FECA Modernization and Cost Containment Act of 2026

Congress finds the following:

(1) The Federal Employees’ Compensation Act has not undergone significant reform since 1974, despite advancements in workers’ compensation practices.

(2) Federal employees’ compensation costs are significantly higher than those in the private sector, creating a burden on taxpayers.

(3) The inability of Federal employers to direct injured employees to managed care networks results in increased medical costs, inconsistent treatment, poor clinical outcomes and extended recovery times.

(4) Fraud in the Federal employees’ compensation system remains a significant issue, requiring enhanced monitoring and predictive fraud detection measures.

(5) Implementing industry best practices, including employer-directed medical care, standardized treatment protocols, and case management programs, will improve efficiency, reduce costs, improve clinical outcomes for injured employees, and accelerate employee recovery.