This bill creates a one-time compensation program for Americans who were harmed by thalidomide, a drug that caused severe birth defects when taken during pregnancy in the 1950s and 1960s. Although thalidomide was never officially approved in the U.S., about 5 million samples were distributed by doctors through informal trials, and an estimated 100 survivors still live in America today. These survivors have spent decades paying for medical care and dealing with disabilities without any government support, while 46 other countries already provide compensation to their thalidomide survivors.

Under this program, eligible survivors can apply for a one-time payment of $150,000 if they can provide medical documentation showing they were exposed to thalidomide and suffered injuries as a result. To qualify, applicants must be U.S. citizens or permanent residents, and they have until May 31, 2034 to submit their petition. The Department of Health and Human Services will establish an expert panel of legal experts, doctors, and thalidomide survivors to review applications and approve claims.

An important protection in the bill ensures that the $150,000 payment won't count against survivors if they receive government assistance programs like Medicaid, food stamps, or housing assistance. The payment is also excluded from federal income taxes. Additionally, the bill allows for potential additional compensation in future years if reviews show survivors have ongoing medical needs. Congress will receive annual reports on how the program is working and whether the compensation amount is adequate.