Suspension of Wage Garnishment

This Act suspends and reforms the authority under the Higher Education Act of 1965 for the Secretary of Education to carry out an administrative wage garnishment program.

Not earlier than 1 year after the date of enactment of the Ending Administrative Garnishment Act of 2025, the Secretary shall submit to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Workforce of the House of Representatives a certification that either:

• (A) the Secretary has implemented a process through which individuals who have had their disposable pay improperly garnished in violation of this section, or of any other instruction by the Secretary, are able to have their refund processed and returned;
• (B) the Secretary is unable to implement the process described in subparagraph (A) and has determined that the garnishment of the disposable pay shall not apply to individuals as authorized under subsection (a).

Data Collection

If the Secretary submits a certification under paragraph (2) that the Secretary has implemented the process described in paragraph (2)(A), the Secretary, upon submission of such certification, shall establish a centralized database containing:

• (i) the addresses, occupations, employers, and other collectible demographic data of individuals whose disposable pay was subject to garnishment under this section on the day before the date of enactment of the Ending Administrative Garnishment Act of 2025;
• (ii) the addresses, occupations, employers, and other collectible demographic data of individuals whose disposable pay is subject to garnishment under subsection (a).

Reporting Requirements

Not later than 90 days after the date the Secretary establishes the database under subparagraph (A), and not less often than annually thereafter, the Secretary shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Workforce of the House of Representatives summarizing the information contained in the database and evaluating the exercise of the Secretary’s authority under subsection (a).

Right of Action Against Employer

The employer shall be liable for, and the Secretary, the guarantee agency, or an individual, as appropriate, may sue the employer in a State or Federal court of competent jurisdiction to recover, any amount that such employer improperly withheld from wages due an employee following receipt by such employer of notice of suspension or revocation of the withholding order, and actual damages, plus attorneys’ fees, costs, and, in the court’s discretion, punitive damages.

Department Action After Improper Garnishment

Not later than 10 days after the date the Secretary receives an individual’s disposable pay that has been improperly garnished, the Secretary shall pay the borrower twice the actual amount of wages garnished. Notwithstanding section 432(a)(2), an injunction against the Secretary may be issued to enforce this subsection.

Limits on Use

The Secretary may not garnish the disposable pay of an individual under this section with respect to a loan that has been outstanding for more than 10 years.