Beat Bad Bureaucrats Act
Beat Bad Bureaucrats Act
Plain Language Summary
# Beat Bad Bureaucrats Act Summary **What the Bill Does:** This bill would prevent the Small Business Administration (SBA) from taking money from people's Social Security payments if those payments are being garnished due to pandemic-era loans that were obtained fraudulently using their identity. Specifically, it protects victims of identity theft from having Social Security benefits seized for COVID-19 relief loans (like Economic Injury Disaster Loans and Paycheck Protection Program loans) that someone else fraudulently obtained in their name—as long as they reported the identity theft to the SBA. **Who It Affects:** The bill primarily affects identity theft victims whose names were misused to fraudulently obtain federal pandemic relief loans between January 2020 and December 2021. The SBA would also be required to post information on its website about how to report identity theft, which could help other potential victims.
The bill does not protect someone if the SBA determines they are not actually a victim of identity theft. **Current Status:** The bill (HR 886) is currently in committee and has not yet been voted on by Congress. It was introduced by Representative Michael Rulli (R-Ohio) in the 119th Congress.
CRS Official Summary
Beat Bad Bureaucrats ActThis bill prohibits the Small Business Administration (SBA) from garnishing Social Security payments to victims of identity theft on account of certain delinquent SBA loans obtained fraudulently during the COVID-19 pandemic. Specifically, the SBA may not garnish an individual’s Social Security payments related to a covered loan if (1) the individual’s name was used to fraudulently obtain the loan, and (2) the individual has reported the identity theft to the SBA. Under the bill, covered loans are Disaster Loans granted in response to COVID-19 between January 31, 2020, and December 31, 2021 (e.g., Economic Injury Disaster Loans) and loans granted under the Paycheck Protection Program. The prohibition on garnishment does not apply if the SBA determines that an individual is not a victim of identity theft. Further, the SBA must post instructions on how to report identity theft on its public website and include them in the written notice provided to delinquent borrowers before garnishing their pay.
Latest Action
Referred to the House Committee on the Judiciary.