VA Claims Overhaul: New Fee Caps and Penalties for Agents, But Pension Limits Extended to 2032

The “CHOICE for Veterans Act of 2025” is a major shakeup for anyone who needs help filing a benefits claim with the Department of Veterans Affairs (VA). Think of it as the VA trying to clean house and put up some guardrails on the entire industry of paid and unpaid claims assistance.

The Good News: Transparency and Fee Caps

First, the good news for veterans: This bill mandates the VA must clearly advertise the availability of free help from recognized organizations (like VSOs) whenever a veteran files a claim without representation (Sec. 2). No more digging around for that information—it has to be front and center. Crucially, the bill also puts strict limits on what private agents and attorneys can charge. For initial or supplemental claims where fees are allowed, the total fee is capped at the lesser of $12,500 (adjusted yearly for inflation) or five times the amount of the veteran’s monthly benefit increase (Sec. 3). If that total fee is more than the past-due benefits paid out, the representative can’t demand it all at once; they must offer the veteran an installment plan based on the new monthly benefit increase. This is a massive consumer protection measure designed to prevent veterans from losing their entire back pay to a representative.

New Rules for the Middleman

For agents and attorneys who help with claims, the rules are changing fast. To get recognized by the VA, they now have to pay an assessment fee of up to $500 which goes into a special fund to cover the VA’s administrative costs for the recognition program (Sec. 3). The bill also creates a pathway for conditional temporary recognition for up to a year if the VA can’t verify an applicant’s qualifications within 180 days. While this sounds like it speeds things up, it creates a risk: someone could be representing veterans for a year before the VA determines they aren’t qualified (Sec. 3). If a temporarily recognized agent breaks the rules, the penalties are swift and severe: a $50,000 fine and a one-year ban from recognition for a first offense (Sec. 4).

Zero Tolerance for Unauthorized Fees

This bill significantly expands the hammer the VA can drop on people who try to charge veterans illegally. If you ask for, agree to take, or accept any fee for preparing or presenting a claim without being properly accredited, you could face fines, up to one year in prison, or both (Sec. 4). This is aimed squarely at predatory practices where unaccredited consultants try to sneak in and charge veterans for services that are legally required to be free or handled by accredited professionals. To make sure representatives stay current, the bill requires the VA to increase the total amount of continuing legal education (CLE) required to maintain recognition and review those requirements every two years (Sec. 6).

The Catch: Federal Power and Pension Limits

There are two provisions that warrant a closer look. First, the bill establishes federal preemption (Sec. 7). This means that if any state law—statute, common law, or anything else—clashes with the rules set out in this Act regarding claims representation, the federal law wins. This centralizes all regulatory power over who can represent veterans at the federal level, overriding state bar associations or state consumer protection laws that might offer additional oversight.

The second, and perhaps most impactful provision for some veterans, is buried in the final section. Section 8 extends the existing limits on VA pension payments. These limits, which restrict how much pension income can be paid out, were set to expire on November 30, 2031. This bill pushes that expiration date back to April 30, 2032. For veterans relying on these payments, this means existing restrictions on their benefits will continue for an additional five months, continuing a financial limitation for those least able to absorb it.