S 3424
Became law
Raises the compensation paid to chapter 7 bankruptcy trustees from $60 to $120 per case and adjusts how bankruptcy filing and quarterly fees are divided among federal funds.
Official title: Bankruptcy Administration Improvement Act of 2025
Timeline each lane is a chamber; dates pull from congress.gov actions
House
Received
11-DEC-2025
Passed
12-JAN-2026
Senate
Introduced
10-DEC-2025
Passed
11-DEC-2025
President
Presented
03-FEB-2026
Signed
06-FEB-2026
Became law
06-FEB-2026
- Increases the base trustee payment under bankruptcy law section 330(b)(1) from $45 to $105, bringing total per-case trustee compensation to $120 with the existing $15 portion.
- Sets how the remainder of fees collected under section 1930(a)(1)(A) is split among a Treasury special fund, a Deficit Reduction Act fund, and the United States Trustee System Fund.
- Changes quarterly fee rates in chapter 11 cases, extends the fee deposit period through fiscal year 2031, and sends $5,400,000 a year from certain fees to the general fund of the Treasury.
- Extends from 5 years to 10 years the terms of certain temporary bankruptcy judgeships created under the 2020 and 2017 bankruptcy judgeship acts.
- Takes effect on the first day of the calendar quarter after enactment, with the trustee pay changes applying to certain chapter 7 cases commenced on or after the next October 1.
Current. The Congressional Research Service's summary covers the bill's latest wording (Public Law, 06-FEB-2026).
CRS is the Library of Congress's nonpartisan research office. Read it on congress.govNo committee referrals on file.
Policy areaFinance and Financial Sector
■ 2 R■ 1 D
2 Republicans
1 Democrat