SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Preserving Lawful Uti-
lization of Services for Veterans Act of 2025’’ or the 
‘‘PLUS for Veterans Act of 2025’’. 
SEC. 2. CLARIFICATION OF PREPARATION, PRESENTATION, 
OR PROSECUTION OF A CLAIM UNDER A LAW 
ADMINISTERED 
BY 
SECRETARY 
OF 
VET-
ERANS AFFAIRS. 
Section 5901 of title 38, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(c) EXCLUSION.—The administration of a medical 
examination, or the completion of a report with respect 
to such medical examination, as described in section 5125 
of this title, shall not constitute the preparation, presen-
tation, or prosecution of a claim under the laws adminis-
tered by the Secretary.’’. 
SEC. 3. AGENTS AND ATTORNEYS IN CERTAIN CLAIMS 
UNDER LAWS ADMINISTERED BY SECRETARY 
OF VETERANS AFFAIRS: APPLICATIONS FOR 
RECOGNITION; FEES ALLOWABLE FOR REP-
RESENTATION; GROUNDS FOR SUSPENSION; 
BARS FROM RECOGNITION. 
(a) IN GENERAL.—Section 5904 of title 38, United 
States Code, is amended— 
(1) in subsection (a)— 
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(A) in paragraph (1)— 
(i) by inserting ‘‘(A)’’ before ‘‘Ex-
cept’’; and 
(ii) by adding at the end the following 
new subparagraphs: 
‘‘(B)(i) An individual desiring recognition under this 
section shall submit to the Secretary an application, in-
cluding an application submitted by mail, fax, or electronic 
means, in such form, at such time, and containing such 
information and assurances as the Secretary has deter-
mined appropriate to recognize such individual under this 
section. 
‘‘(ii) If the Secretary cannot verify whether the indi-
vidual satisfies the qualifications and standards prescribed 
under paragraph (2) before the 90-day period beginning 
after the date on which the Secretary receives an applica-
tion under clause (i), the Secretary shall recognize the in-
dividual on a conditional and temporary basis for a one- 
year period. 
‘‘(iii) At the end of such one-year period, the Sec-
retary shall recognize the individual on a conditional and 
temporary basis for such additional one-year periods until 
the date on which the Secretary can verify whether the 
individual satisfies such qualifications and standards. 
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‘‘(C) The Secretary may not suspend, exclude from 
further practice before the Department, fine pursuant to 
section 5905 of this title, or refuse to recognize as an 
agent or attorney under this section any individual on the 
basis that such individual, before the date of the enact-
ment of this subparagraph— 
‘‘(i) charged a claimant a fee for services ren-
dered in the preparation, presentation, or prosecu-
tion of an initial claim; or 
‘‘(ii) charged a claimant a fee for such services 
while such individual was not recognized under this 
section.’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(7)(A) The Secretary may charge and collect an as-
sessment from an individual who— 
‘‘(i) seeks recognition under this section as an 
agent or attorney for the preparation, presentation, 
and prosecution of an initial claim under the laws 
administered by the Secretary; and 
‘‘(ii) charges or collects fees from a claimant for 
services rendered in such preparation, presentation, 
and prosecution. 
‘‘(B) An assessment described in subparagraph (A)— 
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‘‘(i) shall be in such amount as the Secretary 
prescribes in regulations and determines appro-
priate; and 
‘‘(ii) may not exceed $500. 
‘‘(C) Amounts collected under this paragraph shall 
be deposited in a revolving fund in the Treasury of the 
United States. Such amounts shall be available to the Sec-
retary for the administration of this section.’’; 
(2) in subsection (b)— 
(A) 
by 
redesignating 
paragraphs 
(1) 
through (9) as subparagraphs (A) through (I), 
respectively; 
(B) in the matter preceding subparagraph 
(A), as so redesignated, by inserting ‘‘(1)’’ be-
fore ‘‘The Secretary’’; and 
(C) in paragraph (1), as designated by 
paragraph (2)— 
(i) in subparagraph (H), as so redes-
ignated, by striking ‘‘in accordance with 
subsection (c)(3)(A) ; or’’ and inserting 
‘‘subsection (c)(2)(A)’’; 
(ii) in subparagraph (I), as so redesig-
nated, by striking the period at the end 
and inserting ‘‘; or’’; and 
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(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(J) has failed to keep claimant data and 
personally identifiable information in accord-
ance with applicable provisions of the Health 
Insurance Portability and Accountability Act of 
1996 (Public Law 104–191; 42 U.S.C. 1301 et 
seq.), including the data security requirements 
and implementing regulations of such Act.’’; 
and 
(D) by adding at the end the following new 
paragraph: 
‘‘(2) Not later than one year after the date of the 
enactment of the Preserving Lawful Utilization of Services 
for Veterans Act of 2025 and annually thereafter, the Sec-
retary shall submit to the Committees on Veterans’ Affairs 
of the Senate and House of Representatives a report re-
garding the number of individuals suspended under this 
subsection or denied recognition under subsection (a), 
disaggregated by the reasons for such suspension or denial 
and whether the individual is— 
‘‘(A) a representative of an organization recog-
nized under section 5902 of this title; 
‘‘(B) an agent; or 
‘‘(C) an attorney.’’; and 
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(3) in subsection (c)— 
(A) by inserting ‘‘FLAT
FEE
AGREE-
MENTS.—’’ after ‘‘(c)’’; 
(B) by striking paragraph (1) and insert-
ing the following: 
‘‘(1)(A) In connection with a proceeding before the 
Department with respect to benefits under laws adminis-
tered by the Secretary, a fee agreement between a claim-
ant and an agent or attorney for the preparation, presen-
tation, or prosecution of an initial claim for such benefits 
shall be a fee agreement described in subparagraph (B). 
‘‘(B)(i) A fee agreement described in this subpara-
graph is a fee agreement— 
‘‘(I) that does not require payment from a 
claimant to the agent or attorney before the date on 
which the claimant is provided notice of the agency 
of original jurisdiction’s initial decision under section 
5104 of this title with respect to the initial claim; 
‘‘(II) under which the total amount payable by 
the claimant to the agent or attorney with respect 
to the initial claim— 
‘‘(aa) is contingent on whether the initial 
claim is resolved in a manner favorable to the 
claimant; 
‘‘(bb) does not exceed the lesser of— 
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‘‘(AA) $12,500 (as adjusted from 
time to time under subparagraph (C)); or 
‘‘(BB) the amount equal to the prod-
uct of five and the amount of the monthly 
increase of benefits awarded to the claim-
ant pursuant to the claim; and 
‘‘(III) that contains an attestation by the claim-
ant that the agent or attorney provided to the claim-
ant the standard form under clause (iii). 
‘‘(ii) For purposes of this subparagraph, an initial 
claim shall be considered to have been resolved in a man-
ner favorable to the claimant if all or any part of the relief 
sought pursuant to the claim is granted. 
‘‘(iii) For use in fee agreements described in this sub-
paragraph, the Secretary shall develop a standard form 
that includes the following notices: 
‘‘(I) That organizations recognized under sec-
tion 5902 of this title furnish services with respect 
to initial claims under laws administered by the Sec-
retary at no cost to claimants. 
‘‘(II) That a claimant may select a private phy-
sician for a medical examination described in section 
5125 of this title regarding the initial claim. 
‘‘(III) That the agent or attorney with whom 
the claimant is entering such fee agreement may not 
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(b) REGULATIONS.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary shall 
prescribe regulations to carry out the amendments made 
by this section. 
SEC. 4. REINSTATEMENT OF PENALTIES FOR CHARGING 
VETERANS UNAUTHORIZED FEES RELATING 
TO CLAIMS UNDER LAWS ADMINISTERED BY 
THE SECRETARY OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Section 5905 of title 38, United 
States Code, is amended— 
(1) in the heading, by striking ‘‘Penalty’’ and 
inserting ‘‘Penalties’’; 
(2) by inserting ‘‘(a) WITHHOLDING OF BENE-
FITS.—’’ before ‘‘Whoever’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(b) CHARGING OF UNAUTHORIZED FEES.—Except 
as provided in sections 5904 or 1984 of this title, whoever 
directly or indirectly solicits, contracts for, charges, or re-
ceives, or attempts to solicit, contract for, charge, or re-
ceive, any fee or compensation with respect to the prepara-
tion, presentation, or prosecution of any claim for benefits 
under the laws administered by the Secretary shall be 
fined as provided in title 18, or imprisoned not more than 
one year, or both. 
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‘‘(c) VIOLATIONS DURING CONDITIONAL AND TEM-
PORARY RECOGNITION.—If an individual recognized as an 
agent or attorney on a conditional and temporary basis 
pursuant to clause (ii) or (iii) of section 5904(a)(1)(B) 
of this title violates any law or regulation administered 
by the Secretary under this chapter on or after the date 
on which such individual is so recognized— 
‘‘(1) the Secretary shall, after notice, revoke the 
conditional and temporary recognition of the indi-
vidual; and 
‘‘(2) such individual, after notice and oppor-
tunity for a hearing, shall be— 
‘‘(A) fined $50,000; and 
‘‘(B) barred from recognition under section 
5904 of this title— 
‘‘(i) for a period of one year beginning 
on the date of the first violation; and 
‘‘(ii) for a period of 10 years begin-
ning on the date of each subsequent viola-
tion. 
‘‘(d) DEPOSIT OF FINES.—Any amount received by 
the Federal Government from a fine imposed under sub-
section (b) or (c) shall be deposited in the fund established 
by section 5904(a)(7)(C) of this title.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 59 of such title is amended 
by striking the item relating to section 5905 and inserting 
the following new item: 
‘‘5905. Penalties for certain acts.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date that is 90 days 
after the date on which the Secretary prescribes the regu-
lations required by subsection (b) of section 3. 
SEC. 5. FEDERAL PREEMPTION. 
This Act, and the amendments made by this Act, su-
persede any State law that is inconsistent with the statu-
tory rights established by this Act, or such amendments, 
and preclude the implementation of such a law, whether 
statutory, common law, or otherwise, and whether adopted 
before or after the date of enactment of this Act. 
Æ 
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