H.R. 3132, Certified Help Options in Claims Expertise for Veterans Act of 2025

Bill Summary

H.R. 3132 would require the Department of Veterans Affairs (VA) to inform veterans and their survivors about organizations and people, such as attorneys and agents, that are accredited by the department to help them claim VA benefits. The bill also would establish a new accreditation process for people who assist applicants with filing claims for VA benefits. Finally, the bill would extend the reduction of pension payments for veterans and survivors who reside in Medicaid nursing homes.

Estimated Federal Cost

The estimated budgetary effects of H.R. 3132 are shown in Table 1. The costs of the legislation fall within budget functions 550 (health) and 700 (veterans benefits and services).

Basis of Estimate

For this estimate, CBO assumes that H.R. 3132 will be enacted in fiscal year 2025 and that outlays will follow historical spending patterns for affected programs.

Provisions that Affect Spending Subject to Appropriation and Direct Spending

Section 2 would require VA to provide additional information about organizations and people that are accredited by the department to help veterans and their survivors claim benefits. Specifically, VA must:

• Notify applicants about VA-accredited representation if their initial applications do not indicate that they have such representation,
• Provide information about limitations on fees that potential representatives may charge applicants on each VA web page through which those applicants may file benefit claims, and
• Maintain an online tool that allows people claiming VA benefits to search for accredited representatives who may assist with those claims.

CBO anticipates that VA would require additional information technology (IT) resources to notify claimants who lack representation that such assistance is available and to update the department’s website with information about fee limitations. Using information from VA, CBO estimates that it would cost $15 million over the 2025-2035 period to upgrade and maintain the department’s IT system. VA maintains a web portal through which claimants can search for accredited representation for benefit claims. Thus, that requirement would have no budgetary effect.

CBO expects that some of the costs of implementing the bill would be paid from the Toxic Exposures Fund (TEF) established by Public Law 117-168, the Honoring our PACT Act. The TEF is a mandatory appropriation that VA uses to pay for health care, disability claims processing, medical research, and IT modernization that benefit veterans who were exposed to environmental hazards. Additional spending from the TEF would occur if legislation increases the costs of similar activities that benefit veterans with such exposure. Thus, in addition to increasing spending subject to appropriation, enacting section 2 would increase amounts paid from the TEF, which are classified as direct spending.

CBO projects that the proportion of costs paid by the TEF will grow over time based on the amount of formerly discretionary appropriations that CBO expects will be provided through the mandatory appropriation as specified in the Honoring our PACT Act.[1] CBO estimates that over the 2025-2035 period, implementing section 2 would increase spending subject to appropriation by $11 million and direct spending by $4 million. Most of those costs would occur within a few years of the bill’s enactment.

Direct Spending and Revenues

In addition to expanding benefits that would partly be covered by the TEF, the bill would affect direct spending by reducing pension payments to veterans and survivors who reside in Medicaid nursing homes. The bill also would establish a new accreditation program for organizations and people that help claimants for VA benefits. In total, the bill would decrease net direct spending by $16 million over the 2025-2035 period (See Table 2).

Pensions. Under current law, VA reduces pension payments to veterans and survivors who reside in Medicaid nursing homes to $90 per month. That required reduction expires November 30, 2031. Section 8 would extend that reduction for five months, through April 30, 2032. CBO estimates that extending that requirement would reduce VA benefits by $10 million per month. (Those benefits are paid from mandatory appropriations and are therefore considered direct spending.) As a result of that reduction in beneficiaries’ income, Medicaid would pay more of the cost of their care, increasing spending for that program by $6 million per month. Thus, enacting section 8 would reduce net direct spending by $20 million over the 2025-2035 period.

Accreditation Process. H.R. 3132 would establish a new process for accrediting attorneys and agents to represent veterans and survivors who claim VA benefits. Under the bill, VA would be required to process applications within 180 days or temporarily accredit people whose applications are not processed in that time frame. The bill would authorize VA to charge applicants a fee of up to $500 for processing the application. Under current law, no guidelines exist concerning the time allotted to process applications for accreditation, and VA does not charge application fees.

Application fees would be available to cover the costs of administering the accreditation program. Because collecting and spending those fees would not require further appropriation, they would be classified as decreases and increases in direct spending. CBO estimates that fee receipts would offset spending for the administration of the program. Thus, administering the new accreditation program would decrease net direct spending by less than $500,000 over the 2025-2035 period, CBO estimates.

Fines. H.R. 3132 would permit accredited attorneys and agents to collect fees from veterans and their survivors for helping them file initial claims for benefits. Under current law, representatives may charge fees only to help appeal VA’s initial decision on a claim. The bill also would set limits on the fee amounts.

Section 4 would establish fines for unaccredited people who charge fees for assisting with VA benefits claims and for people who charge fees that exceed permitted amounts. The section also would establish fines of up to $50,000 for people who are conditionally accredited by VA to assist with claims for benefits that violate any laws concerning those claims. The bill would make those fines available for expenditure without further appropriation. Collected fines would be recorded as revenues and the subsequent spending would be classified as direct spending. Based on information from VA, CBO estimates that few people would pay fines under the bill. As a result, CBO estimates that enacting section 4 would increase revenues and direct spending by insignificant amounts and, on net, decrease deficits by less than $500,000 over the 2025‑2035 period.

Spending Subject to Appropriation

In addition to the $11 million in spending subject to appropriation for information technology improvements discussed above under the heading “Provisions that Affect Spending Subject to Appropriation and Direct Spending,” section 5 of the bill would require the Government Accountability Office to report to the Congress on VA’s processes for accrediting attorneys and agents. The report would be due within one year of enactment. Based on the cost of similar studies, CBO estimates that the report would cost $1 million to complete. Thus, implementing the bill would cost $12 million over the 2025-2035 period, subject to the appropriation of the estimated amounts.

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays and revenues that are subject to those pay-as-you-go procedures are shown in Table 1.

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting H.R. 3132 would not increase net direct spending by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2036.

CBO estimates that enacting H.R. 3132 would not increase on‑budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2036.

Mandates

H.R. 3132 would impose an intergovernmental mandate as defined in the Unfunded Mandates Reform Act (UMRA) by preempting state laws that regulate representation for veterans filing initial claims for benefits. CBO estimates that because the preemption would not result in additional expenditures or losses in revenues, it would not exceed the threshold established in UMRA for intergovernmental mandates ($103 million in 2025, adjusted annually for inflation). The legislation does not contain private-sector mandates as defined in UMRA.

Previous CBO Estimate

On May 16, 2025, CBO transmitted a cost estimate for H.R. 1578, the Veterans Claims Education Act of 2025, as ordered reported by the House Committee on Veterans’ Affairs on May 6, 2025. Section 2 of H.R. 3132 is similar to section 2 of H.R. 1578 and CBO’s estimates for both are the same.

Federal Costs: Logan Smith

Mandates: Brandon Lever

Estimate Reviewed By

David Newman
Chief, Defense, International Affairs, and Veterans’ Affairs Cost Estimates Unit

Kathleen FitzGerald 
Chief, Public and Private Mandates Unit

Christina Hawley Anthony
Deputy Director of Budget Analysis