Congressman Cohen’s Bill to Provide Debt Relief to National Guard and Reservists is Signed Into Law by President Biden

WASHINGTON, DC – Today, Congressman Steve Cohen (TN-9) announced that his bill to provide financial relief to qualifying members of the National Guard and reserves has been signed into law by President Biden. Congressman Cohen’s National Guard and Reservists Debt Relief Extension Act (H.R. 3315) will reauthorize an additional four years of debt relief for qualifying servicemembers experiencing financial hardship. It was passed in bipartisan fashion by both chambers of Congress last week.

The National Guard and Reservists Debt Relief Extension Act was approved with a voice vote in the House and unanimously in the Senate. With the President’s signature, Congressman Cohen’s bill has now become just the fourth House bill led by a Democrat to be made law in the current 118^th Congress.

“I have always stepped back up to the plate to reauthorize this much-needed financial relief for our National Guard members and reservists,” said Congressman Cohen. “This bill will continue to make sure that, after being federally deployed, these servicemembers are treated similarly to active duty counterparts if they require financial relief through bankruptcy.”

“At a time when many have lost confidence in Congress’s ability to move meaningful legislation across the finish line, I am proud that my bill has become just the fourth Democratic House bill to be signed into law during this 118^th Congress,” Congressman Cohen continued. “The relationships I have worked hard to establish with Members of Congress on the ‘other side of the aisle’ have helped us find success in many instances over the years, and this is another example of how that bipartisan work can pay off. This is an important protection for those who serve our country, and a rewarding way to cap-off an effective year for TN-9.”

Congressman Cohen first introduced the National Guard and Reservists Debt Relief Extension Act in 2008. The legislation sought to exempt qualifying members of the National Guard and Reserves from provisions in the Bankruptcy Code, which limit access to Chapter 7 bankruptcy based on recent income.

Because National Guard members and reservists often receive higher pay while on active duty than at their civilian jobs, these limits could otherwise prevent them from receiving financial relief in bankruptcy. The National Guard and Reservist Debt Relief Extension Act ensures they are not penalized for their service.

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