National Guard and Reservists Debt Relief Extension Act of 2023

Floor Speech

Mr. Speaker, according to a 2022 lifestyle survey of servicemembers and veterans, financial issues were the top lifestyle stressor, and unfortunately, bankruptcy sometimes is the best answer for those in financial distress.

Under current law, National Guard members and reservists who serve on Active Duty are, like other active servicemembers, exempt from the Bankruptcy Code means test which determines whether a debtor's income is too high to have all of his or her debts erased in bankruptcy. This critical protection for National Guard members and reservists has to be extended every 4 years, and this is the time to do it.

Unless otherwise exempted, these servicemembers and veterans must complete the required forms and submit the specified paperwork to satisfy the Bankruptcy Code's means test.

This burdensome requirement would even apply to National Guard and reservists who have returned to the United States from active service and thus no longer receive combat pay.

Under the means test, such servicemember must calculate his or her income based on the average monthly income that he or she received during the 6-month period preceding the filing date of the bankruptcy case, rather than the debtor's actual income, which may be less because of the debtor's noncombat status.

Without this exemption, some servicemembers and veterans may be prevented from seeking the financial relief that they need and deserve. We should not deny the reservists and the National Guard these benefits.

This extension is an immediate concern. The bill would extend for 4 years the temporary authorization exempting certain qualifying reserve component members of the Armed Services and National Guard members from this means test.

I am proud to have led the effort to exempt the National Guard and reservists from the means test in 2008 and the extensions of this successful program in 2015 and 2019. If we do not act today, this critical protection for National Guard members and reservists will expire in a matter of weeks.

I hope we can act on a bipartisan basis, as we have always done, to extend the authority.

I thank my cosponsors Representatives Ben Cline, Madeleine Dean, Tim Burchett, and leaders of the companion effort in the Senate, Senators Durbin and Graham.

This is truly a bipartisan, bicameral effort.

I thank Chairman Jordan, who moved this bill through the Judiciary Committee and advocated for its quick consideration on the floor, and I all urge my colleagues to support this bill.

Mr. Speaker, sometimes people think we don't work together, but in the military we do work together. I am proud to support this, and I reserve the balance of my time.

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Mr. COHEN. Mr. Speaker, I urge a voice vote on this measure, and I yield back the balance of my time.

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