Washington DC – The New York State Assembly ended their 2025 session without passing a debt regulation bill known as “Champerty." 

The bill that passed the New York Senate, but not the Assembly, would prevent companies from buying debt of poor countries with the purpose of suing. The legislation, A.643-A is sponsored by Assemblymember Jennifer Gonzalez-Rojas. Senator Liz Krueger sponsored the companion bill, S.1477 that passed the NY State Senate on June 4th.

“The Assembly failed to vote on a bill that deals with the worst exploitative actors in the financial system, the so-called predatory vulture hedge funds," said Eric LeCompte, Executive Director of the religious and labor coalition Jubilee USA Network that worked on New York debt legislation since 2010. “At a time when developing countries struggle with skyrocketing debt payments, changes in New York law could really help.”  

New York law oversees more than 50% of the world's private sector debt contracts with countries. The "Champerty" bill restores a protection for developing countries, that they previously had under New York law, to prevent predatory “vulture funds” from buying the debt of countries in crisis with the specific purpose of bringing legal action on the claim to collect in full.

The legislation also cuts the interest rate creditors can accrue on their claims until litigation concludes, disarming another way lenders profit from poor country crises.

“This is a sensible and modest initiative that helps countries abroad while alleviating food and fuel prices and supports job creation in the United States,” noted LeCompte.

The bill remains pending until the New York Legislature resumes next year.