Title 28Judiciary and Judicial ProcedureRelease 119-73not60

§2672 Administrative Adjustment of Claims

Title 28 › Part VI— PARTICULAR PROCEEDINGS › Chapter 171— TORT CLAIMS PROCEDURE › § 2672

Last updated Apr 5, 2026|Official source

Summary

Agency heads, or someone they pick, can investigate, decide, and settle money claims for property damage, injury, or death caused by an agency employee acting on the job. They must follow rules set by the Attorney General. The United States can be held only when, under the law where the harm happened, a private person would be liable. Any settlement over $25,000 needs the Attorney General’s written OK unless that authority has been officially given to the agency head (but not more than what the Attorney General gives U.S. attorneys). Agencies may use arbitration or other alternative dispute methods when they have authority to settle without prior Attorney General approval. Settlements are final and binding on the government unless fraud is involved. Awards of $2,500 or less are paid from the agency’s funds. Larger awards are paid like court judgments using available appropriations. If a claimant accepts the settlement, it releases the United States and the employee for the same claim.

Full Legal Text

Title 28, §2672

Judiciary and Judicial Procedure — Source: USLM XML via OLRC

The head of each Federal agency or his designee, in accordance with regulations prescribed by the Attorney General, may consider, ascertain, adjust, determine, compromise, and settle any claim for money damages against the United States for injury or loss of property or personal injury or death caused by the negligent or wrongful act or omission of any employee of the agency while acting within the scope of his office or employment, under circumstances where the United States, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred: Provided, That any award, compromise, or settlement in excess of $25,000 shall be effected only with the prior written approval of the Attorney General or his designee. Notwithstanding the proviso contained in the preceding sentence, any award, compromise, or settlement may be effected without the prior written approval of the Attorney General or his or her designee, to the extent that the Attorney General delegates to the head of the agency the authority to make such award, compromise, or settlement. Such delegations may not exceed the authority delegated by the Attorney General to the United States attorneys to settle claims for money damages against the United States. Each Federal agency may use arbitration, or other alternative means of dispute resolution under the provisions of subchapter IV of chapter 5 of title 5, to settle any tort claim against the United States, to the extent of the agency’s authority to award, compromise, or settle such claim without the prior written approval of the Attorney General or his or her designee. Subject to the provisions of this title relating to civil actions on tort claims against the United States, any such award, compromise, settlement, or determination shall be final and conclusive on all officers of the Government, except when procured by means of fraud. Any award, compromise, or settlement in an amount of $2,500 or less made pursuant to this section shall be paid by the head of the Federal agency concerned out of appropriations available to that agency. Payment of any award, compromise, or settlement in an amount in excess of $2,500 made pursuant to this section or made by the Attorney General in any amount pursuant to section 2677 of this title shall be paid in a manner similar to judgments and compromises in like causes and appropriations or funds available for the payment of such judgments and compromises are hereby made available for the payment of awards, compromises, or settlements under this chapter. The acceptance by the claimant of any such award, compromise, or settlement shall be final and conclusive on the claimant, and shall constitute a complete release of any claim against the United States and against the employee of the government whose act or omission gave rise to the claim, by reason of the same subject matter.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

1948 ActBased on title 28, U.S.C., 1940 ed., § 921 (Aug. 2, 1946, ch. 753, § 403, 60 Stat. 843). The phrase “accruing on and after January 1, 1945” was omitted because executed as of the date of the enactment of this revised title. Changes were made in phraseology. 1949 ActThis section corrects a typographical error in section 2672 of title 28, U.S.C.

Editorial Notes

Amendments

1990—Pub. L. 101–552 inserted at end of first par. “Notwithstanding the proviso contained in the preceding sentence, any award, compromise, or settlement may be effected without the prior written approval of the Attorney General or his or her designee, to the extent that the Attorney General delegates to the head of the agency the authority to make such award, compromise, or settlement. Such delegations may not exceed the authority delegated by the Attorney General to the United States attorneys to settle claims for money damages against the United States. Each Federal agency may use arbitration, or other alternative means of dispute resolution under the provisions of subchapter IV of chapter 5 of title 5, to settle any tort claim against the United States, to the extent of the agency’s authority to award, compromise, or settle such claim without the prior written approval of the Attorney General or his or her designee.” 1966—Pub. L. 89–506 substituted “claims” for “claims of $2,500 or less” in section catchline, authorized administrative settlement of tort claims, in accordance with

Regulations

prescribed by the Attorney General, of up to $25,000 and, with the prior written approval of the Attorney General or his designee, in excess of $25,000, inserted “compromise” and “settlement” to list of administrative acts that would be final and conclusive on all officers of the government, authorized the payment of administrative settlements in excess of $2,500 in the manner similar to judgments and compromises in like causes, and made appropriations and funds which were available for the payment of such judgments and compromises available for the payment of awards, compromises, or settlements under this chapter. 1959—Pub. L. 86–238 substituted “$2,500” for “$1,000” in section catchline and text. 1950—Act Sept. 23, 1950, struck out requirement for specific authorization for payment of tort claims in appropriation acts. 1949—Act Apr. 25, 1949, inserted “accruing on or after
January 1, 1945” after “United States” in first par. Act
May 24, 1949, substituted “2677” for “2678” in third par.

Statutory Notes and Related Subsidiaries

Effective Date

of 1966 Amendment Pub. L. 89–506, § 10,
July 18, 1966, 80 Stat. 308, provided that: “This Act [amending this section, section 2401, 2671, 2675, 2677, 2678, and 2679 of this title, section 724a of former Title 31, Money and Finance, and former section 4116 of Title 38, Veterans’ Benefits], shall apply to claims accruing six months or more after the date of its enactment [
July 18, 1966].” Laws UnaffectedAct Aug. 2, 1946, ch. 753, title IV, § 424(b), 60 Stat. 847, provided that: “Nothing contained herein shall be deemed to repeal any provision of law authorizing any Federal agency to consider, ascertain, adjust, settle, determine, or pay any claim on account of damage to or loss of property or on account of personal injury or death, in cases in which such damage, loss, injury, or death was not caused by any negligent or wrongful act or omission of an employee of the Government while acting within the scope of his office or employment, or any other claim not cognizable under part 2 of this title.”

Reference

Citations & Metadata

Citation

28 U.S.C. § 2672

Title 28Judiciary and Judicial Procedure

Last Updated

Apr 5, 2026

Release point: 119-73not60