H.R. 1656: Preserving Lawful Utilization of Services for Veterans Act of 2025

The bill known as the "Preserving Lawful Utilization of Services for Veterans Act of 2025" aims to make various amendments to the regulations surrounding agents and attorneys who assist veterans with their claims for benefits from the Department of Veterans Affairs (VA). Below is a summary of the main points addressed in the bill:

Key Provisions

1. Fee Agreements: The bill allows agents or attorneys who assist veterans with initial claims to have fee agreements that:
- Do not require payment before the claimant is notified of the VA's initial decision regarding their claim. - Set a fee amount that depends on whether the claim is resolved favorably, with a maximum fee cap of $12,500 or a calculation based on increases in VA benefits, whichever is lower. - Include a standard form to inform claimants about the services provided by recognized organizations at no cost and other relevant points regarding their claim.

2. Recognition of Agents and Attorneys: The bill modifies the recognition process for agents and attorneys:
- Individuals seeking recognition as agents or attorneys must apply to the VA and can be granted conditional and temporary recognition if their qualifications can’t be verified within 90 days. - The Secretary of Veterans Affairs is prohibited from suspending or denying recognition based on past fee charges if those fees were collected before the enactment of this bill.

3. Regulatory Framework:
- The Secretary of Veterans Affairs has 180 days post-enactment to establish necessary regulations to enforce the provisions of the bill.

4. Penalties for Unauthorized Fees: The bill reinstates penalties for unauthorized fees connected to handling claims. Specifically:
- Individuals found soliciting or charging unauthorized fees may face fines or imprisonment. - Violations during the period of conditional recognition can lead to fines and a prohibition from being recognized as an agent or attorney.

5. Federal Preemption: The bill states that its provisions will take precedence over any conflicting state laws, effectively preventing states from implementing laws that would undermine this legislation.

Relevant Companies

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