HR 1663 · 119th Congress

VSAFE Act of 2025

veterans benefitsfraud preventionidentity theftDepartment of Veterans Affairs
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Last action 2026-01-26

Sponsored by Rep. Calvert, Ken [R-CA-41] (R) — CA

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Would create a Veterans Scam and Fraud Evasion Officer inside the Department of Veterans Affairs to coordinate fraud prevention, reporting, and incident response — while drawing on existing VA staff rather than adding new positions. The office would sunset on September 30, 2030.

The bill also makes a minor extension to a statutory deadline governing limits on pension payments under title 38, pushing the cutoff from January 31, 2033, to March 31, 2033.

What this bill would do

What it would do

The bill would add a new section to title 38 of the U.S. Code creating a Veterans Scam and Fraud Evasion Officer within the Department of Veterans Affairs. The officer would serve as a central point of contact directing veterans to anti-fraud resources, develop consistent guidance for VA employees and veterans' families on recognizing and reporting scams, promote the VSAFE Fraud Hotline and VSAFE.gov, and build internal training programs. The officer would also monitor fraud metrics and coordinate with a broad list of federal agencies — including the IRS, DOJ, CFPB, and Department of Defense — to support a whole-of-government fraud prevention approach.

The bill explicitly prohibits the VA from increasing the number of authorized full-time employees to fill this role, meaning it must be staffed from existing personnel. The officer's authorities would automatically expire on September 30, 2030. Separately, the bill would extend a date-specific deadline in the pension-payment-limits provision at 38 U.S.C. § 5503(d)(7) by two months, from January 31 to March 31, 2033.

Key provisions

  1. 1Would establish a Veterans Scam and Fraud Evasion Officer in the VA responsible for fraud and scam prevention, reporting, and incident response plans.Sec. 2
  2. 2Would require the officer to serve as a central point of contact directing veterans, families, caregivers, and survivors to anti-fraud resources, including the VSAFE Fraud Hotline and VSAFE.gov.Sec. 2
  3. 3Would require the officer to develop consistent fraud-identification guidance and comprehensive training plans for VA employees who handle fraud inquiries.Sec. 2
  4. 4Would require the officer to coordinate with the Inspector General and a specified list of federal agencies to develop a whole-of-government fraud prevention approach at the VA.Sec. 2
  5. 5Prohibits the bill from authorizing any increase in the VA's authorized number of full-time employees to staff the new officer role.Sec. 2
  6. 6Sets a sunset date of September 30, 2030, after which all requirements and authorities of the VSAFE Officer would terminate.Sec. 2
  7. 7Would extend the statutory deadline in the pension-payment-limits provision of title 38 by two months, from January 31, 2033, to March 31, 2033.Sec. 3

Who would be affected

Veterans, their families, caregivers, and survivors who may be targeted by fraud or scams and who would benefit from improved VA guidance and resource referrals. VA employees who handle fraud inquiries would receive new training. Federal agencies listed as coordination partners — including the IRS, DOJ, CFPB, and Social Security Administration — would interact with the new officer. Veterans service organizations and state, local, and tribal governments are also included as consultees.

Why it matters

Veterans are disproportionately targeted by identity theft and financial scams. A dedicated VA officer with cross-agency coordination duties and a mandate to track fraud trends could centralize resources and close gaps in current reporting and response. The prohibition on new full-time hires, however, means the office's effectiveness would depend on how existing staff capacity is reallocated. The automatic 2030 sunset means Congress would need to act to make it permanent.

What would change

Changes to existing law

Creates Title 38, United States Code, Chapter 3 (Sec. 2)

Adds new section 326 establishing the Veterans Scam and Fraud Evasion Officer with defined responsibilities, a no-new-FTE constraint, and a 2030 sunset.

Amends 38 U.S.C. § 5503(d)(7) (Sec. 3)

Extends the statutory deadline governing certain limits on pension payments by two months, replacing 'January 31, 2033' with 'March 31, 2033'.

Agencies directed to act

Department of Veterans AffairsOffice of Inspector General of the Department of Veterans AffairsExecutive Office of the PresidentOffice of Management and BudgetInternal Revenue ServiceDepartment of JusticeDepartment of StateConsumer Financial Protection BureauDepartment of DefenseDepartment of EducationSocial Security Administration

Effective dates

  • All VSAFE Officer requirements and authorities terminateSec. 22030-09-30

Funding and costs

Congressional Budget Office estimate

CBO estimates H.R. 1663 would increase discretionary spending by $12 million and reduce direct (mandatory) spending by $8 million over the 2025–2035 period, for a net cost of $4 million over that window.

CBO estimates that H.R. 1663, the Veterans Scam and Fraud Evasion Act of 2025, would increase spending subject to appropriation (discretionary spending that Congress must annually fund) by $12 million over 2025–2035 to staff a new Veterans Scam and Fraud Evasion Officer at the Department of Veterans Affairs — about $1 million per year for four full-time employees. The bill would also extend, by 61 days through January 30, 2032, a current-law requirement that VA reduce pension payments to veterans residing in Medicaid nursing homes to $90 per month; that extension would reduce VA direct (mandatory) benefit spending by $10 million per month for those 61 days, but would increase Medicaid spending by $6 million over the same period, yielding a net reduction in direct spending of $8 million over 2025–2035. CBO did not identify any intergovernmental or private-sector mandates in the bill.

View the full CBO cost estimate

How implementation would work

The VSAFE Officer would operate within existing VA staffing levels, staffed from current employees. The officer would develop training plans for VA staff, establish internal reporting and data analytics on fraud trends, and coordinate with more than a dozen federal agencies. Outreach to veterans service organizations and state, local, and tribal governments is required as needed. The bill does not specify a rulemaking requirement or prescribe a reporting cadence to Congress, but the officer's role includes both internal and external reporting functions. All authorities terminate on September 30, 2030, unless reauthorized.

Legislative status & sources

Latest action

Received in the Senate and Read twice and referred to the Committee on Veterans' Affairs.

2026-01-26

Official CRS summary

Show the CRS summary

This bill establishes a Veterans Scam and Fraud Evasion Officer within the Department of Veterans Affairs (VA) to be responsible for fraud and scam prevention, reporting, and incident response plans at the VA.

The bill also extends certain loan fee rates through June 23, 2034, under the VA's home loan program.

From the Congressional Research Service.

Legislative subjects

Armed Forces and National Security; Department of Veterans Affairs; Executive agency funding and structure; Fraud offenses and financial crimes; Housing finance and home ownership; Veterans' loans, housing, homeless programs; Veterans' pensions and compensation

Committee report

H. Rept. 119-350

Congressional Bill

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HR 1663: VSAFE Act of 2025 | Legislation Reporter