(2) assess whether existing rating criteria accu-
rately reflect current medical standards and func-
tional impairment measures; and 
(3) recommend updates to ensure consistency, 
integrity, and fairness in disability determinations. 
(b) INTEGRATION
OF ARTIFICIAL INTELLIGENCE 
AND DATA ANALYTICS TOOLS.— 
(1) The Secretary shall, in consultation with 
the Inspector General of the Department of Vet-
erans Affairs and the Comptroller General of the 
United States, develop and implement a program 
utilizing data analytics and artificial intelligence sys-
tems to proactively identify irregularities or high- 
risk indicators within disability claims. 
(2) Such systems shall be modeled, to the ex-
tent practicable, after the Waste, Fraud, and Abuse 
Identification and Reporting system utilized by the 
Centers for Medicare & Medicaid Services. 
(3) All findings generated through automated 
or algorithmic processes shall be subject to human 
review and validation before any administrative or 
disciplinary action may be taken. 
(4) The Secretary shall ensure that the use of 
such systems respects all due process protections 
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and privacy safeguards afforded to claimants under 
Federal law. 
(c) COORDINATION AND OVERSIGHT.—The Secretary 
shall coordinate with the Office of Inspector General and 
the Government Accountability Office to— 
(1) evaluate the effectiveness of the tools de-
scribed in subsection (b); 
(2) identify risks of over-flagging or under-de-
tection of improper claims; and 
(3) recommend best practices to ensure bal-
anced oversight and prevention of misuse. 
(d) REPORTING REQUIREMENT.—Not later that 180 
days after the date of enactment of this Act, the Secretary 
shall submit to the Committees on Veterans’ Affairs and 
Oversight and Accountability of the House of Representa-
tives and the Committees on Veterans’ Affairs and Home-
land Security and Governmental Affairs of the Senate a 
report detailing— 
(1) the results of the review conducted under 
subsection (a); 
(2) vulnerabilities identified and corrective 
measures proposed; 
(3) the status of data analytics and artificial in-
telligence integration under subsection (b); and 
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(4) recommendations for further modernization 
of the disability rating process. 
SEC. 5. MANDATORY ETHICS AND FRAUD PREVENTION 
TRAINING. 
(a) REQUIREMENT FOR ANNUAL TRAINING.—Sub-
chapter II of chapter 77 of title 38, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 7735. Mandatory ethics and fraud prevention 
training 
‘‘(a) REQUIREMENT.—The Secretary shall require all 
employees of the Department to complete annual training 
on ethics, fraud prevention, and compliance with applica-
ble laws and regulations. 
‘‘(b) OVERSIGHT.—The Inspector General of the De-
partment shall oversee compliance with the training re-
quirement under subsection (a) and submit an annual re-
port to the Committees on Veterans’ Affairs of the Senate 
and House of Representatives on training completion rates 
and any identified deficiencies.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 77 of title 38, United States 
Code, is amended by inserting after the item relating to 
section 7734 the following new item: 
‘‘7735. Mandatory ethics and fraud prevention training.’’. 
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SEC. 6. REVIEW OF THE VA DISABILITY RATING SCHEDULE. 
(a) COMPREHENSIVE REVIEW.—The Secretary of 
Veterans Affairs shall conduct a comprehensive review of 
the Department of Veterans Affairs Schedule for Rating 
Disabilities to— 
(1) identify vulnerabilities to fraudulent, exag-
gerated, or duplicative claims; 
(2) assess whether existing rating criteria accu-
rately reflect current medical standards and func-
tional impairment measures; and 
(3) recommend updates to ensure consistency, 
integrity, and fairness in disability determinations. 
(b) INTEGRATION
OF ARTIFICIAL INTELLIGENCE 
AND DATA ANALYTICS TOOLS.— 
(1) The Secretary shall, in consultation with 
the Inspector General of the Department of Vet-
erans Affairs and the Comptroller General of the 
United States, develop and implement a program 
utilizing data analytics and artificial intelligence sys-
tems to proactively identify irregularities or high- 
risk indicators within disability claims. 
(2) Such systems shall be modeled, to the ex-
tent practicable, after the Waste, Fraud, and Abuse 
Identification and Reporting system utilized by the 
Centers for Medicare & Medicaid Services. 
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(3) All findings generated through automated 
or algorithmic processes shall be subject to human 
review and validation before any administrative or 
disciplinary action may be taken. 
(4) The Secretary shall ensure that the use of 
such systems respects all due process protections 
and privacy safeguards afforded to claimants under 
Federal law. 
(c) COORDINATION AND OVERSIGHT.—The Secretary 
shall coordinate with the Office of Inspector General and 
the Government Accountability Office to— 
(1) evaluate the effectiveness of the tools de-
scribed in subsection (b); 
(2) identify risks of over-flagging or under-de-
tection of improper claims; and 
(3) recommend best practices to ensure bal-
anced oversight and prevention of misuse. 
(d) REPORTING REQUIREMENT.—Not later than 180 
days after the date of enactment of this Act, the Secretary 
shall submit to the Committees on Veterans’ Affairs and 
Oversight and Accountability of the House of Representa-
tives and the Committees on Veterans’ Affairs and Home-
land Security and Governmental Affairs of the Senate a 
report detailing— 
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(1) the results of the review conducted under 
subsection (a); 
(2) vulnerabilities identified and corrective 
measures proposed; 
(3) the status of data analytics and artificial in-
telligence integration under subsection (b); and 
(4) recommendations for further modernization 
of the disability rating process. 
Æ 
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