S. 1764: Ending Administrative Garnishment Act of 2025

The **Ending Administrative Garnishment Act of 2025** is a bill aimed at altering the administrative wage garnishment practices for federal student loans. Here's a summary of its key components:

Suspension of Wage Garnishment

The bill proposes to suspend the current ability of the Secretary of Education to garnish wages (withhold a portion of an employee's salary) for individuals with federal student loans. This suspension will be in effect until the Secretary certifies to congressional committees that certain conditions have been met.

Certification Requirements

After one year from the bill's enactment, the Secretary must inform Congress whether:

• They have established a system ensuring individuals who were improperly garnished can receive their money back within one week.
• The Secretary has the discretion to stop or suspend garnishment at any time, including for specific borrowers or groups.
• They have verified with employers that the information needed for proper garnishment is accurate on a quarterly basis.

Establishment of a Centralized Database

If the Secretary indicates that the proper processes are implemented, they are required to create a centralized database that will contain:

• Information about individuals whose wages were garnished prior to the enactment of the bill, including their addresses, occupations, and employers.
• Similar information for individuals currently subject to garnishment.

Additionally, the Secretary must provide a report to Congress summarizing this data and how the garnishment authority is exercised.

Employer Responsibilities

Employers may face legal action if they incorrectly withhold wages after being notified of the suspension of garnishment. They could be liable for damages and associated legal costs.

Improper Garnishment Compensation

If an individual's pay is improperly garnished, the Secretary must reimburse them twice the amount that was garnished within ten days of receiving the garnished funds.

Limitations on Garnishment

The bill specifies that the Secretary cannot garnish wages for loans that have been active for more than ten years.

Relevant Companies

None found