I 
111TH CONGRESS 
1ST SESSION H. R. 3366 
To prohibit the use of funds to promote the direct deposit of Veterans 
and Social Security benefits until adequate safeguards are established 
to prevent the attachment and garnishment of such benefits. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2009 
Mr. GORDON of Tennessee introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee 
on Veterans’ Affairs, 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 
A BILL 
To prohibit the use of funds to promote the direct deposit 
of Veterans and Social Security benefits until adequate 
safeguards are established to prevent the attachment and 
garnishment of such benefits. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Illegal Garnishment 
Prevention Act’’. 
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SEC. 2. PROHIBITION ON USE OF FUNDS TO PROMOTE DI-
RECT DEPOSIT OF VETERANS AND SOCIAL 
SECURITY BENEFITS UNTIL ASSURANCE OF 
PROTECTION FROM ATTACHMENT OR GAR-
NISHMENT. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) Section 5301(a)(1) of title 38 of the United 
States Code provides that Veterans benefit payments 
‘‘shall be exempt from the claim of creditors, and 
shall not be liable to attachment, levy, or seizure by 
or under any legal or equitable process whatever, ei-
ther before or after receipt by the beneficiary.’’. 
(2) Section 207 of the Social Security Act (42 
U.S.C. 407) provides that Social Security benefits 
shall not ‘‘be subject to execution, levy, attachment, 
garnishment, or other legal process, or to the oper-
ation of any bankruptcy or insolvency law.’’. 
(3) Congress intended for Veterans and Social 
Security benefits to provide at least a minimum sub-
sistence for our Nation’s veterans, elderly, and dis-
abled. 
(4) Social Security benefits are the only source 
of income for over 20 percent of Social Security re-
cipients. 
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(5) Many financial institutions are garnishing 
accounts on behalf of creditors in order to recover 
debt owed to them, and are assessing fees on bank 
accounts into which Veterans and Social Security 
benefits are electronically deposited. 
(6) Many recipients of these benefits are left 
temporarily destitute when financial institutions 
freeze access to their only source of income. 
(7) Despite the lack of protections for direct de-
posit recipients of Veterans and Social Security ben-
efits, the Treasury is spending millions of dollars en-
couraging veterans, seniors, and other recipients of 
social security benefits to use direct deposit for re-
ceipt of their benefits. 
(b) PROHIBITION.—No funds appropriated or other-
wise made available to the Secretary of the Treasury, the 
Secretary of Veterans Affairs, or the Commissioner of So-
cial Security for fiscal year 2010 or any fiscal year there-
after may be used to promote or otherwise encourage re-
cipients of old-age, survivors, or disability insurance bene-
fits paid under title II of the Social Security Act, or vet-
erans benefits provided under the laws administered by 
the Secretary of Veterans Affairs, to use direct deposit 
for payment of such benefits, or to otherwise promote the 
use of direct deposit for such benefits, until the Secretary 
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of the Treasury promulgates rules establishing procedures 
to ensure that such benefits are protected from attach-
ment and garnishment in accordance with the require-
ments of section 207 of the Social Security Act (42 U.S.C. 
407), and at least 5 of the 7 members of the advisory 
committee established under subsection (c) concur in ad-
vising the Secretary of the Treasury that such procedures 
provide adequate safeguards. 
(c) ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—There is hereby estab-
lished an Advisory Committee to be known as the 
‘‘Social Security Benefits Protection from Attach-
ment or Garnishment Advisory Committee’’. 
(2) MEMBERSHIP.—The Committee shall be 
comprised of 7 members comprised of, or appointed 
by the following: 
(A) The Secretary of the Treasury. 
(B) The Chair of the Committee on Ways 
and Means of the House of Representatives. 
(C) The Ranking Member of the Com-
mittee on Ways and Means of the House of 
Representatives. 
(D) The Chair of the Committee on Fi-
nance of the Senate. 
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(E) The Ranking Member of the Com-
mittee on Finance of the Senate. 
(F) The Chair of the Special Committee on 
Aging of the Senate. 
(G) The Ranking Member of the Special 
Committee on Aging of the Senate. 
(3) MEETINGS.—The Secretary of the Treasury 
shall establish meetings of the Committee. 
(4) DUTIES.—The Committee shall review the 
procedures promulgated by the Secretary of the 
Treasury to carry out subsection (b) and, upon the 
concurrence of at least 5 members of the Committee, 
advise the Secretary of the Treasury as to the ade-
quacy of such procedures with respect to protecting 
old-age, survivors, or disability insurance benefits 
paid under title II of the Social Security Act from 
attachment and garnishment. 
(5) FACA EXEMPTION.—The Committee shall 
not be subject to the Federal Advisory Committee 
Act (5 U.S.C. App.). 
Æ 
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