FEES Act of 2026

Limitation on Fee Awards: Under Section 2(a)(2) and Section 2(b)(3)(E), the bill limits fee awards to $200,000 per single action or more than three actions in a calendar year, unless it is a class action or involves the Social Security Administration or Department of Veterans Affairs. This could serve to limit what the text calls "egregiously expensive suits."

Restrictions on Settlements: Section 3(a) prevents settlement agreements or consent decrees that involve a regulation or guidance document from including the payment of attorneys' fees or litigation costs.

Scientific Assessment of Lands: Section 4(a) requires the Secretary of Interior to assemble an independent scientific panel to assess how the Act's provisions impact the ecological, social, and economic sustainability of federally managed lands, covering factors like forest health and biological diversity.

Narrowing Eligibility for Fees: Section 2(a)(1) and Section 2(b)(1)(A) amend the law so that only parties with a "direct and personal monetary interest" (such as personal injury, private property damage, or unpaid agency disbursement) can be considered prevailing parties for fee awards.

Mandatory Fee Reductions: Section 2(b)(2)(A) changes the law so that a court "shall" reduce fee awards or deny them based on pro bono hours and related expenses, or if a party acted in an "obdurate, dilatory, mendacious, or oppressive manner, or in bad faith."

Restrictions on Settlement Terms: Section 3(a) mandates that settlement agreements or consent decrees resulting in a regulation or guidance document may not include the payment of attorneys' fees or litigation costs.