S. 5274Senate117th Congress (2021-2023)In Committee

A bill to amend title 38, United States Code, to reinstate criminal penalties for persons charging veterans unauthorized fees relating to claims for benefits under the laws administered by the Secretary of Veterans Affairs, and for other purposes.

Introduced December 15, 2022

AI-Generated Summary

Updated February 8, 2026 at 6:52 PM UTC

The bill restores criminal penalties for anyone who charges veterans unauthorized fees when helping them file benefit claims with the Department of Veterans Affairs. It also sets limits on how much lawyers can charge veterans filing water‑contamination claims related to Camp Lejeune, requiring fees to be a set percentage of any award and mandating that award money be held in a trust for the veteran. The changes affect veterans, fee‑charging service providers, and attorneys handling these specific claims.

Key Provisions

  • Amends 38 U.S.C. §5905 to add a new criminal penalty for soliciting, charging, or receiving fees for preparing or presenting VA benefit claims, making violations punishable under Title 18.
  • Updates the section heading to plural “Penalties” and clarifies that the penalty applies to unauthorized fee‑charging activities, except where other statutes already apply.
  • Adds a new subsection to the Camp Lejeune water‑contamination law limiting attorney fees to 20% of an award if settled within 180 days, or 33.3% if settled later, and requires award funds to be placed in a trust account for the veteran.
  • Sets procedural rules for fee payments, including notification to the veteran and disbursement only after the veteran receives their share, and imposes fines up to $5,000 for fee violations and other penalties consistent with existing law.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Veterans' Affairs. (text: CR S7254-7259)

December 15, 2022

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SenateIntro Referral

Introduced in Senate

December 15, 2022

SenateIntro Referral

Read twice and referred to the Committee on Veterans' Affairs. (text: CR S7254-7259)

December 15, 2022

Floor Debate

2 members

What members said about S. 5274 on the floor

2 Democrats
Tim Kaine
Sen. Tim KaineD-VA · Dec 15, 2022

Mr. President, the COVID-19 pandemic has amplified the need to expand mental health services for children in the United States. More than 20 percent of parents with children aged 5-12 years reported…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Dec 15, 2022

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record. Mr. President, I ask unanimous consent that the text of the resolution be printed in the Record.

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Dec 15, 2022

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued December 15, 2022

II

117th CONGRESS

2d Session

S. 5274

IN THE SENATE OF THE UNITED STATES

December 15, 2022

Mr. Durbin introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

A BILL

To amend title 38, United States Code, to reinstate criminal penalties for persons charging veterans unauthorized fees relating to claims for benefits under the laws administered by the Secretary of Veterans Affairs, and for other purposes.

1.

Reinstatement of penalties for charging veterans unauthorized fees relating to claims for benefits under laws administered by the Secretary of Veterans Affairs

Section 5905 of title 38, United States Code, is amended—

(1)

in the section heading, by striking Penalty and inserting Penalties (and conforming the table of sections at the beginning of chapter 59 of such title accordingly);

(2)

by striking Whoever and inserting the following:

(a)

Withholding of benefits

Whoever

; and

(3)

by adding at the end the following new subsection:

(b)

Charging of unauthorized fees

Except as provided in sections 5904 or 1984 of this title, whoever solicits, contracts for, charges, or receives, or attempts to solicit, contract for, charge, or receive, any fee or compensation with respect to the preparation, presentation, or prosecution of any claim for benefits under the laws administered by the Secretary shall be fined as provided in title 18.

.

2.

Limitation on attorney fees for Federal cause of action relating to water at Camp Lejeune, North Carolina

Section 804 of the Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act of 2022 (Public Law 117–168; 28 U.S.C. 2671 note prec.) is amended by adding at the end the following new subsection:

(k)

Attorney fees

(1)

Limitations

No legal representative of an individual who brings an action under subsection (b) or who presents a claim under section 2675 of title 28, United States Code, pursuant to subsection (h) shall charge, demand, receive, or collect for services rendered in bringing such action or presenting such claim, fees in excess of—

(A)

20 percent of an award, compromise, or settlement made or reached within 180 days after presenting a claim under section 2675 of title 28, United States Code, pursuant to subsection (h); and

(B)

33.3 percent on a claim that is resolved by settlement, compromise, or judgement after the initiation of an action.

(2)

Terms for payment of fees

Any judgment rendered, settlement entered, compromise made, or other award made with respect to an action brought under subsection (b) or a claim presented under section 2675 of title 28, United States Code, pursuant to subsection (h) by a legal representative of an individual shall require the following:

(A)

All funds from the judgment, settlement, compromise, or other award shall be deposited into an account held in trust for the individual in accordance with all applicable provisions of State law.

(B)

The legal representative shall—

(i)

once any funds described in subparagraph (A) have been deposited into an account pursuant to such subparagraph, notify the individual of such deposit; and

(ii)

promptly deliver to such individual such amount of such funds as the individual is entitled to receive.

(C)

That no funds shall be paid from the account described in subparagraph (A) to a legal representative of the individual as compensation for services rendered to such individual until the relevant funds from such account have been disbursed to the individual in accordance with subparagraph (B).

(3)

Penalties

(A)

Fee limitations

Any legal representative who charges, demands, receives, or collects for services rendered in connection with an action under subsection (b) or a claim under section 2675 of title 28, United States Code, pursuant to subsection (h), any amount in excess of that allowed under paragraph (1) of this subsection, if recovery be had, shall be fined not more than $5,000.

(B)

Terms for payment

Failure of a legal representative subject to paragraph (2) to comply with a requirement of such paragraph shall be punishable consistent with the penalties provided in section 2678 of title 28, United States Code.

(4)

Rule of construction

Nothing in this subsection shall be construed to annul, alter, affect, or exempt any person from complying with the laws of any State or locality with respect to the practice of law, except to the extent that those laws are inconsistent with any provision of this subsection, and then only to the extent of the inconsistency.

.