Military debt interest cap would expand automatically under House bill
In markupH.R. 3159Latest action
Sponsor: April McClain Delaney · Representative · MD
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Official title: Improving SCRA Benefit Utilization Act
119th Congress
Topics: Security & foreign affairs
Introduced:
Read the official bill on Congress.govIn plain words
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HR 3159 would force lenders to apply the 6% SCRA interest cap to all a service member's debts once notified, not just named accounts.
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What does this do?
HR 3159 changes how the 6% interest rate cap under the Servicemembers Civil Relief Act applies to military debt. Once a lender receives notice from a service member, the cap would automatically apply to all debts that service member holds with that lender, not only debts specifically listed. The bill also adds SCRA financial rights training to existing military education and requires reservists to be notified of their rights at enlistment and again before any active duty period exceeding 30 days.
Who does it affect?
The bill affects active duty military members, National Guard and Reserve members called to active duty for more than 30 days, and their families. It also places new obligations on banks, credit card companies, and other lenders holding pre-service debts.
Why does it matter?
Lenders would be required to accept SCRA paperwork online, by mail, or by fax, expanding the ways service members can submit requests. The stated aim is to increase actual use of protections that already exist under current law.
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Where does it stand?
- IntroducedMay 1, 2025
- House committeeYou are here · May 14, 2026
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Ordered to be Reported in the Nature of a Substitute by Voice Vote.