Veteran Fraud Reimbursement Act of 2025
Officially: “Veteran Fraud Reimbursement Act of 2025” Read the full text
What it does
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1Short title
This section would give the Act a short title: the Veteran Fraud Reimbursement Act of 2025.
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1. Short title This Act may be cited as the Veteran Fraud Reimbursement Act of 2025 .
2Improvement to repayment by Secretary of Veterans Affairs of certain misused benefits
This section would replace the entire text of section 6107 of title 38, United States Code (the law on reissuing veterans' benefits that a fiduciary has misused), with new text. Under the new text, if a fiduciary misuses all or part of an individual's benefit payment, the Secretary of Veterans Affairs would have to pay the beneficiary, or the beneficiary's successor fiduciary, an amount equal to the amount that was misused. After reissuing that payment, the Secretary would have to make a good faith effort to obtain recoupment from the fiduciary who originally misused the benefit. If the Secretary later obtains recoupment from that fiduciary, the Secretary would have to promptly remit the recouped amount to the beneficiary or successor fiduciary, but only to the extent that amount had not already been paid to them under the reissuance requirement. If the beneficiary dies before receiving a reissued payment, the Secretary would pay that amount to an individual or entity as determined under section 5121 of title 38, United States Code, except that the Secretary could not make that payment to a fiduciary who misused the beneficiary's benefits. The total amount paid to a beneficiary or successor fiduciary under this section could not exceed the total amount of benefits the fiduciary misused with respect to that beneficiary. The Secretary would have to establish methods and a timetable for determining whether an instance of a fiduciary's misuse resulted from negligence by the Secretary. However, the Secretary could not withhold reissuing a benefit payment because a negligence determination on that instance was still pending, and the Secretary would not be required to make a negligence determination for every instance of misuse.
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2. Improvement to repayment by Secretary of Veterans Affairs of certain misused benefits Section 6107 of title 38, United States Code, is amended to read as follows: 6107. Reissuance of benefits (a) Reissuance of misused benefits (1) In any case in which a fiduciary misuses all or part of an individual’s benefit paid to such fiduciary, the Secretary shall pay to the beneficiary or the beneficiary’s successor fiduciary an amount equal to the amount of such benefit so misused. (2) In any case in which the Secretary reissues a benefit payment (in whole or in part) under paragraph (1), the Secretary shall make a good faith effort to obtain recoupment from the fiduciary to whom the payment was originally made. (3) In any case in which the Secretary obtains recoupment from a fiduciary who has misused benefits, the Secretary shall promptly remit payment of the recouped amounts to the beneficiary or the beneficiary’s successor fiduciary, as the case may be, to the extent that such amounts have not been paid under paragraph (1). (b) Reissuance of amounts in the case of a deceased beneficiary (1) If a beneficiary described in subsection (a)(1) predeceases a payment under such subsection, the Secretary shall pay such amount, subject to paragraph (2), to an individual or entity in accordance with section 5121 of this title. (2) The Secretary may not make a payment under this subsection to a fiduciary who misused benefits of the beneficiary. (c) Limitation on total amount paid The total of the amounts paid to a beneficiary or the beneficiary's successor fiduciary under this section may not exceed the total benefit amount misused by the fiduciary with respect to that beneficiary. (d) Oversight of negligence (1) The Secretary shall establish methods and timing with respect to determining whether an instance of misuse by a fiduciary, of all or part of an individual’s benefit paid to such fiduciary, is the result of negligence by the Secretary. (2) The Secretary may not withhold the reissuing of a benefit payment under subsection (a)(1) by reason of a pending determination under paragraph (1). (3) The Secretary is not required to make a determination under paragraph (1) for each instance of misuse by a fiduciary, of all or part of an individual’s benefit paid to such fiduciary. .
Where it is
In the House.