Contact Congress about H.R. 9985: Stop Wall Street Looting Act
Private equity firms could have to pay for debts and legal violations at companies they control. The bill also limits post-buyout payouts, changes taxes and bankruptcy rules, and gives workers more protection in bankruptcies and strikes.
Modern Action explains legislation in plain English, helps you choose whether to support, oppose, or ask for changes, and drafts a message tied to the bill, your stance, and the elected officials who can act on it.
Stop Wall Street Looting Act is a House bill in Congress.
Who this affects: This bill mainly affects private equity firms, similar investment funds, and the companies they control. Workers at bought-out or bankrupt companies could see stronger claims for wages, severance, benefits, and job-preserving sales. Investors, pension plans, regulators, and the public could get more information about fund fees, risks, debt, ownership, jobs, climate issues, and political spending. Health care providers that deal with real estate investment trusts could face major payment limits under federal health care programs.
Why this matters: Private equity funds can control employers, landlords, and service providers without always bearing the full cost when those companies fail. This bill would move more of that risk back to the funds and active owners. It could change how buyouts are financed, how much debt companies take on, and how quickly money leaves a bought-out company. It could also shift power toward workers in bankruptcy and labor disputes, while raising costs and legal risks for funds and some businesses.
Key provisions in H.R. 9985
- Private funds and active owners could have to pay for companies they control. That includes company debts, layoff notice violations under the WARN Act, and some pension obligations.
- Controlled companies could not sign away this responsibility for the funds. Any deal that makes the company cover the fund or active owners for these liabilities would be void.
- Recently bought companies would face four years of payout limits. They could not make large dividends or similar equity payouts above set levels, or close plants and move the work abroad as part of those closings.
- Bankruptcy courts could review some buyout-related deals for up to 15 years. For certain transfers during a protected period, the bill assumes the company was insolvent, meaning it could not pay its debts.
- Creditor committees in bankruptcy would get clearer power to police insider deals. They could examine insiders for conflicts and bring certain claims, even when the same company management keeps running the business during bankruptcy.
How Modern Action helps you take action on H.R. 9985
You do not have to start with a blank letter. Modern Action turns the bill, your position, and the relevant congressional context into a message you can edit and send. The goal is to make contacting Congress clear, specific, and useful without forcing you to parse bill text or figure out the right office on your own.
Questions people ask about H.R. 9985
- What is H.R. 9985?
- Private equity firms could have to pay for debts and legal violations at companies they control. The bill also limits post-buyout payouts, changes taxes and bankruptcy rules, and gives workers more protection in bankruptcies and strikes.
- How do I support or oppose H.R. 9985?
- Choose support, oppose, or ask for changes on Modern Action. The action flow drafts the message for you and keeps the wording tied to this bill.
- Who should I contact about H.R. 9985?
- Modern Action uses your location to route the action to the congressional offices relevant to the bill and your representation.
- Can Modern Action explain H.R. 9985 before I act?
- Yes. Modern Action gives you a plain-English summary, current status, and action context before you send anything.
