H.R. 5865 — Thalidomide Survivors Compensation Act of 2025

This section sets forth six congressional findings on thalidomide, including that it caused more than 10,000 birth defects and deaths worldwide during the 1950s and 1960s, approximately 5 million samples were distributed in the U.S., about 100 survivors remain, and 46 countries provide them compensation or assistance. The section declares the purpose of the Act to enable thalidomide survivors to live the remainder of their lives with independence and dignity.

This section establishes the Thalidomide Survivors Compensation Program, to be administered by the Secretary of Health and Human Services no later than one year after enactment, to provide $150,000 to eligible U.S. citizens and permanent residents who petition by May 31, 2034, with physician documentation of thalidomide exposure and resulting injury, as verified by a Secretary-appointed expert panel of legal, medical, thalidomide experts, and survivors. No individual may submit more than one petition. Compensation payments are excluded from income or assets calculations for means-tested welfare programs, and the program is authorized to receive such sums as necessary for FY2028 through FY2034.

This section directs the Secretary of Health and Human Services to conduct a comprehensive review of all compensation provided under the Thalidomide Survivors Compensation Program, beginning not later than one year after the program's establishment under section 3 and annually thereafter. Not later than 60 days after completing each review, the Secretary must submit a report to Congress and make it publicly available that includes (1) an evaluation of whether the objectives of this Act are being met; (2) recommendations for modifications, improvements, support, compensation, or expansions to better serve thalidomide survivors in the United States; (3) a detailed accounting of funds appropriated and expended; (4) the number of individuals receiving compensation; (5) an evaluation of the adequacy of compensation to meet survivors' medical and other needs; (6) recommendations for adjustments to appropriations; and (7) a summary of feedback and satisfaction from recipients.

This section authorizes the Secretary of Health and Human Services, subject to appropriations and an annual review under section 4, to provide additional compensation to individuals who received payments under the Thalidomide Survivors Compensation Program (established under section 3) to address their ongoing medical or other needs, as determined appropriate by the Secretary. Such additional compensation is excluded from calculations of income or assets for any means-tested welfare program.

This section establishes a new exclusion from gross income (under new IRC §139M) for compensation received under the Thalidomide Survivors Compensation Act of 2025 (i.e., payments to survivors of thalidomide-related birth defects), effective for amounts received after the date of enactment in taxable years ending after such date.

This section defines a "means-tested welfare program" for purposes of this Act as any federal program designed to provide assistance or benefits exclusively to low-income Americans, including community and economic development programs targeted to low-income communities or populations. The definition specifies that such programs encompass (1) cash and general assistance programs such as Supplemental Security Income and Temporary Assistance for Needy Families; (2) medical programs such as Medicare and Medicaid; (3) food programs such as the Supplemental Nutrition Assistance Program and school lunch programs; (4) housing programs such as Section 8 rental assistance, public housing, and supportive housing for the elderly under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); (5) energy and utilities programs such as Low-Income Home Energy Assistance; and (6) education programs such as Federal Pell Grants.