An Act to Provide for Judgment for costs against the United States
PL 89-507 (H.R.14182), enacted 07/18/1966

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hereby repealed.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; 
80 STAT. ] 
PUBLIC LAW 89-508-JULY 19, 1966 
309 
(b) "head of an agency'' includes, where applicable, commis-
sion, board, or other group of individuals having the decision-
making responsibility for the agency. 
SEC, 3. (a) The head of an agency or his designee, pursuant to 
u.s. claims, 
regulations prescribed by him and in conformity with such standards '^° ^^ '°"-
as may be promulgated jointly by the Attorney General and the Comp-
troller General, shall attempt collection of all claims of the United 
States for money or property arising out of the activities of, or 
referred to, his agency. 
(b) with respect to such claims of the United States that have not 
been referred to another agency, including the General Accounting 
Office, for further collection action and that do not exceed $20,000, 
exclusive of interest, the head of an agency or his designee, pursuant 
to regulations prescribed by him and in conformity with such stand-
ards as may be promulgated jointly by the Attorney General and the 
Comptroller General, may (1) compromise any such claim, or (2) 
cause collection action on any such claim to be terminated or suspended 
where it afjpears that no person liable on the claim has the present 
or prospective financial ability to pay any significant sum thereon or 
that the cost of collecting the claim is likely to exceed the amount of 
recovery. 
The Comptroller General or his designee shall have the 
foregoing authority with respect to claims referred to the General 
Accounting Office by another agency for further collection action. 
The head of an agency or his designee shall not exercise the foregoing 
authority with respect to a claim as to which there is an indication of 
fraud, the presentation of a false claim, or misrepresentation on the 
part of the debtor or any other party having an interest in the claim, 
or a claim based in whole or in part on conduct in violation of the 
antitrust laws; nor shall the head of an agency, other than the Comp-
troller General of the United States, have authority to compromise a 
claim that arises from an exception made by the General Accounting 
Office in the account of an accountable officer. 
(c) A compromise effected pursuant to authority conferred by sub-
section (b) of this section shall be final and conclusive on the debtor 
and on all officials, agencies, and courts of the United States, except if 
procured by fraud, misrepresentation, the presentation of a false 
claim, or mutual mistake of fact. 
No accountable officer shall be liable 
for any amount paid or for the value of property lost, damaged, or 
destroyed, w^here the recovery of such amount or value may not be had 
because of a compromise with a person primarily responsible under 
subsection (b). 
SEC. 4. Nothing in this Act shall increase or diminish the existing 
authority of the head of an agency to litigate claims, or diminish his 
existing authority to settle, compromise, or close claims. 
SEC. 5. This Act shall become effective on the one hundred and 
Effective date. 
eightieth day following the date of its enactment. 
Approved July 19, 1966.