Sponsor
Michael Lawler
Representative · R-NY
Representative · R-NY
The bill speeds and clarifies WHCA/LHWCA claim handling and protects claimant benefits—especially for veterans and longshore workers—but shifts greater short-term fiscal cost and payment-risk to taxpayers and creates unfunded administrative demands that could produce improper payments or downstream premium effects.
Veterans, injured workers, and other WHCA/LHWCA claimants get faster, clearer payments and compensation for delays because DFEC must acknowledge complete WHCA submissions within 14 days (outstanding claims are deemed acknowledged), and interest accrues on late reimbursements.
The Department of Labor will add at least 15 full-time staff dedicated to WHCA processing, increasing adjudication capacity and helping reduce backlogs and wait times for claimants.
Existing WHCA and LHWCA benefit entitlements are preserved, so injured longshore workers, veterans, and beneficiaries retain current payment levels and timing protections.
Taxpayers face higher government payouts and short-term fiscal exposure because the bill mandates interest on late reimbursements, deems outstanding claims acknowledged (accelerating payment obligations), and reduces insurer collateral.
Deeming outstanding claims acknowledged on enactment and lowering insurer collateral increases the risk of improper or premature payments and potential payment recovery difficulty.
Mandating at least 15 new DOL staff and strict acknowledgement/regulation timelines without specified funding creates an unfunded administrative burden that may force reallocation of resources from other programs or create implementation uncertainty.
Based on analysis of 5 sections of legislative text.
Requires DFEC to acknowledge WHCA reimbursement claims within 14 days, mandates interest on late payments, hires at least 15 claim processors, and bars collateral for WHCA-reimbursable LHWCA liabilities.
Official title: To amend the War Hazards Compensation Act and the Longshore and Harbor Workers' Compensation Act to require that the Federal Government pay interest on late reimbursements, and for other purposes.
Introduced June 29, 2026 by Michael Lawler · Last progress June 29, 2026
Requires faster, more transparent processing and payment of War Hazards Compensation Act (WHCA) reimbursement claims and reduces financial burdens tied to those claims. The bill defines a "complete" claim submission, forces the Division of Federal Employees’ Compensation (DFEC) to acknowledge submissions within 14 days (and deems claims acknowledged if DFEC misses that deadline), makes outstanding claims at enactment deemed acknowledged, requires interest on late reimbursements starting 60 days after acknowledgment, directs the Secretary of Labor to issue implementing regulations within 180 days, and mandates DFEC hire at least 15 full-time staff to process WHCA claims. It also forbids requiring insurers to post collateral for liabilities that will be reimbursed under WHCA and requires conforming regulatory updates.