HR 3455 · 119th Congress

Veterans Affairs Distributed Ledger Innovation Act of 2025

veterans benefitsgovernment technologyfraud preventionblockchain and distributed ledger
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Last action 2025-10-10

Sponsored by Rep. Mace, Nancy [R-SC-1] (R) — SC

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Would require the Department of Veterans Affairs to study whether distributed ledger technology — a type of shared, tamper-resistant database — could improve veterans' benefits claims processing and reduce fraud, waste, and abuse, then report findings to Congress within one year.

What this bill would do

What it would do

The bill would direct the Secretary of Veterans Affairs to conduct a comprehensive study on the feasibility, potential benefits, and risks of implementing distributed ledger technology within VA benefits administration. The study would examine how the technology could improve the clarity and traceability of claims adjudication, reduce fraudulent or inaccurate claims, strengthen accountability in claims handling, and help identify irregularities in benefits delivery. The Secretary would be required to consult with technology experts, veterans service organizations, and other federal agencies that have experience with the technology.

Within one year of enactment, the Secretary would submit a report to the Senate and House Veterans' Affairs Committees covering study findings, a description of potential benefits and risks, any recommendations for pilot programs, and any legislative or administrative steps needed to move forward. The bill would not itself implement the technology or authorize any spending for that purpose.

Key provisions

  1. 1Would direct the Secretary of Veterans Affairs to conduct a comprehensive study on the feasibility, potential benefits, and risks of implementing distributed ledger technology in VA benefits administration.Sec. 3(a)
  2. 2Would require the study to examine how the technology could improve claims traceability, reduce fraudulent claims, strengthen accountability, and identify irregularities in benefits delivery.Sec. 3(b)
  3. 3Would require the Secretary to consult with technology experts, veterans service organizations, relevant federal agencies, and other appropriate stakeholders while conducting the study.Sec. 3(c)
  4. 4Would require the Secretary to submit a report to Congress within one year of enactment covering study findings, risks and benefits, pilot program recommendations, and any required legislative or administrative actions.Sec. 3(d)

Who would be affected

The Department of Veterans Affairs and its Secretary, who would be required to lead the study and report. Veterans service organizations would be consulted. Veterans who rely on VA benefits claims processing could ultimately be affected if the study's recommendations lead to future technology changes, though the bill itself creates no direct changes to their benefits.

Why it matters

The VA processes millions of benefits claims each year, and persistent concerns about fraud, processing delays, and data accuracy have long drawn congressional scrutiny. If the study finds distributed ledger technology viable and the VA eventually acts on the recommendations, veterans could see faster, more transparent claims handling — but this bill only initiates the research phase, not any implementation.

What would change

Agencies directed to act

Department of Veterans Affairs

Effective dates

  • Deadline for the Secretary to submit the study report to CongressSec. 3(d)Within one year of enactment

Funding and costs

Congressional Budget Office estimate

CBO estimates H.R. 3455 would cost less than $500,000, with no effect on direct spending, revenues, or the deficit over the 2025–2035 period.

CBO estimates that H.R. 3455 would cost less than $500,000 over the 2025–2035 period, based on the cost of similar studies. The bill would require the Department of Veterans Affairs to study how distributed ledger technology (a networked database system allowing simultaneous access and record-updating) could improve VA benefits claims adjudication and report findings to Congress within one year. Any spending would be subject to the availability of appropriated funds (meaning Congress would need to provide the money separately), and the bill has no effect on direct mandatory spending or revenues. CBO found no intergovernmental or private-sector mandates in the bill.

View the full CBO cost estimate

How implementation would work

The Secretary of Veterans Affairs would lead the study, consulting with distributed ledger technology experts, representatives from veterans service organizations, heads of other federal agencies with relevant experience, and any other stakeholders deemed appropriate. Within one year of enactment, the Secretary must submit a written report to the House and Senate Veterans' Affairs Committees covering feasibility findings, a benefit-and-risk description, pilot program recommendations, and any required legislative or administrative actions. No rulemaking or grant cycle is established.

Legislative status & sources

Latest action

Placed on the Union Calendar, Calendar No. 292.

2025-10-10

Official CRS summary

Show the CRS summary

This bill requires the Department of Veterans Affairs (VA) to report to Congress on the feasibility, potential benefits, and risks associated with implementing distributed ledger technology to improve claims adjudication and prevent fraud, waste, and abuse within the VA’s benefits administration systems. Under the bill, a distributed ledger (1) is shared across a set of distributed nodes that participate in a network and store a complete or partial replica of the ledger, (2) is synchronized between the nodes, and (3) has data appended to it by following a specified consensus mechanism.

From the Congressional Research Service.

Legislative subjects

Armed Forces and National Security; Computers and information technology; Congressional oversight; Government studies and investigations; Veterans' pensions and compensation

Committee report

H. Rept. 119-340

Congressional Bill

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HR 3455: Veterans Affairs Distributed Ledger Innovation Act of 2025 | Legislation Reporter