H.R. 3412 — Ending Administrative Garnishment Act of 2025

This section suspends the Department of Education's authority under the Higher Education Act of 1965 to garnish up to 15% of the disposable pay of individuals delinquent on federal student loans (i.e., FFEL or Direct Loans held by the Secretary) beginning on the date of enactment of the Ending Administrative Garnishment Act of 2025, until the Secretary certifies to the Senate Committee on Health, Education, Labor, and Pensions and the House Committee on Education and Workforce (not earlier than one year after enactment) either (1) implementation of a process for one-week refunds of improper garnishments, independent authority to cease or suspend garnishments at the Secretary's discretion (including for individuals or cohorts), and quarterly employer verifications of garnishment data accuracy; or (2) inability to implement such process and resulting termination of garnishment authority. (Thus, no wage garnishments may occur during the suspension period absent borrower consent for higher amounts.) If the Secretary certifies process implementation, the section further requires establishment of a centralized database of demographic data (e.g., addresses, occupations, employers) on garnished borrowers and specified congressional reporting within 90 days and annually thereafter. This section also (1) authorizes suits against employers for improper withholding after notice of withholding order suspension or revocation, including actual damages, attorneys' fees, costs, and punitive damages; (2) requires the Secretary to pay borrowers twice the amount of any improperly garnished wages within 10 days, enforceable by injunction; and (3) prohibits garnishment of loans outstanding for more than 10 years.