Stand Strong for Medicare Act

Senate Bill

S. 2831

119th Congress

Stand Strong for Medicare Act

In Committee

Introduced:Sep 17, 2025

Primary Sponsor

Richard Blumenthal

D - CT

Cosponsors

2

Quick Stats

Policy Area

Finance and Financial Sector

Summary

The Stand Strong for Medicare Act, also known as the SACKLER Act, would prohibit bankruptcy courts from releasing claims against non-debtors, such as company officers or directors, that are brought by states, tribes, municipalities, or the federal government. This would prevent certain individuals from escaping liability by using the bankruptcy process.

Latest Action

Read twice and referred to the Committee on the Judiciary.

AI Summary

Plain-English explanation of this bill

The Stand Strong for Medicare Act, also known as the SACKLER Act, would prohibit bankruptcy courts from releasing claims against non-debtors, such as company officers or directors, that are brought by states, tribes, municipalities, or the federal government. This would prevent certain individuals from escaping liability by using the bankruptcy process.

Last updated: 12/29/2025

Official Summary

Congressional Research Service summary

Stop shielding Assets from Corporate Known Liability by Eliminating non-debtor Releases Act or the SACKLER Act This bill prohibits a bankruptcy court from releasing claims against non-debtors brought by states, tribes, municipalities, or the federal government. However, the bankruptcy court may issue a stay not exceeding 90 days regarding such a claim.Complex bankruptcies may involve creditor claims against non-debtors associated with the debtor, such as the debtor's officers, directors, or employees. Currently, in carrying out a bankruptcy plan, certain courts may release non-debtors from liability (there is a circuit split regarding this practice).

Key Points

Main provisions of the bill

The bill would prevent bankruptcy courts from releasing claims against non-debtors, such as company officers or directors, that are brought by government entities.
It would allow for a temporary stay of up to 90 days regarding such claims, but would not allow the non-debtors to be fully released from liability.
This aims to prevent individuals associated with a bankrupt company from avoiding legal responsibility by using the bankruptcy process.

How This Impacts Americans

Potential effects on citizens and communities

If this bill becomes law, it would impact companies and individuals involved in complex bankruptcy proceedings, particularly those facing claims from government entities. It would limit their ability to have non-debtors released from liability, potentially leading to greater accountability for wrongdoing associated with the bankruptcy.

Policy Areas

Primary Policy Area

Finance and Financial Sector

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

2831, 119th Congress (2025). "Stand Strong for Medicare Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-2831