U.S. Senators Mazie K. Hirono, John Boozman, Ruben Gallego, and Tommy Tuberville have introduced the Veteran Fraud Reimbursement Act. This bipartisan legislation aims to simplify the process for veterans with disabilities to receive financial restitution if they are defrauded of their benefits. The bill would allow the Veterans Benefits Administration (VBA) to reimburse victims without first meeting bureaucratic requirements.
Companion legislation was introduced in the House by Representatives Gerry Connolly and Juan Ciscomani.
Senator Hirono stated, "Our veterans have made the ultimate sacrifice in service to our country and if they are defrauded of the benefits they have earned, they should not have to deal with unnecessary hurdles in order to be made financially whole again." She noted that some veterans die before receiving reimbursements due to oversight in the VBA fiduciary program.
Senator Boozman emphasized that "disabled veterans who are victims of benefit fraud should not have to endure bureaucratic delays in order to receive reimbursement," adding that establishing protocols for reinstating benefits is crucial for strengthening services for veterans.
Senator Gallego pointed out the urgency of addressing this issue: "It’s unacceptable that the veterans who put their lives on the line for this country could be defrauded out of the benefits they earned... We owe it to them to cut the red tape and make sure they’re repaid quickly."
The Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act enacted in January 2021 included a provision aimed at improving the VBA fiduciary program. However, it led to unintended consequences requiring an internal negligence determination before reimbursing defrauded veterans.
A report from July 21, 2021, by the VA Office of Inspector General highlighted significant wait times due to this requirement, with some veterans dying before receiving their funds. The new act seeks to address these issues by allowing VBA a statistically valid analysis of misuse cases as part of quality assurance after reimbursement.
The full text of the legislation is available online.