Ending Administrative Garnishment Act of 2025

House Votes

This bill pauses the federal student loan wage garnishment program until the Education Department proves it has strong safeguards. The pause lasts at least one year and continues until the Department sends a certification to congressional committees that either a new protection process is in place or that wage garnishment will not be used on individuals at all. The safeguards include fast refunds within one week if pay was wrongly taken, the ability for the Department to quickly stop garnishments for any borrower or group, and quarterly checks from employers to make sure all garnishment details are correct. If the protections are implemented, the Department must build a database on who is being garnished and report on it within 90 days and then yearly.

The bill also creates stronger consequences for mistakes. If an employer keeps taking money after getting a stop notice, the employer can be sued to repay what was taken, plus damages and legal costs. If the Department improperly takes wages, it must pay the borrower twice the amount within 10 days, and a court can order the Department to do so. The Department also may not garnish wages for loans that have been outstanding for more than 10 years.

Key points:

• Who is affected: Student loan borrowers whose wages could be garnished; employers who process garnishments; the Education Department.
• What changes: Garnishments are paused until new protections are certified; quick refunds for errors; power to halt garnishments fast; employer verification; public reporting; stronger remedies against employers and the Department for improper garnishment; 10-year limit on using wage garnishment .
• When: Pause starts at enactment; certification cannot be sent earlier than one year after enactment; refunds must be processed within one week of a violation; the Department must pay double within 10 days after it receives improperly garnished pay; employer verification is quarterly; reports are due within 90 days and then annually .