[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9520 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9520
To amend the War Hazards Compensation Act and the Longshore and Harbor
Workers' Compensation Act to require that the Federal Government pay
interest on late reimbursements, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
June 29, 2026
Mr. Lawler introduced the following bill; which was referred to the
Committee on Education and Workforce
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A BILL
To amend the War Hazards Compensation Act and the Longshore and Harbor
Workers' Compensation Act to require that the Federal Government pay
interest on late reimbursements, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``War Hazards Compensation Reform
Act''.
SEC. 2. INTEREST ON LATE REIMBURSEMENT OF WAR HAZARDS COMPENSATION ACT
CLAIMS.
(a) Findings.--Congress finds the following:
(1) The War Hazards Compensation Act (42 U.S.C. 1701 et
seq.) (in this Act referred to as the ``WHCA'') relies on
private insurance carriers to advance payment of compensation
to covered employees, often for extended periods, before
reimbursement by the United States.
(2) Delayed reimbursement imposes substantial carrying
costs on insurance carriers and insured employers.
(3) Persistent delays in reimbursement discourage insurer
participation under the WHCA and threaten the availability and
affordability of insurance coverage for employers engaged in
overseas and national defense related activities.
(4) Under the WHCA, there is no provision for the accrual
of interest on late WHCA reimbursements, which effectively
shifts the cost of Federal delay onto insurance carriers.
(b) In General.--Title I of the War Hazards Compensation Act (42
U.S.C. 1701 et seq.) is amended by adding at the end the following new
section:
``SEC. 108. INTEREST ON LATE REIMBURSEMENT.
``(a) Designation of Completion of Reimbursement Submission.--
``(1) Complete reimbursement submission.--A claim for
reimbursement made pursuant to section 104(a) shall include the
following:
``(A) All forms prescribed by the Secretary for
reimbursement under this title, including Form CA-278
(Claim for Reimbursement of Benefit Payments and Claims
Expense Under the War Hazards Compensation Act) as
provided by the Office of Workers' Compensation
Programs of the Department of Labor or any successor or
substantially similar form.
``(B) Documentation relating to the payment of
benefits for which reimbursement is sought.
``(C) Any additional information specifically
requested by the Division of Federal Employees'
Compensation of the Department of Labor (in this
section referred to as `DFEC').
``(2) Acknowledgment requirement.--Not later than 14 days
after receipt of a claim for reimbursement as described under
paragraph (1), DFEC shall issue a written or electronic--
``(A) acknowledgment that such claim for
reimbursement is accepted; or
``(B) notice of any specific deficiency of such
claim for reimbursement preventing such acknowledgment.
``(b) Deemed Complete Designation.--If DFEC does not issue an
acknowledgment or deficiency notice as required under subsection
(a)(2), such claim shall be deemed to have been acknowledged under
subsection (a)(2)(A) on the date on which DFEC received such claim.
``(c) Commencement of Interest.--Interest shall accrue at the
overpayment rate established under section 6621 of the Internal Revenue
Code of 1986 on the amount owed with respect to a claim for
reimbursement under section 104(a) beginning on the date that is 60
days after the date on which an acknowledgment is issued under
subsection (a)(2)(A).''.
(c) Treatment of Outstanding Claims for Reimbursement.--For the
purposes of section 108(a)(2)(A) of the WHCA, as added by the
amendments made by this section, any insurance claim for reimbursement
made pursuant to section 104(a) of the WHCA that is outstanding on the
date of enactment of this Act shall be deemed to have been acknowledged
on the date of enactment of this Act.
(d) Implementing Regulations.--Not later than 180 days after the
date of enactment of this section, the Secretary of Labor shall
promulgate regulations to carry out the amendments made by this
section.
SEC. 3. AUTHORIZATION FOR HIRING MINIMUM NUMBER OF EXAMINERS.
The Division of Federal Employees' Compensation of the Department
of Labor shall hire not less than 15 full-time employees for the
purpose of reviewing and processing WHCA claims.
SEC. 4. MODIFICATION OF COLLATERAL REQUIREMENTS FOR WAR HAZARDS
COMPENSATION ACT CLAIMS.
(a) Findings.--Congress finds the following:
(1) Under the Longshore and Harbor Workers' Compensation
Act (33 U.S.C. 901 et seq.) (in this Act referred to as the
``LHWCA''), employers and insurance carriers are required to
secure the payment of compensation to covered employees.
(2) Section 104 of the WHCA (42 U.S.C. 1704) provides for
the reimbursement by the United States of benefits paid under
the LHWCA for injuries or deaths resulting from a war-risk
hazard.
(3) The Department of Labor, under section 703.204 of title
20, Code of Federal Regulations, requires insurance carriers to
post collateral to secure reimbursement obligations, including
for WHCA claims.
(4) For WHCA claims, the United States Government bears the
ultimate financial responsibility for benefit payments, subject
to statutory reimbursement procedures.
(5) Requiring full or substantial collateral for WHCA
claims imposes unnecessary financial and administrative burdens
on LHWCA insurance carriers, increases costs for government
contractors, and may discourage carrier participation in
markets supporting national defense.
(b) In General.--Section 32 of the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. 932) is amended by adding at the end the
following:
``(c) Notwithstanding any other provision of this Act, the
Secretary may not require an insurance carrier to post collateral,
security, or other financial assurance for liabilities arising from
claims reimbursable under the War Hazards Compensation Act (42 U.S.C.
1701 et seq.).''.
(c) Conforming Regulatory Amendments.--Not later than 180 days
after the date of enactment of this Act, the Secretary of Labor shall
revise section 703.204 of title 20, Code of Federal Regulations, and
any related regulations to conform with the amendments made by this
Act.
SEC. 5. NO EFFECT ON BENEFIT ENTITLEMENTS.
Nothing in this Act, or the amendments made by this Act, shall be
construed to--
(1) reduce or delay benefits payable to an injured employee
or surviving beneficiary under the LHWCA or WHCA; or
(2) alter the obligation of the United States for timely
reimbursement of eligible WHCA claims in accordance with
existing law.
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