H.R. 5865: Thalidomide Survivors Compensation Act of 2025

The Thalidomide Survivors Compensation Act of 2025 is designed to provide compensation to individuals in the United States who suffered injuries due to exposure to the drug thalidomide. This drug was infamous for causing significant birth defects in the 1950s and 1960s, particularly limb deformities and organ malformations. Although thalidomide was never officially approved for use in the U.S., it was distributed in large quantities by physicians through informal trials, thereby affecting many individuals. The bill acknowledges that there are approximately 100 surviving victims in the U.S. who have been facing unreimbursed medical costs and lack support.

Key Provisions of the Bill

Establishment of the Compensation Program

• The Secretary of Health and Human Services will establish the Thalidomide Survivors Compensation Program within one year of the bill's enactment.

Eligibility for Compensation

• Individuals must submit a petition to be considered for compensation.
• The petition must include proof of exposure to thalidomide and evidence of injury resulting from that exposure, as verified by a physician or health professional.
• The deadline for submitting petitions is May 31, 2034, and individuals can submit only one petition, which is limited to U.S. citizens or permanent residents.

Compensation Amount

• Upon approval, each eligible individual will receive $150,000.
• The compensation will be determined by an expert panel consisting of legal, medical, and thalidomide experts.

Annual Review and Oversight

• The plan includes provisions for an annual review of the compensation program by the Secretary of Health and Human Services to evaluate its effectiveness and suggest improvements.
• Reports on the outcomes will be submitted to Congress and made publicly available, detailing the compensation provided, the number of recipients, and the program's overall effectiveness.

Additional Compensation

• Additional compensation may be awarded to individuals if deemed necessary, to meet ongoing medical or other needs.
• This additional compensation will also not count against income calculations for means-tested welfare programs.

Tax Implications

• Compensation received through this program will not be considered taxable income, ensuring that beneficiaries do not face tax liabilities on these payments.

Relevant Companies