From September 14, 2022 post

Today, Congressman Chris Pappas (NH-01), Chair of the Oversight and Investigations Subcommittee of the House Committee on Veterans’ Affairs (HVAC), led the House of Representatives in passing his bipartisan legislation, the Faster Payments to Veterans’ Survivors Act, which will improve the Department of Veterans Affairs’ (VA) processes for identifying, locating, and paying hard-to-find survivors of recently deceased veterans.

“It is of the utmost importance that veterans’ families and beneficiaries do not face undue barriers or delays in receiving their benefits and payments. By ensuring that family members and spouses have the resources and support that they need, we continue to honor and pay tribute to those who have sacrificed for our country,” said Congressman Chris Pappas. “The Faster Payments to Veterans’ Survivors Act will allow the VA to better identify and locate surviving family members of recently deceased veterans and make sure they receive payments in a timely manner. I am proud of the bipartisan effort that enabled the House to pass this much-needed reform and hope the Senate will act swiftly on this important legislation.”

“Our brave servicemembers put their lives on the line for our country,” said Congresswoman Mace. “We must ensure the family members and spouses of the heroes who made the ultimate sacrifice are quickly provided the funds and services they need to avoid financial uncertainty. This legislation will improve the VA’s management of undispersed life insurance funds, ensuring the surviving families of our nation’s heroes receive timely payments.”

When a veteran passes away, the surviving spouse or child is often owed certain benefits, such as life insurance proceeds. The survivors and families of deceased veterans often face financial hardship, and timely payments are, therefore, critical, but VA often struggles to identify, locate, and pay some survivors of recently deceased veterans. As a result, tens of millions of dollars in survivor payments remain undisbursed after a year, with some payments many years late. According to the VA, as of September 2020, the Department owed more than $155 million in undisbursed life insurance benefits to nearly 15,000 individuals. On average, this represents approximately $10,500 per family.

The bipartisan Faster Payments to Veterans’ Survivors Act will improve VA’s processes for identifying, locating, and paying hard-to-find survivors of recently deceased veterans. It establishes specific steps for VA to strengthen its management of undisbursed funds to ensure beneficiaries receive payments in a timely manner.

Specifically, the bill will:

Shorten the time frame in which VA is authorized to designate, contact, and pay primary and appropriate alternate insurance beneficiaries from 2 years to 1 year and from 4 years to 2 years, respectively. Existing statutory constraints delay the release of undisbursed funds.

Ensure that the procedures for paying alternate beneficiaries are uniformly applied and consistent between VA life insurance programs.

Improve and better publicize an existing online tool that veterans' families can use to search for money they may be owed.

Ensure VA has the staff it needs to reach hard-to-find beneficiaries.

Set a goal of disbursing all funds that are owed to a survivor of a deceased veteran or beneficiary within two years.

Require a report to Congress within 180 days on VA's progress.

The bill is supported by Veteran Services Organizations including Veterans of Foreign Wars (VFW), American Legion, Iraq and Afghanistan Veterans of America (IAVA), Vietnam Veterans of America (VVA), Military Officers Association of America (MOAA), Modern Military Association of America (MMAA), and Paralyzed Veterans of America (PVA).

Background:

In April, Congressman Pappas secured a commitment from VA to continue to work together to speed up delivery of VA benefits to veterans' survivors. 

On July 1, Congressman Chris Pappas (NH-01) and Congresswoman Nancy Mace (SC-01) introduced the Faster Payments to Veterans' Survivors Act.

On July 19, the legislation advanced out of the House Veterans’ Affairs Committee with bipartisan support.

Issues: Veterans