Proposed Rule2025-16103
Public Dissemination of the Identity of a Delinquent Debtor
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 22, 2025
Issuing agencies
Treasury DepartmentBureau of the Fiscal Service
Abstract
The Debt Collection Improvement Act of 1996 (DCIA) authorizes Federal agencies to publicly disseminate information regarding the identity of persons owing delinquent nontax debts to the United States for the purpose of collecting the debts. The Department of the Treasury, Bureau of the Fiscal Service (Fiscal Service), proposes to promulgate this rule to establish the minimum procedures Federal agencies must follow prior to publicly disseminating information regarding the identity of delinquent debtors and the standards for determining when use of this debt collection tool is appropriate.
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<title>Federal Register, Volume 90 Issue 161 (Friday, August 22, 2025)</title>
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[Federal Register Volume 90, Number 161 (Friday, August 22, 2025)]
[Proposed Rules]
[Pages 40989-40993]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16103]
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DEPARTMENT OF THE TREASURY
Bureau of the Fiscal Service
31 CFR Part 285
RIN 1530-AA32
Public Dissemination of the Identity of a Delinquent Debtor
AGENCY: Bureau of the Fiscal Service, Department of the Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Debt Collection Improvement Act of 1996 (DCIA) authorizes
Federal agencies to publicly disseminate information regarding the
identity of persons owing delinquent nontax debts to the United States
for the purpose of collecting the debts. The Department of the
Treasury, Bureau of the Fiscal Service (Fiscal Service), proposes to
promulgate this rule to establish the minimum procedures Federal
agencies must follow prior to publicly disseminating information
regarding the identity of delinquent debtors and the standards for
determining when use of this debt collection tool is appropriate.
DATES: Written comments must be submitted (for electronic comments) or
postmarked (for paper comments) by October 21, 2025. No late comments
will be accepted and commenters should be aware that the electronic
Federal Docket Management System will not accept comments after
Midnight Eastern Time on the last day of the comment period.
ADDRESSES: All comments must include the agency name (``Bureau of the
Fiscal Service'') and docket number (``FISCAL-2023-0001'') for this
rulemaking. In general, comments will be published on <a href="http://Regulations.gov">Regulations.gov</a>
without change, including any business or personal information
provided. Comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not enclose any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure. Due to mail processing delays, Fiscal Service
encourages the electronic submission of comments but also accepts paper
submission of comments. Comments may be submitted as follows:
Electronic Comments: Fiscal Service encourages that all comments be
submitted through the Federal eRulemaking Portal, which provides the
ability to comment on, search, and view publicly available rulemaking
materials, including comments received on rules. Please go to <a href="http://www.regulations.gov">http://www.regulations.gov</a> and follow the online instructions at that site for
submitting comments.
Paper Comments: Paper comments that duplicate an electronic
submission are not necessary and are discouraged. Should you wish to
mail a paper comment in lieu of an electronic comment, it should be
sent via regular or express mail to: Director, Policy and Oversight
Division, Disbursing and Debt Management, Bureau of the Fiscal
[[Page 40990]]
Service, Landover Warehouse, 3201 Pennsy Drive, Landover, MD 20785.
FOR FURTHER INFORMATION CONTACT: Director, Policy and Oversight
Division, Disbursing and Debt Management, Bureau of the Fiscal Service,
at (202) 874-6810.
SUPPLEMENTARY INFORMATION:
I. Background
Section 31001(r)(1) of the Debt Collection Improvement Act of 1996
(DCIA), Public Law 104-134, 110 Stat. 1321-358 (1996), codified at 31
U.S.C. 3720E, authorizes the head of an agency to publish or otherwise
publicly disseminate information regarding the identity of persons
owing delinquent nontax debts to the United States for the purpose of
collecting the debts, subject to certain conditions. The DCIA directs
the Secretary of the Treasury to issue regulations establishing
procedures and requirements to carry out this authority. For the
collection of nontax debt for the Federal Government, Fiscal Service is
responsible for promulgating the regulations governing this and other
provisions of the DCIA on behalf of the Secretary of the Treasury.
This proposed rule establishes standards so that actions under this
authority are directed, as required by the DCIA, toward those debtors
with the ability to pay their delinquent nontax debts. This proposed
rule also establishes procedures and requirements so that actions under
this authority are not taken until debtors are afforded the opportunity
to verify, contest, and compromise their debts and so that persons are
not incorrectly identified. The proposed rule limits the types of debts
subject to publication under this rule to nontax debts arising from
civil or criminal penalties or fines, fraud, presentation of false
claim, misrepresentation, or circumstances where the agency has an
enforcement goal. Generally, this rule does not apply to other types of
debts owed to the federal government, such as delinquent small business
loans or student loans, where there is no civil or criminal
adjudication.
II. Section-by-Section Analysis
This section describes, section-by-section, the reasoning for each
provision of this new rule.
(a) Definitions
Paragraph (a) of this section sets forth definitions applicable to
this rule. Terms used in this section are defined for purposes of this
section only.
This rule proposes to define the term ``debt'' consistent with,
though more narrowly than, the statutory definition of debt in 31
U.S.C. 3701(b). Specifically, this rule would apply only to debts
arising from civil or criminal penalties or fines, fraud, presentation
of false claim, misrepresentation, or circumstances where the agency
has determined that it has an enforcement goal. This definition allows
agencies to focus on the categories of debts where the Government's
collection equities are the strongest. This definition also most
closely serves the purpose of maximizing collections by holding
violators publicly accountable for their actions.
Fiscal Service reserves the right, as authorized under 31 U.S.C.
3720E, to later determine that it is appropriate to expand or further
limit the definition of ``debt'' for the purposes of this rule.
(b) General Rule
Paragraph (b) states the general rule that agencies may publish
information regarding the identity of a person owing a delinquent debt
to the United States and the existence of the debt for the purpose of
collecting the debt.
(c) Agency Procedures
Paragraph (c) states that agencies must prescribe their own written
procedures governing the publication of the identity of delinquent
debtors, provided such rules are consistent with this section. This
rule provides high-level guidance that agencies should tailor to their
collection needs. Because the programs giving rise to these debts vary
widely across the Government, a ``one-size-fits-all'' approach would
not be practical or effective. What exact protections and procedures
are appropriate may differ significantly from agency to agency, and
among different types of debts or debtors. As such, this rule defers to
agencies and their expertise to develop the procedures that are
appropriate for their classes of debts and debtors.
For example, what constitutes proper notice will differ based on
what is reasonable under the circumstances. Generally, notice sent to
the debtor's address last known to the agency suffices. However, if an
agency knows that the debtor did not receive a notice (e.g., the notice
was returned undelivered), in some circumstances, the agency may
determine it should or must (or may determine it need not) conduct
further investigation for a better address; whether the agency should
conduct further investigation may depend on the factors the agency
considers appropriate, such as the age of the debt, the characteristics
of debtor population, the obligation of the debtor to keep the agency
informed of address changes, or the possibility that the agency has
failed to update its address records properly.
Agencies must certify to the Secretary of the Treasury that they
have complied with the requirements of this section prior to taking
action under this section. Because the exact protections and procedures
that are appropriate may differ significantly from agency to agency,
based on debt type, debtor type, agency goals, or other relevant
factors, Fiscal Service has determined that it is appropriate to rely
on the expertise of the certifying agency, which is best equipped to
understand the nuances of its debt portfolio and debtor populations. An
agency need only certify its compliance with these rules to the
Secretary when it first adopts or modifies its procedures and need not
certify compliance each time information regarding the identity of
delinquent debtors is made public. Fiscal Service's receipt and
acceptance of the agency's certification constitutes ``review'' of the
Secretary, as required by 31 U.S.C. 3720E, and Fiscal Service may
further prescribe in guidance the manner in which the certification
must be made and the manner in which the acceptance will be documented.
Nothing in this rule makes any publication of the identity of
delinquent debtors under 31 U.S.C. 3720E and this rule subject to the
general non-disclosure provisions of the Privacy Act of 1974 (5 U.S.C.
552a), the Trade Secrets Act (18 U.S.C. 1831 through 1839), 18 U.S.C.
905, or other laws generally prohibiting disclosure of information.
However, agencies should ensure that any publication is consistent with
applicable law. For example, an agency may determine it should specify
as a routine use under its system of records notice that it may publish
names and identities of delinquent debtors or, alternatively, may
determine that such disclosure is permissible without any such routine
use.
(d) Determination of Ability To Pay
Paragraph (d) provides standards agencies must use to determine if
a debtor has the ability to pay their debt. Under paragraph (d),
agencies may base a determination that the debtor has the ability to
pay on information concerning the financial condition of the debtor
including, but not limited to, credit reports, financial statements,
and tax returns. Because the statute requires that publication be
directed toward delinquent debtors that have an ability to pay, the
agency may, where appropriate, also consider in its ability to pay
analysis common characteristics of a class of debtors that indicate
such
[[Page 40991]]
debtors would have sufficient assets or income to pay their debts.
Paragraph (d) also permits an agency to make a determination that
the debtor has the ability to pay a debt where no reliable financial
information is available, provided that the agency requested that the
debtor provide financial information and the debtor, despite proper
notice, either failed to do so or provided incomplete or unreliable
financial information.
(e) Notice to the Debtor
Paragraph (e) describes the contents of the notice which must be
provided to a debtor and a description of the rights available to the
debtor. An agency must provide a debtor with notice, at least 30 days
in advance, of the agency's intention to publish information concerning
the identity of the debtor and the existence of the debt and a
description of the information to be published and the manner in which
it will be published. The notice must also contain an explanation of
the debtor's rights and an explanation of the timeframe within which
the debtor may exercise these rights. This notice may be combined with
and made a part of any other notice that an agency sends to the debtor
regarding collection of the debt.
(f) Opportunity To Contest
Paragraph (f) describes the opportunities an agency must provide to
a debtor prior to publication, including the opportunity to inspect and
copy agency records, request a review of the agency's determination of
indebtedness, enter into a repayment agreement (e.g., a compromise to
extend the time period over which the debt must be paid or a compromise
to reduce the amount that must be paid), and demonstrate that the
debtor lacks the ability to pay the debt, even in a compromise or with
a partial payment.
(g) Information To Be Published
Paragraph (g) describes the information which must be included in
any publication to ensure that the person who owes the debt is properly
identified. This section is intended to ensure that only information
which is reasonably necessary to identify the debtor is made public.
Paragraph (g) also describes the information which must be
published concerning the existence of the debt. Information identifying
the party to whom the debt is owed will generally identify the agency
under which the debt arose. This information may also include the
particular program within an agency which gave rise to the debt, but
such information is not required. Since the existence and amount of a
debt can change rapidly, the information published must include the
date as of which the information is accurate. Agencies may, but are not
required to, publish the amount of the debt and the length of time the
debt has been delinquent.
Paragraph (g) also requires agencies to include with their
publication information sufficient for the debtor whose information has
been published to pay the debt and to contact the agency with questions
about the debt.
(h) Corrections and Retractions
Paragraph (h) provides that, where a person has been incorrectly
identified as a delinquent debtor or inaccurate information has been
made public which is substantially adverse to the debtor, agencies must
publish a retraction or correction of the erroneous information upon
the request of the person adversely affected. Agencies are not required
to retract or clarify information which is accurate, even if a third
party, such as a person with a name similar to the debtor, may be
adversely affected. Nothing in this section is intended to impose any
liability on agencies for incorrectly identifying a person as a
delinquent debtor, for the publication of inaccurate information, or
for the publication of accurate information which may adversely affect
a third party. Nevertheless, agencies must ensure that they comply with
all relevant laws prior to publication.
(i) Agencies Not Required To Publish All Debts
Paragraph (i) states that an agency does not have to publish
information on all delinquent debts owed to the agency that fall under
the definition of ``debt'' in this rule; instead, an agency may
determine to publish information on particular debts based upon
applicable agency laws, regulation, guidance, and policy. For example,
an agency may choose to publish debtor information based on debt type,
debtor type, amount of debt, length of delinquency, or any other
characteristic that the agency determines is appropriate.
(j) No Private Right of Action
Paragraph (j) states that the provisions of this section do not
create any private right of action. Fiscal Service notes that 28 U.S.C.
2680(h) bars suits against the United States under the Federal Tort
Claims Act for libel or slander.
III. Procedural Analyses
Federalism
This proposed rule has been reviewed under Executive Order 13132,
64 FR 43255 (Aug. 4, 1999). This proposed rule would not have
substantial direct effects on States, on the relationship between the
national government and the States, or on distribution of power and
responsibilities among the various levels of government. Therefore, in
accordance with Executive Order 13132, it is determined that this
proposed rule does not have sufficient federalism implications to
warrant the preparation of a federalism summary impact statement.
Paperwork Reduction Act
This proposed rule would not impose information-collection
requirements that require the approval of the Office of Management and
Budget (OMB) under 44 U.S.C. 3501, et seq.
Regulatory Flexibility Act Analysis
It is hereby certified that the proposed rule would not have a
significant economic impact on a substantial number of small entities
because this rule only impacts persons who are delinquent on debts owed
to Federal agencies or States. Accordingly, an initial regulatory
flexibility analysis under the Regulatory Flexibility Act is not
required. Fiscal Service seeks comment on whether the certification
made herein should be reconsidered and, if so, on what basis.
Executive Orders 12866, 13563, and 14192--Regulatory Planning and
Review
Fiscal Service has determined that this proposed rule is not a
``significant regulatory action'' under section 3(f) of Executive Order
12866, Regulatory Planning and Review. Accordingly, this proposed rule
has not been reviewed by OMB. This proposed rule has been drafted and
reviewed in accordance with Executive Order 12866, ``Regulatory
Planning and Review''; Executive Order 13563 ``Improving Regulation and
Regulatory Review''; and Executive Order 14192, ``Unleashing Prosperity
Through Deregulation.''
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
1532, requires that an agency prepare a budgetary impact statement
before promulgating any rule likely to result in a Federal mandate that
may result in the expenditure by State, local, and Tribal governments,
in the aggregate, or by the private sector, of $100 million or more
[[Page 40992]]
in any one year. If a budgetary impact statement is required, section
205 of the same act also requires the agency to identify and consider a
reasonable number of regulatory alternatives before promulgating the
rule. See 2 U.S.C. 1535. Fiscal Service has determined that this rule
would not result in expenditures by State, local, and Tribal
governments, or by the private sector, of $100 million or more in any
one year. Accordingly, Fiscal Service has not prepared a budgetary
impact statement or specifically addressed any regulatory alternatives.
List of Subjects in 31 CFR Part 285
Administrative practice and procedure, Black lung benefits, Child
support, Child welfare, Claims, Credits, Debts, Disability benefits,
Federal employees, Garnishment of wages, Hearing and appeal procedures,
Income taxes, Loan programs, Payments, Privacy, Railroad retirement,
Railroad unemployment insurance, Salaries, Social Security benefits,
Supplemental Security Income, Taxes, Unemployment compensation,
Veteran's benefits, Wages.
For the reasons set forth in the preamble, Fiscal Service proposes
to amend 31 CFR part 285 as follows:
0
1. The authority citation for Part 285 is revised to read as follows: 5
U.S.C. 5514; 26 U.S.C. 6402; 31 U.S.C. 321, 3701, 3711, 3716, 3719,
3720A, 3720B, 3720D, 3720E; 42 U.S.C. 664; E.O. 13019, 61 FR 51763, 3
CFR, 1996 Comp., p. 216.
0
2. Section 285.14 is added to subpart B to read as follows:
Sec. 285.14 Public dissemination of the identity of a delinquent
debtor.
(a) Definitions. As used in this section:
Ability to pay means a debtor has the assets or income sufficient
to pay their delinquent nontax debt.
Agency means a department, agency or subagency, court, court
administrative office, or instrumentality in the executive, judicial,
or legislative branch of the Federal Government, including government
corporations.
Debt means a nontax debt owed to the United States as defined in 31
U.S.C. 3701(b)(1) that arises from a civil or criminal penalty or fine,
fraud, presentation of false claim, misrepresentation, or a
circumstance where the agency has determined that it has an enforcement
goal. The term does not include a debt or claim under the Internal
Revenue Code of 1986.
Debtor means a person who owes a debt.
Delinquent refers to the status of a debt and means that a debt has
not been paid by the date specified in the agency's initial written
demand for payment, or applicable agreement or instrument, unless other
payment arrangements satisfactory to the agency have been made.
Person means an individual, corporation, partnership, association,
organization, State or local government, or any other type of entity
other than an agency.
Publication or publishing means any form of communication or public
dissemination of information intended to reach the public including,
without limitation: publication in the Federal Register, newspapers,
periodicals, or sites accessed via the internet; media such as radio,
television, and internet broadcasts; inclusion in social media
accessible by the public; or posting information in a place frequented
by, or visible to, the public. The term ``publish'' means the act of
publishing.
(b) General rule. Pursuant to 31 U.S.C. 3720E, an agency may
publish the identity of a delinquent debtor and the existence of the
debt if the agency has made a final administrative determination that
the debt is owed by the debtor in the amount stated and is delinquent.
An agency may publish this information if the agency has the purpose of
collecting the debt and its publication actions are directed toward
delinquent debtors who have the ability to pay. This section applies
only to publication pursuant to 31 U.S.C. 3720E and does not affect an
agency's authority to publish pursuant to any other authority.
(c) Agency procedures. (1) Before an agency publishes information
about delinquent debts or debtors, the agency must prescribe its own
written procedures governing the publication, which are consistent with
this section. At a minimum, agency procedures must include processes
for:
i. Verifying information necessary to minimize the risk of
improperly identifying persons with names similar to the debtor,
including, for example, the debtor's name, current mailing and physical
address, taxpayer identification number, or other similar information;
ii. Verifying the validity, existence, and amount of the delinquent
debt owed by the debtor;
iii. Verifying that the debt arises from a civil or criminal
penalty or fine, fraud, presentation of false claim, misrepresentation,
or a circumstance where the agency has an enforcement goal;
iv. Determining that the debtor has the ability to pay, as
described under subsection (d);
v. Verifying that the agency has provided proper notice as required
under subsection (e), considering appropriate factors, which may differ
significantly from agency to agency, and among different types of debts
or debtors;
vi. Considering any impacts to the safety of any populations that
may be impacted by publication;
vii. Verifying that the agency has provided any opportunities
required under subsection (f) of this section;
viii. Excluding from publication information that may not be made
public pursuant to any applicable law;
ix. Determining whether and when consultation with the Department
of Justice or other agencies is appropriate or required, such as when
the agency has referred, or anticipates referring, the debt to the
Department of Justice for enforcement, collection, or other legal
action; when the agency has referred the debt to a designated debt
collection center for collection action; or where publication might
interfere with a federal law enforcement investigation;
x. Correcting and/or retracting any information about a debt or
debtor that was inaccurate at the time of initial publication, in
accordance with paragraph (h) of this section.
xi. Verifying that the publication of debt or debtor information
serves a debt collection purpose.
xii. Ensuring that any publication does not violate the automatic
stay or discharge injunction under the Bankruptcy Code, 11 U.S.C. 101
through 1532.
(2) Prior to publishing information concerning the identity of
delinquent debtors, an agency must certify to the Secretary of the
Treasury, in the manner prescribed by the Fiscal Service, that it has
established procedures in compliance with the requirements of this
section.
(3) Agency procedures required under this section may be combined
with other agency procedures for establishing the existence and
collection of a delinquent debt.
(d) Determination of ability to pay. An agency must direct its
publication actions toward delinquent debtors who have the ability to
pay, whether in full or pursuant to a repayment agreement. An agency
may base a determination that the debtor has the ability to pay on any
information that the agency believes is appropriate including, but not
limited to, credit reports, financial statements, expense receipts, pay
stubs, appraisals or valuation studies, and tax returns. If
[[Page 40993]]
the agency has insufficient financial information, the agency may
determine that the debtor has the ability to pay the debt, provided
that the agency requested that the debtor provide financial
information, and the debtor either failed to do so despite proper
notice or provided incomplete or unreliable financial information. The
agency does not have to revisit any previous determination of the
debtor's ability to pay the debt, unless the debtor has submitted
information regarding changed financial circumstances.
(e) Notice to the debtor.
(1) The agency may publish information concerning a delinquent
debtor only after giving the debtor written notice, at least 30 days in
advance of publication, of the type and amount of the debt, the
agency's intention to publish information concerning the debt, a
description of the information to be published and the manner in which
it will be published, an explanation of the rights of the debtor under
this section, including the opportunities specified in subsection (f),
and an explanation of the timeframe within which the debtor may
exercise their rights as described in this section;
(2) This notice may be combined with and made a part of any notice
of intent to use other collection tools that an agency sends to the
debtor.
(3) Notwithstanding this subsection (e) or subsection (f), an
agency is not required to duplicate notices or review opportunities
that an agency has previously provided to a debtor. For example, if any
agency has already provided a debtor with a review regarding the
existence and amount of a debt, the agency does not have to provide a
second review prior to publishing information pursuant to this section.
(f) Opportunity to contest. Agency procedures must include the
opportunity for the debtor to, within 30 days of the agency's notice:
(1) inspect and copy the records of the agency;
(2) request a review within the agency of the determination of
indebtedness, including the opportunity to present evidence that all or
part of the debt is not delinquent or legally enforceable;
(3) enter into a written repayment agreement with the agency based
on the debtor's ability to pay; and
(4) demonstrate that the debtor lacks the ability to pay the debt,
even in a compromise or with a partial payment.
(g) Information to be published.
(1) Information to identify the debtor. An agency will include the
debtor's name and such other information as may be necessary to ensure
proper identification of the debtor by the intended audience and to
reduce as much as practicable, the risk that others, such as persons
with names similar to the debtor, are improperly identified. Other
information could include, for example, an alias name, a full or
partial physical or mailing address, or a professional title (such as
doctor, attorney-at-law, or professor). Published information must not
include the debtor's social security number unless otherwise
appropriate and authorized by law, but generally may include other
taxpayer identification numbers, such as an employer identification
number.
(2) Information concerning the existence of the debt. An agency
will include information that the debt is owed and that the debt is
delinquent and may include the amount of the debt (including interest,
penalties, and administrative costs) and the length of time that the
debt has been delinquent. An agency may also include other appropriate
information regarding the debt. The publication will also include the
date as of which the information is accurate.
(3) Payment and Contact Information. An agency will include with
the publication information sufficient for the debtor whose information
has been published to pay the debt and to contact the agency with
questions about the debt.
(h) Corrections and retractions. If, after publication of the
identity of a delinquent debtor in accordance with this section, the
agency determines that a person has been incorrectly identified as a
delinquent debtor or that inaccurate information which is materially
adverse to the debtor has been made public, the agency, upon the
request of the person adversely affected, will, within a reasonable
time following the determination, issue a retraction or correction of
the inaccurate information. To the extent feasible, the agency will
publish the retraction or correction in the same manner in which the
initial publication was made. If publication in the same manner is not
possible or is impractical, the retraction or correction will be made
in a manner most likely to reach the same audience which received
information being retracted or corrected. Nothing in this section is
intended to impose any liability on an agency for incorrectly
identifying a person as a delinquent debtor, for the publication of
inaccurate information, or for the publication of accurate information
which may adversely affect a third party.
(i) Agencies not required to publish all debts. An agency may
determine, in their sole discretion, whether to publish information
regarding certain classes of debts or debtors who meet all conditions
for publishing described in this section, or may determine that no
publication is appropriate. Also, an agency may identify the names of
specific debtors within a class and not other debtors within the same
class.
(j) No private right of action. The provisions of this section do
not create any right, benefit, substantive or procedural, enforceable
at law or in equity by a party against the United States, its agencies,
its officers, or any other person; nor shall the failure of an agency
to comply with any of the provisions of this section be available to
any debtor as a defense.
Gary Grippo,
Acting Fiscal Assistant Secretary.
[FR Doc. 2025-16103 Filed 8-21-25; 8:45 am]
BILLING CODE 4810-AS-P
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</html>Indexed from Federal Register on August 22, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.