CRS Report on Equity and Good Conscience Debt Waiver Statutes

The Congressional Research Service report examines federal debt waiver statutes, known as equity and good conscience (EGC) authorities. These laws allow agencies to waive debts owed to the U.S. when enforcing collection would violate fairness or public policy considerations. The report covers dozens of such statutes, detailing their similarities and differences, and how they are implemented by various agencies.

Overpayments in Government Programs

The federal government spends trillions of dollars annually through various programs. This money is used for hiring staff, renting offices, buying goods or services from private firms, and providing grants, loans, and direct payments to beneficiaries. Sometimes these payments are made incorrectly, meaning the recipient was not eligible for all or part of what was paid. Overpayments can be due to fraud by recipients or errors within the government itself, such as incorrect calculations in determining payment amounts.

Debt Collection and Waiver Authorities

An overpayment of federal funds is considered a debt owed to the United States. Congress has granted agencies tools to collect these debts, but it also recognizes that enforcing collection might not be fair or in line with public policy. Agencies can waive such debts if collecting them would conflict with fairness or public policy considerations. There are several laws (called equity and good conscience debt waiver authorities) that allow this. These laws cover how agencies can decide whether to collect a debt, what methods they use, and how they implement these rules.

The report, Equity and Good Conscience Debt Waiver Statutes (LSB11497), by Sean Stiff, is dated October 29, 2026. Read it on Congress.gov.