Auto Bailout Bill Sets 2.5x Payout for GM Accident Victims, Waives Time Limits

The “Auto Bailout Accident Victims Recovery Act of 2025” is a targeted piece of legislation designed to finally resolve a very specific set of lawsuits leftover from the 2009 General Motors (GM) bailout. Essentially, this bill forces the U.S. government to pay out claims to people who argue that the government’s actions during the bailout violated their Fifth Amendment rights—specifically the ‘takings clause’—by preventing them from getting compensation for accidents caused by pre-bailout GM vehicles.

This isn't just a standard settlement; it’s a government mandate to pay “just compensation” to a narrowly defined group of “eligible claimants.” These are folks who were injured or lost a family member due to a pre-June 1, 2009, GM defect and who filed a specific claim during the Motors Liquidation bankruptcy case. The bill removes the statute of limitations for these specific Fifth Amendment claims, meaning the standard time limit for filing a lawsuit doesn't apply here, regardless of how long ago the accident happened (SEC. 2).

The Price Tag: 2.5x Compensation, No Offsets

If you’re an eligible claimant, the payout formula is where things get interesting—and expensive. The government isn’t just paying what the bankruptcy court allowed. Instead, the final compensation is calculated by taking the amount previously allowed in the bankruptcy case and multiplying it by two and a half times (2.5x). Then, they pile on interest at a rate of 3.5% annually, compounded quarterly, starting all the way back on July 10, 2009, until the settlement date (SEC. 3).

Think of it this way: if the bankruptcy court said your claim was worth $100,000, the government is now mandated to pay $250,000, plus 15 years of interest, plus court-approved legal fees for the lawyers handling the Campbell lawsuit. Crucially, the bill specifies this payment must be made with “no offset of any kind.” For taxpayers, this means the U.S. Treasury is on the hook for a significantly inflated settlement amount—a specific financial burden mandated by Congress rather than negotiated through standard legal channels or based on a judicial ruling.

Clearing the Legal Debris

For the affected accident victims, this bill offers a clear, guaranteed path to resolution for claims that have been tied up in litigation for well over a decade. It’s a definite end to the legal uncertainty. However, the eligibility criteria are extremely narrow. If you were injured by a faulty GM vehicle but didn't file that specific claim in the Motors Liquidation bankruptcy, or if your accident happened just after the June 2009 cutoff, this bill does nothing for you. It draws a very hard line, creating a class of compensated victims while leaving others out.

Finally, the bill includes a clear accountability mechanism: if a settlement hasn’t been filed with the court within 60 days of the Act becoming law, the Attorney General must submit a report to Congress explaining exactly why the deal hasn't closed (SEC. 2). This puts direct pressure on the government to finalize these payments quickly, ensuring that this specific group of claimants receives their mandated, substantial compensation without further delay.