II 119THCONGRESS 1 STSESSION S. 892 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. IN THE SENATE OF THE UNITED STATES MARCH6, 2025 Ms. H IRONO(for herself, Mr. BOOZMAN, Mr. GALLEGO, and Mr. T UBERVILLE) introduced the following bill; which was read twice and re- ferred to the Committee on Veterans’ Affairs A BILL To amend title 38, United States Code, to improve the repayment by the Secretary of Veterans Affairs of bene- fits misused by a fiduciary, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Veteran Fraud Reim-4 bursement Act of 2025’’. 5 VerDate Sep 11 2014 20:55 Mar 19, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S892.IS S892 ssavage on LAPJG3WLY3PROD with BILLS 2 •S 892 IS SEC. 2. IMPROVEMENT TO REPAYMENT BY SECRETARY OF 1 VETERANS AFFAIRS OF CERTAIN MISUSED 2 BENEFITS. 3 Section 6107 of title 38, United States Code, is 4 amended to read as follows: 5 ‘‘§ 6107. Reissuance of benefits 6 ‘‘(a) R EISSUANCE OFMISUSEDBENEFITS.—(1) In 7 any case in which a fiduciary misuses all or part of an 8 individual’s benefit paid to such fiduciary, the Secretary 9 shall pay to the beneficiary or the beneficiary’s successor 10 fiduciary an amount equal to the amount of such benefit 11 so misused. 12 ‘‘(2) In any case in which the Secretary reissues a 13 benefit payment (in whole or in part) under paragraph (1), 14 the Secretary shall make a good faith effort to obtain 15 recoupment from the fiduciary to whom the payment was 16 originally made. 17 ‘‘(3) In any case in which the Secretary obtains 18 recoupment from a fiduciary who has misused benefits, 19 the Secretary shall promptly remit payment of the re-20 couped amounts to the beneficiary or the beneficiary’s suc-21 cessor fiduciary, as the case may be, to the extent that 22 such amounts have not been paid under paragraph (1). 23 ‘‘(b) R EISSUANCE OFAMOUNTS IN THE CASE OF A 24 D ECEASEDBENEFICIARY.—(1) If a beneficiary described 25 in subsection (a)(1) predeceases a payment under such 26 VerDate Sep 11 2014 20:55 Mar 19, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S892.IS S892 ssavage on LAPJG3WLY3PROD with BILLS 3 •S 892 IS subsection, the Secretary shall pay such amount, subject 1 to paragraph (2), to an individual or entity in accordance 2 with section 5121 of this title. 3 ‘‘(2) The Secretary may not make a payment under 4 this subsection to a fiduciary who misused benefits of the 5 beneficiary. 6 ‘‘(c) L IMITATION ONTOTALAMOUNTPAID.—The 7 total of the amounts paid to a beneficiary or the bene-8 ficiary’s successor fiduciary under this section may not ex-9 ceed the total benefit amount misused by the fiduciary 10 with respect to that beneficiary. 11 ‘‘(d) O VERSIGHT OF NEGLIGENCE.—(1) The Sec-12 retary shall establish methods and timing with respect to 13 determining whether an instance of misuse by a fiduciary, 14 of all or part of an individual’s benefit paid to such fidu-15 ciary, is the result of negligence by the Secretary. 16 ‘‘(2) The Secretary may not withhold the reissuing 17 of a benefit payment under subsection (a)(1) by reason 18 of a pending determination under paragraph (1). 19 ‘‘(3) The Secretary is not required to make a deter-20 mination under paragraph (1) for each instance of misuse 21 by a fiduciary, of all or part of an individual’s benefit paid 22 to such fiduciary.’’. 23 Æ VerDate Sep 11 2014 20:55 Mar 19, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S892.IS S892 ssavage on LAPJG3WLY3PROD with BILLS