PLUS for Veterans Act of 2025
The PLUS for Veterans Act of 2025 would formalize and regulate the use of private representatives (agents or attorneys) for the initial VA benefits claims process, while tightening oversight and penalties to curb unauthorized fees. It would allow flat-fee, contingent-fee arrangements for helping veterans with initial claims, with strict limits and required disclosures, and it would create a funding mechanism and regulatory framework to govern these arrangements. The bill also clarifies that medical examinations commissioned by the VA as part of the claims process are not themselves “preparation, presentation, or prosecution” of a claim, addressing how such exams can affect fee discussions. In short, the bill aims to expand access to private representation in initial claims while imposing caps, disclosures, and penalties to prevent fee abuse and protect veterans. If enacted, the act would introduce a new fee assessment to fund administration, require HIPAA-compliant handling of claimant data, require annual reporting to Congress on the use and denial/suspension of recognition, and establish a robust enforcement regime (including fines and potential bans) for unauthorized fees. It would also require the VA to issue implementing regulations within six months and would preempt state laws that conflict with its provisions. The overall intention is to balance veterans’ access to supported representation with safeguards against predatory or excessive fees.
Key Points
- 1Flat-fee, contingent-fee representation for initial VA claims: Fees may be charged only through a set flat-fee arrangement for the preparation, presentation, and prosecution of an initial claim, with specific constraints, no upfront payment, and a cap (the lesser of $12,500 or five times the monthly increase in benefits). The claimant must sign a standard, Secretary-developed form, and the arrangement must be contingent on a favorable claim outcome.
- 2Core exclusions and disclosures: The bill clarifies that a VA medical examination or related report under section 5125 is not considered part of “preparation, presentation, or prosecution” of a claim. It also requires a standard form that warns claimants that recognized organizations provide free services, that claimants may choose a private physician for a VA exam, and that the agent cannot refer the claimant to a private physician with whom the agent has a business relationship.
- 3Oversight, recognition, and funding: The Secretary may grant temporary/conditional recognition to applicants while verifying qualifications, and may collect up to $500 per recognition application to fund administration (deposited into a revolving Treasury fund). The bill also requires an annual, disaggregated report to Congress on suspensions or denials of recognition.
- 4Penalties for unauthorized fees and enforcement: The act strengthens penalties for charging unauthorized fees (fines, possible imprisonment) and provides for revocation of recognition if violations occur during conditional recognition, including escalating bar periods for subsequent violations. Fines go to the federal fund established under the act.
- 5Regulation and preemption: Regulations to implement these changes must be issued within 180 days; the act preempts state laws that conflict with its provisions, ensuring uniform federal standards for fee-based representation in VA initial claims.