Short title

This Act may be cited as the

Thalidomide Survivors Compensation Act of 2025

Findings; purpose

(a)

Findings

The Congress finds the following: (1)Thalidomide caused an estimated more than 10,000 birth defects and deaths worldwide during the 1950s and 1960s. (2)Thalidomide exposure in utero is known to cause limb deformities and internal organ malformations. (3)Although not formally approved in the United States, approximately 5 million thalidomide samples were distributed by over 1,200 physicians through informal clinical trials. (4)The number of U.S. individuals affected remains undocumented, but research estimates approximately 100 thalidomide survivors are still living in the United States. (5)U.S. thalidomide survivors have faced decades of unreimbursed medical costs, limited accessibility accommodations, and lack of formal diagnosis recognition. (6)46 countries currently provide compensation or medical assistance to thalidomide survivors, including direct payments, pensions, and adaptive living support. (b)

Purpose

The purpose of this Act is to allow our thalidomide survivors the ability to live the remainder of their lives with independence and dignity.

Thalidomide Survivors Compensation Program

(a)

Establishment of Program

Not later than 1 year after the date of enactment of this Act, the Secretary of Health and Human Services (in this section referred to as the Secretary) shall establish a program to be known as the Thalidomide Survivors Compensation Program (in this section referred to as the Program) for the purpose of providing compensation to individuals injured by exposure to thalidomide. (b)

Petitions

Subject to subsection (c), to receive compensation under the Program, an individual shall submit to the Secretary a petition at such time, in such manner, and containing such information as the Secretary may require, which shall include documentation from a physician or other health professional showing that— (1)the individual was exposed to thalidomide; and (2)the individual suffered injury as a result of such exposure. (c)

Limitations

(1)

Deadline for petitions

No petition may be submitted under the Program after May 31, 2034. (2)

1 petition per individual

No individual may submit more than 1 petition under the Program. (3)

Exclusive to American citizens, permanent residents

No petition may be submitted under the Program by an individual who— (A)is not an American citizen or permanent resident at the time of such submission; or (B)was not an American citizen or permanent resident at the time of the individual’s exposure to thalidomide on which the petition is based. (d)

Compensation

(1)

In general

For any petition for which the expert panel described in paragraph (2) determines that the individual was exposed to thalidomide and suffered injury as a result of such exposure, the Secretary shall pay the individual $150,000. (2)

Expert panel

The expert panel described in this paragraph is a panel of legal, medical, and thalidomide experts and survivors, to be appointed by the Secretary for the purpose of reviewing petitions under the Program. (e)

Treatment of payments received for means-Tested welfare programs

Compensation provided under this section to an individual may not be considered for the purpose of calculating such individual’s income or assets under any means-tested welfare program. (f)

Authorization of appropriations

For the purpose of carrying out this section, there are authorized to be appropriated to the Secretary, for each of fiscal years 2028 through 2034, such sums as the Secretary certifies are necessary to carry out this section for each such fiscal year.

Annual review of Program

(a)

In general

Not later than 1 year after the establishment of the Thalidomide Survivors Compensation Program under section 3, and annually thereafter, the Secretary of Health and Human Services (in this section referred to as the Secretary) shall conduct a comprehensive review of all compensation provided under the Program. (b)

Congressional reports

Not later than 60 days after the completion of each review under subsection (a), the Secretary shall make publicly available and submit to Congress a report, which shall include— (1)an evaluation of whether the objectives of this Act are being met; (2)recommendations for modifications, improvements, support, compensation, or expansions to better serve thalidomide survivors in the United States; (3)a detailed accounting of funds appropriated and expended pursuant to this Act; (4)the number of individuals receiving compensation under this Act; (5)an evaluation of the adequacy of the compensation under the Thalidomide Survivors Compensation Program to meet the medical and other needs of thalidomide survivors; (6)any recommendations for adjustments to amounts appropriated to carry out this Act; and (7)a summary of the feedback and satisfaction of individuals receiving compensation under this Act.

Additional compensation

(a)

In general

Subject to the availability of appropriations following an annual review under section 4, the Secretary of Health and Human Services may pay to individuals who received compensation under the Thalidomide Survivors Compensation Program established under section 3 such additional compensation, as the Secretary determines appropriate, to meet the ongoing medical or other needs of such individuals. (b)

Treatment of payments received for means-Tested welfare programs

Compensation provided under this section to an individual may not be considered for the purpose of calculating such individual’s income or assets under any means-tested welfare program.

Compensation under Thalidomide Survivors Compensation Program excludable from income tax

(a)

In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section:

139M.

Compensation under the Thalidomide Survivors Compensation Program

Gross income shall not include compensation received by an individual under the Thalidomide Survivors Compensation Act of 2025.

(b)

Clerical amendment

The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139L the following new item:

Sec. 139M. Compensation under the Thalidomide Survivors Compensation Program.

(c)

Effective date

The amendments made by this section shall apply to amounts received after the date of enactment of this Act, in taxable years ending after such date.

Definition of means-tested welfare program

(a)

Means-Tested welfare program

In this Act, the term means-tested welfare program— (1) means any Federal program that is designed to specifically provide assistance or benefits exclusively to low-income Americans; and (2) includes community and economic development programs targeted to low-income communities or populations. (b)

Programs included

For purposes of subsection (a), the following Federal programs shall be considered means-tested welfare programs: (1)

Cash and general assistance

(A)The Supplemental Security Income program under title XVI of the Social Security Act. (B)The earned income tax credit determined under section 32 of the Internal Revenue Code of 1986. (C)The refundable portion of the child tax credit determined under section 24 of the Internal Revenue Code of 1986. (D)The program of block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act. (E)The foster care and adoption assistance program under part E of title IV of the Social Security Act. (F)General Assistance to Indians. (G)The programs operated under the Assets for Independence Act. (2)

Medical

(A)The Medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.). (B)The Medicaid program under title XIX of the Social Security Act. (C)The State Children's Health Insurance Program under title XXI of the Social Security Act. (D)Health programs operated by the Indian Health Service, Indian tribes, tribal organizations, and Urban Indian organizations (as those terms are defined in section 4 of the Indian Health Care Improvement Act (25 U.S.C. 1603)). (E)The health center programs under section 330 of the Public Health Service Act (42 U.S.C. 254b). (F)The Maternal and Child Health Services Block Grant program under title V of the Social Security Act (42 U.S.C. 701 et seq.). (G)The Healthy Start Initiative under section 330H of the Public Health Service Act (42 U.S.C. 254c–8). (H)Premium tax credits and cost sharing reductions available pursuant to the Patient Protection and Affordable Health Care Act (PPACA) and the amendments made by such Act. (3)

Food

(A)The supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.). (B)The school lunch program under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.). (C)The special supplemental nutrition program for women, infants, and children under section 17 of the Child Nutrition Act (42 U.S.C. 1786). (D)The school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). (E)The child and adult care food program under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766). (F)The nutrition services programs under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.). (G)The summer food service program for children under section 13 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1761). (H)The commodity supplemental food program under section 4 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note). (I)Commodity distribution programs under the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.). (J)The seniors farmers' market nutrition program under section 3007 of Public Law 107–171 (7 U.S.C. 3007). (K)The special milk program established under section 3 of the Child Nutrition Act of 1966 (42 U.S.C. 1772). (4)

Housing

(A)The rental assistance program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f). (B)The public housing program under title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.). (C)The Home Investment Partnerships Program under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.). (D)The programs for homeless assistance under title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360 et seq.). (E)The rural housing programs under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.). (F)The program for supportive housing for elderly persons under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q). (G)The program for Native American housing block grants under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.). (H)The program for supportive housing for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013). (5)

Energy and utilities

(A)Low-income home energy assistance under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.). (B)The Lifeline Assistance Program of the Federal Communications Commission and the Tribal Link Up assistance program defined in section 54.413 of title 47, Code of Federal Regulations. (C)Weatherization assistance for low-income persons under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.). (6)

Education

(A)Federal Pell Grants under subpart 1 of part IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.). (B)Grants for improving basic programs operated by local educational agencies under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.). (C)Federal TRIO programs under chapter 1 of subpart 2 of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a–11 et seq.). (D)Federal supplemental educational opportunity grants under subpart 3 of part A of title IV the Higher Education Act of 1965 (20 U.S.C. 1070b et seq.). (E)Programs for the education of migratory children under part C of title 1 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6391 et seq.). (F)Gaining early awareness and readiness for undergraduate programs under chapter 2 of subpart 2 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a–21 et seq.). (G)The education for homeless children and youth program under subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.). (H)The leveraging educational assistance partnership program of subpart 4 of part A of title IV the Higher Education Act of 1965 (20 U.S.C. 1070c et seq.). (7)

Training

(A)Job Corps under subtitle C of title I of the Workforce Innovation and Opportunity Act (29 U.S.C. 3191 et seq.). (B)Adult employment and training activities under title I of the Workforce Innovation and Opportunity Act (20 U.S.C. 3101 et seq.). (C)Senior community service employment programs under title V of the Older Americans Act of 1965 (42 U.S.C. 3056 et seq.). (D)Employment and training programs under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.). (E)Migrant and seasonal farmworker programs under section 167 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3222). (F)The YouthBuild Program under section 171 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3226). (G)Native American Programs under section 166 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3221). (8)

Services

(A)The Social Services Block Grant program under title XX of the Social Security Act. (B)Programs under the Community Services Block Grant Act of 1981 (42 U.S.C. 9901 et seq.). (C)Services for aliens admitted to the United States as refugees or granted asylum in the United States, and other special populations of aliens. (D)State and community programs on aging that receive Federal funds. (E)Legal Services Corporation. (F)Family planning services under title X of the Public Health Service Act (42 U.S.C. 300 et seq.). (G)The Emergency Food and Shelter Program for homeless persons under title III of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11331 et seq.). (H)The AmeriCorps VISTA program under subtitle C of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.). (9)

Child care and child development

(A)Head Start programs and Early Head Start programs under the Head Start Act (42 U.S.C. 9831 et seq.). (B)Programs under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.). (10)

Community development

(A)The Community Development Block Grant Program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.). (B)Programs administered by the Economic Development Administration under the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.). (C)Programs administered by the Appalachian Regional Commission under subtitle IV of title 40, United States Code. (D)Empowerment zones and enterprise communities under subchapter U, and renewal communities under subchapter X, of the Internal Revenue Code of 1986. (11)

Veterans programs

A program designed exclusively or primarily to provide to an individual benefits under title 38, United States Code, or other provisions of law administered by the Secretary of Veterans Affairs. (12)

Unemployment compensation programs

A program that provides for the receipt of regular compensation, extended compensation, or additional compensation (as such terms are defined by section 205 of the Federal-State Extended Unemployment Compensation Act (26 U.S.C. 3304 note)). (13)

Social security

The Old-Age, Survivors, and Disability Insurance Benefit program under title II of the Social Security Act (42 U.S.C. 401 et seq.). (c)

Special rules

(1) (A)For purposes of subsection (a), only the refundable portion of the following tax credits shall be considered means-tested welfare programs: (i)The earned income tax credit under section 32 of the Internal Revenue Code of 1986. (ii)The child tax credit under section 24(d) of the Internal Revenue Code of 1986. (B)For purposes of subsection (a), only the refundable portion of the premium and out-of-pocket health care subsidies to be paid under the Patient Protection and Affordable Health Care Act shall be considered a means-tested welfare program. (C)For purposes of this paragraph, the term refundable portion means the portion of the credit which is paid to an individual in excess of the amount of Federal income tax owed by the individual. (2)For purposes of subsection (a), only the costs of the free and reduced price segments of the school lunch and school breakfast programs shall be considered means-tested welfare programs. (d)

Exclusion of certain State and local expenditures

For purposes of subsection (a), expenditures by State and local governments of funds that are— (1)obtained by the State and local government from taxes, fees, or other sources of revenue established by the State or local government; and (2)not received as any form of grant from the Federal Government,

shall not be considered means-tested welfare programs, without regard to whether the State and local expenditures take the form of contributions to a Federal program described in subsection (a) or listed in subsection (b).