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Today, the House of Representatives passed the Veteran Fraud Reimbursement Act, bipartisan legislation introduced by Congressman Gerald E. Connolly (D-VA), Senator Mazie Hirono (D-HI), and Congressman Juan Ciscomani (R-AZ). The legislation makes it easier for veterans with disabilities to be made financially whole in the event they are defrauded of their benefits. By allowing the Veterans Benefits Administration (VBA) to reimburse victims of fraud without first meeting unnecessary bureaucratic requirements.

The legislation is cosponsored in the US Senate by Senator John Boozman (R-AR), Senator Ruben Gallego (D-AZ), and Senator Tommy Tuberville (R-AL). In the US House of Representatives, the legislation is cosponsored by Rep. Andrea Salinas (D-OR), Rep. Rashida Tlaib (D-MI), Rep. Greg Murphy (R-NC), and Rep. Zach Nunn (R-IA).

“Our veterans have sacrificed enough already,” said Connolly. “They shouldn’t be asked to also sacrifice their peace of mind in the event they are defrauded of their hard-earned benefits. I’m proud to team up with Rep. Ciscomani and Senator Hirono to ensure our veterans can be quickly and easily reimbursed without jumping through unnecessary bureaucratic hoops, and I am thrilled to see the legislation pass the House today.”

In January 2021, Congress enacted the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act. The bill included a provision meant to improve the VBA fiduciary program, which helps deliver benefits to veterans who cannot otherwise manage their finances. Unfortunately, one unintended consequence of the provision is that all cases of benefits misuse now require what is known as an internal negligence determination by VBA before a veteran who is a victim of fraud can be made financially whole.

In a July 21, 2021 report, the VA Office of the Inspector General (OIG) highlighted the significant wait times defrauded veterans in the VA fiduciary program face due to the universal negligence determination requirement. Some veterans even died before seeing their reimbursements.

The Veteran Fraud Reimbursement Act will right this wrong by allowing the VBA to conduct a statistically valid analysis of the misuse cases to determine the rate and nature of negligence on the part of the VBA. The negligence determination would ultimately become a part of a quality assurance measure conducted after the affected veteran had been reimbursed.

Full text of the legislation is available here.