Sponsors (13)
The bill increases and reassigns bankruptcy filing-fee revenue to stabilize trustee and court funding and extend judicial continuity—but does so by shifting costs and funding control onto bankruptcy system users and by locking in allocations that could reduce flexibility and strain local court resources.
Federal courts, trustees, and taxpayers will get more stable and predictable funding for the United States Trustee System and related court operations, improving the ability to administer bankruptcy caseloads.
Bankruptcy trustees will receive clearer compensation rules and a modest, specified per-case payment ($120), improving pay predictability and helping trustees cover case administration costs.
Courts, trustees, and filers will benefit from clearer, multi-year fee-deposit rules and a specified effective date for the Act’s changes, allowing better planning for budgets and case administration.
Bankruptcy filers and creditors will face higher fees as fee increases and reallocated filing-fee revenue are used to fund trustee pay and trustee-system operations, shifting costs onto users of the bankruptcy system.
Fixing specific dollar allocations and percentages for fee distribution reduces budgeting flexibility and risks under- or over-funding programs if filing volumes or inflation change.
Shifting a portion of bankruptcy fees to the Treasury general fund (and away from funds retained for judiciary use) could reduce locally available court resources, potentially leading to future fee increases or diminished services.
Based on analysis of 6 sections of legislative text.
Introduced June 10, 2025 by Benjamin Cline · Last progress June 10, 2025
Increases statutory pay for chapter 7 bankruptcy trustees and changes how several bankruptcy-related fees are divided among federal special funds and the United States Trustee System Fund. It also extends temporary bankruptcy judgeship appointments from 5 years to 10 years and sets timing and application rules for those changes. The bill reallocates specific dollar amounts and percentage shares of fees collected under title 28 to strengthen the United States Trustee Program and other special funds, requires annual transfers to the Treasury general fund for FY2026–FY2031, and makes the trustee-pay and fee-allocation changes effective the first October 1 after enactment for specified case types and fiscal years.