A BILL 
To amend title 38, to direct the Secretary of Veterans Affairs 
to use an information technology system to detect fraud, 
waste, and abuse regarding claims for payment sub-
mitted to the Secretary under the Veterans Community 
Care Program. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Forcing Real Account-
ability for Unlawful Distributions Act of 2025’’ or the 
‘‘FRAUD Act of 2025’’. 
SEC. 2. DETECTION OF FRAUD, WASTE, AND ABUSE IN PRO-
GRAMS OF THE VETERANS HEALTH ADMINIS-
TRATION. 
(a) IN GENERAL.—Subchapter I of chapter 17 of title 
38, United States Code, is amended by inserting after sec-
tion 1706A the following new section (and amending the 
table of sections at the beginning of such chapter accord-
ingly): 
‘‘§ 1706B. Management of health care: detection of 
fraud, waste, and abuse 
‘‘(a) IN GENERAL.—To detect fraud, waste, and abuse 
in programs of the Veterans Health Administration, the 
Secretary shall use processes and systems, including the in-
formation technology system described in subsection (b), 
to— 
‘‘(1) analyze a claim submitted to the Secretary 
by a health care entity or provider that furnishes hos-
pital care, medical services, or extended care services 
under this chapter; and 
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‘‘(2) reanalyze a claim, described in paragraph 
(1) that the Secretary determines may be fraudulent, 
after paying such claim. 
‘‘(b) INFORMATION TECHNOLOGY SYSTEM.—The infor-
mation technology system described in this subsection shall 
include the following functions: 
‘‘(1) Continuous monitoring of claims to detect 
patterns that may indicate fraud, waste, or abuse. 
‘‘(2) Analysis of historical and real-time claims 
data to identify and predict potential fraudulent 
claims. 
‘‘(3) Ready-made analytic models to identify 
and analyze fraudulent claims. 
‘‘(4) Post-payment analysis for overuse of serv-
ices or other practices that create unnecessary costs to 
the Department. 
‘‘(5) Integration with existing claims processing 
systems and technologies of the Department. 
‘‘(6) Logging, storage, analysis, and reports re-
garding the nature, frequency, and financial impact 
of detected fraudulent claims. 
‘‘(7) Identification of, and machine learning that 
is based on, patterns of fraudulent claims in order to 
reduce false positives and predict new forms of fraud. 
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‘‘(8) Updates to detect new models of fraud, 
waste and abuse. 
‘‘(9) Any other function determined necessary by 
the Secretary. 
‘‘(c) USE OF FRANCHISE FUND.—To carry out this 
section, the Secretary shall use funds from the Department 
of Veterans Affairs franchise fund established under title I 
of Public Law 104–204 (38 U.S.C. 301 note). 
‘‘(d) REPORT.—Not later than two years after the date 
of the enactment of the FRAUD Act of 2025, and annually 
thereafter for five additional years, the Secretary shall sub-
mit to the Committees on Veterans’ Affairs of the Senate 
and House of Representatives a report regarding the oper-
ation of the processes and systems under subsection (a) dur-
ing the preceding year. Each such report shall include the 
determination of the Secretary regarding the following ele-
ments: 
‘‘(1) The effectiveness of such processes and sys-
tems in detecting fraud, waste, and abuse described in 
subsection (a). 
‘‘(2) The estimated savings to the Department 
arising from the use of such processes and systems. 
‘‘(3) Any plans to enhance, modify, or add new 
capabilities to such processes and systems.’’. 
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(b) IMPLEMENTATION DATE.—The Secretary of Vet-
erans Affairs shall carry out section 1706B of such title, 
as added by subsection (a), not later than one year after 
the date of the enactment of this Act. 
SEC. 3. EXTENSION OF CERTAIN LIMITS ON PAYMENT OF 
PENSION. 
Section 5503(d)(7) of title 38, United States Code, is 
amended by striking ‘‘November 30, 2031’’ and inserting 
‘‘January 30, 2034’’. 
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Union Calendar No. 300 
119TH CONGRESS 
1ST SESSION 
H. R. 3483 
[Report No. 119–348] 
A BILL 
To amend title 38, to direct the Secretary of Vet-
erans Affairs to use an information technology 
system to detect fraud, waste, and abuse regard-
ing claims for payment submitted to the Sec-
retary under the Veterans Community Care Pro-
gram. 
OCTOBER 21, 2025 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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