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By Mark Hooson
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The Major Richard Star Act, which would eliminate the so-called 'wounded veteran tax', heads for a floor vote later this week following the filing of a discharge petition by the top-ranking Democrat on the House Veterans' Affairs Committee.
The Act would prevent combat-wounded veterans with less than 20 years' service from having to forfeit some of their retirement pension because they also receive monthly VA disability compensation.
If passed, medically retired veterans would be able to receive both disability compensation and their full retirement pension.
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What The Act Would Do
Military retirement pay is earned compensation from the Department of Defense, in recognition of honorable service and career devotion. VA disability compensation is an indemnity from the VA meant to offset potential lost civilian earnings and lifelong medical conditions as a result of service.
The two payments are unrelated. A long-standing federal law has prevented military retirees from collecting both payments concurrently without an offset.
Currently, combat-wounded veterans with fewer than 20 years' service lose money from their military retirement pay if they also receive VA disability compensation. For every $1 dollar they receive from the latter, they lose $1 from the former. This has become known as the 'wounded veteran tax'.
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Only veterans with more than 20 years' service and a VA disability rating of more than 50 percent are currently able to receive both payments without any reduction in entitlement. The Richard Star Act would change this, allowing veterans with less than 20 years' service to also receive both payments concurrently, without penalty.
The act (HR 2102) would benefit more than 50,000 medically retired veterans — according to the Military Officers Association of America (MOAA), which calculates each affected veteran could be better off by an average of $1,200 per month.
With a discharge petition filed by the ranking Democrat on the House Veterans' Affairs Committee Rep. Mark Takano reaching the required 218 signatures, a motion was triggered on the House floor to schedule a full vote. Signatories included 213 Democrats and five Republicans who broke ranks to support the bill.
In a public statement via the House Committee on Veterans' Affairs, Rep. Takano said: "Veterans, we have heard your call for action, and we are ready to help deliver relief. For 59,000 combat-injured veterans, relief has been long overdue, but House Democrats have worked tirelessly to change that.
"We are closer than ever; now is the moment to finish the job. We refuse to settle for half-measures when it comes to our nation’s combat-injured veterans, and I urge my colleagues in the Senate to act swiftly so we can deliver this critical support before Veterans Day."
While the act has broad support in both the House and Senate, and from advocacy groups such as MOAA, the cost implications of passing the legislation could see it stalled in the Senate. The Congressional Budget Office estimates that the bill would increase direct spending by $13 billion between 2027 and 2036.
Time is also against the act, since all pending legislation that has not passed by both the House and Senate before the 119th Congress officially adjourns in January 2027 has to be reintroduced in the next Congress.
'Watching Closely'
Congressman Joe Courtney, a Democrat and co-sponsor of the act, has called on the House of Representatives to pass the legislation when it votes tomorrow (Wednesday November 11th), Veterans' Day.
In a news statement, Congressman Courtney said: "On Wednesday, it will be time to finally pass a clean Richard Star Act, which veterans all over this country are going to be watching closely to make sure that their Members have listened to them and moved forward in terms of making sure those veterans get the full support and benefits, as Abraham Lincoln said, having 'borne the battle'."
Contact Newsweek editor on this story: Edward Pearcey.
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