Summary

Raises pay for bankruptcy trustees, changes several bankruptcy fee levels and where those fees are deposited, and extends some temporary bankruptcy judge terms from 5 to 10 years. The bill reallocates fee revenue to increase funding for the U.S. Trustee system and court resources, modifies timing and deposit rules for quarterly and other bankruptcy fees for FY2026–FY2031, and sets phased effective dates for the changes.

Key Points

• Increases trustee compensation and updates statutory language governing trustee/officer pay.
• Raises and reallocates certain bankruptcy filing and quarterly fees to fund the U.S. Trustee system, court resources, and an annual general fund transfer.
• Specifies deposit timing and allocation for fees collected in fiscal years 2026–2031, including a $5,400,000 annual transfer to the general fund.
• Extends certain temporary bankruptcy judgeship terms from 5 years to 10 years.
• Most provisions take effect at the start of the first calendar quarter after enactment; some compensation and fee provisions apply to cases or quarters on different schedules.
• Amends both Title 11 (bankruptcy) and Title 28 (judiciary) to implement the funding and term-length changes.
• Preserves authority to waive filing fees; the bill focuses on pay, fee levels, and fund allocations rather than changing debtor relief rules.

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