This Act mandates that the government must reimburse the legal fees and costs for defendants acquitted after a criminal trial and for winning parties in certain civil cases.
Rich McCormick
Representative
GA-7
The Litigation Reimbursement Act mandates that federal courts must order the U.S. government to pay the attorney fees and litigation costs for defendants who are acquitted after a criminal trial. Furthermore, this bill converts the court's ability to award costs and fees to the prevailing party in covered civil cases into a mandatory requirement. This ensures that winning parties in specific criminal and civil litigation are reimbursed for their legal expenses.
New Law Mandates Taxpayers Cover Legal Fees for Acquitted Criminals and Civil Lawsuit Winners
The Litigation Reimbursement Act is an aggressive move to change who pays the legal bills when the federal government is involved in a lawsuit. Simply put, this bill forces the U.S. government—and by extension, the taxpayer—to pick up the tab for attorney fees and costs in two specific scenarios: when a defendant is acquitted in a federal criminal trial and when a party wins certain civil suits against the government. The existing rule allowing fee reimbursement in criminal cases is also extended through fiscal year 2026.
The 'Not Guilty? We Pay' Clause
Section 2 of this bill makes a massive change to federal criminal procedure. Right now, if you’re charged with a federal crime and you win—meaning you get acquitted after a full trial—the court could order the government to pay your legal fees if the government’s case was found to be baseless or in bad faith. This bill removes that judicial discretion entirely. Under the new rule, if a criminal case goes to trial and the verdict is anything but a conviction, the court shall award reasonable attorney fees and litigation expenses to the defendant. This means if you are acquitted, the government must pay your legal defense costs, regardless of whether the prosecution had a reasonable basis for bringing the case in the first place.
Think about what this means for the average person facing a lengthy, complex federal trial. Historically, even if you won, you could be financially ruined by legal bills. This provision certainly removes a massive barrier to justice for those who are wrongly accused and successfully defend themselves. However, it also creates a mandatory, automatic financial burden on the U.S. Treasury—and thus, taxpayers—every time a federal case results in an acquittal, even if the government acted responsibly. This could potentially incentivize defense teams to push every case to a full, expensive trial to guarantee fee recovery, increasing the overall cost of the federal justice system.
Civil Suits: No More Discretion
Section 3 makes a similar, but slightly less dramatic, shift in civil litigation against the federal government (specifically under 28 U.S.C. § 2412). Currently, if you win a civil lawsuit against a federal agency or the government, the court may award you costs and fees. This bill changes that language from may to shall. If you win, the court is now required to order the government to pay your costs and fees.
This change eliminates judicial discretion in civil cases. If, for example, a small business owner sues the EPA over a regulation and wins, the court must now make the government pay the business owner’s legal bills. While this sounds great for the winning party, it removes the court’s ability to consider the nuances of the case—like whether the government’s position was substantially justified, even if they ultimately lost. The financial risk of litigating against the government is now almost entirely shifted to the taxpayer, potentially encouraging more lawsuits against federal agencies where the recovery of fees is guaranteed upon success.