PLUS for Veterans Act of 2025: New Rules for Vet Claims, Capped Fees, and Stiff Penalties

The "Preserving Lawful Utilization of Services for Veterans Act of 2025," or PLUS for Veterans Act, reshapes how veterans get help with their benefit claims. It sets clear boundaries on who can assist, puts a lid on fees, and brings back penalties for those charging unauthorized fees. It also has an override on any State Law that may conflict with this Act.

Claim Game Changers

The Act clarifies what exactly counts as "preparing, presenting, or prosecuting" a claim. Critically, it says that giving a medical exam or filling out a report related to one doesn't qualify. This could impact who veterans can turn to for certain parts of the claims process. (SEC. 2)

For example, if a veteran needs a specific medical assessment for their disability claim, this bill clarifies that the doctor providing that exam isn't considered to be "preparing" the claim. This distinction matters for who can charge what, and when.

Agent and Attorney Rules: Conditional Approval and Fee Limits

The bill introduces a new system for recognizing agents and attorneys who help veterans. The Secretary of Veterans Affairs can now grant "conditional and temporary recognition" for one-year periods. (SEC. 3)

Think of it like a probationary period. While this could speed things up, it also means someone could be handling your claim before they're fully vetted. The VA can't penalize agents for charging fees before the Act's official start date, or while they're still waiting for full recognition.

The bill also sets a cap on fees for initial claims. The total amount can't be more than $12,500 (adjusted each year with inflation) or five times the monthly increase in benefits the veteran receives, whichever is less. (SEC. 3) All fee agreements must be contingent on a favorable outcome for the veteran, and they can't get paid until the veteran receives notice of the initial decision.

Agents and attorneys must use a standard form. This form has to tell veterans that they can get free help from recognized organizations (like the VFW or American Legion), that they can pick their own doctor for medical exams, and that the agent/attorney can't send them to a doctor they have a business deal with. (SEC. 3)

Penalties are Back

This Act reinstates penalties for anyone charging veterans illegal fees. We're talking fines, up to a year in prison, or both. (SEC. 4)

If someone breaks the rules while on "conditional" or "temporary" recognition, the VA will revoke their status. They'll also face a $50,000 fine and be barred from recognition – one year for the first offense, and 10 years for any after that. (SEC. 4)

Federal Power Play

Here's a big one: This law overrides any state law that clashes with it. This "federal preemption" means that even if a state has stronger protections for veterans, this federal law wins. (SEC. 5) This could be a double-edged sword, ensuring consistency but potentially limiting some state-level safeguards.

The PLUS for Veterans Act aims to clean up the claims process, but it also raises some questions. The "conditional recognition" could be a concern, and the federal preemption clause is definitely something to watch. The fee caps and penalties are good for veterans, but the devil, as always, will be in the details of how this all plays out in practice.