SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Litigation Savings Act''.

SEC. 2. MODIFICATION OF EQUAL ACCESS TO JUSTICE PROVISIONS.

    (a) Agency Proceedings.--Section 504 of title 5, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)----
                            (i) by inserting after the first sentence 
                        the following: ``Fees and other expenses may be 
                        awarded under this subsection only to a 
                        prevailing party who has a direct and personal 
                        interest in the adversary adjudication because 
                        of medical costs, property damage, 
                        determination of benefits, unpaid disbursement, 
                        fees and other expenses incurred in defense of 
                        the adjudication, interest in a policy 
                        concerning such medical costs, property damage, 
                        determination of benefits, unpaid disbursement, 
                        fees and other expenses, or otherwise.''; and
                            (ii) by adding at the end the following: 
                        ``The agency conducting the adversary 
                        adjudication shall make any party against whom 
                        the adjudication is brought, at the time the 
                        adjudication is commenced, aware of the 
                        provisions of this section.''; and
                    (B) in paragraph (3), in the first sentence--
                            (i) by striking ``may reduce'' and 
                        inserting ``shall reduce''; and
                            (ii) by striking ``unduly and 
                        unreasonably'' and inserting ``unduly or 
                        unreasonably'';
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A)(ii), by striking ``$125 per 
                hour'' and all that follows through the end and 
                inserting ``$200 per hour.);''; and
                    (B) in subparagraph (B)(ii), by striking ``; except 
                that'' and all that follows through ``section 601;'' 
                and inserting ``except that--
                    ``(I) the net worth of a party (other than an 
                individual or a unit of local government) shall include 
                the net worth of any parent entity or subsidiary of 
                that party; and
                    ``(II) for purposes of subclause (I)--
                            ``(aa) a `parent entity' of a party is an 
                        entity that owns or controls the equity or 
                        other evidences of ownership in that party; and
                            ``(bb) a `subsidiary' of a party is an 
                        entity the equity or other evidences of 
                        ownership in which are owned or controlled by 
                        that party;'';
            (3) in subsection (c)(1), by striking ``, United States 
        Code''; and
            (4) by adding at the end the following new subsection:
    ``(g) The Director of the Office of Management and Budget shall 
adjust the maximum hourly fee set forth in subsection (b)(1)(A)(ii) for 
the fiscal year beginning October 1, 2015, and for each fiscal year 
thereafter, to reflect changes in the Consumer Price Index, as 
determined by the Secretary of Labor.''.
    (b) Court Cases.--Section 2412(d) of title 28, United States Code, 
is amended--
            (1) by amending paragraph (1)(A) to read as follows: ``(A) 
        Except as otherwise specifically provided by statute, a court, 
        in any civil action (other than cases sounding in tort), 
        including proceedings for judicial review of agency action, 
        brought by or against the United States in any court having 
        jurisdiction of that action, shall award to a prevailing party 
        (other than the United States) fees and other expenses, in 
        addition to any costs awarded pursuant to subsection (a), 
        incurred by that party in the civil action, unless the court 
        finds that the position of the United States was substantially 
        justified or that special circumstances make an award unjust. 
        Fees and other expenses may be awarded under this paragraph 
        only to a prevailing party who has a direct and personal 
        interest in the civil action because of medical costs, property 
        damage, determination of benefits, unpaid disbursement, fees 
        and other expenses incurred in defense of the civil action, 
        interest in a policy concerning such medical costs, property 
        damage, determination of benefits, unpaid disbursement, fees 
        and other expenses, or otherwise.'';
            (2) in paragraph (1)(C)--
                    (A) by striking ``court, in its discretion, may'' 
                and inserting ``court shall''; and
                    (B) by striking ``unduly and unreasonably'' and 
                inserting ``unduly or unreasonably'';
            (3) in paragraph (2)--
                    (A) in subparagraph (A)(ii), by striking ``$125'' 
                and all that follows through the end and inserting 
                ``$200 per hour.);'';
                    (B) in subparagraph (B)(ii), by striking ``; except 
                that'' and all that follows through ``section 601 of 
                Title 5;'' and inserting ``except that--
                    ``(I) the net worth of a party (other than an 
                individual or a unit of local government) shall include 
                the net worth of any parent entity or subsidiary of 
                that party; and
                    ``(II) for purposes of subclause (I)--
                            ``(aa) a `parent entity' of a party is an 
                        entity that owns or controls the equity or 
                        other evidences of ownership in that party; and
                            ``(bb) a `subsidiary' of a party is an 
                        entity the equity or other evidences of 
                        ownership in which are owned or controlled by 
                        that party;''; and
            (4) by adding at the end the following:
    ``(5) The Director of the Office of Management and Budget shall 
adjust the maximum hourly fee set forth in paragraph (2)(A)(ii) for the 
fiscal year beginning October 1, 2015, and for each fiscal year 
thereafter, to reflect changes in the Consumer Price Index, as 
determined by the Secretary of Labor.''.
    (c) Clerical Amendments.--Section 2412 of title 28, United States 
Code, is amended--
            (1) in subsection (d)(3), by striking ``United States 
        Code,''; and
            (2) in subsection (e)--
                    (A) by striking ``of section 2412 of title 28, 
                United States Code,'' and inserting ``of this 
                section''; and
                    (B) by striking ``of such title'' and inserting 
                ``of this title''.
    (d) Effective Date.--
            (1) In general.-- Subject to paragraph (2), this Act and 
        the amendments made by this Act shall take effect on the date 
        of the enactment of this Act.
            (2) Applicability of certain amendments.--The amendments 
        made by subsections (a) and (b) shall first apply with respect 
        to awards of fees and other expenses that are made under 
        section 504 of title 5, United States Code, or section 2412(d) 
        of title 28, United States Code, on or after the date of the 
        enactment of this Act.
Government Litigation Savings Act - Revises provisions of the Equal Access to Justice Act (EAJA) and the federal judicial code relating to the fees and other expenses of parties in agency proceedings and court cases against the federal government. Restricts awards of fees and other expenses under EAJA to prevailing parties with a direct and personal interest in an adjudication, including because of medical costs, property damage, determination of benefits, an unpaid disbursement, and other expenses of adjudication, or because of a policy interest. Requires (currently, authorizes) the reduction or denial of an award if the party during the course of the proceedings engaged in conduct which unduly or unreasonably (currently, unduly and unreasonably) protracted the final resolution of the matter in controversy. Increases to $200 per hour the cap on attorney fees awarded under EAJA and eliminates the cost-of-living and special factor considerations for allowing an increase in the hourly rate for such fees.  Eliminates the net worth exemption for determining eligibility for fees and expenses under EAJA for tax-exempt organizations and cooperative associations under the Agricultural Marketing Act.
Government Litigation Savings Act