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Reinstates a criminal prohibition on charging fees to veterans (or others) for preparing, presenting, or prosecuting claims for veterans’ benefits unless an exception applies. The change makes it unlawful to solicit, contract for, charge, receive, or attempt any such fee and makes violations punishable by fines as provided by federal criminal law (title 18). The statutory headings and chapter table are updated to reflect the change.
Amend the section heading of 38 U.S.C. § 5905 by striking and inserting new heading text; conform the table of sections at the beginning of chapter 59 of title 38 accordingly.
An insertion is made in 38 U.S.C. § 5905 ‘by inserting before ;’ (the excerpt does not include the inserted text).
Add new subsection (b) titled ‘Charging of unauthorized fees’: Except as provided in sections 5904 or 1984, whoever solicits, contracts for, charges, or receives, or attempts to solicit, contract for, charge, or receive, any fee or compensation with respect to the preparation, presentation, or prosecution of any claim for benefits under the laws administered by the Secretary shall be fined as provided in title 18.
The new prohibition does not apply to conduct covered by sections 5904 or 1984 of title 38 (expressly excepted).
Primary effects:
Veterans and VA claimants: Likely to benefit from stronger criminal deterrence against exploitative or fraudulent fee-charging for assistance with claims. The change reduces the risk that service-disabled or low-income claimants will be charged unauthorized or predatory fees.
Individuals and businesses that prepare or assist with VA claims: Non‑accredited or for‑profit preparers, agents, or promoters who charge fees without statutory authorization will face potential criminal liability, including fines under federal criminal law. Those who solicit or negotiate fees (even if a transaction is not completed) are also covered.
Accredited representatives, attorneys, agents, and VSOs: Representatives and attorneys who are authorized under other provisions (e.g., 38 U.S.C. § 5904) remain able to be compensated where statute and VA rules permit; they must ensure their fee arrangements comply with existing authorization and recordkeeping requirements.
VA and law enforcement: VA officials and federal prosecutors will have a clearer criminal statute to enforce against unauthorized fee schemes. Enforcement may involve coordination between VA oversight units and federal prosecutors. No additional funding or administrative program changes are created by this amendment.
Consumers and the marketplace: Could reduce the supply of for‑profit, non‑authorized preparers or push such services to ensure compliance (e.g., by becoming accredited, converting to free assistance models, or practicing under explicit exceptions). It may also increase referrals to accredited representatives and nonprofit VSOs.
Overall effect: Narrow, targeted law‑enforcement change aimed at consumer protection for veterans and claimants rather than a broad programmatic or fiscal reform. It strengthens criminal deterrence without creating new spending or administrative programs.
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Referred to the Committee on Veterans' Affairs, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced February 27, 2025 by Chris Pappas · Last progress February 27, 2025
Committee Hearings Held
Subcommittee on Disability Assistance and Memorial Affairs Discharged
Referred to the Subcommittee on Disability Assistance and Memorial Affairs.
Referred to the Committee on Veterans' Affairs, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.