Reimbursement of Qualifying Adoption Expenses for Certain Veterans, 9208-9213 [2018-04245]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 83, Number 43 (Monday, March 5, 2018)]
[Rules and Regulations]
[Pages 9208-9213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04245]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AQ01


Reimbursement of Qualifying Adoption Expenses for Certain 
Veterans

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

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SUMMARY: The Department of Veterans Affairs (VA) amends its regulation 
to provide for reimbursement of qualifying adoption expenses incurred 
by a veteran with a service-connected disability that results in the 
inability of the veteran to procreate without the use of fertility 
treatment. Under the Continuing Appropriations and Military 
Construction, Veterans Affairs, and Related Agencies Appropriations 
Act, 2017, and Zika Response and Preparedness Act, VA may use funds 
appropriated or otherwise made available to VA for the ``Medical 
Services'' account to provide adoption reimbursement to these veterans. 
Under the law, reimbursement may be for the adoption-related expenses 
for an

[[Page 9209]]

adoption that is finalized after the date of the enactment of this Act 
under the same terms as apply under the adoption reimbursement program 
of the Department of Defense (DoD), as authorized in DoD Instruction 
1341.09, including the reimbursement limits and requirements set forth 
in such instruction. This rulemaking implements the new adoption 
reimbursement benefit for covered veterans.

DATES: 
    Effective date: This rule is effective on March 5, 2018.
    Comment date: Comments must be received on or before May 4, 2018.

ADDRESSES: Written comments may be submitted by email through 
www.regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (00REG), Department of Veterans Affairs, 810 
Vermont Avenue NW, Room 1068, Washington, DC 20420; or by fax to (202) 
273-9026. (This is not a toll-free number.) Comments should indicate 
that they are submitted in response to ``RIN 2900-AQ01--reimbursement 
of qualifying adoption expenses for certain veterans.'' Copies of 
comments received will be available for public inspection in the Office 
of Regulation Policy and Management, Room 1068, between the hours of 8 
a.m. and 4:30 p.m. Monday through Friday (except holidays). Please call 
(202) 461-4902 for an appointment. (This is not a toll-free number.) In 
addition, during the comment period, comments may be viewed online 
through the Federal Docket Management System (FDMS) at 
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Patricia M. Hayes, Ph.D. Chief 
Consultant, Women's Health Services, Patient Care Services, Veterans 
Health Administration, Department of Veterans Affairs, 810 Vermont Ave. 
NW, Washington, DC 20420. (202) 461-0373. (This is not a toll-free 
number.)

SUPPLEMENTARY INFORMATION: Section 260 of the Continuing Appropriations 
and Military Construction, Veterans Affairs, and Related Agencies 
Appropriations Act, 2017, and Zika Response and Preparedness Act (Pub. 
L.114-223) allows VA to use appropriated funds available to VA for the 
Medical Services account to provide fertility counseling and treatment 
using assisted reproductive technology (ART) to a covered veteran or 
the spouse of a covered veteran, or adoption reimbursement to a covered 
veteran. On January 19, 2017, VA published an interim final rule at 82 
FR 6275 addressing fertility counseling and treatment using ART, 
including in vitro fertilization (IVF) (which is a type of ART), for 
both covered veterans and spouses. We now address reimbursement of 
qualifying adoption expenses in this rulemaking.
    Per the statute, veterans with a service-connected disability that 
results in the inability of the veteran to procreate without the use of 
fertility treatment are authorized to receive reimbursement for certain 
adoption-related expenses for an adoption that is finalized after 
September 29, 2016, (the date the law was enacted) under the same terms 
as apply under the adoption reimbursement program of DoD, as authorized 
in DoD Instruction 1341.09, including the reimbursement limits and 
requirements set forth in that DoD policy. DoD Instruction 1341.09, 
``DoD Adoption Reimbursement Policy'' (July 5, 2016) establishes 
policy, assigns responsibilities within DoD, and provides procedures 
for the reimbursement of qualifying adoption expenses incurred by 
members of the Military Services (including document submission 
requirements) pursuant to 10 U.S.C. 1052. That statute was enacted in 
1991 and establishes the parameters of DoD's adoption reimbursement 
program. VA amends part 17 by adding new section 17.390 to provide for 
reimbursement of qualifying adoption expenses to covered veterans, 
consistent with the policies and procedures established by DoD in 
implementing 10 U.S.C. 1052.
    Paragraph (a) of new Sec.  17.390 addresses general requirements 
for reimbursement. Except as noted, all of these requirements are terms 
of the adoption reimbursement program of DoD, as authorized in DoD 
Instruction 1341.09. A covered veteran may request reimbursement for 
qualifying adoption expenses incurred by the veteran in the adoption of 
a child under 18 years of age. To clarify the scope of adoptions that 
are contemplated, we state that reimbursement for qualifying adoption 
expenses includes expenses for an adoption by a married or single 
person, an infant adoption, an intercountry adoption, and an adoption 
of a child with special needs as defined in section 473(c) of the 
Social Security Act (42 U.S.C. 673(c)). A ``special needs'' child is 
generally assessed by considering whether the child has a specific 
factor or condition that prevents the child from being placed with 
adoptive parents without adoption assistance or medical assistance; or 
whether the child qualifies for disability supplemental security income 
benefits; and whether a reasonable, but unsuccessful, effort was made 
to place the child with adoptive parents without adoption assistance or 
medical assistance. Specific factors or conditions include the child's 
ethnic background, age, membership in a minority or sibling group, or 
the presence of factors such as medical conditions or physical, mental 
or emotional disabilities. In accordance with section 260 of Public Law 
114-223, reimbursement for qualifying adoption expenses may be 
requested only for an adoption that became final after September 29, 
2016, the date Public Law 114-223 was enacted. In addition, the 
application for reimbursement must be submitted no later than 2 years 
after the adoption is final or, in the case of adoption of a foreign 
child, no later than 2 years from the date a certificate of United 
States citizenship is issued. In the case of adoption of a foreign 
child, reimbursement for qualifying adoption expenses may be requested 
only after United States citizenship has been granted to the adopted 
child. VA will not provide reimbursement for qualifying adoption 
expenses for any expense paid to or for a covered veteran under any 
other adoption benefits program administered by the Federal Government 
or under any such program administered by a State or local government.
    In paragraph (b) of new Sec.  17.390, based on the terms in DoD 
Instruction 1341.09, we address limitations on the amount of 
reimbursement for qualifying adoption expenses that a covered veteran, 
or two covered veterans who are spouses, may receive per adopted child, 
and the maximum amount that may be paid to such veterans in any 
calendar year. No more than $2,000 may be reimbursed to a covered 
veteran, or to two covered veterans who are spouses of each other, for 
expenses incurred in the adoption of a child. In the case of two 
married covered veterans, only one spouse may claim reimbursement for 
any one adoption. No more than $5,000 may be paid under this section to 
a covered veteran in any calendar year. In the case of two married 
covered veterans, the couple is limited to a maximum of $5,000 per 
calendar year.
    Relevant definitions are found in paragraph (c) of new Sec.  
17.390. The term ``covered veteran'' is defined as it is in section 260 
of Public Law 114-223: A veteran with a service-connected disability 
that results in the inability of the veteran to procreate without the 
use of fertility treatment. The additional restrictions on the 
eligibility of covered veterans in Sec.  17.380(a)(2) were required to 
implement the term ``assisted reproductive technology'' as defined in 
section 260(b)(3) of Public Law 114-

[[Page 9210]]

223, and do not apply to the adoption reimbursement benefit.
    ``Qualifying adoption expenses'' is defined based on the DoD 
Instruction to mean reasonable and necessary expenses that are directly 
related to the legal adoption of a child under 18 years of age, but 
only if such adoption is arranged by a qualified adoption agency. This 
definition includes several important elements. The expense must be 
``reasonable and necessary.'' Based on the DoD Instruction, we define 
``reasonable and necessary'' to include public and private agency fees, 
including adoption fees charged by an agency in a foreign country; 
placement fees, including fees charged to adoptive parents for 
counseling; and legal fees (including court costs). The term also 
includes medical expenses, including hospital expenses of the 
biological mother and medical care of the child to be adopted, as well 
as temporary foster care charges when payment of such charges is 
required before the adoptive child's placement.
    The adoption expenses must be directly related to the legal 
adoption of a child under the age of 18. Certain items are not 
reimbursable including expenses such as clothing, bedding, toys and 
books; travel expenses; and expenses incurred in connection with an 
adoption arranged in violation of Federal, State, or local law.
    To be reimbursable as a qualifying adoption expense the adoption 
must be arranged by a qualified adoption agency. We define ``qualified 
adoption agency'' as it is defined in the DoD Instruction. The term is 
broadly defined to include: a State or local government agency which 
has responsibility under State or local law for child placement through 
adoption; a nonprofit, voluntary adoption agency which is authorized by 
State or local law to place children for adoption; and, any other 
source authorized by a State to provide adoption placement if the 
adoption is supervised by a court under State or local law. In addition 
the term ``qualified adoption agency'' includes a foreign government or 
an agency authorized by a foreign government to place children for 
adoption, in any case in which the adopted child is entitled to 
automatic citizenship under section 320 of the Immigration and 
Nationality Act (8 U.S.C. 1431); or a certificate of citizenship has 
been issued for such child under section 322 of that Act (8 U.S.C. 
1433).
    Definitions in paragraph (c) are consistent with Public Law 114-223 
section 260, the DoD policy referenced in that statute, and the statute 
authorizing DoD to operate its adoption reimbursement program (10 
U.S.C. 1052).
    Paragraph (d) addresses documentation that a covered veteran must 
provide VA to obtain reimbursement of qualifying adoption expenses. It 
mirrors DoD's submission requirements found in the DoD Instruction. The 
request for reimbursement must be submitted on a form prescribed for 
such purpose by VA.
    Paragraph (e) provides that if documents submitted by a covered 
veteran in support of an application for reimbursement do not establish 
eligibility for reimbursement or justify claimed expenses, VA will 
retain the application and advise the covered veteran of additional 
documentation needed. All requested documentation must be submitted to 
VA within 90 calendar days of VA request. This is consistent with the 
DoD Instruction, and VA believes that it provides sufficient time to 
allow a covered veteran to obtain and submit additional documentation 
to support the claim for reimbursement.
    Section 260 of Public Law 114-223 provides that VA is authorized to 
use appropriated funds available to VA for the Medical Services account 
in the Public Law for reimbursement of qualifying adoption expenses. 
Paragraph (f) states that authority to provide reimbursement for 
qualifying adoption expenses incurred by a covered veteran in the 
adoption of a child under 18 years of age expires September 30, 2018, 
to reflect the limitations on the use of appropriated funds in the 
Medical Services account under section 260 of Public Law 114-223.
    VA believes this rulemaking will benefit covered veterans. Whether 
IVF or other fertility treatments using ART are or are not a viable 
option, the covered veteran may elect to adopt. This rulemaking 
decreases the financial burden of making that choice.
    VA is publishing this rulemaking as an interim final rule effective 
on the date of publication. We are providing a 60-day comment period to 
provide the public with an opportunity to submit comments and feedback.

Administrative Procedure Act

    In accordance with 5 U.S.C. 553(b)(B) and (d)(3), the Secretary of 
Veterans Affairs has concluded that there is good cause to publish this 
rule as an interim final rule without prior opportunity for public 
comment and to publish this rule with an immediate effective date. The 
Secretary finds that it is impracticable and contrary to the public 
interest to delay this rule for the purpose of soliciting advance 
public comment or to have a delayed effective date. VA is authorized to 
reimburse qualified adoption expenses incurred by covered veterans only 
through the end of Fiscal Year 2018. Pursuing the standard 
administrative process of publishing a proposed rule, soliciting public 
comment, followed by publication of a final rule with an effective date 
30 days after publication would result in a significant delay in 
implementation. VA believes that electing to follow that course of 
action would severely limit the agency's ability to utilize this 
authority as provided by Congress under Public Law 114-223. VA has 
determined that it is in the public interest to publish this rulemaking 
as an interim final rule effective on the date of publication to ensure 
that covered veterans have access to this benefit for the greatest 
amount of time practicable. VA believes that publishing this rule as an 
interim final rule without prior opportunity for public comment and to 
publish this rule with an immediate effective date will give effect to 
congressional intent that covered veterans have access to this benefit 
in a timely fashion. Further, we note that Public Law 114-223 section 
260(b)(4) establishes strict parameters on VA's administration of this 
benefit, requiring us to operate under the same terms as apply under 
the DoD's adoption reimbursement program, as authorized in DoD 
Instruction 1341.09, including the reimbursement limits and 
requirements set forth in such instruction. Given these restrictions, 
there is very little room for substantive changes to the rule based on 
public comment. For the above reasons, the Secretary issues this rule 
as an interim final rule with an immediate effective date. VA will 
consider and address comments that are received within 60 days of the 
date this interim final rule is published in the Federal Register.

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as revised by this 
final rulemaking, represents VA's implementation of its legal authority 
on this subject. Other than future amendments to this regulation or 
governing statutes, no contrary guidance or procedures are authorized. 
All existing or subsequent VA guidance must be read to conform with 
this rulemaking if possible or, if not possible, such guidance is 
superseded by this rulemaking.

Paperwork Reduction Act

    This interim rule includes a provision constituting a collection of 
information

[[Page 9211]]

under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) that 
requires approval by the Office of Management and Budget (OMB). VA has 
requested emergency clearance of information collection under this 
interim final rule. Accordingly, under 44 U.S.C. 3507(d), VA has 
submitted a copy of this rulemaking to OMB for review.
    OMB assigns control numbers to collections of information it 
approves. VA may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. Section 17.390 contains a 
collection of information under the Paperwork Reduction Act of 1995. If 
OMB does not approve the collection(s) of information as requested, VA 
will immediately remove the provision(s) containing a collection of 
information or take such other action as is directed by OMB.
    Comments on the collection of information contained in this rule 
should be submitted to the Office of Management and Budget, Attention: 
Desk Officer for the Department of Veterans Affairs, Office of 
Information and Regulatory Affairs, Washington, DC 20503, with copies 
sent by mail or hand delivery to the Director, Regulations Management 
(00REG), Department of Veterans Affairs, 810 Vermont Avenue NW, Room 
1068, Washington, DC 20420; fax to (202) 273-9026 (This is not a toll 
free no.); or through www.Regulations.gov. Comments should indicate 
that they are submitted in response to ``RIN 2900-AQ01 Reimbursement of 
qualifying adoption expenses for certain veterans.''
    OMB is required to make a decision concerning the collections of 
information contained in this rule between 30 and 60 days after 
publication of this document in the Federal Register.
    VA considers comments by the public on proposed collections of 
information in--
     Evaluating whether the proposed collections of information 
are necessary for the proper performance of the functions of VA, 
including whether the information will have practical utility;
     Evaluating the accuracy of VA's estimate of the burden of 
the proposed collections of information, including the validity of the 
methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    The collections of information contained in regulatory section 38 
CFR 17.390 are described immediately following this paragraph, under 
their respective titles.
    Title: Reimbursement of qualifying adoption expenses for certain 
veterans.
    Summary of collection of information: To receive reimbursement for 
qualifying adoption expenses a covered veteran must provide various 
types of documentation including a copy of the final adoption decree, 
certificate or court order granting the adoption; proof of citizenship 
of the adopted child in the case of a foreign adoption; documentation 
that the adoption was handled by a qualified adoption agency; and 
documentation to substantiate reasonable and necessary expenses paid by 
the covered veteran. In addition, the covered veteran must submit a 
full English translation of any foreign language document, to include 
the translator's certification that he or she is competent to translate 
the foreign language to English and that his or her translation is 
complete and correct. Finally, the covered veteran may be asked to 
provide information to facilitate electronic transfer of funds to 
effectuate the reimbursement. This information collection is consistent 
with DoD requirements imposed on a service member seeking reimbursement 
of qualifying adoption expenses.
    Description of the need for information and proposed use of 
information: The information is needed to determine eligibility for 
reimbursement of qualifying adoption expenses.
    Description of likely respondents: Veterans with a service-
connected disability that results in the inability of the veteran to 
procreate without the use of fertility treatment who incurred 
qualifying adoption expenses related to an adoption that became final 
after September 29, 2016.
    Estimated number of respondents per month/year: 80 annually.
    Estimated frequency of responses per month/year: one response 
total.
    Estimated average burden per response: 6 hours.
    Estimated total annual reporting and recordkeeping burden: 480 
hours.

Regulatory Flexibility Act

    The Secretary hereby certifies that this interim final rule will 
not have a significant economic impact on a substantial number of small 
entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. This interim final rule will directly affect only 
individuals and will not directly affect small entities. Therefore, 
pursuant to 5 U.S.C. 605(b), this rulemaking is exempt from the initial 
and final regulatory flexibility analysis requirements of 5 U.S.C. 603 
and 604.

Executive Order 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' requiring review by OMB, unless OMB 
waives such review, as ``any regulatory action that is likely to result 
in a rule that may: (1) Have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined, and it has 
been determined not to be a significant regulatory action under 
Executive Order 12866. VA's impact analysis can be found as a 
supporting document at www.regulations.gov, usually within 48 hours 
after the rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's website at 
www.va.gov/orpm/, by following the link for ``VA Regulations Published 
From FY 2004 Through Fiscal Year to Date.''

[[Page 9212]]

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This interim final rule will have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this document are 64.007, Blind Rehabilitation 
Centers; 64.008, Veterans Domiciliary Care; 64.009, Veterans Medical 
Care Benefits; 64.010, Veterans Nursing Home Care; 64.011, Veterans 
Dental Care; 64.012, Veterans Prescription Service; 64.013, Veterans 
Prosthetic Appliances; 64.014, Veterans State Domiciliary Care; 64.015, 
Veterans State Nursing Home Care; 64.018, Sharing Specialized Medical 
Resources; 64.019, Veterans Rehabilitation Alcohol and Drug Dependence; 
64.022, Veterans Home Based Primary Care; and 64.024, VA Homeless 
Providers Grant and Per Diem Program.

List of Subjects in 38 CFR Part 17

    Administrative practice and procedure, Alcohol abuse, Alcoholism, 
Claims, Day care, Dental health, Drug abuse, Government contracts, 
Grant programs--health, Grant programs--veterans, Health care, Health 
facilities, Health professions, Health records, Homeless, Medical and 
Dental schools, Medical devices, Medical research, Mental health 
programs, Nursing homes, Reporting and recordkeeping requirements, 
Travel and transportation expenses, Veterans.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs, 
approved this document on August 25, 2017, for publication.

    Dated: February 27, 2018.
Jeffrey Martin,
Impact Analyst, Office of Regulation Policy & Management, Office of the 
Secretary, Department of Veterans Affairs.
    For the reasons set out in the preamble, VA amends 38 CFR part 17 
as follows:

PART 17--MEDICAL

0
1. The authority citation for part 17 is revised to read as follows:

    Authority:  38 U.S.C. 501, and as noted in specific sections.

    Section 17.38 is also issued under 38 U.S.C. 101, 501, 1701, 
1705, 1710, 1710A, 1721, 1722, 1782, and 1786.
    Section 17.169 is also issued under 38 U.S.C. 1712C.
    Sections 17.380, 17.390 and 17.412 are also issued under sec. 
260, Pub. L. 114-223, 130 Stat. 857.
    Section 17.410 is also issued under 38 U.S.C. 1787.
    Section 17.415 is also issued under 38 U.S.C. 7301, 7304, 7402, 
and 7403.
    Sections 17.640 and 17.647 are also issued under sec. 4, Pub. L. 
114-2, 129 Stat. 30.
    Sections 17.641 through 17.646 are also issued under 38 U.S.C. 
501(a) and sec. 4, Pub. L. 114-2, 129 Stat. 30.
    Section 17.655 also issued under 38 U.S.C. 501(a), 7304, 7405.

0
2. Revise the undesignated center heading immediately preceding Sec.  
17.380 to read as follows:
    In Vitro Fertilization and Reimbursement of Adoption Expenses

0
3. Add Sec.  17.390 before the undesignated center heading ``Hospital 
Care and Medical Services for Camp Lejune Veterans and Families'' to 
read as follows:


Sec.  17. 390   Reimbursement for qualifying adoption expenses incurred 
by certain veterans.

    (a) General. A covered veteran may request reimbursement for 
qualifying adoption expenses incurred by the veteran in the adoption of 
a child under 18 years of age.
    (1) An adoption for which expenses may be reimbursed under this 
section includes an adoption by a married or single person, an infant 
adoption, an intercountry adoption, and an adoption of a child with 
special needs (as defined in section 473(c) of the Social Security Act 
(42 U.S.C. 673(c))).
    (2) Reimbursement for qualifying adoption expenses may be requested 
only for an adoption that became final after September 29, 2016, and 
must be requested:
    (i) No later than 2 years after the adoption is final; or,
    (ii) In the case of adoption of a foreign child, no later than 2 
years from the date the certificate of United States citizenship is 
issued.
    (3) In the case of adoption of a foreign child, reimbursement for 
qualifying adoption expenses may be requested only after United States 
citizenship has been granted to the adopted child.
    (4) Reimbursement for qualifying adoption expenses may not be made 
under this section for any expense paid to or for a covered veteran 
under any other adoption benefits program administered by the Federal 
Government or under any such program administered by a State or local 
government.
    (b) Limitations. (1) Reimbursement per adopted child. No more than 
$2,000 may be reimbursed under this section to a covered veteran, or to 
two covered veterans who are spouses of each other, for expenses 
incurred in the adoption of a child. In the case of two married covered 
veterans, only one spouse may claim reimbursement for any one adoption.
    (2) Maximum reimbursement in any calendar year. No more than $5,000 
may be paid under this section to a covered veteran in any calendar 
year. In the case of two married covered veterans, the couple is 
limited to a maximum of $5,000 per calendar year.
    (c) Definitions. For the purposes of this section:
    (1) ``Covered veteran'' means a veteran with a service-connected 
disability that results in the inability of the veteran to procreate 
without the use of fertility treatment.
    (2) ``Qualifying adoption expenses'' means reasonable and necessary 
expenses that are directly related to the legal adoption of a child 
under 18 years of age, but only if such adoption is arranged by a 
qualified adoption agency. Such term does not include any expense 
incurred:
    (i) For items such as clothing, bedding, toys and books;
    (ii) For travel; or
    (iii) In connection with an adoption arranged in violation of 
Federal, State, or local law.
    (3) ``Reasonable and necessary expenses'' include:
    (i) Public and private agency fees, including adoption fees charged 
by an agency in a foreign country;
    (ii) Placement fees, including fees charged to adoptive parents for 
counseling;
    (iii) Legal fees (including court costs) or notary expenses;
    (iv) Medical expenses, including hospital expenses of the 
biological mother and medical care of the child to be adopted; and
    (v) Temporary foster care charges when payment of such charges is

[[Page 9213]]

required before the adoptive child's placement.
    (4) ``Qualified adoption agency'' means any of the following:
    (i) A State or local government agency which has responsibility 
under State or local law for child placement through adoption.
    (ii) A nonprofit, voluntary adoption agency which is authorized by 
State or local law to place children for adoption.
    (iii) Any other source authorized by a State to provide adoption 
placement if the adoption is supervised by a court under State or local 
law.
    (iv) A foreign government or an agency authorized by a foreign 
government to place children for adoption, in any case in which:
    (A) The adopted child is entitled to automatic citizenship under 
section 320 of the Immigration and Nationality Act (8 U.S.C. 1431); or
    (B) A certificate of citizenship has been issued for such child 
under section 322 of that Act (8 U.S.C. 1433).
    (d) Applying for reimbursement of qualifying adoption expenses. An 
application for reimbursement must be submitted on a form prescribed 
for such purpose by VA. Information and documentation must include:
    (1) A copy of the final adoption decree, certificate or court order 
granting the adoption. For U.S. adoptions, the court order must be 
signed by a judge unless either State law or local court rules 
authorize that the adoption order may be signed by a commissioner, 
magistrate or court referee. The covered veteran must submit a full 
English translation of any foreign language document, to include the 
translator's certification that he or she is competent to translate the 
foreign language to English and that his or her translation is complete 
and correct.
    (2) For foreign adoptions, proof of U.S. citizenship of the child, 
including any of the following:
    (i) A copy of Certificate of Citizenship.
    (ii) A copy of a U.S. court order that recognizes the foreign 
adoption, or documents the re-adopting of the child in the United 
States.
    (iii) A letter from the United States Citizenship and Immigration 
Services, which states the status of the child's adoption.
    (iv) A copy of the child's U.S. passport (page with personal 
information only).
    (3) For U.S. adoptions, documentation to show that the adoption was 
handled by a qualified adoption agency or other source authorized by a 
State or local law to provide adoption placement. Acceptable forms of 
proof that the adoption was handled by a qualified adoption agency 
include:
    (i) A copy of placement agreement from the adoption agency showing 
the agreement entered into between the member and the agency.
    (ii) A letter from the adoption agency stating that the agency 
arranged the adoption and that the agency is a licensed child placing 
agency in the United States.
    (iii) Receipts for payment to the adoption agency, as well as 
proof, (e.g., a copy of the agency's web page), of the agency's status 
as a for-profit or non-profit licensed child placing agency.
    (4) For foreign adoptions, documentation to show that the adoption 
was handled by a qualified adoption agency. In addition to the forms of 
acceptable proof that the adoption was handled by a qualified adoption 
agency listed in paragraph (d)(3) of this section, the documentation 
must also include:
    (i) A document that describes the mission of the foreign agency and 
its authority from the foreign government to place children for 
adoption; and
    (ii) A placement agreement from the adoption agency or letter from 
the adoption agency stating the specific services it provided for the 
adoption.
    (5) Documentation to substantiate reasonable and necessary expenses 
paid by the covered veteran. Acceptable forms of documentation include 
receipts, cancelled checks, or a letter from the adoption agency 
showing the amount paid by the member. Receipts from a foreign entity 
should include the U.S. currency equivalency. Reconstruction of expense 
records is permissible when the original records are unavailable and 
the covered veteran submits a notarized affidavit stating the costs.
    (6) Checking or savings account information to facilitate VA 
providing reimbursement to the covered veteran under this section.
    (e) Failure to establish eligibility. If documents submitted by a 
covered veteran in support of an application for reimbursement do not 
establish eligibility for reimbursement or justify claimed expenses, VA 
will retain the application and advise the covered veteran of 
additional documentation needed. All requested documentation must be 
submitted to VA within 90 calendar days of VA request.
    (f) Authority. Authority to provide reimbursement for qualifying 
adoption expenses incurred by a covered veteran in the adoption of a 
child under 18 years of age expires September 30, 2018.
    (Approval for information collection under this section has been 
requested from the Office of Management and Budget)

[FR Doc. 2018-04245 Filed 3-2-18; 8:45 am]
 BILLING CODE 8320-01-P