Mary Gay Scanlon (D-PA)
No Bonuses in Bankruptcy Act of 2026
A Democratic bill with no cosponsors
Last activity — Referred to the House Committee on the Judiciary.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill is called the No Bonuses in Bankruptcy Act of 2026. It stops companies going through bankruptcy from paying bonuses to top earners and company insiders. Specifically, it blocks bonuses for employees making over $250,000 a year, company insiders, or anyone whose bonus would push their yearly pay past $250,000. It also lets trustees cancel bonus payments made up to 180 days before a bankruptcy filing. Sales commissions and payments under collective bargaining agreements are not counted as bonuses under this bill.
Yes· 3 of 6
- Scored +3
Would households on low incomes be better off under this?
Preventing bankrupt companies from awarding large bonuses to executives preserves resources for general creditors and ordinary workers.
- Scored +3
Would union members be better off under this?
Payments required by collective bargaining agreements are expressly exempted from being classified as prohibited bonuses.
- Scored +3
Does this strengthen the rights of workers to organise?
The bill explicitly excludes payments under collective bargaining agreements from being treated as prohibited bonuses.
The opposite· 3 of 5
- Scored -4
Would high-income households be better off under this?
Individuals earning over $250,000 or classified as insiders are prohibited from receiving retention or incentive bonuses during bankruptcy.
- Scored -4
Would people with substantial wealth be better off under this?
High-income executives and corporate insiders are barred from receiving bonuses while their employing company undergoes bankruptcy.
- Scored -4
Would the very wealthiest people be better off under this?
Corporate insiders and top earners are explicitly blocked from collecting bonuses during bankruptcy cases.
Who it would affect, and how
Potential Positive Impacts for People
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Stopping bonuses for top earners: Section 2(a) bans bonuses for company insiders and individuals making over $250,000 a year during a bankruptcy case. This holds high-paid officials accountable by preventing them from taking extra bonus money while the company is failing.
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Recovering past bonus payments: Section 2(b) allows trustees to cancel and take back bonus payments made to these individuals up to 180 days before the bankruptcy petition was filed. This helps protect company funds so they can be handled fairly.
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Protecting standard workers and unions: Section 2(a) explicitly states that sales commissions and payments required by collective bargaining agreements are not considered bonuses. This ensures everyday workers and union members keep the protections and pay structures they rely on.
Potential Negative Impacts for People
Based on the provided text, there are no explicit negative consequences or burdens identified for individuals or groups of people in the United States.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — Preventing bankrupt companies from awarding large bonuses to executives preserves resources for general creditors and ordinary workers. Would union members be better off under this? — Payments required by collective bargaining agreements are expressly exempted from being classified as prohibited bonuses. Would billionaires be better off under this? — Extremely wealthy corporate insiders are prohibited from taking bonus payments from companies in bankruptcy. Would high-income households be better off under this? — Individuals earning over $250,000 or classified as insiders are prohibited from receiving retention or incentive bonuses during bankruptcy. Would people with substantial wealth be better off under this? — High-income executives and corporate insiders are barred from receiving bonuses while their employing company undergoes bankruptcy. Would the very wealthiest people be better off under this? — Corporate insiders and top earners are explicitly blocked from collecting bonuses during bankruptcy cases. Would business owners be better off under this? — Company insiders and highly compensated individuals face restrictions on receiving bonuses during bankruptcy proceedings.
- Economy And Finance
- Does this make the government pay for what it commits to? — By prohibiting bonus payments to high-earning insiders in bankruptcy, the bill preserves company assets for fair distribution. Does this strengthen the rights of workers to organise? — The bill explicitly excludes payments under collective bargaining agreements from being treated as prohibited bonuses.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The legislation increases accountability in bankruptcy proceedings by tightly regulating executive compensation and bonuses.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Protecting bankruptcy estate funds from executive bonuses helps ensure creditors and lower-wage claimants receive fairer treatment.
- 10/29/2026
- Referred to the House Committee on the Judiciary.
- Introduced in House