Adds enhanced penalties when the offense is committed by a Department of Veterans Affairs employee acting in an official capacity or using access to veterans' records or benefits systems, including imprisonment up to 15 years, fines up to $500,000, and mandatory restitution to the Department of Veterans Affairs or the United States Treasury.

Adds enhanced penalties where the offense involves falsification or concealment of material facts related to a claim for veterans' benefits or the performance of duties by a VA employee, including imprisonment up to 10 years and fines up to $250,000.

Adds enhanced penalties for bribery/gratuities when the public official is employed by the Department of Veterans Affairs and the bribe/gratuity relates to processing or awarding veterans' benefits or contracts, specifying imprisonment up to 20 years and a maximum fine equal to twice the amount of the bribe or thing of value received.

Adds enhanced penalties when the convicted person is a Department of Veterans Affairs employee and the fraudulent conduct relates to veterans' disability, compensation, or employment benefits, including fines up to $250,000, imprisonment up to 10 years, and forfeiture of any Federal pension or annuity benefits pursuant to 5 U.S.C. 8312.

Adds a new subsection (e) providing that an individual convicted of an offense under 18 U.S.C. 641, 1001, 201, or 1920, as amended by this Act, who is a Department of Veterans Affairs employee and whose offense relates to their duties, shall forfeit any entitlement to annuity or retired pay under this chapter or chapter 84.

Adds a new subsection (e) requiring expedited handling of retaliation claims involving Department of Veterans Affairs employees by the Office of Accountability and Whistleblower Protection, including completion of investigations within 60 days, written justification to Congress for delays beyond 60 days, and interim protections against reassignment or adverse personnel actions while claims are pending.

Adds a new section 7735 to chapter 77 (subchapter II of title 38) requiring annual ethics, fraud prevention, and compliance training for all Department employees and requiring IG oversight and an annual report to the Senate and House Committees on Veterans' Affairs.

Amends subsection (a) to insert new paragraph (3) establishing specific factors to be applied by the deciding Department employee when making initial removal/demotion/suspension decisions and requiring the Secretary to review and uphold the initial decision if supported by substantial evidence; also inserts text into paragraph (1).