S.1764 - Ending Administrative Garnishment Act of 2025 (119th Congress)
Summary
S.1764, the Ending Administrative Garnishment Act of 2025, aims to suspend and reform the Department of Education's authority to garnish wages for defaulted student loans. The bill mandates a temporary suspension of wage garnishment until the Secretary of Education certifies that certain reforms have been implemented to protect borrowers from improper garnishment. These reforms include processes for refunding improperly garnished wages and ensuring data accuracy.
Expected Effects
The immediate effect would be a pause on administrative wage garnishment for student loan debt, providing temporary financial relief to affected borrowers. Long-term, the bill seeks to establish safeguards against improper garnishment and improve data accuracy in the garnishment process. It also introduces potential liability for employers who improperly withhold wages after receiving notice of suspension.
Potential Benefits
- Provides immediate financial relief to student loan borrowers by suspending wage garnishment.
- Establishes a process for refunding wages that were improperly garnished.
- Requires the Secretary of Education to implement safeguards against future improper garnishments.
- Enhances data accuracy through quarterly verification from employers.
- Creates a centralized database to track individuals subject to wage garnishment.
Potential Disadvantages
- May temporarily disrupt the collection of student loan debt, potentially impacting the Department of Education's budget.
- Could increase administrative burdens on the Department of Education to implement the required reforms and data collection processes.
- May create uncertainty for employers regarding their responsibilities in the garnishment process.
- The suspension could be lifted if the Secretary certifies the required processes, potentially returning to the status quo.
- Potential for increased litigation against employers for improper withholding.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the Fifth Amendment's due process clause, by seeking to ensure fairness and accuracy in wage garnishment procedures. By requiring the Secretary of Education to implement processes for refunding improperly garnished wages and verifying data accuracy, the bill aims to protect individuals from potential government overreach. The bill falls under the powers granted to Congress under Article I, Section 8, which allows Congress to collect taxes and provide for the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).