diff --git a/bigchaindb/__init__.py b/bigchaindb/__init__.py
index ee864ead..d5fe15e6 100644
--- a/bigchaindb/__init__.py
+++ b/bigchaindb/__init__.py
@@ -31,6 +31,7 @@ config = {
     },
     'api_endpoint': 'http://localhost:9984/api/v1',
     'consensus_plugin': 'default',
+    'backlog_reassign_delay': 30
 }
 
 # We need to maintain a backup copy of the original config dict in case
diff --git a/bigchaindb/commands/bigchain.py b/bigchaindb/commands/bigchain.py
index 1943167b..5edca2c4 100644
--- a/bigchaindb/commands/bigchain.py
+++ b/bigchaindb/commands/bigchain.py
@@ -106,6 +106,11 @@ def run_configure(args, skip_if_exists=False):
                 input('Statsd {}? (default `{}`): '.format(key, val)) \
                 or val
 
+        val = conf['backlog_reassign_delay']
+        conf['backlog_reassign_delay'] = \
+            input('Stale transaction reassignment delay (in seconds)? (default `{}`): '.format(val)) \
+            or val
+
     if config_path != '-':
         bigchaindb.config_utils.write_config(conf, config_path)
     else:
diff --git a/bigchaindb/core.py b/bigchaindb/core.py
index 95cccfc7..cc753a42 100644
--- a/bigchaindb/core.py
+++ b/bigchaindb/core.py
@@ -2,6 +2,7 @@ import random
 import math
 import collections
 from copy import deepcopy
+from time import time
 
 from itertools import compress
 import rethinkdb as r
@@ -28,7 +29,7 @@ class Bigchain(object):
 
     def __init__(self, host=None, port=None, dbname=None,
                  public_key=None, private_key=None, keyring=[],
-                 consensus_plugin=None):
+                 consensus_plugin=None, backlog_reassign_delay=None):
         """Initialize the Bigchain instance
 
         A Bigchain instance has several configuration parameters (e.g. host).
@@ -56,6 +57,7 @@ class Bigchain(object):
         self.me = public_key or bigchaindb.config['keypair']['public']
         self.me_private = private_key or bigchaindb.config['keypair']['private']
         self.nodes_except_me = keyring or bigchaindb.config['keyring']
+        self.backlog_reassign_delay = backlog_reassign_delay or bigchaindb.config['backlog_reassign_delay']
         self.consensus = config_utils.load_consensus_plugin(consensus_plugin)
         # change RethinkDB read mode to majority.  This ensures consistency in query results
         self.read_mode = 'majority'
@@ -136,11 +138,54 @@ class Bigchain(object):
         signed_transaction = deepcopy(signed_transaction)
         # update the transaction
         signed_transaction.update({'assignee': assignee})
+        signed_transaction.update({'assignment_timestamp': time()})
 
         # write to the backlog
         response = r.table('backlog').insert(signed_transaction, durability=durability).run(self.conn)
         return response
 
+    def reassign_transaction(self, transaction, durability='hard'):
+        """Assign a transaction to a new node
+
+        Args:
+            transaction (dict): assigned transaction
+
+        Returns:
+            dict: database response or None if no reassignment is possible
+        """
+
+        if self.nodes_except_me:
+            try:
+                federation_nodes = self.nodes_except_me + [self.me]
+                index_current_assignee = federation_nodes.index(transaction['assignee'])
+                new_assignee = random.choice(federation_nodes[:index_current_assignee] +
+                                             federation_nodes[index_current_assignee + 1:])
+            except ValueError:
+                # current assignee not in federation
+                new_assignee = random.choice(self.nodes_except_me)
+
+        else:
+            # There is no other node to assign to
+            new_assignee = self.me 
+
+        response = r.table('backlog')\
+            .get(transaction['id'])\
+            .update({'assignee': new_assignee,
+                     'assignment_timestamp': time()},
+                    durability=durability).run(self.conn)
+        return response
+
+    def get_stale_transactions(self):
+        """Get a RethinkDB cursor of stale transactions
+
+        Transactions are considered stale if they have been assigned a node, but are still in the
+        backlog after some amount of time specified in the configuration
+        """
+
+        return r.table('backlog')\
+            .filter(lambda tx: time() - tx['assignment_timestamp'] >
+                    self.backlog_reassign_delay).run(self.conn)
+
     def get_transaction(self, txid, include_status=False):
         """Retrieve a transaction with `txid` from bigchain.
 
diff --git a/bigchaindb/pipelines/block.py b/bigchaindb/pipelines/block.py
index 59375c57..47fbd008 100644
--- a/bigchaindb/pipelines/block.py
+++ b/bigchaindb/pipelines/block.py
@@ -130,7 +130,8 @@ def initial():
 def get_changefeed():
     """Create and return the changefeed for the backlog."""
 
-    return ChangeFeed('backlog', ChangeFeed.INSERT, prefeed=initial())
+    return ChangeFeed('backlog', ChangeFeed.INSERT | ChangeFeed.UPDATE,
+                      prefeed=initial())
 
 
 def create_pipeline():
diff --git a/bigchaindb/pipelines/stale.py b/bigchaindb/pipelines/stale.py
new file mode 100644
index 00000000..e1e14e21
--- /dev/null
+++ b/bigchaindb/pipelines/stale.py
@@ -0,0 +1,76 @@
+"""This module monitors for stale transactions.
+
+It reassigns transactions which have been assigned a node but
+remain in the backlog past a certain amount of time.
+"""
+
+import logging
+from multipipes import Pipeline, Node
+from bigchaindb import Bigchain
+from time import sleep
+
+
+logger = logging.getLogger(__name__)
+
+
+class StaleTransactionMonitor:
+    """This class encapsulates the logic for re-assigning stale transactions.
+
+    Note:
+        Methods of this class will be executed in different processes.
+    """
+
+    def __init__(self, timeout=5, backlog_reassign_delay=None):
+        """Initialize StaleTransaction monitor
+
+        Args:
+            timeout: how often to check for stale tx (in sec)
+            backlog_reassign_delay: How stale a transaction should
+            be before reassignment (in sec). If supplied, overrides the
+            Bigchain default value.
+        """
+        self.bigchain = Bigchain(backlog_reassign_delay=backlog_reassign_delay)
+        self.timeout = timeout
+
+    def check_transactions(self):
+        """Poll backlog for stale transactions
+
+        Returns:
+            txs (list): txs to be re assigned
+        """
+        sleep(self.timeout)
+        for tx in self.bigchain.get_stale_transactions():
+            yield tx
+
+    def reassign_transactions(self, tx):
+        """Put tx back in backlog with new assignee
+
+        Returns:
+            transaction
+        """
+        self.bigchain.reassign_transaction(tx)
+        return tx
+
+
+def create_pipeline(timeout=5, backlog_reassign_delay=5):
+    """Create and return the pipeline of operations to be distributed
+    on different processes."""
+
+    stm = StaleTransactionMonitor(timeout=timeout,
+                                  backlog_reassign_delay=backlog_reassign_delay)
+
+    monitor_pipeline = Pipeline([
+        Node(stm.check_transactions),
+        Node(stm.reassign_transactions)
+    ])
+
+    return monitor_pipeline
+
+
+def start(timeout=5, backlog_reassign_delay=5):
+    """Create, start, and return the block pipeline."""
+    pipeline = create_pipeline(timeout=timeout,
+                               backlog_reassign_delay=backlog_reassign_delay)
+    pipeline.setup()
+    pipeline.start()
+    return pipeline
diff --git a/bigchaindb/pipelines/utils.py b/bigchaindb/pipelines/utils.py
index 22a5f9bc..9c28907e 100644
--- a/bigchaindb/pipelines/utils.py
+++ b/bigchaindb/pipelines/utils.py
@@ -58,5 +58,5 @@ class ChangeFeed(Node):
             elif is_delete and (self.operation & ChangeFeed.DELETE):
                 self.outqueue.put(change['old_val'])
             elif is_update and (self.operation & ChangeFeed.UPDATE):
-                self.outqueue.put(change)
+                self.outqueue.put(change['new_val'])
 
diff --git a/bigchaindb/processes.py b/bigchaindb/processes.py
index 4b8aa0eb..c3625fdc 100644
--- a/bigchaindb/processes.py
+++ b/bigchaindb/processes.py
@@ -2,7 +2,7 @@ import logging
 import multiprocessing as mp
 
 import bigchaindb
-from bigchaindb.pipelines import vote, block, election
+from bigchaindb.pipelines import vote, block, election, stale
 from bigchaindb.web import server
 
 
@@ -31,6 +31,9 @@ def start():
     logger.info('Starting voter')
     vote.start()
 
+    logger.info('Starting stale transaction monitor')
+    stale.start()
+
     logger.info('Starting election')
     election.start()
 
diff --git a/tests/db/test_bigchain_api.py b/tests/db/test_bigchain_api.py
index 7242402a..166e4929 100644
--- a/tests/db/test_bigchain_api.py
+++ b/tests/db/test_bigchain_api.py
@@ -132,6 +132,7 @@ class TestBigchainApi(object):
 
         response, status = b.get_transaction(tx_signed["id"], include_status=True)
         response.pop('assignee')
+        response.pop('assignment_timestamp')
         # add validity information, which will be returned
         assert util.serialize(tx_signed) == util.serialize(response)
         assert status == b.TX_IN_BACKLOG
diff --git a/tests/pipelines/test_block_creation.py b/tests/pipelines/test_block_creation.py
index ce300730..4abf72cc 100644
--- a/tests/pipelines/test_block_creation.py
+++ b/tests/pipelines/test_block_creation.py
@@ -78,6 +78,7 @@ def test_delete_tx(b, user_vk):
 
     tx_backlog = r.table('backlog').get(tx['id']).run(b.conn)
     tx_backlog.pop('assignee')
+    tx_backlog.pop('assignment_timestamp')
     assert tx_backlog == tx
 
     returned_tx = block_maker.delete_tx(tx)
diff --git a/tests/pipelines/test_election.py b/tests/pipelines/test_election.py
index a71714df..02a0e39d 100644
--- a/tests/pipelines/test_election.py
+++ b/tests/pipelines/test_election.py
@@ -99,6 +99,7 @@ def test_check_requeue_transaction(b, user_vk):
     e.requeue_transactions(test_block)
     tx_backlog = r.table('backlog').get(tx1['id']).run(b.conn)
     tx_backlog.pop('assignee')
+    tx_backlog.pop('assignment_timestamp')
 
     assert tx_backlog == tx1
 
diff --git a/tests/pipelines/test_stale_monitor.py b/tests/pipelines/test_stale_monitor.py
new file mode 100644
index 00000000..f6cb4a0b
--- /dev/null
+++ b/tests/pipelines/test_stale_monitor.py
@@ -0,0 +1,116 @@
+import rethinkdb as r
+from bigchaindb import Bigchain
+from bigchaindb.pipelines import stale
+from multipipes import Pipe, Pipeline
+from unittest.mock import patch
+from bigchaindb import config_utils
+import time
+import os
+
+
+def test_get_stale(b, user_vk):
+    tx = b.create_transaction(b.me, user_vk, None, 'CREATE')
+    tx = b.sign_transaction(tx, b.me_private)
+    b.write_transaction(tx, durability='hard')
+
+    stm = stale.StaleTransactionMonitor(timeout=0.001,
+                                        backlog_reassign_delay=0.001)
+    tx_stale = stm.check_transactions()
+
+    for _tx in tx_stale:
+        _tx.pop('assignee')
+        _tx.pop('assignment_timestamp')
+        assert tx == _tx
+
+
+def test_reassign_transactions(b, user_vk):
+    # test with single node
+    tx = b.create_transaction(b.me, user_vk, None, 'CREATE')
+    tx = b.sign_transaction(tx, b.me_private)
+    b.write_transaction(tx, durability='hard')
+
+    stm = stale.StaleTransactionMonitor(timeout=0.001,
+                                        backlog_reassign_delay=0.001)
+    stm.reassign_transactions(tx)
+
+    # test with federation
+    tx = b.create_transaction(b.me, user_vk, None, 'CREATE')
+    tx = b.sign_transaction(tx, b.me_private)
+    b.write_transaction(tx, durability='hard')
+
+    stm = stale.StaleTransactionMonitor(timeout=0.001,
+                                        backlog_reassign_delay=0.001)
+    stm.bigchain.nodes_except_me = ['aaa', 'bbb', 'ccc']
+    tx = list(r.table('backlog').run(b.conn))[0]
+    stm.reassign_transactions(tx)
+
+    reassigned_tx = r.table('backlog').get(tx['id']).run(b.conn)
+    assert reassigned_tx['assignment_timestamp'] > tx['assignment_timestamp']
+    assert reassigned_tx['assignee'] != tx['assignee']
+
+    # test with node not in federation
+    tx = b.create_transaction(b.me, user_vk, None, 'CREATE')
+    tx = b.sign_transaction(tx, b.me_private)
+    tx.update({'assignee': 'lol'})
+    tx.update({'assignment_timestamp': time.time()})
+    r.table('backlog').insert(tx, durability='hard').run(b.conn)
+
+    tx = list(r.table('backlog').run(b.conn))[0]
+    stm.reassign_transactions(tx)
+    assert r.table('backlog').get(tx['id']).run(b.conn)['assignee'] != 'lol'
+
+
+def test_full_pipeline(user_vk):
+    CONFIG = {
+        'database': {
+            'name': 'bigchain_test_{}'.format(os.getpid())
+        },
+        'keypair': {
+            'private': '31Lb1ZGKTyHnmVK3LUMrAUrPNfd4sE2YyBt3UA4A25aA',
+            'public': '4XYfCbabAWVUCbjTmRTFEu2sc3dFEdkse4r6X498B1s8'
+        },
+        'keyring': ['aaa', 'bbb'],
+        'backlog_reassign_delay': 0.01
+    }
+    config_utils.set_config(CONFIG)
+    b = Bigchain()
+    outpipe = Pipe()
+
+    original_txs = {}
+
+    for i in range(100):
+        tx = b.create_transaction(b.me, user_vk, None, 'CREATE')
+        tx = b.sign_transaction(tx, b.me_private)
+
+        b.write_transaction(tx)
+        original_txs[tx['id']] = r.table('backlog').get(tx['id']).run(b.conn) 
+
+    assert r.table('backlog').count().run(b.conn) == 100
+
+    pipeline = stale.create_pipeline(backlog_reassign_delay=1,
+                                     timeout=1)
+    pipeline.setup(outdata=outpipe)
+    pipeline.start()
+
+    # timing should be careful -- test will fail if reassignment happens multiple times
+    time.sleep(2)
+    pipeline.terminate()
+
+    # to terminate
+    outpipe.get()
+
+    assert r.table('backlog').count().run(b.conn) == 100
+    reassigned_txs = list(r.table('backlog').run(b.conn))
+
+    # check that every assignment timestamp has increased, and every tx has a new assignee
+    for reassigned_tx in reassigned_txs:
+        assert reassigned_tx['assignment_timestamp'] > original_txs[reassigned_tx['id']]['assignment_timestamp']
+        assert reassigned_tx['assignee'] != original_txs[reassigned_tx['id']]['assignee']
+
+@patch.object(Pipeline, 'start')
+def test_start(mock_start):
+    # TODO: `sta,e.start` is just a wrapper around `block.create_pipeline`,
+    #       that is tested by `test_full_pipeline`.
+    #       If anyone has better ideas on how to test this, please do a PR :)
+    stale.start()
+    mock_start.assert_called_with()
diff --git a/tests/pipelines/test_utils.py b/tests/pipelines/test_utils.py
index ebef38c4..f46c1a9d 100644
--- a/tests/pipelines/test_utils.py
+++ b/tests/pipelines/test_utils.py
@@ -44,8 +44,7 @@ def test_changefeed_update(mock_run):
     changefeed = ChangeFeed('backlog', ChangeFeed.UPDATE)
     changefeed.outqueue = outpipe
     changefeed.run_forever()
-    assert outpipe.get() == {'new_val': 'seems like we have an update here',
-                             'old_val': 'seems like we have an update here'}
+    assert outpipe.get() == 'seems like we have an update here'
     assert outpipe.qsize() == 0
 
 
@@ -56,8 +55,7 @@ def test_changefeed_multiple_operations(mock_run):
     changefeed.outqueue = outpipe
     changefeed.run_forever()
     assert outpipe.get() == 'seems like we have an insert here'
-    assert outpipe.get() == {'new_val': 'seems like we have an update here',
-                             'old_val': 'seems like we have an update here'}
+    assert outpipe.get() == 'seems like we have an update here'
     assert outpipe.qsize() == 0
 
 
diff --git a/tests/test_commands.py b/tests/test_commands.py
index c515479f..0b8df348 100644
--- a/tests/test_commands.py
+++ b/tests/test_commands.py
@@ -57,6 +57,7 @@ def mock_bigchaindb_backup_config(monkeypatch):
         'keypair': {},
         'database': {'host': 'host', 'port': 12345, 'name': 'adbname'},
         'statsd': {'host': 'host', 'port': 12345, 'rate': 0.1},
+        'backlog_reassign_delay': 5
     }
     monkeypatch.setattr('bigchaindb._config', config)
 
diff --git a/tests/test_config_utils.py b/tests/test_config_utils.py
index bce2c9a8..4d2b3a1e 100644
--- a/tests/test_config_utils.py
+++ b/tests/test_config_utils.py
@@ -145,7 +145,8 @@ def test_env_config(monkeypatch):
 
 def test_autoconfigure_read_both_from_file_and_env(monkeypatch):
     file_config = {
-        'database': {'host': 'test-host'}
+        'database': {'host': 'test-host'},
+        'backlog_reassign_delay': 5
     }
     monkeypatch.setattr('bigchaindb.config_utils.file_config', lambda *args, **kwargs: file_config)
     monkeypatch.setattr('os.environ', {'BIGCHAINDB_DATABASE_NAME': 'test-dbname',
@@ -180,6 +181,7 @@ def test_autoconfigure_read_both_from_file_and_env(monkeypatch):
         },
         'api_endpoint': 'http://localhost:9984/api/v1',
         'consensus_plugin': 'default',
+        'backlog_reassign_delay': 5
     }
 
 
diff --git a/tests/test_core.py b/tests/test_core.py
index 2650ff37..397158d0 100644
--- a/tests/test_core.py
+++ b/tests/test_core.py
@@ -19,7 +19,8 @@ def config(request, monkeypatch):
         },
         'keyring': [],
         'CONFIGURED': True,
-        'consensus_plugin': 'default'
+        'consensus_plugin': 'default',
+        'backlog_reassign_delay': 30
     }
 
     monkeypatch.setattr('bigchaindb.config', config)
diff --git a/tests/test_processes.py b/tests/test_processes.py
new file mode 100644
index 00000000..7013dc03
--- /dev/null
+++ b/tests/test_processes.py
@@ -0,0 +1,23 @@
+from unittest.mock import patch
+
+from multiprocessing import Process
+from bigchaindb.pipelines import vote, block, election, stale
+
+
+@patch.object(stale, 'start')
+@patch.object(election, 'start')
+@patch.object(block, 'start')
+@patch.object(vote, 'start')
+@patch.object(Process, 'start')
+def test_processes_start(mock_vote, mock_block, mock_election, mock_stale,
+                         mock_process):
+    from bigchaindb import processes
+
+    processes.start()
+
+    mock_vote.assert_called_with()
+    mock_block.assert_called_with()
+    mock_election.assert_called_with()
+    mock_stale.assert_called_with()
+    mock_process.assert_called_with()
+