FEES Act of 2026

(a) Agency proceedings

(1) Eligibility parties. Section 504(a)(1) of title 5, United States Code, is amended by inserting after prevailing party the following: who has a direct and personal monetary interest in the adjudication, including because of personal injury, private property damage, or unpaid agency disbursement,.

(2) Limitation on awards. Section 504(a) of title 5, United States Code, is amended by adding at the end the following:

(5) A party may not receive an award of fees and other expenses under this section— unless the prevailing party has filed and prevailed in a class action lawsuit or the Social Security Administration or Department of Veterans Affairs is a party in such action.

(A) in excess of $200,000 in any single adversary adjudication, or

(B) for more than 3 adversary adjudications initiated in the same calendar year,

(b) Civil actions. Section 2412(d)(1) of title 28, United States Code, is amended—

(1) in subparagraph (A)—

(A) by striking in any civil action and all that follows through jurisdiction of that action and inserting in the civil action; and

(B) by striking shall award to a prevailing party other than the United States and inserting the following: , in any civil action (other than cases sounding in tort), including proceedings for judicial review of agency action, brought by or against the United States in any court having jurisdiction of that action, shall award to a prevailing party who has a direct and personal monetary interest in the civil action, including because of personal injury, private property damage, or unpaid agency disbursement, other than the United States,;

(2) in subparagraph (C)—

(A) by striking , in its discretion, may reduce the amount to be awarded pursuant to this subsection, or deny an award, and inserting shall reduce the amount to be awarded under this subsection, or deny an award, commensurate with pro bono hours and related fees and expenses, or;

(B) by striking unduly and; and

(C) by striking controversy. and inserting controversy or acted in an obdurate, dilatory, mendacious, or oppressive manner, or in bad faith.; and

(3) by adding at the end, the following:

(E) An individual or entity may not receive an award of fees and other expenses under this subsection in excess of—

(i) $200,000 in any single civil action, or

(ii) for more than 3 civil actions initiated in the same calendar year, unless the prevailing party has filed and prevailed in a class action lawsuit or the Social Security Administration or Department of Veterans Affairs is a party in such action.

(c) Effective date. The amendments made by—

(1) paragraphs (1) and (2) of subsection (a) shall apply with respect to adversary adjudications commenced on or after the date of the enactment of this Act; and

(2) subsection (b) shall apply with respect to civil actions commenced on or after such date of enactment.