Thalidomide Survivors Compensation Act of 2025

This bill establishes a program to compensate individuals injured by exposure to thalidomide. (Thalidomide is a medication previously used to treat nausea in pregnant women until the 1960s when it was discovered thalidomide causes severe, life-threatening birth defects. Thalidomide is still used to treat multiple myeloma and leprosy, with federal restrictions to prevent use during pregnancy.) Specifically, individuals seeking compensation may submit a petition to the Department of Health and Human Services (HHS) by May 31, 2034, with documentation from a health professional of an injury caused by exposure to thalidomide. HHS must provide $150,000 to individuals showing such injury, as determined by an expert panel. Eligible individuals must have been a U.S. citizen or permanent resident at the time of exposure and at the time the petition was submitted. HHS may pay individuals compensated under the program additional compensation for ongoing medical or other needs as funds allow after HHS' annual review of the program, as required by the bill. Compensation provided under the bill may not be considered when calculating income or assets under any federal program designed to provide assistance exclusively to low-income individuals (i.e., means-tested programs), including certain programs and funds specified in the bill. Compensation under the program is also excluded from gross income for federal tax purposes.