Veteran Fraud Reimbursement Act of 2025

The Veteran Fraud Reimbursement Act of 2025 makes sure veterans get their benefits back if the person managing their VA money (a fiduciary) steals or misuses it. The VA must repay the same amount to the veteran or a new manager, then try to get the money back from the person who did wrong. If the VA later recovers money from that person, it must send that amount to the veteran for anything not already paid. Total repayment cannot be more than what was misused. If the veteran dies before repayment, the VA must pay any owed amount to a survivor under normal VA rules, and it may not pay the person who misused the funds.

The VA must also set clear steps and timelines to check if VA mistakes played a role in the misuse. But the VA cannot delay paying the veteran while it decides this, and it does not have to make that decision in every single case.

• Who is affected: Veterans who have someone manage their VA benefits, and their families.
• What changes: Faster repayment of misused benefits; payment to survivors if the veteran has died; no repayment delays while the VA reviews its own role; and a cap so repayments equal only the misused amount.