SAFEGUARD Veterans Act of 2026
- Sponsor
- Rep. Pappas, Chris [D-NH-1]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Jun 23, 2026
Bottom line
The SAFEGUARD Veterans Act aims to protect veterans from predatory practices by re-criminalizing unauthorized fee charging for VA claims assistance and enhancing transparency and oversight of accredited representatives.
What it actually does
This bill reinstates criminal penalties for individuals who charge veterans unauthorized fees for assistance with Department of Veterans Affairs (VA) benefit claims, a practice that was previously criminalized but removed in 2006. It also mandates the VA to improve its system for accrediting representatives, provide clear warnings to veterans about unaccredited persons, and gather information on claimants who paid for assistance, alongside prohibiting robocalls to federal agencies for third-party claims.
Proponents argue
Proponents argue that the bill is crucial for protecting vulnerable veterans from exploitation by unaccredited individuals and companies that charge exorbitant fees for services that accredited Veterans Service Organizations (VSOs) or VA-accredited attorneys often provide for free or under strict fee regulations. They contend that the current system, lacking criminal penalties, has allowed a 'wild west' environment where veterans are defrauded, losing significant portions of their benefits.
Opponents contend
Potential opponents might argue that the bill could inadvertently restrict veterans' access to a broader range of assistance, especially if the VA's accreditation process is slow or burdensome. Some might contend that civil penalties or enhanced regulatory enforcement, rather than criminalization, would be more appropriate and less likely to deter legitimate, albeit unaccredited, assistance. Additionally, some may raise concerns about federal preemption of state laws.
The bill is moderately complex due to its legal amendments, but its core purpose is clear. An informed reader can understand its implications within a reasonable timeframe.
Section 2(a) of the bill, amending 38 U.S.C. 5905
Reinstatement of Criminal Penalties and Barring from Recognition for Unauthorized Fee Charging
This provision amends existing law to make it a criminal offense for any person to solicit, contract for, charge, or receive unauthorized fees for preparing, presenting, or prosecuting a claim for VA benefits. Violators face fines, up to one year imprisonment, or both. Additionally, first-time offenders are barred from VA recognition as an agent or attorney for one year, with subsequent violations leading to a 10-year bar.
Supporters argue
Supporters argue this is a critical deterrent against predatory actors who exploit veterans, ensuring that veterans receive benefits without losing a portion to illegal fees. It restores a protection that was removed, leading to a rise in such practices.
Critics contend
Some might argue that criminal penalties are overly harsh for what could be considered a regulatory violation, potentially leading to disproportionate enforcement. Others might worry about the definition of 'preparation, presentation, or prosecution' being too broad.
Tradeoffs
Balances the need to protect veterans from exploitation against concerns about potentially over-criminalizing certain forms of assistance or limiting access to support.
Section 2(a) of the bill, adding new subsection (c) to 38 U.S.C. 5905
Mandate for VA Recognition to Assist Claimants
This new subsection explicitly states that no person may assist a claimant with a VA benefit claim unless they are recognized by the Secretary as an agent or attorney under Chapter 59 of Title 38, or are acting under the direct supervision of such a recognized agent or attorney.
Section 2(a) of the bill, adding new subsection (d) to 38 U.S.C. 5905
Clarified Definition of Claims Assistance Activities
This subsection defines 'preparation, presentation, or prosecution' to mean 'any act associated with filing a claim or appeal for a benefit,' but explicitly excludes the provision of medical opinions or completion of disability benefits questionnaires by private medical professionals, and the preparation of expert opinions in support of a claim or appeal.
Section 2(b) and 2(c) of the bill
Mandated Rulemaking and Federal Supersession of State Laws
The bill requires the General Counsel of the VA to initiate a rulemaking process within 90 days to administer the amended Section 5905 and further define 'preparation, presentation, or prosecution.' It also explicitly states that the new federal provisions supersede any State or Freely Associated State laws regarding the recognition of agents/attorneys or fee agreements for VA claims.
Section 3(a) of the bill, amending 38 U.S.C. 5103A
Enhanced Claimant Notification and Public Database of Accredited Representatives
This provision requires the VA to notify unrepresented claimants about available accredited assistance and provide links to an online tool listing accredited, suspended, or excluded persons. It also mandates a public VA website for reporting unaccredited representatives and unauthorized fees. The online tool must be current quarterly and easily accessible.
Section 4 of the bill, amending 38 U.S.C. 5901(b)
Enhanced Warnings Against Predatory Practices on VA Portals
This section expands existing requirements for VA websites and online tools to issue warnings. It mandates that all public-facing VA websites and online tools issue warnings about individuals lacking VA recognition, the illegality of unauthorized fees, and a new message discouraging veterans from sharing their VA or bank account login credentials. The Chief Veterans Experience Officer is tasked with carrying this out.
Section 5 of the bill
Collection of Data on Paid Claims Assistance
This section requires the VA to modify its claim forms to include a question asking if the claimant was charged for assistance or coaching when gathering information or filing the claim, and an option to name the person who provided such assistance.
Section 6 of the bill
Modernization of VA Accreditation System
This section mandates the VA to establish a new accreditation system for agents and attorneys that is 99.9% uptime, responsive, and accessible. This system must enable agents/attorneys to certify compliance, allow clients to file complaints and report violations (including those under the new criminal penalty section), and be integrated with the systems for promoting assistance from recognized persons (Section 3).
Section 7 of the bill, amending 47 U.S.C. 227(b)(1) of the Communications Act of 1934
Prohibition on Robocalls to Federal Agencies for Third-Party Claims
This section amends the Communications Act of 1934 to prohibit the use of automated telephone equipment (robocalls) to make calls to federal department or agency telephone numbers if the equipment has the capacity to make repeated calls and provide/receive information without human intervention, and is operated by an individual or entity other than the one to whom the call's information relates. This targets services that use bots to call the VA on behalf of veterans.
Explicitly states that the federal provisions regarding VA claims assistance and fee agreements supersede any conflicting state or freely associated state laws.
Section 2(c)
Why it matters:Standard legislative practice to include preemption clauses as separate subsections, but its broad impact on state authority might be overlooked by a casual reader focusing on the criminal penalties.
Case for: Proponents argue this ensures national uniformity in regulating VA claims assistance, preventing a patchwork of state laws that could create confusion or loopholes for predatory actors.
Case against: Critics might argue it infringes on states' rights to regulate professions and consumer protection within their borders, potentially overriding state laws that offer stronger protections in some cases.
Estimated impact: Significant, as it establishes federal supremacy over all state laws concerning VA claims representation and fees.
Amends 47 U.S.C. 227(b)(1) of the Communications Act of 1934 to prohibit robocalls to federal department or agency telephone numbers by third parties for claims-related information.
Section 7
Why it matters:Likely placed here because it's a technical amendment to an existing communications law to address a specific problem (robocalls to VA), rather than a core VA benefits policy change. Could be seen as a 'rider' or a less obvious but impactful addition.
Case for: Supporters argue it's a necessary step to reduce automated spamming of federal agency phone lines, improving access for human callers and combating a tactic often used by unaccredited claims companies.
Case against: Some might argue it could inadvertently impact legitimate services that use automation to assist veterans with navigating complex federal systems, even if they don't charge unauthorized fees.
Estimated impact: Reduces automated call volume to federal agencies, potentially impacting businesses that rely on such methods.