Improving SCRA Benefit Utilization Act
- Bill Number
- H.R. 3159
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2026-05-14: Ordered to be Reported in the Nature of a Substitute by Voice Vote.
- Last Updated
- 2026-06-11T15:35:24Z
AI-Generated Summary
Purpose of the Legislation
The "Improving SCRA Benefit Utilization Act" (H.R. 3159) aims to enhance financial protections for members of the U.S. Armed Forces under the Servicemembers Civil Relief Act (SCRA). It focuses on improving awareness, notification, and application of these protections—particularly interest rate limits on debts—to help servicemembers and their families better manage finances during military service.
Key Provisions
- Financial Literacy Training Enhancements: Amends Section 992 of Title 10, U.S. Code, to require that financial literacy programs for Armed Forces members include education on SCRA consumer protections, such as the 6% interest rate cap on certain pre-service debts (under SCRA Section 207). This training must cover knowledge and use of these protections as part of overall financial preparedness.
- Mandatory Notifications of SCRA Benefits: Updates Section 105 of the SCRA (50 U.S.C. 3915) to require the government to notify individuals of available SCRA benefits:
- Upon first entering military service.
- For reserve component members, upon joining the reserves and when mobilized or called to active duty for more than 30 days.
- Expanded Creditor Obligations for Interest Rate Caps: Modifies Section 207(b) of the SCRA (50 U.S.C. 3937) to mandate that creditors:
- Apply the 6% interest rate limit to all pre-military service debts owed to them by a servicemember, even if not specifically listed in the servicemember's notice.
- Provide easy ways for servicemembers to submit required documents (e.g., proof of service) via online, mail, or fax options.
Significant Changes to Existing Law
- Training Expansion: Previously, financial literacy programs under Title 10 focused on general topics like budgeting and debt management; now, they explicitly must include SCRA-specific protections, shifting from optional to required content.
- Notification Triggers: Current SCRA law requires general notifications, but this adds specific timing for entry into service and reserve mobilizations over 30 days, making outreach more proactive and targeted.
- Broadened Debt Coverage: Under prior law, interest caps applied only to debts explicitly mentioned in a servicemember's notice; the bill extends this to all relevant debts automatically, reducing administrative hurdles. It also introduces flexible document submission methods, which were not previously mandated.
Potential Impacts
- On Government Agencies: The Department of Defense (DoD) and military branches will need to update training curricula and notification processes, potentially increasing administrative costs but improving servicemember support. Referral to the Committees on Veterans' Affairs and Armed Services suggests coordinated oversight.
- On Citizens (Servicemembers and Families): Active-duty and reserve members, along with their dependents, gain easier access to debt relief, potentially reducing financial stress during deployments and improving retention in the military.
- On International Relations: No direct impacts, as the bill focuses on domestic military financial protections.
- Broader Effects: Financial institutions may face stricter compliance requirements, leading to more uniform application of benefits but possible initial adjustments in lending practices.
Main Stakeholders Affected
- Servicemembers and Reserves: Primary beneficiaries, including active-duty personnel, National Guard, and reservists who enter or mobilize into service.
- Dependents and Families: Indirectly benefit from reduced household debt burdens under SCRA protections.
- Financial Institutions and Creditors: Banks, lenders, and debt holders must comply with expanded interest cap rules and document submission processes.
- Government Entities: DoD for training and notifications; congressional committees (Veterans' Affairs and Armed Services) for implementation oversight.
- Bipartisan Sponsors: Introduced by a diverse group of representatives, indicating broad support across party lines.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens enforcement of SCRA (a 2003 law providing temporary financial relief during service) by closing gaps in awareness and application, potentially reducing litigation over missed benefits. The changes are procedural and do not alter core SCRA rights.
- Constitutional Implications: Aligns with Congress's authority under Article I, Section 8 to "raise and support Armies" by supporting military welfare; no apparent conflicts with due process or equal protection, as it expands existing protections uniformly for eligible servicemembers.
- Political Implications: Promotes military family stability, a non-partisan priority, and could enhance public trust in government support for troops. As an amendment to established laws, it faces low controversy but may influence future veteran-focused legislation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. McClain Delaney, April [D-MD-6]
Cosponsors (18)
Rep. Bishop, Sanford D. [D-GA-2], Rep. Brownley, Julia [D-CA-26], Rep. Carson, André [D-IN-7], Rep. Davis, Donald G. [D-NC-1], Rep. DelBene, Suzan K. [D-WA-1], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Gottheimer, Josh [D-NJ-5], Rep. Moulton, Seth [D-MA-6], Del. Moylan, James C. [R-GU-At Large], Rep. Strickland, Marilyn [D-WA-10], Rep. Titus, Dina [D-NV-1], Rep. Cherfilus-McCormick, Sheila [D-FL-20], Rep. Schrier, Kim [D-WA-8], Rep. Hamadeh, Abraham J. [R-AZ-8], Rep. Bell, Wesley [D-MO-1], Rep. Horsford, Steven [D-NV-4], Rep. Salinas, Andrea [D-OR-6]
Recent Actions
- 2026-05-14: Ordered to be Reported in the Nature of a Substitute by Voice Vote.
- 2026-05-14: Committee Consideration and Mark-up Session Held
- 2026-02-24: Forwarded by Subcommittee to Full Committee by Voice Vote.
- 2026-02-24: Subcommittee Consideration and Mark-up Session Held
- 2026-01-21: Subcommittee Hearings Held
- 2026-01-21: Referred to the Subcommittee on Economic Opportunity.
- 2025-05-01: Referred to the Committee on Veterans' Affairs, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-05-01: Referred to the Committee on Veterans' Affairs, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-05-01: Introduced in House
- 2025-05-01: Introduced in House
Bill Versions
- Improving SCRA Benefit Utilization Act — issued 2025-05-01 — PDF (5 pages)