# Division of Federal Employees' Compensation

**Agency:** Labor  
**Account:** Division of Federal Employees' Compensation  
**Source document:** Federal Programs for Workers' Compensation · p. 9  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/budget/labor/division-of-federal-employees-compensation  

> **Trust:** parsed from the agency Congressional Justification. Approximate, **not summable**, verify at the cited page.

## Funding ($M)

| Fiscal year | Basis | Amount |
| --- | --- | --- |
| FY2025 | enacted | 107.2 |
| FY2026 | enacted | 107.2 |
| FY2027 | request | 96.0 |

## Labor discretionary budget authority (OMB PBDB — authoritative)

FY2027 $10.30B, FY2026 $13.70B. This is the agency total, not a sum of the parsed lines.


## What this funds

DFEC performs a variety of activities to accomplish its goals, including initial claims intake and adjudication, wage-loss claims processing and payment, early disability case management, periodic roll management, and appeals processing. Under the War Hazards Compensation Act, administered by the FECA Program, insurance carriers can file reimbursement claims for workers' compensation benefits paid under the DBA for injury or death caused by a war-risk hazard as defined in the statute. FECA Program Case Creation and Initial/Wage-loss Adjudication In FY 2025, the FECA Program received 86,482 initial claims. The FECA Program expects to receive 90,000 new injury claims and 17,000 initial claims for FECA wage-loss compensation in FY 2026 and FY 2027. Over 85 percent of the new injury claims are expected to be for traumatic injuries, such as those caused by slips and falls. The remainder is expected to involve more complex situations in which a medical condition arises due to occupational exposure. In FY 2025, the Program received 185,768 wage-loss claims. The FECA Program expects to receive the Program processed 95.1 percent of claims that do not need further development within 14 days. The Program expects to process at least 92.0 percent of claims that do not need further development within 14 days in FY 2026 and at least 92.5 percent of claims that do not need further development within 14 days in FY 2027. In FY 2025, the Program processed 99 percent of all wage-loss claims within 90 days. The Program expects to process at least 95 percent of all wage-loss claims within 90 days in FY 2026 and FY 2027. FECA Program Disability Management and Processing of Compensation and Medical Payments The FECA Program continues to work with agencies across the federal government to return the injured worker to pre-injury status both economically and medically as soon as possible. The FECA Program staff process benefits for those who sustain a work-related injury or illness in the performance of duty anywhere in the world. Benefits include wage-replacement payments and payments for reasonable and necessary medical treatment related to the injury. In Chargeback compensation and medical payments. In CBY 2025, 180,272 beneficiaries received $3.96 billion benefits, and $890 million for medical benefits. The Program expects to process 7,000,000 compensation and medical payments in FY 2026 and 7,500,000 compensation and medical


**Where it sits:** Civilian / Non-Defense › Labor › Federal Programs for Workers' Compensation › Division of Federal Employees' Compensation


*HitchAI is an independent intelligence service, not affiliated with the U.S. government. Civilian line dollars are parsed from agency Congressional Justifications and are approximate.*