US HB1656

Permits agents and attorneys to charge fees for preparing, presenting, or prosecuting initial VA benefits claims, with fees capped at the lesser of $12,500 (adjusted annually for inflation) or five times the monthly benefit increase awarded

Requires fee agreements to be contingent on favorable outcomes, with no payment allowed until after the VA issues its initial decision on the claim

Establishes conditional/temporary recognition for agents and attorneys if the VA cannot verify qualifications within 90 days, renewable in one-year periods until verification is complete

Creates penalties for unauthorized fee collection including fines up to $50,000, imprisonment up to one year, and bars from VA recognition for 1-10 years for violations

Authorizes the VA Secretary to charge agents/attorneys an assessment up to $500 for initial claim representation, with funds deposited in a revolving fund for program administration