An Act to amend the Federal Tort Claims Act to authorize increased agency consideration of, tort claims against the Government, and for other purposes
PL 89-506 (H.R.13650), enacted 07/18/1966

306 
PUBLIC LAW 89-506-JULY 18, 1966 
[80 STAT. 
July 18, 1966 
[H. R. 13650] 
Public Law 89-506 
AN ACT 
To amend the Federal Tort Claims Act to authorize increased agency consider-
ation of tort claims against the Government, and for other purposes. 
Federal Tort 
Claims Act, 
amendment. 
63 Stat. 62; 
73 Stat. 471. 
Finality of 
award. 
62 Stat. 983. 
Payment of 
award. 
Disposition by 
Federal agency 
as prerequisite. 
28 u s e app. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress asserribled^ (a) That the jfirst 
paragraph of section 2672 of title 28, United States Code, is amended 
to read as follows: 
"The head of each Federal agency or his designee, in accordance 
with regulations prescribed by the Attorney General, may consider, 
ascertain, adjust, determine, compromise, and settle any claim for 
money damages against the United States for injury or loss of prop-
erty or personal injury or death caused by the negligent or wrongful 
act or omission of any employee of the agency while acting within the 
scope of his office or employment, under circumstances where the 
United States, if a private person, would be liable to the claimant in 
accordance with the law of the place where the act or omission oc-
curred: Provided^ That any award, compromise, or settlement in ex-
cess of $25,000 shall be effected only with the prior written approval of 
the Attorney General or his designee." 
(b) The second paragraph of section 2672 of title 28, United States 
Code, is amended to read as follows: 
"Subject to the provisions of this title relating to civil actions on 
tort claims against the United States, any such award, compromise, 
settlement, or determination shall be final and conclusive on all officers 
of the Government, except when procured by means of fraud." 
(c) The third paragraph of section 2672 of title 28, United States 
Code, is amended to read as follows: 
"Any award, compromise, or settlement in an amount of $2,500 or 
less made pursuant to this section shall be paid by the head of the Fed-
eral agency concerned out of appropriations available to that agency^. 
Payment of any award, compromise, or settlement in an amount m 
excess of $2,500 made pursuant to this section or made by the Attorney 
General in any amount pursuant to section 2677 of this title shall be 
paid in a manner similar to judgments and compromises in like causes 
and appropriations or funds available for the payment of such judg-
ments and compromises are hereby made available for the payment 
of awards, compromises, or settlements under this chapter." 
SEC. 2. (a) Subsection (a) of section 2675 of title 28, United States 
Code, is amended to read as follows: 
"(a) An action shall not be instituted upon a claim against the 
United States for money damages for injury or loss of property or 
personal injury or death caused by the negligent or wrongful act or 
omission of any employee of the Government while acting within the 
scope of his office or employment, unless the claimant shall have first 
presented the claim to the appropriate Federal agency and his claim 
shall have been finally denied by the agency in writing and sent by 
certified or registered mail. 
The failure of an agency to make filial 
disposition of a claim within six months after it is filed shall, at the 
option of the claimant any time thereafter, be deemed a final denial 
of the claim for purposes of this section. The provisions of this sub-
section shall not apply to such claims as may be asserted under the 
Federal Rules of Civil Procedure by third party complaint, cross-claim, 
or counterclaim." 
(b) Subsection (b) of section 2675 of title 28, United States Code, 
is amended by deleting the first sentence thereof. 
80 STAT.] 
PUBLIC LAW 89.506-JULY 18, 1966 
307 
SEC. 3. Section 2677 of title 28, United States Code, is amended to 
read as follows : 
"The Attorney General or his designee may arbitrate, compromise, 
or settle any claim cognizable under section 1346(b) of this title, after 
the commencement of an action thereon." 
SEC. 4. The first paragraph of section 2678 of title 28, United States 
Code, is amended to read as follows: 
"No attorney shall charge, demand, receive, or collect for services 
rendered, fees in excess of 25 per centum of any judgment rendered 
pursuant to section 1346 (b) of this title or any settlement made pur-
suant to section 2677 of this title, or in excess of 20 per centum of any 
award, compromise, or settlement made pursuant to section 2672 of 
this title." 
SEC. 5. (a) Subsection (b) of section 2679 of title 28, United States 
Code, is amended to read as follows: 
"(b) The remedy against the United States provided by sections 
1346(b) and 2672 of this title for injury or loss of property or per-
sonal injury or death, resulting from the operation by any employee 
of the Government of any motor vehicle while acting within the scope 
of his office or employment, shall hereafter be exclusive of any other 
civil action or proceeding by reason of the same subject matter against 
the employee or his estate whose act or omission gave rise to the claim." 
(b) Subsection (a) of section 4116 of title 38, United States Code, 
is amended to read as follows: 
"(a) The remedy against the United States provided by sections 
1346(b) and 2672 of title 28 for damages for personal injury, includ-
ing death allegedly arising from malpractice or negligence of a 
physician, dentist, nurse, pharmacist, or paramedical (for example, 
medical and dental technicians, nursing assistants, and therapists) or 
other supporting personnel in furnishing medical care or treatment 
while in the exercise of his duties in or for the Department of Medicine 
and Surgery shall hereafter be exclusive of any other civil action or 
proceeding by reason of the same subject matter against such phy-
sician, dentist, nurse, pharmacist, or paramedical or other supporting 
personnel (or his estate) whose act or omission gave rise to such 
claim." 
SEC. 6. Section 1302 of the Act of July 27, 1956, as amended (70 
Stat. 694, 75 Stat. 416; 31 U.S.C. 724a), is further amended (1) by 
inserting a comma and the word "awards," after the word "judgments ' 
and before the word "and"; (2) by deleting the word "or" after the 
number "2414" and inserting in lieu thereof a comma; and (3) by 
inserting after the number "2517" the phrase ", 2672, or 2677". 
SEC. 7. Subsection (b) of section 2401 of title 28, United States 
Code, is amended to read as follows: 
"(b) a tort claim against the United States shall be forever barred 
unless it is presented in writing to the appropriate Federal agency 
within two years after such claim accrues or unless action is begun 
within six months after the date of mailing, by certified or registered 
mail, of notice of final denial of the claim by the agency to which it 
was presented." 
SEC. 8. The first sentence of section 2671 of title 28, United States 
Code, is amended to read as follows: "As used in this chapter and sec-
tions 1346(b) and 2401(b) of this title, the term 'Federal agency' 
includes the executive departments, the military departments, inde-
pendent establishments of the United States, and corporations pri-
marily acting as instrumentalities or agencies of the tjnited States, 
but does not include any contractor with the United States." 
Compromise. 
62 Stat. 984. 
63 Stat. 62. 
Attorney fees, 
penalty. 
28 u s e 2678. 
Ante. p. 30 6. 
Exclusiveness 
of remedy. 
Certain ma^lprac-
tice and negli-
gence suits. 
79 Stat. 1156. 
Judgments and 
compromise set-
tlements against 
U.S., appropria-
tions. 
Time for com-
mencing action. 
"Federal 
agency." 
308 
PUBLIC LAW 89-507-JULY 18, 1%6 
[80 STAT. 
Ante, p. 30 6. 
Effective date. 
SEC. 9. (a) The section heading of section 2672 of title 28, United 
States Code, is amended to read as follows: 
"§ 2672. Administrative adjustment of claims" 
(b) The analysis of chapter 171 of title 28, United States Code, 
immediately preceding section 2671 of such title, is amended by 
deleting the item 
"2672. Administrative adjustment of claims of $2,o00 ov less." 
and inserting in lieu thereof: 
•'2672. Administrative adjustment of claims." 
SEC. 10. This Act shall apply to claims accruing six months or more 
after the date of its enactment. 
Approved July 18, 1966. 
July 18, 1966 
[H. R. 14182] 
Public Law 89-507 
AN ACT 
To provide for judgments for costs against the United States. 
Judgments for 
costs against U.S. 
62 Stat. 973. 
75 Stat. 415; 
62 Stat. 979. 
Repeal. 
Applicability. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 2412 of 
title 28 of the United States Code is amended to read as follows: 
"Except as otherwise specifically provided by statute, a judgment 
for costs, as enumerated in section 1920 of this title but not including 
the fees and expenses of attorneys may be awarded to the prevailing 
party in any civil action brought by or against the United States or 
any agency or official of the United States acting in his official 
capacity, in any court having jurisdiction of such action. 
A judg-
ment for costs when taxed against the Government shall, in an amount 
established by statute or court rule or order, be limited to reimbursing 
in whole or in part the prevailing party for the costs incurred by him 
in the litigation. 
Payment of a judgment for costs shall be as pro-
vided in section 2414 and section 2517 of this title for the payment of 
judgments against the United States." 
SEC. 2. Section 2520(d) of title 28 of the United States Code is 
hereby repealed. 
SEC. 3. These amendments shall apply only to judgments entered 
in actions filed subsequent to the date of enactment of this Act. 
These 
amendments shall not authorize the reopening or modification of 
judgments entered prior to the enactment of this Act. 
Approved July 18, 1966. 
July 19, 1966 
[H.R. 13651] 
Public Law 89-508 
AN ACT 
To avoid unnecessary litigation by providing for the collection of claims of the 
United States, and for other purposes. 
Federal Claims 
Collection Act of 
1966. 
Definitions. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Federal Claims Collection Act of 1966". 
SEC. 2. In this Act— 
(a) "agency" means any department, office, commission, board, 
service. Government corporation, instrumentality, or other estab-
lishment or body in either the executive or legislative branch of 
the Federal Government;