War Hazards Compensation Reform Act
- Bill Number
- H.R. 9520
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Status
- Introduced
- Latest Action
- 2026-06-29: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2026-07-06T13:38:30Z
AI-Generated Summary
War Hazards Compensation Reform Act
Purpose
This legislation amends the War Hazards Compensation Act (WHCA) and the Longshore and Harbor Workers' Compensation Act (LHWCA) to require the federal government to pay interest on delayed reimbursements to insurance carriers for war hazards claims and to eliminate certain collateral requirements for such claims.
Key Provisions
- Interest on Late Reimbursements: Adds a new section to the WHCA requiring the Division of Federal Employees' Compensation (DFEC) to acknowledge complete reimbursement claims within 14 days or issue a deficiency notice. Claims are deemed acknowledged if no response is provided. Interest begins accruing at the Internal Revenue Code section 6621 overpayment rate 60 days after acknowledgment.
- Outstanding Claims: Treats any pending WHCA reimbursement claims as acknowledged on the date of enactment.
- Hiring Requirement: Directs DFEC to hire at least 15 full-time employees to process WHCA claims.
- Collateral Modification: Amends the LHWCA to prohibit the Secretary of Labor from requiring insurance carriers to post collateral or security for liabilities reimbursable under the WHCA.
- Regulatory Updates: Requires the Secretary of Labor to issue implementing regulations within 180 days for both the interest and collateral provisions.
- Benefit Protection: Explicitly states that the Act does not reduce or delay benefits for injured employees or beneficiaries and does not alter the government's existing reimbursement obligations.
Significant Changes to Existing Law
- Introduces mandatory interest payments on late federal reimbursements under the WHCA, where none previously existed.
- Removes the authority to impose collateral requirements for WHCA claims under LHWCA regulations.
- Establishes specific timelines and processes for claim acknowledgment and deems certain submissions complete by default.
- Mandates minimum staffing levels in DFEC for WHCA processing.
Potential Impacts
- Government Agencies: Increases administrative workload and potential costs for the Department of Labor through interest payments, new staffing, and regulatory revisions.
- Citizens and Employers: May reduce financial burdens on insurance carriers and employers involved in overseas or defense-related work, potentially improving insurance availability and affordability.
- International Relations: No direct provisions affect international relations.
Main Stakeholders Affected
- Insurance carriers that advance payments under the WHCA.
- Employers engaged in national defense or overseas activities covered by the LHWCA and WHCA.
- The Department of Labor, particularly DFEC and the Office of Workers' Compensation Programs.
- Covered employees and surviving beneficiaries under the WHCA and LHWCA.
Notable Legal, Constitutional, or Political Implications
- The interest accrual mechanism relies on an existing IRS rate without creating new constitutional issues.
- The collateral prohibition represents a statutory override of current regulatory requirements.
- The bill focuses on procedural reforms to reimbursement processes without altering substantive benefit entitlements.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Lawler, Michael [R-NY-17]
Recent Actions
- 2026-06-29: Referred to the House Committee on Education and Workforce.
- 2026-06-29: Introduced in House
- 2026-06-29: Introduced in House
Bill Versions
- War Hazards Compensation Reform Act — issued 2026-06-29 — PDF (7 pages)