Thalidomide Compensation Bill Offers $150,000 Payout, Sets 2034 Deadline for U.S. Survivors

The Thalidomide Survivors Compensation Act of 2025 is straightforward: it sets up a formal program within the Department of Health and Human Services (HHS) to compensate individuals who suffered birth injuries due to prenatal exposure to the drug thalidomide during the 1950s and 1960s. While thalidomide was never formally approved in the U.S., Congress notes that an estimated 5 million samples were distributed through informal clinical trials, leaving a small but severely impacted group of survivors. The purpose of this Act is to ensure these individuals can live the rest of their lives with “dignity and independence” (Sec. 2).

The $150,000 Lifeline and the Fine Print

Under this new program, eligible survivors will receive a one-time payment of $150,000 (Sec. 3). To get it, you need to submit a petition to HHS, including documentation from a health professional confirming both thalidomide exposure and resulting injury. That petition then goes before an expert panel—which will include legal, medical, and thalidomide experts and survivors—for review. If they sign off, the payment is processed. Crucially, the bill sets a hard deadline: no petition can be submitted after May 31, 2034 (Sec. 3).

Protecting Benefits: The Tax and Welfare Shield

One of the most important provisions for survivors is how this money is treated financially. For people relying on safety nets like Medicaid, SNAP, or SSI, any sudden influx of cash can often disqualify them. This bill explicitly states that the $150,000 compensation will not be counted as income or assets when calculating eligibility for any means-tested welfare program (Sec. 3). Furthermore, the compensation is excluded from federal gross income, meaning it’s tax-free (Sec. 6). This is a huge win, ensuring that a survivor receiving this payment doesn't lose access to crucial ongoing medical or housing support.

Who Gets the Check? Strict Eligibility Rules

While the intent is broad, the eligibility requirements are strict. To submit a petition, an individual must have been an American citizen or permanent resident at the time of the thalidomide exposure and must be a citizen or permanent resident at the time of petition submission (Sec. 3). This dual requirement is tight and could exclude individuals who were exposed in the U.S. but later moved abroad or those who were in the U.S. during the exposure period but never formally obtained citizenship or residency. This is a significant access limitation.

The Long-Term Question Mark

While $150,000 is a substantial sum, the lifetime medical and accommodation costs for individuals with severe limb deformities and internal organ damage are often astronomical. The bill attempts to address this by allowing for additional compensation payments at the discretion of the HHS Secretary, subject to the availability of funds (Sec. 5). This is a helpful acknowledgment of ongoing needs, but the discretionary nature and reliance on future funding mean long-term support isn't guaranteed.

To keep tabs on this, the Secretary must conduct an annual review of the program, reporting back to Congress on whether the compensation amounts are adequate and recommending changes or expansions (Sec. 4). This annual check-in is the mechanism built into the bill to potentially increase the initial payment or adjust the discretionary additional compensation over time, but it doesn't solve the immediate concern that $150,000 might be insufficient for a lifetime of care.