[Congressional Record Volume 171, Number 74 (Monday, May 5, 2025)]
[House]
[Pages H1817-H1819]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
VETERAN FRAUD REIMBURSEMENT ACT OF 2025
Mr. BERGMAN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1912) to amend title 38, United States Code, to improve the
repayment by the Secretary of Veterans Affairs of benefits misused by a
fiduciary, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1912
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 ``Veteran Fraud Reimbursement
Act of 2025''.
SEC. 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:
``Sec. 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from the fiduciary to whom the payment was originally made.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).
[[Page H1818]]
``(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.''
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Michigan (Mr. Bergman) and the gentleman from Kentucky (Mr. McGarvey)
each will control 20 minutes.
The Chair recognizes the gentleman from Michigan.
General Leave
Mr. BERGMAN. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
on H.R. 1912.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. BERGMAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in support of H.R. 1912 introduced by my
colleague from Virginia (Mr. Connolly). My prayers are with him and his
family as he once again battles cancer.
Mr. Speaker, I thank the leadership teams, especially Leader Scalise
and his staff, for agreeing to move this bill forward in his absence.
Representative Connolly's bill would ensure that the VA's fiduciary
program is improved so that our Nation's most vulnerable veterans
receive the benefits that they have earned. Let me say that again: our
most vulnerable veterans.
The VA appoints fiduciaries for veterans who are unable to manage
their VA financial benefits. These fiduciaries are required to use a
veteran's VA benefits for the veteran's care and welfare. The VA
periodically reviews fiduciary activities to ensure that fiduciaries
are not misusing a veteran's VA benefits.
When a fiduciary misuses a veteran's benefit, current law does not
allow the veteran to be made financially whole until after the VA
determines whether the misuse was the result of VA negligence.
{time} 1500
These determinations of negligence amount to bureaucratic red tape
that have caused long delays before veterans could recoup their misused
benefits. Some veterans have passed away before their misused benefits
are returned.
We must ensure that the VA's fiduciary program is streamlined. This
bill would get rid of red tape preventing victims of misuse from
promptly recouping their VA benefits. It would prohibit the VA from
withholding repayment of misused benefits while the VA is still working
on a negligence determination.
It would also require the VA to implement methods to ensure that
negligence determinations are made in a timely manner. Veterans deserve
to have access to their benefits without bureaucratic hurdles and
unnecessary delays.
Mr. Speaker, I urge all my colleagues to support H.R. 1912, and I
reserve the balance of my time.
Mr. McGARVEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise to express my support for H.R. 1912, the Veteran
Fraud Reimbursement Act of 2025, authored by my colleague,
Representative Connolly. He cannot be here today as he bravely battles
cancer, and our thoughts and our prayers are with him.
I echo the comments of Representative Bergman. Veterans in the
fiduciary program are some of the most vulnerable in the VA's care.
Because they are often elderly or mentally ill, they are at greater
risk for financial abuse and theft of benefits than the population at
large. Unfortunately, despite the VA's best efforts at vetting proposed
fiduciaries, bad actors do arise from time to time. When that happens,
theft or misuse of benefits can financially devastate veterans.
On top of the financial harm, the strain of being taken advantage of
can further eat away at the veteran's physical and mental health. We
must empower the VA to more quickly return stolen or misused benefits
to veterans who are exploited by their fiduciary. This bill would do
just that.
It passed the House last Congress, and I encourage my colleagues to
support it again.
Mr. Speaker, I have no further speakers, I am prepared to close, and
I reserve the balance of my time.
Mr. BERGMAN. Mr. Speaker, once again, I encourage all Members to
support this legislation and send our colleague, Mr. Connolly, our best
wishes and prayers.
Mr. Speaker, I yield back the balance of my time.
Mr. McGARVEY. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I also ask my colleagues to join me in passing H.R.
1912, the Veteran Fraud Reimbursement Act of 2025.
Before I yield back, I do want to express my deepest appreciation and
admiration for the sponsor of this bill, Representative Connolly.
Representative Connolly has been a faithful and passionate servant of
the American people for decades, both through his time as a
congressional staffer and then as a Representative of his beloved State
of Virginia.
Unfortunately, he cannot be with us today. Anybody who knows
Representative Connolly knows he is a bulldog, he is a fighter, and he
is tenacious. He is facing some serious health challenges right now.
Mr. Speaker, I know you will join me and Representative Bergman and
everyone else in wishing him the absolute best as he is in this fight.
I know he has got it, and we are with him.
Mr. Speaker, I yield back the balance of my time.
Mr. CONNOLLY. Mr. Speaker, I rise in strong support of H.R. 1912, the
Veteran Fraud Reimbursement Act, and to underscore the urgent need for
this bipartisan and bicameral legislation.
As a Nation, we have a solemn obligation to ensure that the men and
women who have served in our Armed Forces and their families receive
the benefits they have rightfully earned through their sacrifice and
unwavering dedication. Unfortunately, an unintended consequence of the
Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits
Improvement Act of 2020 has hindered this mission. That law introduced
a requirement for an internal negligence determination by the Veterans
Benefits Administration (VBA) before defrauded veterans in the Veterans
Affairs (VA) fiduciary program could be reimbursed. While well-
intentioned as a mechanism for improving oversight, this procedural
step has caused unacceptable delays, at times exceeding a year, in
making victims of fraud financially whole.
A July 21, 2021, report from the VA Office of Inspector General,
titled ``VBA's Fiduciary Program Needs to Improve the Timeliness of
Determinations and Reimbursement of Misused Funds,'' brought national
attention to this problem. It found that defrauded veterans were forced
to endure long wait times before receiving reimbursements, with some
tragically passing away before they could be made financially whole.
This is especially troubling since approximately 50 percent of veterans
in the fiduciary program are pensioners and part of a financially
vulnerable population.
H.R. 1912, the Veteran Fraud Reimbursement Act, removes the
negligence determination requirement as a prerequisite for
reimbursement. Instead, it authorizes VBA to conduct a statisticallv
valid analysis of fiduciary misuse cases to determine the rate and
nature of negligence after reimbursement has occurred. This shift
transforms a bureaucratic barrier into a quality assurance mechanism,
enhancing oversight while prioritizing timely relief for veterans. This
legislation was developed in close collaboration with the VBA and
received strong bipartisan support during the 118th Congress, when it
passed the House of Representatives with overwhelming bipartisan
support, 413-0. I thank Representative Ciscomani for partnering with me
in introducing this important measure, and I am grateful to
Subcommittee Chairman Lutrell, Ranking Member McGarvey, Full Committee
Chairman Bost, and Ranking Member Takano for their commitment to
advancing it.
I am proud to represent a district home to nearly 50,000 veterans,
including those who served in Iraq and Afghanistan, to Vietnam
veterans, and even a few remaining World War II heroes. We owe them
more than gratitude; we owe them action. H.R. 1912 will ensure Veterans
receive their reimbursement on a timely basis. It ensures that we do
not let oversight mechanisms cause harm to those they are intended to
protect.
I urge my colleagues to join me in supporting this legislation and
reaffirming our commitment to the dignity and well-being of our
veterans.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Michigan (Mr. Bergman) that the House suspend the rules
and pass the bill, H.R. 1912.
[[Page H1819]]
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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