A bill to amend section 504 of title 5, United States Code, and section 2412 of title 28, United States Code, with respect to awards of expenses of certain agency and court proceedings, and for other purposes.

Amends the Equal Access to Justice Act to provide that the decision of the adjudicative officer of a Federal agency constitutes the final administrative decision regarding the award of certain legal expenses to a party prevailing against the United States in an adversary adjudication. Bars any such decision until a final and unreviewable decision is rendered by a court on any appeal by the Government of the merits of such adjudication or until the underlying merits of the case have been finally determined pursuant to the appeal.

Amends the definition of a "party" which is eligible to be awarded legal expenses under such Act to: (1) exclude any individual whose net worth exceeds $2,000,000 (currently $1,000,000) and any entity whose net worth exceeds $7,000,000 (currently $5,000,000); and (2) include any local government whose net worth does not exceed $7,000,000.

Redefines an "adversary adjudication" for which such expenses may be awarded to include any appeal before an agency board of contract appeals under the Contract Disputes Act of 1978. Redefines a "civil action" for which such expenses may be awarded to include any appeal by a party other than the United States from a decision of a contracting officer on a dispute in a Federal contract.

Defines "position of the agency" to include the underlying action which led to the adversary adjudication or litigation. Prohibits the award of legal expenses to a party for any portion of an adjudication or action in which the party unreasonably protracts the proceedings.

Authorizes a party or the United States, if dissatisfied with an adjudicative officer's determination of such expenses, to appeal the determination to the appropriate U.S. court within 30 days after such determination is made. Requires a court's determination on such an appeal to be based solely on the factual record made before the agency. Authorizes a court to modify the determination only if it finds that the failure to make an award of expenses or the calculation of the amount of the award was unsupported by substantial evidence.

Requires agencies to pay litigation expenses to prevailing parties from appropriated funds.

Awards interest upon fee determinations which have not been completely paid within 60 days.

Requires a court to grant litigation expenses incurred by a party prevailing against the United States in a proceeding for judicial review of an agency action.

Provides that a person shall be a prevailing party: (1) in a civil action involving Old Age, Survivors and Disability Insurance (OASDI) or Supplemental Security Income benefits, with specified exceptions, if the court remands the action to the Secretary of Health and Human Services for further hearing; and (2) in eminent domain proceedings if the person obtains a final judgment which is at least as close to the highest valuation of the property attested to at trial on behalf of the property owner as it is to the highest valuation of the property attested to at trial on behalf of the Government. Provides that certain provisions of the Social Security Act limiting attorney fees in OASDI benefit actions shall not apply with respect to the award of legal expenses to the prevailing party under the Equal Access to Justice Act.

Repeals the termination dates for the Equal Access to Justice Act.

Authorizes awards for legal expenses incurred prior to October 1, 1981, in any adversary adjudication or civil action covered by such Act.

Amends the Internal Revenue Code to increase from $25,000 to $50,000 the maximum amount of litigation costs which may be awarded to the party prevailing against the United States in a tax case. Changes the requirement that a prevailing party establish that the position of the United States in the case is unreasonable to a requirement that the United States has not established that its position with respect to the prevailing party is substantially justified. Prohibits such an award of litigation costs if special circumstances make an award unjust. Extends the authority for the award of litigation costs in tax cases.

Provides that the provisions of this Act shall be effective as of October 1, 1984, and shall apply to cases pending on such date, with specified exceptions for contract dispute and tax cases.