[House Report 119-260]
[From the U.S. Government Publishing Office]


119th Congress }                                                {  Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                                { 119-260

======================================================================



 
                 MODERNIZING ALL VETERANS AND SURVIVORS
                         CLAIMS PROCESSING ACT

                                _______
                                

 September 9, 2025.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Bost, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3854]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3854) to direct the Secretary of Veterans 
Affairs to submit a plan to expand the use of certain 
automation tools in the Department of Veterans Affairs, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     6
Subcommittee Consideration.......................................     7
Committee Consideration..........................................     7
Committee Votes..................................................     8
Committee Oversight Findings.....................................     8
Statement of General Performance Goals and Objectives............     8
Earmarks and Tax and Tariff Benefits.............................     8
Committee Cost Estimate..........................................     8
Budget Authority and Congressional Budget Office Estimate........     8
Federal Mandates Statement.......................................    10
Advisory Committee Statement.....................................    11
Applicability to Legislative Branch..............................    11
Statement on Duplication of Federal Programs.....................    11
Section-by-Section Analysis of the Legislation...................    11
Changes in Existing Law Made by the Bill, as Reported............    12

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Modernizing All Veterans and Survivors 
Claims Processing Act''.

SEC. 2. DEPARTMENT OF VETERANS AFFAIRS ANNUAL REPORT ON CAUSES OF DEATH 
                    AMONG VETERANS.

  (a) In General.--Subchaper II of chapter 5 of title 38, United States 
Code, is amended by adding at the end the following new section:

``Sec. 534. Annual report on causes of death among veterans

  ``(a) In General.--The Secretary shall submit to the Committees on 
Veterans'' Affairs of the House of Representatives and the Senate an 
annual report that contains data and information on causes of death 
among veterans.
  ``(b) Elements.--Such report shall include--
          ``(1) for each veteran that died during the period covered by 
        the report an identification of--
                  ``(A) whether such veteran had a service-connected 
                disability rated as total;
                  ``(B) the primary cause of death;
                  ``(C) the secondary cause of death, if applicable; 
                and
                  ``(D) the manner of death;
          ``(2) for each primary cause of death identified pursuant to 
        paragraph (1), a statement of the total number of veterans that 
        died from such primary cause of death during the period covered 
        by the report; and
          ``(3) for each manner of death identified pursuant to 
        paragraph (1), a statement of the total number of veterans that 
        died in such manner during the period covered by the report.
  ``(c) Sunset.--This section shall terminate on the date that is five 
years after the date of the enactment of the Justice for America's 
Veterans and Survivors Act of 2025.''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title is amended by inserting after the item relating 
to section 533 the following new item:

        ``534. Annual report on causes of death among veterans'''.

SEC. 3. PLAN FOR USE OF AUTOMATION TOOLS TO PROCESS CLAIMS UNDER LAWS 
                    ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.

  (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall submit 
to the Committees on Veterans' Affairs of the Senate and House of 
Representatives the plan of the Secretary to make available, to the 
maximum extent practicable, an automation tool described in subsection 
(b) to elements of the Department of Veterans Affairs for the purpose 
of processing claims under laws administered by the Secretary.
  (b) Automation Tool Described.--An automation tool described in this 
subsection is a technology developed for the Compensation Service of 
the Veterans Benefits Administration that--
          (1) automates the retrieval of the service record or health 
        records of a veteran;
          (2) compiles evidence relevant to the determination of a 
        claim for benefits under laws administered by the Secretary;
          (3) provides automated decision support relevant to such a 
        determination;
          (4) automates information sharing between Federal agencies; 
        and
          (5) assists in generating correspondence regarding such a 
        claim.
  (c) Analysis.--In developing the plan required under subsection (a), 
the Secretary shall conduct an analysis of each of the following:
          (1) The feasibility and benefits of the use of an automation 
        tool described in subsection (b) by elements of the Department 
        for the purpose of processing claims under laws administered by 
        the Secretary.
          (2) Any modification to an existing automation tool that 
        could render such tool usable for such purpose by such an 
        element.
          (3) Any requirement of any such element pertaining to such 
        purpose that cannot be addressed by using an automation tool.
          (4) The extent to which the technology offices of such 
        elements may need to collaborate with the technology office 
        responsible for developing an automation tool in the course of 
        the development and use of the tool by the element for such 
        purpose.
          (5) A timeline for modifying and implementing any automation 
        tool for use by such elements for such purpose.
  (d) Priority.--In providing an automation tool described in 
subsection (b) to elements of the Department pursuant to the plan 
required under subsection (a), the Secretary shall give priority to the 
following elements:
          (1) The Pension and Fiduciary Service of the Veterans 
        Benefits Administration.
          (2) The Education Service of the Veterans Benefits 
        Administration.
          (3) Program offices of the Veterans Benefits Administration, 
        as determined by the Secretary.
          (4) The Debt Management Center.
          (5) The Board of Veterans' Appeals.

SEC. 4. OTHER REQUIREMENTS RELATING TO TECHNOLOGY AT DEPARTMENT OF 
                    VETERANS AFFAIRS.

  (a) Automatic Notices Regarding Benefits for Certain Children of 
Veterans.--
          (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Secretary of Veterans Affairs 
        shall implement policies, processes, and technological 
        capabilities, including in the National Work Queue (or 
        successor system), to ensure that, in the case of any covered 
        situation, a claims processors is made aware of, and assigned 
        to address, such covered situation.
          (2) Definitions.--In this subsection:
                  (A) The term ``covered situation'' means--
                          (i) any increase in the amount of dependency 
                        compensation paid to a beneficiary for a child 
                        under the laws administered by the Secretary; 
                        and
                          (ii) any educational assistance paid to the 
                        child of a veteran under the laws administered 
                        by the Secretary.
                  (B) The term ``child'' has the meaning given such 
                term in section 101(4)(A)(iii) of title 38, United 
                States Code.
  (b) Correct Labeling of Documents.--Not later than one year after the 
date of the enactment of this Act, the Secretary shall submit to the 
Committees on Veterans' Affairs of the Senate and House of 
Representatives a plan to ensure that documents in the Veterans 
Benefits Management System (or any successor system) are correctly 
labeled when such documents are uploaded, including when such documents 
are labeled using automation tools.

SEC. 5. EXTENSION OF CERTAIN LIMITS ON PAYMENTS OF PENSION.

  Section 5503(d)(7) of title 38, United States Code, is amended by 
striking ``November 30, 2031'' and inserting ``January 31, 2032''.

                          Purpose and Summary

    H.R. 3854, the ``Modernizing All Veterans and Survivors 
Claims Processing Act,'' was introduced by Representative David 
Valadao of California on June 9, 2025. This bill, as amended, 
would require the Department of Veterans Affairs (VA) to 
develop a plan to provide automation tools to support claims 
processing, federal inter-agency data sharing, VA intra-agency 
data sharing, and integrating auto-generated correspondence 
into all Veterans Benefit Administration (VBA) offices. This 
bill includes an amended version of H.R. 3627, the ``Justice 
for America's Veterans and Survivors Act of 2025,'' introduced 
by Representative Chuck Edwards, which would require VA to 
submit a five-year, annual report to Congress on the cause and 
manner of death among veterans who had a service-connected 
disability rated as ``total.''

                  Background and Need for Legislation


Section 1: Short Title

    This Act may be cited as the ``Modernizing All Veterans and 
Survivors Claims Processing Act''.

Section 2: Department of Veterans Affairs Annual Report on Causes of 
        Death among Veterans

    Currently, VA does not collect comprehensive data on the 
causes and manner of death among veterans that have a service-
connected disability rated as total. This rating has 
implications for veterans' survivors qualifying for dependency 
and indemnity compensation, which is payable to surviving 
spouses and children of a veteran who is entitled to receive, 
or has been receiving VA compensation for a service-connected 
disability rated as totally disabling with a continuous rating 
for 10 years or more preceding death or continuously for 5 
years immediately preceding the veteran's discharge.\1\
---------------------------------------------------------------------------
    \1\38 U.S.C. Sec. 1318.
---------------------------------------------------------------------------
    VA currently supports over 506,000 surviving spouses; 
however, VA does not track the cause and manner of death of a 
veteran who is rated totally disabled and cannot provide the 
number who died from suicide, illness, combat-related-wounds, 
training accidents, or other causes of death. This data is 
crucial to ensure that VA programs designed to support 
surviving families consider the circumstances and history of 
those they serve.
    During the June 24, 2025, legislative hearing at the 
Committee on Veterans Affairs Subcommittee on Disability 
Assistance and Memorial Affairs, Mrs. Candance Wheeler, Senior 
Director, Government and Legislative Affairs, Tragedy 
Assistance Program for Survivors (TAPS), testified on the 
importance of this data to surviving families:

          ``This type of data is critical to tailoring 
        programming for surviving families as well as research 
        into suicide prevention, toxic exposures, and illnesses 
        that have led to the tragic deaths of many veterans. 
        The Department of Defense (DoD) has been doing this for 
        many years, so it is logical to presume the VA can and 
        should do the same.''\2\
---------------------------------------------------------------------------
    \2\Candace Wheeler, Testimony of Tragedy Assistance Program for 
Survivors (June 24, 2025), HHRG-119-VR09-Wstate-WheelerC-20250624.pdf 
(House.gov).

    To address this issue, this section would require VA to 
publish an annual report for the next five years identifying 
the primary cause and secondary cause, if applicable, and 
manner of death among veterans with a service-connected 
disability rated as total. It would also require VA to publish 
the total numbers of deaths among this population of veterans 
broken down by primary cause and manner of death.
    The Committee believes that this section is important to 
ensure that VA has an accurate picture of the physical and 
mental challenges facing this population of veterans and their 
families.

Section 3: Plan For Use of Automation Tools to Process Claims Under 
        Laws Administered by the Secretary of Veterans Affairs

    VBA includes multiple program offices that process 
different types of veterans' and survivors' claims for 
benefits. Throughout the claims process, employees in these 
program offices obtain extensive amounts of documentation to 
support a pending claim. This process involves sending notice 
letters to claimants, reviewing and analyzing large amounts of 
evidence, and evaluating the evidence to render a decision.
    To better streamline this process, VA has worked with 
various artificial intelligence (AI) technology vendors to 
automate certain tasks for VA's Compensation Service, which 
processes veterans' claims for disability compensation. AI 
tools exist that would automatically obtain, compile, and 
extract documents and evidence related to veterans' disability 
compensation claims. Additionally, AI tools may allow VA claims 
processors to automate the process for drafting notice letters.
    However, VA employees and veteran advocates report that 
efficient and accurate processing of veterans' claims is 
currently hindered by issues with the existing AI technology 
that often mislabels automatically obtained documents in VA's 
electronic claims processing system. Mislabeled documents can 
cause a delay in a claims processor's ability to issue a 
decision on a claim, which can cause already obtained evidence 
to be mistakenly, manually reobtained. These errors waste VBA 
resources and cause confusion among claims processors.
    To address these issues and improve upon these 
technological advancements, this section would direct VA to 
submit a plan to Congress on how to develop a new tool, or 
modify existing tools, to ensure tools utilized by the 
Compensation Service would automate the retrieval of veteran's 
service or health records, compile evidence relevant to a 
veteran's claim, provide support to claims processors for 
deciding a claim, automate information sharing between federal 
agencies, and assist in generating correspondence.
    Currently, AI tools have not been made available to program 
offices that process other types of VA benefits claims, 
including pension claims and survivor's benefits claims. As a 
result, it can take VBA much longer to gather the relevant 
evidence and issue decisions for those claims, leaving 
survivors waiting for years before receiving a decision on a 
claim for benefits.
    During a June 24, 2025, legislative hearing, Mrs. Candance 
Wheeler also stated: ``The VA's Disability Compensation Service 
has access to more automation tools than the Pension and 
Fiduciary Service, which has proven to help lower processing 
times for veteran claimants. Expanding access to automation 
tools for other VA subdivisions will help decrease processing 
times and enhance accuracy.''\3\
---------------------------------------------------------------------------
    \3\Candace Wheeler, Testimony of Tragedy Assistance Program for 
Survivors (June 24, 2025), HHRG-119-VR09-Wstate-WheelerC-20250624.pdf 
(House.gov).
---------------------------------------------------------------------------
    To address this issue, this section would direct the VA to 
submit a plan for implementation of the new tool for use by the 
Pension and Fiduciary Service, Education Service, VBA Program 
offices, the Debt Management Center, and the Board of Veterans 
Appeals.
    The Committee believes that expanding the use of this new 
tool is critical to ensuring that VBA automation tools are 
efficiently and effectively utilized to adjudicate the benefits 
claims of veterans, their families, and their survivors.

Section 4: Other Requirements Relating to Technology at Department of 
        Veterans Affairs

    During a May 14, 2025, oversight hearing for the 
Subcommittee on Disability Assistance and Memorial Affairs 
titled, ``Waste & Delays: Examining VA's Improper Payments in 
its Compensation and Pension Programs'' the Committee learned 
that since 2017, VA has erroneously paid roughly $211.3 million 
in benefits to veterans' dependents who concurrently received 
both dependent child compensation and children's education 
benefits by mistake.\4\ Under current law, a child receiving 
education benefits is ineligible to receive dependency 
compensation, at the same time.
---------------------------------------------------------------------------
    \4\https://veterans.house.gov/calendar/
eventsingle.aspx?EventID=6700.
---------------------------------------------------------------------------
    The Committee believes that these erroneous payments can be 
attributed to VBA's lack of technology and procedures for 
identifying beneficiaries that were receiving benefits from 
both the VA's Compensation Service and Education Service. To 
address this issue, this section would require VA to institute 
polices, processes, and technology to ensure that claims 
processors are assigned to address when a child of a veteran 
erroneously receives both dependency compensation and education 
assistance.
    The Committee believes that it is critical to protect 
taxpayer dollars by establishing policies, procedures, and 
technology to properly administer VA benefits and prevent 
overpayments.

Section 5: Extension of Certain Limits on Payments of Pension

    Under current law (38 U.S.C. Sec.  5503(d)), the amount of 
VA pension paid to a veteran with no spouse or child, a 
veterans' surviving spouse with no child, or a veteran's child 
who are admitted to a VA or Medicaid sponsored nursing facility 
is capped at $90 a month. This section would cover the costs of 
the other sections of this bill by extending this pension 
limitation by two months to January 31, 2032. Because they 
receive government sponsored care in a nursing home, these 
pension beneficiaries do not require the full amount of pension 
to cover their cost of living. The Committee believes this 
short-term extension of the current limit on pension payments 
is a reasonable way to cover the costs associated with the 
other sections of this bill.

                                Hearings

    On June 24, 2025, the Subcommittee on Disability Assistance 
and Memorial Affairs held a legislative hearing on H.R. 3854 
and other bills that were pending before the subcommittee.
    The following witnesses testified:
          The Honorable Mike Bost, U.S. House of 
        Representatives; The Honorable Elise Stefanik, U.S. 
        House of Representatives; The Honorable Julia Brownley, 
        U.S. House of Representatives; The Honorable Chuck 
        Edwards, U.S. House of Representatives; The Honorable 
        Tom Barrett, U.S. House of Representatives; The 
        Honorable Tim Kennedy, U.S. House of Representatives; 
        The Honorable Jahana Hayes, U.S. House of 
        Representatives; Mrs. Julie Guleff, Caregiver and 
        Surviving Spouse of Stephen Guleff, Vietnam Veteran; 
        Mr. Michael J. Wishnie, William O. Douglas Clinical 
        Professor of Law and Director, Veterans Legal Services 
        Clinic, Yale Law School; Ms. Candace Wheeler, Senior 
        Director, Government and Legislative Affairs, Tragedy 
        Assistance Program for Survivors (TAPS); Mr. Evan 
        Deichert, Acting Deputy Vice Chairman, Board of 
        Veterans' Appeals, U.S. Department of Veterans Affairs; 
        Mr. Kevin Friel, Executive Director, Pension & 
        Fiduciary Service, Veterans Benefits Administration, 
        U.S. Department of Veterans Affairs; Mr. James W. Smith 
        II, Deputy Executive Director, Policy and Procedures, 
        Compensation Service, Veterans Benefits Administration, 
        U.S. Department of Veterans Affairs; Dr. Colleen 
        Richardson, Executive Director, Caregiver Support 
        Program, Veterans Health Administration, U.S. 
        Department of Veterans Affairs; Colonel (Ret.) Tiffany 
        M. Wagner, USAF, Clerk of the Court, U.S. Court of 
        Appeals for Veterans Claims.
    The following individuals and organizations submitted 
statements for the record:
          Gold Star Spouses of America; Veterans of Foreign 
        Wars; Vietnam Veterans of America; National 
        Organization of Veterans' Advocates; Disabled American 
        Veterans; Quality of Life Foundation; Jewish 
        Federations of North America; Paralyzed Veterans of 
        America; Administrative Conference of the United 
        States; Afikim Foundation; American Legion; Shiron 
        Collective; American Federation of Government 
        Employees; Republican Jewish Coalition; The Honorable 
        Debbie Wasserman Shultz of Florida; Jonah Platt in 
        their personal capacity; Shabbos Kestenbaum in their 
        personal capacity; John Ondrasik in their personal 
        capacity; Lizzy Savetsky in their personal capacity; 
        Aviva Klompas in their personal capacity; Lee Trink in 
        their personal capacity; Bethony Mandel in their 
        personal capacity; Iddo Goldberg in their personal 
        capacity; Liora Rezin their personal capacity; Jason 
        Greenblatt in their personal capacity; Sarah Stern in 
        their personal capacity; Nicole Neily in their personal 
        capacity; Adam Zimmerman in their personal capacity.

                       Subcommittee Consideration

    On July 23, 2025, the Subcommittee on Disability Assistance 
and Memorial Affairs was discharged from further consideration 
of this legislation.

                        Committee Consideration

    On July 23, 2025, the Full Committee met in an open markup 
session with a quorum being present, to consider H.R. 3854, as 
amended.
          An amendment in the nature of a substitute to H.R. 
        3854 was offered by Chairman Bost to add a new section 
        that would include the amended text of H.R. 3627, 
        Justice for America's Veterans and Survivors Act of 
        2025, which would require the VA to submit an annual 
        report to Congress over the next five years on the 
        cause and manner of death among veterans who had a 
        service-connected disability rated as ``total.'' This 
        amendment in the nature of a substitute also removed 
        the provision requiring implementation of the 
        automation plan developed by the VBA. This amendment in 
        the nature of a substitute was agreed to by voice vote.
    A motion by Ranking Member Takano to report H.R. 3854, as 
amended, favorably to the House of Representatives was agreed 
to by voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 3854, as 
amended, reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 3854, as amended, are to ensure 
that VA collects comprehensive data on the cause and manner of 
death of veterans with a disability rated as total, and 
develops plans for automating aspects of the claims and appeals 
process.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3854, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

            Budget Authority and Congressional Budget Office
                             Cost Estimate




    The bill would
           Require the Department of Veterans Affairs 
        (VA) to annually report to the Congress on causes of 
        death among veterans
           Direct VA to develop a plan to expand the 
        use of automation to process claims for certain 
        veterans' benefits
           Require VA to update its information 
        technology system used to process claims for veterans' 
        benefits to automatically identify certain claims that 
        would not be allowed
           Extend the reduction of pensions that VA 
        pays to veterans and survivors residing in Medicaid 
        nursing homes
    Estimated budgetary effects would mainly stem from:
           Updating information technology systems
           Reducing VA pension payments
    Bill summary: H.R. 3854 would require the Department of 
Veterans Affairs (VA) to annually report on the causes of death 
among veterans, and to develop a plan to make automation tools 
more widely available for processing of claims for veterans' 
benefits. The bill would further require VA to update its 
information technology (IT) system used for processing benefits 
claims to notify employees who process those claims of certain 
circumstances when a claim would not be allowed. Finally, the 
bill would extend the reduction of pension payments for 
veterans and survivors who reside in Medicaid nursing homes.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 3854 is shown in Table 1. The costs of the legislation 
fall within budget functions 550 (health) and 700 (veterans 
benefits and services).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3854
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2025    2026    2027    2028    2029    2030    2031    2032    2033    2034    2035   2025-2030  2025-2035
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            DECREASES (-) IN DIRECT SPENDING
 
Estimated Budget Authority................       0       0       0       0       0       0       0      -8       0       0       0         0         -8
Estimated Outlays.........................       0       0       0       0       0       0       0      -8       0       0       0         0         -8
--------------------------------------------------------------------------------------------------------------------------------------------------------
In addition to the amounts shown here, implementing H.R. 3854 would increase spending subject to appropriation by less than $500,000 over the 2025-2035
  period.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3854 will be enacted at the beginning of fiscal year 2026, and 
that outlays will follow historical spending patterns for 
affected programs.
    Spending subject to appropriation: The reporting, planning, 
and automatic notifications required by H.R. 3854 would 
increase spending subject to appropriation by less than 
$500,000, CBO estimates.
    Report on Veteran Deaths. Section 2 of H.R. 3854 would 
require VA to annually report to the Congress on the causes of 
death among veterans. That requirement would expire five years 
after the bill's enactment. VA already collects information on 
and reports about the causes of veteran deaths; thus, producing 
the additional report to the Congress would cost less than 
$500,000, CBO estimates.
    Plan for Expanding Automated Claims Processing. Section 3 
of the bill would require VA to submit a plan to the Congress 
on ways to make its existing automation tools available to 
other divisions of the agency. That plan would be due within 
one year of enactment. VA currently uses automated technology 
to help it process claims for certain veterans' benefits. The 
plan would require VA to analyze the feasibility and benefits 
of extending the use of existing automation technology to 
process additional veterans' benefits. Using information on the 
cost of producing similar plans and reports, CBO estimates the 
requirement would cost less than $500,000.
    Automatic Notification of Unallowed Benefits. The bill 
would require VA to update its claim processing system to 
automatically identify for VA employees certain claims for 
benefits that cannot be received concurrently with other 
benefits the applicant is receiving. The department already has 
the capability to flag such claims within its IT systems and is 
implementing technology to automatically disallow such claims 
without human intervention. As such, CBO estimates that 
providing an automatic notice to VA employees for those 
unallowed claims would cost less than $500,000.
    Direct spending: Under current law, VA reduces pension 
payments to veterans and survivors who reside in Medicaid 
nursing homes to $90 per month. That required reduction expires 
November 30, 2031. Section 5 of H.R. 3854 would extend that 
reduction for two months, through January 31, 2032. CBO 
estimates that extending that requirement would reduce VA 
benefits by $10 million per month. (Those benefits are paid 
from mandatory appropriations and are therefore considered 
direct spending.) As a result of that reduction in 
beneficiaries' income, Medicaid would pay more of the cost of 
their care, increasing spending for that program by $6 million 
per month. Thus, enacting section 5 would reduce net direct 
spending by $8 million over the 2025-2035 period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 1.
    Increase in long-term net direct spending and deficits: CBO 
estimates that enacting H.R. 3854 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2036.
    Mandates: The bill contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act.
    Estimate prepared by: Federal Costs: Logan Smith; Mandates: 
Brandon Lever.
    Estimate reviewed by: David Newman, Chief, Defense, 
International Affairs, and Veterans' Affairs Cost Estimates 
Unit; Kathleen FitzGerald, Chief, Public and Private Mandates 
Unit; Christina Hawley Anthony, Deputy Director of Budget 
Analysis.
    Estimate approved by: Phillip L. Swagel, Director, 
Congressional Budget Office.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4 is inapplicable to H.R. 3854, as 
amended.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3854, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 3854, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3854, as amended, would establish or reauthorize a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 would establish the short title of the bill as 
the ``Modernizing All Veterans and Survivors Claims Processing 
Act.''

Section 2. Department of Veterans Affairs annual report on causes of 
        death among veterans

    Section 2 would add a new section, 38 U.S.C. Sec.  534, 
that would require VA to submit an annual report on veterans 
who died during the covered period who were rated by the VA as 
having a service-connected disability rated as total. Elements 
of this report would include whether a veteran had a service-
connected disability rated as total, their primary cause of 
death, their secondary cause of death if applicable, and the 
manner of their death. Additionally, the report would provide 
the total number of veterans that died from each primary cause 
of death during the period covered and each manner of death 
during the period covered. The report outlined by this section 
would terminate five years after the enactment of this Act.

Section 3. Plan for use of automation tools to process claims under 
        laws administered by the Secretary of Veterans Affairs

    Section 3 would require VA to submit a plan to the 
Committees on Veterans' Affairs of both the Senate and the 
House of Representatives for developing an automation tool for 
processing claims for benefits. The automation tool described 
by this subsection would be for the Compensation Service of VBA 
and would automate the retrieval of a veteran's service or 
health records, compile evidence relevant to adjudicating a 
claim for benefits, provide automated decision support relevant 
to adjudicating a claim, automate information sharing between 
federal agencies, and assist in generating correspondence 
regarding a claim for benefits.
    Section 3 would also require the VA Secretary to conduct an 
analysis of the feasibility and benefit of using such an 
automation tool, any modification to existing automation tools 
that could render this tool usable for implementing this plan, 
the extent of collaboration necessary between technology 
offices, and a timeline for modifying and implementing such a 
tool.
    Section 3 would also dictate that in developing a plan for 
implementation, the VA Secretary would give priority for 
providing this tool to the VBA's Pension and Fiduciary Service, 
Education Service, Program Offices, Debt Management Center, and 
Board of Veterans' Appeals offices.

Section 4. Other requirements relating to technology at Department of 
        Veterans Affairs

    Section 4 would require VA to institute polices, processes, 
and technological capabilities, including in the National Work 
Queue or successor system, to ensure that claims processors are 
made aware of, and assigned to address, child of a veteran who 
is erroneously receiving both dependency compensation and 
education assistance concurrently. The term ``child'' is given 
the same meaning as defined in 38 U.S.C. Sec. 101(4)(A)(iii).
    Section 4 would also require VA to submit a plan for 
ensuring that documents in the Veterans Benefit Management 
System are correctly labeled when uploaded.

Section 5. Extension of certain limits on payments of pension

    Section 5 would extend the limitation of pension payable to 
certain veterans, their surviving spouses, and their children 
as established in 38 U.S.C. Sec. 5503(d)(7), from November 30, 
2031, to January 31, 2032.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE




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PART I--GENERAL PROVISIONS

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            CHAPTER 5--AUTHORITY AND DUTIES OF THE SECRETARY


                    SUBCHAPTER I--GENERAL AUTHORITIES

Sec.
501. Rules and regulations.
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                   SUBCHAPTER II--SPECIFIED FUNCTIONS

521. Assistance to certain rehabilitation activities.
     * * * * * * *
534. Annual report on causes of death among veterans

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SUBCHAPTER II--SPECIFIED FUNCTIONS

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Sec. 534. Annual report on causes of death among veterans

  (a) In General.--The Secretary shall submit to the Committees 
on Veterans' Affairs of the House of Representatives and the 
Senate an annual report that contains data and information on 
causes of death among veterans.
  (b) Elements.--Such report shall include--
          (1) for each veteran that died during the period 
        covered by the report an identification of--
                  (A) whether such veteran had a service-
                connected disability rated as total;
                  (B) the primary cause of death;
                  (C) the secondary cause of death, if 
                applicable; and
                  (D) the manner of death;
          (2) for each primary cause of death identified 
        pursuant to paragraph (1), a statement of the total 
        number of veterans that died from such primary cause of 
        death during the period covered by the report; and
          (3) for each manner of death identified pursuant to 
        paragraph (1), a statement of the total number of 
        veterans that died in such manner during the period 
        covered by the report.
  (c) Sunset.--This section shall terminate on the date that is 
five years after the date of the enactment of the Justice for 
America's Veterans and Survivors Act of 2025.

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PART IV--GENERAL ADMINISTRATIVE PROVISIONS

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CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS

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Sec. 5503. Hospitalized veterans and estates of incompetent 
                    institutionalized veterans

  (a)(1)(A) Where any veteran having neither spouse nor child 
is being furnished domiciliary care by the Department, no 
pension in excess of $90 per month shall be paid to or for the 
veteran for any period after the end of the third full calendar 
month following the month of admission for such care.
  (B) Except as provided in subparagraph (D) of this paragraph, 
where any veteran having neither spouse nor child is being 
furnished nursing home care by the Department, no pension in 
excess of $90 per month shall be paid to or for the veteran for 
any period after the end of the third full calendar month 
following the month of admission for such care. Any amount in 
excess of $90 per month to which the veteran would be entitled 
but for the application of the preceding sentence shall be 
deposited in a revolving fund at the Department medical 
facility which furnished the veteran nursing care, and such 
amount shall be available for obligation without fiscal year 
limitation to help defray operating expenses of that facility.
  (C) No pension in excess of $90 per month shall be paid to or 
for a veteran having neither spouse nor child for any period 
after the month in which such veteran is readmitted for care 
described in subparagraph (A) or (B) of this paragraph and 
furnished by the Department if such veteran is readmitted 
within six months of a period of care in connection with which 
pension was reduced pursuant to subparagraph (A) or (B) of this 
paragraph.
  (D) In the case of a veteran being furnished nursing home 
care by the Department and with respect to whom subparagraph 
(B) of this paragraph requires a reduction in pension, such 
reduction shall not be made for a period of up to three 
additional calendar months after the last day of the third 
month referred to in such subparagraph if the Secretary 
determines that the primary purpose for the furnishing of such 
care during such additional period is for the Department to 
provide such veteran with a prescribed program of 
rehabilitation services, under chapter 17 of this title, 
designed to restore such veteran's ability to function within 
such veteran's family and community. If the Secretary 
determines that it is necessary, after such period, for the 
veteran to continue such program of rehabilitation services in 
order to achieve the purposes of such program and that the 
primary purpose of furnishing nursing home care to the veteran 
continues to be the provision of such program to the veteran, 
the reduction in pension required by subparagraph (B) of this 
paragraph shall not be made for the number of calendar months 
that the Secretary determines is necessary for the veteran to 
achieve the purposes of such program.
  (2) The provisions of paragraph (1) shall also apply to a 
veteran being furnished such care who has a spouse but whose 
pension is payable under section 1521(b) of this title. In such 
a case, the Secretary may apportion and pay to the spouse, upon 
an affirmative showing of hardship, all or any part of the 
amounts in excess of the amount payable to the veteran while 
being furnished such care which would be payable to the veteran 
if pension were payable under section 1521(c) of this title.
  (b) Notwithstanding any other provision of this section or 
any other provision of law, no reduction shall be made in the 
pension of any veteran for any part of the period during which 
the veteran is furnished hospital treatment, or institutional 
or domiciliary care, for Hansen's disease, by the United States 
or any political subdivision thereof.
  (c) Where any veteran in receipt of an aid and attendance 
allowance described in subsection (r) or (t) of section 1114 of 
this title is hospitalized at Government expense, such 
allowance shall be discontinued from the first day of the 
second calendar month which begins after the date of the 
veteran's admission for such hospitalization for so long as 
such hospitalization continues. Any discontinuance required by 
administrative regulation, during hospitalization of a veteran 
by the Department, of increased pension based on need of 
regular aid and attendance or additional compensation based on 
need of regular aid and attendance as described in subsection 
(l) or (m) of section 1114 of this title, shall not be 
effective earlier than the first day of the second calendar 
month which begins after the date of the veteran's admission 
for hospitalization. In case a veteran affected by this 
subsection leaves a hospital against medical advice and is 
thereafter admitted to hospitalization within six months from 
the date of such departure, such allowance, increased pension, 
or additional compensation, as the case may be, shall be 
discontinued from the date of such readmission for so long as 
such hospitalization continues.
  (d)(1) For the purposes of this subsection--
          (A) the term ``Medicaid plan'' means a State plan for 
        medical assistance referred to in section 1902(a) of 
        the Social Security Act (42 U.S.C. 1396a(a)); and
          (B) the term ``nursing facility'' means a nursing 
        facility described in section 1919 of such Act (42 
        U.S.C. 1396r), other than a facility that is a State 
        home with respect to which the Secretary makes per diem 
        payments for nursing home care pursuant to section 
        1741(a) of this title.
  (2) If a veteran having neither spouse nor child is covered 
by a Medicaid plan for services furnished such veteran by a 
nursing facility, no pension in excess of $90 per month shall 
be paid to or for the veteran for any period after the month of 
admission to such nursing facility.
  (3) Notwithstanding any provision of title XIX of the Social 
Security Act, the amount of the payment paid a nursing facility 
pursuant to a Medicaid plan for services furnished a veteran 
may not be reduced by any amount of pension permitted to be 
paid such veteran under paragraph (2) of this subsection.
  (4) A veteran is not liable to the United States for any 
payment of pension in excess of the amount permitted under this 
subsection that is paid to or for the veteran by reason of the 
inability or failure of the Secretary to reduce the veteran's 
pension under this subsection unless such inability or failure 
is the result of a willful concealment by the veteran of 
information necessary to make a reduction in pension under this 
subsection.
  (5)(A) The provisions of this subsection shall apply with 
respect to a surviving spouse having no child in the same 
manner as they apply to a veteran having neither spouse nor 
child.
  (B) The provisions of this subsection shall apply with 
respect to a child entitled to pension under section 1542 of 
this title in the same manner as they apply to a veteran having 
neither spouse nor child.
  (6) The costs of administering this subsection shall be paid 
for from amounts available to the Department of Veterans 
Affairs for the payment of compensation and pension.
  (7) This subsection expires on [November 30, 2031] January 
31, 2032.

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