Key Takeaways
- •The House Judiciary Committee favorably reported H.R. 8065 to centralize interim U.S. Attorney appointments under the Attorney General, alongside bipartisan bills regarding bankruptcy limits and disability terminology.
- •Rep. Derek Schmidt (R, KS-2) stated that H.R. 8065 protects Article II authorities by preventing the judiciary from usurping the president’s power to select federal law enforcement representatives.
- •Rep. Joe Neguse (D, CO-2) questioned Rep. Schmidt on why judicial appointments are acceptable in Kansas state law but unconstitutional federally, leading to a debate over Senate obstruction.
- •Republicans argued H.R. 6453 protects small businesses from predatory ADA lawsuits, while Democrats contended the bill creates illegal barriers for disabled citizens seeking to enforce their civil rights.
- •The legislation moves to the House floor amid warnings from Rep. Jamie Raskin (D, MD-8) that H.R. 8065 would allow the executive branch to install loyalists indefinitely.
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Hearing Analysis
Overview
This hearing consisted of a markup session for four legislative measures addressing small business bankruptcy, civil rights litigation reform, federal terminology updates, and the appointment process for United States Attorneys. The proceedings revealed a sharp divide between members on the balance of executive power and the protection of civil rights, though bipartisan consensus was reached on bankruptcy thresholds and disability terminology.
Key Testimony & Policy
The committee first addressed H.R. 7730, the Bankruptcy Threshold Adjustment Act. Rep. Ben Cline (R, VA-6) and Rep. Jamie Raskin (D, MD-8) expressed bipartisan support for making permanent the $7.5 million debt limit for small businesses filing under Subchapter V of Chapter 11. This threshold, which had temporarily increased during the pandemic, allows more businesses to reorganize rather than liquidate. The bill also modifies Chapter 13 eligibility for individuals, allowing them to aggregate secured and unsecured debts up to $2.75 million.
The debate grew contentious with H.R. 6453, the ADA 30 Days to Comply Act. This bill requires plaintiffs to provide written notice of an Americans with Disabilities Act (ADA) violation to a business and allow 60 days for the business to make "substantial progress" toward a cure before a lawsuit can be filed. Rep. Cline and Rep. Robert Onder (R, MO-3) argued the bill is necessary to stop "drive-by" lawsuits and "extortion" by high-volume litigants targeting small businesses for minor technical errors. Opponents, including Rep. Mary Gay Scanlon (D, PA-5), argued the bill shifts the burden of compliance onto the disabled and removes the incentive for businesses to proactively follow the law.
The committee also considered H.R. 3420, the Words Matter Act, which replaces the term "mental retardation" with "intellectual disability" across federal statutes not covered by the 2010 Rosa’s Law. Finally, the committee debated H.R. 8065, the Restoring Executive Branch Authorities to Oversee Offices of the United States Attorneys Act. Introduced by Rep. Derek Schmidt (R, KS-2), the bill grants the Attorney General the authority to appoint interim U.S. Attorneys for renewable 120-day terms and removes the authority of district courts to appoint interim prosecutors.
Notable Exchanges & Partisan Dynamics
The discussion on H.R. 8065 featured intense partisan friction. Rep. Raskin and Rep. Daniel Goldman (D, NY-10) accused the administration of "weaponizing" the Department of Justice (DOJ) by installing political loyalists like Lindsey Halligan and Alina Habba as interim U.S. Attorneys to bypass Senate confirmation. Rep. Goldman argued the bill would effectively nullify the Constitution's Advice and Consent Clause. Rep. Schmidt and Rep. Andy Biggs (R, AZ-5) countered that the bill restores Article II executive authority and prevents individual senators from using "blue slips" to block nominees indefinitely.
A unique bipartisan dialogue occurred regarding H.R. 6453. Rep. J. Correa (D, CA-46) broke with his party to support the bill, citing immigrant-owned small businesses in his district that were forced out of business by predatory legal fees over minor parking lot striping issues. Rep. Zoe Lofgren (D, CA-18) expressed sympathy for these small businesses and suggested a compromise to limit the bill's protections to small entities rather than large corporations like Target.
Organizations Mentioned
- United States Department of Justice (DOJ): Discussed regarding its authority to appoint interim U.S. Attorneys and allegations of political weaponization. - American Bankruptcy Institute (ABI): Cited for data showing the success of the $7.5 million debt limit in facilitating small business reorganizations. - National Federation of Independent Business (NFIB): Mentioned as a supporter of ADA reform to protect small businesses from predatory demand letters. - Consortium for Constituents with Disabilities (CCD): Identified as an opponent of H.R. 6453, arguing it would decrease voluntary ADA compliance. - Paralyzed Veterans of America (PVA): Mentioned as an organization opposing the ADA notice-and-cure requirements. - Special Olympics: Praised for its role in the "Spread the Word to End the Word" campaign that informed the Words Matter Act. - Target Corporation: Used as a reference point for large entities that critics argue should not benefit from ADA notice-and-cure safe harbors.
What's Next
All four bills were reported favorably by the committee. H.R. 7730 and H.R. 3420 passed with broad bipartisan support, while H.R. 6453 and H.R. 8065 passed on party-line votes. The measures now move to the House floor. Members have two days to submit additional views, and staff are authorized to make technical and conforming changes to the bill texts.
Transcript
All right, committee will come to order. Without objection, the chair is authorized to declare a recess at any time. Pursuant to committee rule two and house rule 11, clause two, the chairman may postpone further proceedings today on the question of approving any measure or matter or adopting an amendment for which a recorded vote is ordered. I now recognize the gentleman from Alabama, Mr. Moore, to lead us in the pledge. Pursuant to notice, I call up H.R. 7730, the Bankruptcy Threshold Adjustment Act of 2026, for purposes of markup and move that the committee report it favorably to the house. The clerk will report the bill.
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