WASHINGTON, D.C. – Congressman Mike Rulli (OH-6) is proud to announce the introduction of the “Beat Bad Bureaucrats Act,” a critical piece of legislation aimed at safeguarding Social Security benefits and reinforcing the principle of “innocent until proven guilty” within the Small Business Administration (SBA).
Since October 2024, Rep. Rulli’s casework team has encountered an alarming trend: as many as three constituents per week have reported receiving letters from the SBA notifying them that their Social Security benefits would be garnished due to alleged past-due COVID-era Economic Injury Disaster Loans (EIDL). In every instance, these loans were fraudulently obtained using stolen identities, and the affected seniors only became aware of the issue upon receiving the SBA’s letter.
Despite the urgency of these situations, victims face a bureaucratic nightmare. Garnishments automatically begin just 30 days after the SBA letter is sent, leaving insufficient time to resolve the fraud. Even with Congressional intervention, navigating the SBA’s multi-layered bureaucracy to prove identity theft often takes much longer than 30 days—during which garnishments continue. The process to recover wrongfully garnished wages adds further delays, compounding the financial harm inflicted on innocent Americans, many of whom survive on fixed incomes.
To address this nationwide issue, Congressman Rulli’s “Beat Bad Bureaucrats Act” proposes common-sense measures to protect Social Security beneficiaries by:
- Mandating that the SBA include information on reporting identity theft in all garnishment letters.
- Prohibiting the SBA from initiating garnishments upon receipt of an identity theft report.
- Requiring the SBA to immediately cease garnishments when identity theft is reported.
“This legislation is about standing up for vulnerable Americans, ensuring they aren’t penalized for crimes they didn’t commit,” said Rulli. “These do-nothing bureaucrats would rather starve senior citizens than investigate their own ineptitude.” The ‘Beat Bad Bureaucrats Act’ will restore fairness and protect Social Security recipients from unjust financial hardship.”
We are committed to working with incoming SBA Administrator, former Senator Kelly Loeffler, to resolve these cases, prevent further harm to innocent seniors, and ensure the SBA upholds due process and accountability.
