H.R. 5932 — CLEAN VA Act

This section modifies expedited procedures under 38 U.S.C. 714 for the Department of Veterans Affairs (VA) Secretary to remove, demote, or suspend covered employees (i.e., senior executives and equivalent personnel) for performance or misconduct, as follows: (1) requires the Secretary's determination to be supported by substantial evidence; (2) directs the deciding employee, in making an initial decision, to apply specified factors—including nature and seriousness of the offense, job level, past disciplinary and work record, and mitigating circumstances—with the Secretary to review and uphold the decision if supported by substantial evidence; (3) strikes the provision that such procedures supersede collective bargaining agreements; (4) authorizes the Secretary to carry out such actions without first placing the employee on a performance improvement plan; (5) limits review by an administrative judge, the Merit Systems Protection Board, and the U.S. Court of Appeals for the Federal Circuit of any challenge to the imposed penalty to constitutional issues only (and prohibits mitigation by the court); and (6) codifies in new subsection (b) the existing timing requirements of an aggregate 15 business days for notice, response, and final decision; 7 business days for employee response; and issuance of the final written decision with specific reasons within 15 business days after notice.

This section enhances criminal penalties for fraud and misconduct by Department of Veterans Affairs (VA) employees under specified statutes and establishes whistleblower protections and incentives. **(a) Enhanced penalties.** (1) Amends 18 USC 641 (theft of public money, property, or records) to increase the maximum imprisonment to 15 years (from not more than 10 years generally) and maximum fine to $500,000 for VA employees acting in an official capacity or using access to veterans’ records or benefits systems, and requires mandatory restitution. (2) Amends 18 USC 1001 (false statements) to increase the maximum imprisonment to 10 years (from 5 years generally or 8 years for terrorism/sex offenses) and maximum fine to $250,000 if the offense involves falsification or concealment of material facts related to veterans’ benefits claims or VA employee duties. (3) Amends 18 USC 201 (bribery of public officials) to set the maximum fine at twice the bribe amount and increase maximum imprisonment to 20 years (from 15 years) if the official is a VA employee and the bribe relates to veterans’ benefits or contracts. (4) Amends 18 USC 1920 (false statements for federal employees’ compensation) to increase the maximum fine to $250,000, maximum imprisonment to 10 years (from 5 years), and require forfeiture of federal pension or annuity benefits if the employee’s fraud relates to veterans’ disability, compensation, or employment benefits. (5) Amends 5 USC 8312 (forfeiture of federal pensions) to require forfeiture of annuity or retired pay for VA employees convicted under 18 USC 641, 1001, 201, or 1920 if the offense relates to their duties. **(b) Whistleblower protections and incentives.** (1) Amends 5 USC 2303 (prohibited personnel practices) to require the VA Office of Accountability and Whistleblower Protection to complete retaliation investigations for VA employees within 60 days, with written justification to Congress for delays and interim protections against adverse actions. (2) Requires the VA Secretary to report annually to the VA Inspector General and congressional Veterans’ Affairs Committees on whistleblower retaliation claims, investigations, settlements, and fulfillment, and publish an anonymized summary online. (3) Authorizes the VA Secretary to award up to $10,000 to VA employees for substantiated disclosures preventing or uncovering fraud, waste, or abuse exceeding $100,000, funded from recoveries when practicable. (4) Directs the Comptroller General to review implementation within two years of enactment and report to Congress on investigation timeliness, settlement compliance, and incentive effectiveness.

This section directs the Secretary of Veterans Affairs to conduct a comprehensive review of the VA disability rating schedule—used to assign percentages to service-connected disabilities for determining veterans' monthly compensation payments—to (1) identify vulnerabilities to fraudulent, exaggerated, or duplicative claims; (2) assess whether existing rating criteria reflect current medical standards and functional impairment measures; and (3) recommend updates to ensure consistency, integrity, and fairness. The section further requires the Secretary, in consultation with the VA Inspector General and Comptroller General, to develop and implement a data analytics and artificial intelligence program—modeled on the Centers for Medicare & Medicaid Services' Waste, Fraud, and Abuse Identification and Reporting system—to proactively identify irregularities or high-risk indicators in disability claims, with all automated findings subject to human review prior to action and full respect for due process and privacy protections. It also requires coordination with the VA Office of Inspector General and Government Accountability Office to evaluate the program's effectiveness, identify risks such as over-flagging or under-detection, and recommend best practices. Finally, the section requires the Secretary to submit a report to the House and Senate Committees on Veterans' Affairs and specified oversight committees, not later than 180 days after enactment, detailing the review results, identified vulnerabilities and proposed corrective measures, AI integration status, and modernization recommendations.

This section requires all Department of Veterans Affairs (VA) employees to complete annual training on ethics, fraud prevention, and compliance with applicable laws and regulations. The VA Inspector General must oversee compliance and submit an annual report on training completion rates and any identified deficiencies to the Committees on Veterans’ Affairs of the Senate and House of Representatives.

This section directs the Secretary of Veterans Affairs to conduct a comprehensive review of the Department of Veterans Affairs Schedule for Rating Disabilities—used to assign percentage ratings to service-connected disabilities for veterans' compensation purposes—to (1) identify vulnerabilities to fraudulent, exaggerated, or duplicative claims; (2) assess whether existing rating criteria reflect current medical standards and functional impairment measures; and (3) recommend updates to ensure consistency, integrity, and fairness in determinations. The section further requires the Secretary, in consultation with the Department of Veterans Affairs Inspector General and the Comptroller General, to develop and implement a program using data analytics and artificial intelligence—modeled on the Centers for Medicare & Medicaid Services' Waste, Fraud, and Abuse Identification and Reporting system—to proactively identify irregularities in disability claims, with all automated findings subject to human review prior to action and full respect for due process and privacy protections. It also requires coordination with the Office of Inspector General and Government Accountability Office to evaluate the program's effectiveness, assess risks of over- or under-detection, and recommend best practices. Finally, this section requires the Secretary to submit a report to the House and Senate Committees on Veterans’ Affairs and specified oversight committees not later than 180 days after enactment detailing the review results, identified vulnerabilities and proposed measures, AI integration status, and modernization recommendations.