispute the debt or the proposed offset schedule
  • § 105-56.005 — Employee response options: the employee may (1) enter a voluntary repayment agreement specifying a schedule for full repayment; (2) petition for a pre-offset hearing to dispute the existence of the debt or the amount claimed; (3) request a compromise or waiver of the debt through appropriate channels; filing a petition stays the offset until the hearing is decided
  • § 105-56.006 — Petition for hearing: the employee files a written petition with the program official who issued the pre-offset notice; the petition must include the specific objections to the debt or amount and supporting documentation; GSA must schedule a hearing within 30 days of receiving the petition
  • §§ 105-56.007–105-56.008 — Hearing forms: the employee chooses between an oral hearing (in-person or telephonic, conducted by a hearing official outside the program that originated the debt) and a paper hearing (written submissions only, decided on the record); oral hearings are required when the dispute involves a genuine question of material fact; paper hearings suffice for purely legal questions
  • § 105-56.009 — Written decision: the hearing official must issue a written decision within 60 days of the petition filing; the decision must include findings of fact, the amount of the debt found valid, and the rate of deduction to be applied
  • § 105-56.010 — Deductions: deductions may not exceed 15% of the employee's disposable pay per pay period in any involuntary offset (the cap from 5 U.S.C. § 5514); voluntary repayment agreements may specify a different rate; deductions continue until the debt is paid in full, the employee separates, or a compromise/waiver is approved
  • § 105-56.011 — Non-waiver of rights: involuntary payment of any portion of the offset debt does not constitute a waiver of the employee's right to challenge the debt through any available legal remedy
  • § 105-56.012 — Refunds: if a debt is subsequently found to have been incorrectly assessed or waived, GSA must promptly refund amounts collected in error, with interest if required

  GSA's salary offset most commonly arises from government travel charge card delinquencies — employees who incur charges on government-issued travel cards and fail to pay the card balance upon return from travel; the travel card debt is a debt to the government, collectible through salary offset after the Part 105-56 notice and hearing process. The 15% cap means a $3,000 travel card debt owed by an employee earning $60,000 ($2,307/biweekly disposable pay) would be collected through deductions of approximately $346 per biweekly pay period — repaid over approximately 9 pay periods.

Pending Legislation

• SJRES 125 — Disapproves CFPB withdrawal of Regulation F rules governing third-party debt collection practices. Status: Introduced.
• SJRES 126 — Blocks CFPB withdrawal of rules restricting collection on time-barred debts. Status: Introduced.
• S 2454 — Fair Debt Collection Practices for Servicemembers Act. Extends additional debt collection protections to military servicemembers. Status: Introduced.

Recent Developments

• The COVID-19 pandemic led to temporary suspension of many federal debt collection activities (student loan payments, tax refund offsets for student loans, and Treasury offsets were paused)
• Student loan debt collection has been particularly controversial, with ongoing debates about forgiveness, income-driven repayment, and collection practices
• Treasury has modernized the offset program to improve matching accuracy and debtor notification
• GAO has reported significant amounts of improper payments across federal agencies that generate collection actions