Compensation Fund Recrediting Act

Summary of HR 8767 (119th Congress) – Compensation Fund Recrediting Act

Purpose and Intent

• The bill aims to wind down and terminate the Filipino Veterans Equity Compensation Fund established under the American Recovery and Reinvestment Act of 2009 (ARRA, Public Law 111-5).
• It creates a sunset mechanism that ends the fund on a fixed date and redirects any remaining funds to the U.S. Treasury.

Key Provisions and Changes

• Amends Section 1002 of ARRA (as it relates to the Filipino Veterans Equity Compensation Fund).
• Changes the sunset language:
  • Replaces the current phrasing that keeps the fund “until expended” with a specific end date.
  • Adds a new subsection (m) establishing a hard sunset:
  • On January 1, 2027, the section ceases to have any effect.
  • Any amounts remaining in the Filipino Veterans Equity Compensation Fund on that date shall be deposited into the general fund of the Treasury.
• Overall effect: The fund would cease operations and any residual funds would be transferred to the Treasury on January 1, 2027.

Affected Parties

• The primary policy impact concerns the Filipino Veterans Equity Compensation Fund beneficiaries and applicants who have or may have received compensation under the fund.
• The U.S. Treasury would receive any remaining funds upon sunset.
• The Department or agency administering the fund (as established under ARRA) would be affected by the sunset and cessation of program operations.

Procedural and Timeline Details

• Introduction date: May 12, 2026.
• Referred to the House Committee on Veterans' Affairs (no further action details provided in the text).
• Sunset date: January 1, 2027.
  • If enacted, no new operations or obligations would occur after that date.
  • Any funds left in the fund on that date would be deposited into the Treasury’s general fund.

Practical Implications

• Beneficiaries: The pool of available funds would be closed to new disbursements after the sunset. Remaining balances would be redirected to the Treasury, potentially affecting any ongoing or future claims if they would have been paid after 2027.
• Administration: The responsible federal program would wind down, with a defined terminal date and unactionable balance transfers to the general fund.

Notable Details

• Bill title: Compensation Fund Recrediting Act.
• Short title provided in the bill: “Compensation Fund Recrediting Act.”
• Sponsor: Rep. Keith Self (co-sponsor listed).
• Legislative path: Requires action by the House Veterans’ Affairs Committee and subsequent floor consideration, with no stated companion in the Senate within the provided text.