$2.5M FCSC FY 2027 Performance Budget Explained, What the Foreign Claims Settlement Commission Is Asking For and Why

The Foreign Claims Settlement Commission (FCSC) — the small but consequential quasi-judicial agency within the U.S. Department of Justice — requests $2,512,000, 11 permanent positions, and 8 full-time equivalents for Fiscal Year 2027. That represents an $8,000 increase over the FY 2026 enacted level of $2,504,000, driven entirely by base technical adjustments. No new programs are requested, and no positions are being added or cut. In FY 2027, the Commission will continue adjudicating Albanian property claims, serving as Special Master in Cuban property trafficking cases under the LIBERTAD Act, and maintaining its database of over 13,000 Cuban claims records.

Quick Facts

Field	Detail
FY 2027 Budget Request	$2,512,000
FY 2026 Enacted	$2,504,000
Change from FY 2026	+$8,000 (technical adjustments only)
Permanent Positions Requested	11
Full-Time Equivalents (FTE)	8
Program Changes	None
Active Programs	Albanian Claims; Cuba LIBERTAD Special Master
Completed Programs (Historical)	52 programs across 20 countries
Document Type	FY 2027 Congressional Performance Budget Submission
Parent Agency	U.S. Department of Justice

What Is the Foreign Claims Settlement Commission?

The Foreign Claims Settlement Commission is a quasi-judicial, independent agency organized within the Department of Justice. Its core mission is to adjudicate claims brought by U.S. nationals against foreign governments — either under specific jurisdiction granted by Congress, through international claims settlement agreements, or at the request of the Secretary of State.

The Commission traces its origins to two post-World War II bodies. In 1948, Congress created the War Claims Commission to handle claims by American prisoners of war and civilian internees harmed by enemy nations. Two years later, the International Claims Commission was created to address claims against countries that nationalized or seized U.S. citizens’ private property without compensation. President Eisenhower merged both bodies into the FCSC through Presidential Reorganization Plan No. 1 of 1954. Congress transferred the Commission to the Department of Justice in 1980 as a separate, independent agency.

The Commission’s decisions are final. No court or other authority may review them under any standard. Funds used to pay Commission awards come from congressional appropriations, international claims settlement payments received by the United States, or the liquidation of foreign assets held in the United States by the Departments of Justice and the Treasury.

Importantly, in virtually all programs, authorizing legislation has provided for the deduction of five percent of settlement funds obtained from foreign governments. That five percent is deposited to miscellaneous receipts in the U.S. Treasury to defray administrative expenses — meaning the Commission generates a partial offset against its own operating costs in active settlement programs.

FY 2027 Budget Request: What Changed and What Didn’t

The FY 2027 request of $2,512,000 represents a modest $8,000 increase over the FY 2026 enacted level. The entire increase consists of base technical adjustments — changes in pay and benefits, rent and facilities costs, and minor administrative line items. There are no program increases and no program offsets.

The table below reflects the full resource picture:

Year	Positions	FTE	Amount
FY 2025 Enacted (Actual FTE: 6)	11	6	$2,504,000
FY 2026 Enacted	11	8	$2,504,000
FY 2027 Adjustments to Base	0	0	+$8,000
FY 2027 Request	11	8	$2,512,000

The Commission has a single decision unit — Foreign Claims — and all resources flow through that unit. There is no information technology breakout requested for FY 2027; the IT line item stands at zero across all years.

The majority of the Commission’s budget supports personnel costs. The bulk of remaining funds cover fixed costs, primarily rent. The Commission’s current leadership consists of two Commissioners — Sylvia M. Becker and Patrick Hovakimian — both confirmed by the Senate. The Commission currently operates without a Chairman. Under its statutory structure, the Chairman and Commissioners are entitled to compensation at the Executive Level V rate for official Commission business.

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Active Programs in FY 2027

Albanian Claims Program

The FCSC retains ongoing authority under the International Claims Settlement Act of 1949, as amended, and the 1995 U.S.-Albanian Claims Settlement Agreement. This program compensates U.S. nationals for the expropriation, confiscation, and other loss of property suffered under the Communist regime that seized power in Albania following World War II.

Albania provided a $2 million fund under the 1995 agreement, and over $1 million remains available to pay awards. In FY 2027, the Commission will continue to accept and adjudicate new claims under this program, and will reopen and reconsider previously denied claims where appropriate — particularly taking into account the modification of the Albanian Claims Settlement Agreement that occurred in 2006.

Cuba: LIBERTAD Act Special Master Work

The Cuban Liberty and Democratic Solidarity Act of 1996 — commonly known as the Helms-Burton Act — includes Title III, which authorizes U.S. nationals whose property in Cuba was confiscated by the Castro regime to sue foreign entities “trafficking” in those properties in federal court. Under this authority, federal district courts may appoint the Commission to serve as Special Master, making determinations on property ownership and valuation.

In FY 2027, the Commission will continue its active Special Master appointment. On March 6, 2025, the U.S. District Court for the District of Columbia appointed the Commission to act as Special Master in Del Riego Ponte, et al. v. Instituto De Planificacion Fisica, et al., Case No. 1:22-cv-3347-RCL — referred to determine the validity of the plaintiffs’ ownership interests in confiscated Cuban properties under 22 U.S.C. § 6083(a)(2). The Commission has begun its work under that appointment and expects to continue it through FY 2027.

The Commission also continues to maintain and update a computerized database of approximately 13,000 records covering all claims adjudicated in its Cuban Claims Programs — completed in 1972 and 2006 respectively. This database allows the Commission to respond quickly and accurately to inquiries from the State Department, researchers, claimants, and the public. As of March 25, 2026, the Commission is not authorized to adjudicate new Cuban property claims; the State Department — not the Commission — is responsible for negotiating any future settlement agreement with Cuba.

Additionally, the Commission supports the State Department’s implementation of Title IV of the LIBERTAD Act, which involves researching and responding to requests for information about properties expropriated by the Castro regime.

Vietnam POW Authority

Under the War Claims Act of 1948, as amended, the Commission retains standing authority to award compensation to previously uncompensated American service members held as prisoners of war in Southeast Asia during the Vietnam conflict, or their survivors, for inadequate rations and inhumane treatment while in captivity. The Commission expects to continue this authority in FY 2027.

Historical Scope: 52 Programs Across 20 Countries

To date, the Commission has administered and completed 52 international and war-related claims programs involving claims against 20 countries. Those countries include Yugoslavia, Panama, Bulgaria, Hungary, Romania, Italy, the former Soviet Union, the former Czechoslovakia, Poland, Cuba, China, the former German Democratic Republic, Vietnam, Ethiopia, Egypt, Iran, Albania, the Federal Republic of Germany, Libya, and Iraq.

The Commission’s Iraq Claims Program — one of its more recent completed programs — arose from a $400 million U.S.-Iraq settlement announced in June 2011. That fund compensated American nationals who were prisoners of war, hostages, or human shields during the Gulf War, as well as U.S. service members injured in the 1987 attack on the USS Stark.

In FY 2027, the Commission will continue to furnish information from its records across all 52 completed programs to claimants, heirs, attorneys, researchers, and other members of the public who submit inquiries.

Organizational Goals for FY 2027

The Commission pursues the following operational objectives in FY 2027:

Timely and well-reasoned decisions. The Commission commits to issuing legally sound, clearly articulated decisions in all claims adjudicated under its active programs.

Claimant outreach and guidance. The Commission provides notice to U.S. nationals of opportunities to pursue claims, and offers timely guidance and direct assistance in navigating the claims process.

Accurate certification to Treasury. All awards are certified to the Department of the Treasury in a timely and accurate fashion to ensure payment within the statutory guidelines of the Commission’s authorizing statutes.

Broad availability of decisions. The Commission works to ensure its decisions are accessible to researchers, international legal scholars, and government officials — increasingly through electronic publication.

Readiness for future programs. The Commission maintains the institutional capacity to administer new claims programs upon enactment of authorizing legislation or referral from the Secretary of State, and provides technical advice to Congress and federal agencies on potential future programs.

State Department assistance. Upon request, the Commission assists the Department of State in negotiations for the settlement of outstanding claims against foreign governments.

Challenges Facing the Commission in FY 2027

External challenges center on the unpredictable nature of the Commission’s workload. Its caseload is driven almost entirely by international events and foreign policy developments — congressional enactments, State Department referrals, and the number of claims filed in each program — rather than factors the Commission itself controls. The Commission must remain continuously prepared to absorb new workloads on short notice as global circumstances change.

Internal challenges include maintaining and sharpening the specialized legal expertise of a small staff, providing consistent technical assistance to the State Department and other federal agencies, and continuing to modernize its claims records systems. The Commission has committed to improving the accessibility and transparency of its decisions and historical records, particularly through digital publication and database improvements.

Appropriations Language

The FY 2027 appropriations language for the Commission reads as follows:

SALARIES AND EXPENSES, FOREIGN CLAIMS SETTLEMENT COMMISSION

For expenses necessary to carry out the activities of the Foreign Claims Settlement Commission, including services as authorized by section 3109 of title 5, United States Code, [$2,504,000] $2,512,000.

The bracketed amount represents the FY 2026 enacted level being superseded. No substantive language changes are proposed for FY 2027.

Frequently Asked Questions

What does the Foreign Claims Settlement Commission actually do? 

The Commission adjudicates legal claims by U.S. nationals against foreign governments for property taken without compensation, wartime harm, and related international injuries. It operates like a specialized court — its decisions are final and cannot be appealed or reviewed by any other court or authority. When the United States receives a lump-sum payment from a foreign government under a settlement agreement, the Commission evaluates individual claims and determines how that fund is distributed among eligible U.S. nationals.

Who funds the payouts to claimants — taxpayers or foreign governments? 

Claimant awards are paid from funds provided by foreign governments under settlement agreements, from congressional appropriations, or from liquidated foreign assets — not directly from general taxpayer funds in most active programs. The Commission’s own operating expenses (salaries, rent, staff) are funded by congressional appropriations, with a five percent offset deducted from settlement funds to partially reimburse administrative costs.

Why is the FY 2027 budget only $2.5 million for an agency handling international claims?

 The Commission is intentionally small and lean. Its work is labor-intensive but requires a limited permanent staff of specialized attorneys and legal support personnel. The bulk of the money flowing through claims programs passes through Treasury accounts funded by foreign governments — not through the Commission’s own operating appropriation. The $2.5 million covers salaries, benefits, and fixed costs like rent.

Does the Commission have a Chairman right now?

 As of the FY 2027 budget submission, the Commission is operating with two confirmed Commissioners — Sylvia M. Becker and Patrick Hovakimian — but without a Chairman. The Chairman position requires presidential nomination and Senate confirmation.

What happens if Congress authorizes a new claims program during FY 2027? 

The Commission maintains a state of readiness to stand up new programs rapidly. If Congress enacts authorizing legislation or the Secretary of State refers a category of claims, the Commission can open a new program, issue notice to potential claimants, begin adjudicating submissions, and certify awards to Treasury — all within its existing personnel and budget framework, or with supplemental appropriations if the program is large.

Can U.S. nationals currently file claims against Cuba through the Commission?

 Not for new Cuban property claims. The Commission completed its two Cuban Claims Programs in 1972 and 2006. No new adjudication authority exists for Cuban claims unless Congress enacts new legislation or the State Department negotiates a new settlement agreement with Cuba. However, U.S. nationals may pursue federal court litigation under Title III of the Helms-Burton Act against foreign entities trafficking in confiscated Cuban property — and the Commission may be appointed by courts as Special Master in those cases.

Sources and References

• U.S. Department of Justice — FY 2027 Budget and Performance Summary: justice.gov
• FCSC Official Website — Current Programs: justice.gov/fcsc/current-programs
• FCSC Official Website — About the Commission: justice.gov/fcsc/about-commission
• Congress.gov CRS Report — The Foreign Claims Settlement Commission: IF11376

Last Updated: April 5, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. The figures and program descriptions above are drawn directly from the FCSC FY 2027 Congressional Performance Budget Submission and supporting official sources. For questions about filing a claim with the Commission, contact [email protected] or call 202-616-6975.