Press Releases

Rep. Cline’s Bill to Strengthen Bankruptcy System Passes the House, Heads to President’s Desk

WASHINGTON, January 12, 2026

Today, the U.S. House of Representatives passed the Bankruptcy Administration Improvement Act of 2025, bipartisan legislation sponsored by Rep. Ben Cline (VA-06) to strengthen the bankruptcy system while keeping it fully funded by users, instead of taxpayers. The bill now heads to the President’s desk for signature.

“My bill makes common-sense improvements to an essential part of our judicial system,” said Rep. Cline. “It keeps bankruptcy courts running efficiently, fairly compensates trustees, and ensures the system remains self-funded without burdening taxpayers. This important step forward will help bankruptcy courts continue serving families, small businesses, and creditors, and I look forward to it being signed into law.”

BACKGROUND:

Rep. Cline’s bill:

  • Keeps the bankruptcy system self-funded by extending existing user fees so taxpayers are not required to subsidize court operations.
  • Provides fair, updated compensation for Chapter 7 trustees, increasing the per-case rate to reflect inflation and support effective oversight.
  • Extends temporary bankruptcy judgeships to help courts manage rising caseloads and prevent delays.

Congressman Ben Cline represents the Sixth Congressional District of Virginia. He previously was an attorney in private practice and served both as an assistant prosecutor and a Member of the Virginia House of Delegates. Cline and his wife, Elizabeth, live in Botetourt County with their two children.