Fraud Reduction And Uncovering Deception (FRAUD) in VA Disability Exams Act

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Bill ID: 119/hr/5723
Last Updated: July 17, 2026

Sponsored by

Rep. Takano, Mark [D-CA-39]

ID: T000472

Follow the money

The bill

Fraud Reduction And Uncovering Deception (FRAUD) in VA Disability Exams Act

HR. 5723, 119th Congress.

The sponsor

Rep. Takano, Mark [D-CA-39]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$81,900 raised

25 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

85% match to Project 2025

This bill's text tracks the "Department of Veterans Affairs" section, p. 682-684 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Ordered to be Reported (Amended) by Voice Vote.

May 13, 2026

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

✅

Passed House

🏛️

Senate Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

(sigh) Oh joy, another bill that's about as effective as a Band-Aid on a bullet wound. Let's dissect this farce.

**Main Purpose & Objectives:** The FRAUD Act (because who doesn't love an acronym?) claims to reduce and uncover deception in VA disability exams. How noble. Its primary objective is to identify and report instances of fraud related to disability benefit questionnaire forms. Wow, what a bold move – trying to prevent people from lying about their disabilities. I'm sure this will be a game-changer.

**Key Provisions & Changes to Existing Law:** The bill amends title 38 of the United States Code by adding a new section (5322) that requires the Secretary of Veterans Affairs to:

1. Implement a process to identify fraudulent activity in disability benefit questionnaire forms. 2. Establish a recurring audit of these forms. 3. Inform individuals suspected of submitting false information.

Oh, and it also gives the Inspector General some extra authority to investigate suspected fraud. Because, you know, that's not already their job.

**Affected Parties & Stakeholders:** Veterans (or rather, those who claim to be veterans), the Department of Veterans Affairs, and the Office of the Inspector General. And, of course, the politicians who get to pretend they're doing something about "waste, fraud, and abuse" in government programs.

**Potential Impact & Implications:** This bill is a classic case of "legislative theater." It's designed to make lawmakers look like they're taking action against corruption, while actually accomplishing very little. The provisions are vague, and the enforcement mechanisms are weak. It's a paper tiger, meant to appease voters who think the government should be doing more to prevent waste.

In reality, this bill will likely lead to:

* More bureaucratic red tape for legitimate veterans trying to access benefits. * Increased costs for audits and investigations that may not yield significant results. * A false sense of security among lawmakers and voters, thinking they've actually addressed a problem.

Diagnosis: This bill is suffering from a bad case of " Politician's Disease" – a condition characterized by an excessive need for self-aggrandizement, a lack of actual policy substance, and a healthy dose of hypocrisy. Treatment involves a strong dose of skepticism, a pinch of cynicism, and a healthy disregard for the spin doctors in Washington.

Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Takano, Mark [D-CA-39]

Congress 119 • 2024 Election Cycle

Total Contributions
$81,900
20 donors
PACs
$5,000
Organizations
$10,900
Committees
$0
Individuals
$66,000
1
SEIU COPE (SERVICE EMPLOYEES INTERNATIONAL UNION COMMITTEE ON POLITICAL EDUCATION)
1 transaction
$5,000
1
FEDERATED INDIANS OF GRATON RANCHERIA
2 transactions
$6,600
2
HABEMATOLEL POMO OF UPPER LAKE TRIBE OF CALIFORNIA
1 transaction
$3,300
3
MS BAND OF CHOCTAW INDIANS
1 transaction
$1,000

No committee contributions found

1
HUIZENGA, HARRY
2 transactions
$6,600
2
KAPALOSKI, EUGENE
2 transactions
$6,600
3
RAVINDRAN, JAMES C
2 transactions
$6,600
4
ROSENSTEIN, ARNOLD
2 transactions
$6,600
5
BECKER, TODD
1 transaction
$3,300
6
ELDRIDGE, SEAN
1 transaction
$3,300
7
HUH, JIHEE
1 transaction
$3,300
8
HUH, PETER
1 transaction
$3,300
9
LI, LI
1 transaction
$3,300
10
OFRIEL, MARK
1 transaction
$3,300
11
YANG, ELIZABETH
1 transaction
$3,300
12
BLANDFORD, JOHN
1 transaction
$3,300
13
COLANTUONO, MICHAEL G
1 transaction
$3,300
14
DEMETRIOS, EAMES
1 transaction
$3,300
15
JORDAN, WAYNE D.
1 transaction
$3,300
16
OTA, HENRY Y
1 transaction
$3,300

Donor Network - Rep. Takano, Mark [D-CA-39]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

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Showing 54 nodes and 25 connections (59 secondary connections hidden)

Total contributions: $81,900

Top Donors - Rep. Takano, Mark [D-CA-39]

Showing top 20 donors by contribution amount

1 PAC3 Orgs16 Individuals

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Department of Veterans Affairs

Strong
Vector: 66%
Pages: 682-684AI Enhanced

AI Analysis:

"HR 5723 directly targets fraud reduction in VA disability exams, which aligns with the Project 2025 VA policy goal of reducing improper payments and fraud through better tools, training, and management. Both emphasize accountability, audits, and oversight to protect program integrity."

Key themes:fraud reductionimproper paymentsVA disability claimsaudit and oversightInspector General investigations

— 649 — Department of Veterans Affairs approaches and technology tools that currently exist in the private sector could be employed to improve existing VBA activities. This problem is most pronounced in the disability claims process, which needs more and better management attention focused on streamlining the procedures involved in processing claims and administering benefits. The VA must improve timeliness of claim adjudication and benefits delivery: Veterans want the VBA to provide timely responses to requests for benefits support, render empathetic customer service and understandable explanations of those benefits, and deliver those benefits without frustrating delays (weeks, not months). l Identify performance targets for benefits, report publicly on actual performance each quarter, and use these metrics to drive consistent improvement. l Develop a new pilot “Express 30” commitment for a veteran’s first fully developed disability compensation claim and organize the VBA to complete the first claim in 30 days. l Hire more private companies to perform disability medical examinations. Delays in completing the examinations could be eliminated with more external capacity. l Increase automation. Hiring additional staff to process claims is costly, is inflexible, and has yielded mixed results. Attempting to change laws and regulations simply to adjudicate claims would be a herculean effort given their complexity. The best way to provide benefits faster and more accurately is by using technology to perform most of the work. Technology currently exists in the private sector, but the VBA lacks the expertise to use it. This would be more of an organizational challenge than a technology hurdle. l Reduce improper payment and fraud. About $500 million is improperly paid out each year. Better tools, training, and management could reduce this substantially, but rule changes at the departmental level would be needed. Budget The VA’s Schedule for Rating Disabilities (VASRD) has assigned disability ratings to a growing number of health conditions over time; some are tenuously related or wholly unrelated to military service. The further growth in presumptive service-connected medical conditions pursued by Congress and Veteran Service Organizations, begun with Agent Orange and most recently for Burn Pits/Airborne — 650 — Mandate for Leadership: The Conservative Promise Toxins, has led to historic increases in mandatory VBA spending in recent years. The VA has a time-phased plan to reassess the VASRD and its ratings for com- pensation, but this internal process can be slow and laborious, requires Office of Management and Budget (OMB) approvals, and can become politically charged both in Congress and with VSOs. l The next Administration should explore how VASRD reviews could be accelerated with clearance from OMB to target significant cost savings from revising disability rating awards for future claimants while preserving them fully or partially for existing claimants. l The VBA’s Information Technology top-line budget should be reexamined and reassessed in light of the need for expanded automation across the enterprise. l Traditionally, VHA captures the large majority of VA IT funding. The VBA needs to make the case for a larger IT budget with clear requirements to support that request. Personnel l Pursue reforms of the Human Capital Management process and operations within the VBA to build a more blended workforce with more contractors to process claims. This would free federal employees to perform other duties and be involved solely with the final decision to award benefits. l Improve the VBA acquisition workforce. The VBA needs more world-class contractor support. Currently, few of the top companies have contracts with the VBA, and the VBA needs to conduct more outreach to the private sector through senior leader engagement and industry conferences. l To identify more effective and efficient ways to complete claims, establish a knowledge exchange program with top-tier private-sector companies that do similar work. The VBA is fundamentally a financial services organization. A significant amount of its work has a private-sector analogue that could be leveraged to improve service to veterans. l For most of its existence, the VBA has been a risk-averse, insular, paper-based organization, implementing technology only over the past decade. This insularity has led to a predominantly “build it ourselves” approach, partly because VBA staff has limited experience or insight into current private- sector tools and methods and partly because the VBA struggles to compete

Department of Veterans Affairs

Strong
Vector: 65%
Pages: 682-684AI Enhanced

AI Analysis:

"HR 5723 directly targets fraud reduction in VA disability exams, which aligns with the Project 2025 goal of reducing improper payments and fraud through better tools, training, and management. While the bill does not address other Project 2025 elements like timeliness targets or automation, its focus on fraud detection and oversight shares a core objective."

Key themes:fraud reductionimproper payment reductionaudit and oversightInspector General authorityVA disability benefits integrity

— 649 — Department of Veterans Affairs approaches and technology tools that currently exist in the private sector could be employed to improve existing VBA activities. This problem is most pronounced in the disability claims process, which needs more and better management attention focused on streamlining the procedures involved in processing claims and administering benefits. The VA must improve timeliness of claim adjudication and benefits delivery: Veterans want the VBA to provide timely responses to requests for benefits support, render empathetic customer service and understandable explanations of those benefits, and deliver those benefits without frustrating delays (weeks, not months). l Identify performance targets for benefits, report publicly on actual performance each quarter, and use these metrics to drive consistent improvement. l Develop a new pilot “Express 30” commitment for a veteran’s first fully developed disability compensation claim and organize the VBA to complete the first claim in 30 days. l Hire more private companies to perform disability medical examinations. Delays in completing the examinations could be eliminated with more external capacity. l Increase automation. Hiring additional staff to process claims is costly, is inflexible, and has yielded mixed results. Attempting to change laws and regulations simply to adjudicate claims would be a herculean effort given their complexity. The best way to provide benefits faster and more accurately is by using technology to perform most of the work. Technology currently exists in the private sector, but the VBA lacks the expertise to use it. This would be more of an organizational challenge than a technology hurdle. l Reduce improper payment and fraud. About $500 million is improperly paid out each year. Better tools, training, and management could reduce this substantially, but rule changes at the departmental level would be needed. Budget The VA’s Schedule for Rating Disabilities (VASRD) has assigned disability ratings to a growing number of health conditions over time; some are tenuously related or wholly unrelated to military service. The further growth in presumptive service-connected medical conditions pursued by Congress and Veteran Service Organizations, begun with Agent Orange and most recently for Burn Pits/Airborne

Department of Housing and Urban Development

Moderate
Vector: 62%
Pages: 545-547AI Enhanced

AI Analysis:

"Both the bill and the Project 2025 HUD policy emphasize detecting and preventing fraud, waste, and abuse in federal programs through audits, Inspector General involvement, and increased accountability, even though they apply to different agencies (VA vs. HUD)."

Key themes:fraud preventionaudit oversightInspector General authorityprogram integrity

— 513 — Department of Housing and Urban Development ENDNOTES 1. At a 1998 Senate hearing, then-HUD Secretary Andrew Cuomo acknowledged that the department “faced a competence gap” and had “the dubious distinction of being the only federal agency designated as ‘high risk’ by the General Accounting [now Government Accountability] Office (GAO),” even referencing the Section 8 rental subsidy as “on the brink of becoming the next savings and loan scandal,” and explained how the department was stepping up enforcement efforts “focused on closing the competence gap by eliminating waste, fraud, and abuse.” See “Testimony of Secretary Andrew Cuomo before the House Appropriations Subcommittee on VA, HUD, and Independent Agencies,” March 25, 1998, https://archives.hud.gov/ testimony/1998/tst32598.cfm (accessed March 4, 2023). 2. H.R. 7984, Housing and Urban Development Act of 1965, Public Law No. 89-117, 89th Congress, August 10, 1965, https://www.congress.gov/89/statute/STATUTE-79/STATUTE-79-Pg451.pdf (accessed March 4, 2023). 3. U.S. Department of Housing and Urban Development, 2023 Budget in Brief, pp. 2 and 7, https://www.hud.gov/ sites/dfiles/CFO/documents/2023_BudgetInBriefFINAL.pdf (accessed March 4, 2023). 4. For example, the Special Applications Center (SAC) located in Chicago, Illinois, was established in 1998 as a division of the Office of Public and Indian Housing to accept, review, and approve all nonfunded, noncompetitive applications and plans for demolition, disposition, and conversion of land subject to an annual contributions contract (ACC) in public housing. 5. The Secretary has delegated full authority for the Administration and enforcement of the Fair Housing Act to the Assistant Secretary of the Office of Fair Housing and Equal Opportunity but also has delegated limited assignment and decision-making authority to the General Counsel. 6. Effectively the HUD Chief Operating Officer and appointed by the President with Senate advice and consent. 7. The Office of Hearings and Appeals (OHA) is an independent adjudicatory office within the Office of the Secretary. Led by a Director who is appointed by the Secretary, it supervises the Administrative Judges of the Office of Appeals, the administrative law judges of the Office of Administrative Law Judges, and the OHA support staff. The HUD Secretary appoints administrative judges and administrative law judges in accordance with the Administrative Procedure Act, 5 U.S.C. Chapter 5, https://www.law.cornell.edu/uscode/text/5/part-I/ chapter-5 (accessed March 4, 2023). 8. HUD currently has a Departmental Equity Assessment Working Group, supported with five FTEs funded by the OSDBU, “as part of the President’s Executive Order 13985, Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.” See U.S. Department of Housing and Urban Development, 2023 Congressional Justifications, p. 35-15, https://www.hud.gov/sites/ dfiles/CFO/documents/2023HUDCongressionalJustificationsFINALelectronicversion.pdf (accessed March 4, 2023), and President Joseph R. Biden Jr., Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,” January 20, 2021, in Federal Register, Vol. 86, No. 14 (January 25, 2021), pp. 7009–7013, https://www.govinfo.gov/content/pkg/FR-2021-01-25/pdf/2021- 01753.pdf (accessed March 4, 2023). 9. Interestingly, “[t]he 2023 President’s Budget requests $748 thousand for CFBNP, which is $436 thousand less than the 2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of $1.2 million, $448 thousand less than 2022 total funding.” U.S. Department of Housing and Urban Development, 2023 Congressional Justifications, p. 35-16. 10. See H.R. 558, Stewart B. McKinney Homeless Assistance Act, Public Law No. 100-77, 100th Congress, July 22, 1987, https://www.govinfo.gov/content/pkg/STATUTE-101/pdf/STATUTE-101-Pg482.pdf (accessed March 5, 2023). Later renamed the McKinney–Vento Homeless Assistance Act. 11. Established under the Housing and Community Development Act of 1974, 42 U.S.C. §§ 5301 et seq., https:// www.law.cornell.edu/uscode/text/42 (accessed March 4, 2023). 12. S. 566, Cranston–Gonzalez National Affordable Housing Act, Public Law No. 101-625, 101st Congress, November 28, 1990, Title II, https://www.congress.gov/101/statute/STATUTE-104/STATUTE-104-Pg4079.pdf (accessed March 5, 2023). 13. S. 1, Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law No. 91-646, 91st Congress, January 2, 1971, https://www.congress.gov/91/statute/STATUTE-84/STATUTE-84-Pg1894.pdf (accessed March 4, 2023). “The URA establishes the minimum Federal requirements for the acquisition of real property for Federally-funded programs and projects, and for the relocation of persons who must move from — 514 — Mandate for Leadership: The Conservative Promise their homes, businesses, or farms as a direct result of acquisition, rehabilitation, or demolition for a Federally- funded program or project.” U.S. Department of Housing and Urban Development, HUD Exchange, “49 CFR Part 24–URA Regulations,” published February 2005, https://www.hudexchange.info/resource/804/ura-and- real-property-acquisition-policies-act-49-cfr-part-24/ (accessed March 4, 2023). HUD is one of the 18 federal departments and agencies that “are subject to the Uniform Act.” U.S. Department of Transportation, Federal Highway Administration, “Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs,” Federal Register, Vol. 84, No. 243 (December 18, 2019), pp. 69466–69521, esp. p. 69484, https://www.govinfo.gov/content/pkg/FR-2019-12-18/pdf/2019-25558.pdf (accessed March 4, 2023). 14. H.R. 3219, Native American Housing Assistance and Self-Determination Act of 1996, Public Law No. 104-330, 104th Congress, October 26, 1996, https://www.congress.gov/104/plaws/publ330/PLAW-104publ330.pdf (accessed March 4, 2023). 15. U.S. Department of Housing and Urban Development, 2023 Congressional Justifications, p. 6-1. The U.S. Housing Act of 1937 (Wagner–Steagall Act) established the origins of locally chartered housing agencies that administer federal funding for various rental assistance programs—a quintessentially progressive New Deal–era policy that expanded the administrative state’s powers to the housing market—with the primary legislative intent of eradicating slum housing in urban areas, boosting jobs, and providing housing for the working poor. 42 U.S.C. §§ 1437 et seq., https://www.law.cornell.edu/uscode/text/42 (accessed March 4, 2023). A decade later, the Housing Act of 1949 codified federal standards for housing livability—a rationale that HUD and federal legislators have continued to use to justify federal intervention in housing—establishing as a national policy objective the provision of a minimum standard of housing quality for all Americans. This legislation also statutorily established many of the rural housing programs that are administered at USDA and expanded programs facilitating the removal of slum housing in urban areas. 42 U.S.C. §§ 1441 et seq., https:// www.law.cornell.edu/uscode/text/42 (accessed March 4, 2023). 16. U.S. Department of Housing and Urban Development, 2023 Congressional Justifications, pp. 1-2 and 2-2. 17. The National Housing Act of 1934 established the FHA and the statutory authority for the secondary market. The main stated premise was to stimulate jobs and facilitate the housing and construction sector during the Great Depression. 42 U.S.C. §§ 1701 et seq., https://www.law.cornell.edu/uscode/text/12 (accessed March 4, 2023). 18. 42 U.S.C. §§ 2000d et seq., https://www.law.cornell.edu/uscode/text/42 (accessed March 4, 2023). 19. 29 U.S.C. §§ 701 et seq., https://www.law.cornell.edu/uscode/text/29 (accessed March 4, 2023). 20. HUD’s Departmental Enforcement Center (DEC) is led by a Director. It was established in 1998 as part of a broader effort to streamline and consolidate functions at HUD and was later merged with the Office of General Counsel. The DEC “is comprised of the Office of the Director, the Compliance Division, the Operations Division and five Satellite Offices” and describes its mission as “assuring the highest standards of ethics, management and accountability in the resolution of HUD's troubled properties.” U.S. Department of Housing and Urban Development, Departmental Enforcement Center, “Program Offices: Departmental Enforcement Center,” https://www.hud.gov/program_offices/enforcement (accessed March 4, 2023). 21. H.R. 5334, Housing and Community Development Act of 1992, Public Law No. 102-1017, 102nd Congress, October 28, 1992, Title X, https://www.congress.gov/102/statute/STATUTE-106/STATUTE-106-Pg3672.pdf (accessed March 4, 2023). 22. H.R. 8588, Inspector General Act of 1978, Public Law No. 95-452, 95th Congress, October 12, 1978, https://www. congress.gov/95/statute/STATUTE-92/STATUTE-92-Pg1101.pdf (accessed March 4, 2023). 23. Guiding questions: What immediate administrative reforms of HUD and its programs can be made with high probability of success? What short-term legislative reforms can be proposed that, in tandem with administrative reforms, would achieve the HUD vision/mission objective? What HUD offices should be eliminated and/or realigned to reduce any redundancy that may persist in programmatic functions? 24. Wholly aside from reforms that would require legislation, the next Administration must ensure that key political appointees are able to acquit themselves as change agents to execute administrative reforms. Otherwise, whether because of a sheer lack of skill and expertise or simply a lack of will and philosophical alignment with reforms, staff may frustrate the efforts of committed political appointee staff and leadership to execute substantive administrative reforms. To achieve the policy and regulatory reforms outlined in this chapter, political appointees must be carefully placed in positions that reflect not only technical, market/ industry, and operational expertise, but also a shared will and commitment.

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About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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