10
Loading video...
By Suzanne Blake
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
A newly introduced House bill would increase compensation for tens of thousands of combat-injured veterans by allowing them to receive both military retirement pay and Department of Veterans Affairs disability benefits simultaneously.
Indiana Republican Representative Victoria Spartz introduced the Combat Veterans Retirement Restoration Act, which seeks to address a longstanding inequity for veterans who were medically retired due to combat-related injuries before reaching 20 years of military service.
This would benefit veterans whose retirement pay is currently reduced because they also receive VA disability compensation.
Read More on Politics
"Combat veterans forced to medically retire because of their injuries should not lose retirement benefits simply because they could not reach 20 years of service," Spartz said in a statement. "This targeted fix honors our commitment to those who sacrificed in defense of our nation."
While roughly 50,000 veterans could ultimately benefit, the legislation has no cosponsors so far and is in the earliest stage of the legislative process.
Why It Matters
Military retirement pay and VA disability compensation serve different purposes.
Retirement pay is earned through military service, while VA disability compensation is intended to compensate veterans for service-connected injuries or illnesses. Under the current law, many medically retired combat veterans with fewer than 20 years of service must forfeit part of one benefit when receiving the other.
This often effectively penalizes veterans whose careers were cut short by combat injuries. For these veterans, the financial impact can amount to thousands of dollars annually.
...
What Is the Combat Veterans Retirement Restoration Act?
According to Spartz's office, the bill would ensure that combat-disabled veterans who were forced to medically retire before completing 20 years of service can receive both their military retired pay and their VA disability compensation.
"The Combat Veterans Retirement Restoration Act addresses an unusual inequity in military retirement, which is that some service members forced to retire early because of combat-related disabilities can effectively lose retirement pay because they also receive VA disability compensation, even though their injuries are the reason they could not complete a traditional 20-year military career," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
"Allowing these veterans to receive both benefits could substantially increase retirement income for combat-disabled veterans and their families, treating military retirement as compensation for service and VA disability as compensation for injury rather than requiring one to offset the other."
The bill, H.R. 10463, was introduced on September 16 and has been referred to committee, and so far, no cosponsors have joined the legislation.
"Much like Social Security has done for older Americans, the goal is to provide additional financial security and help stave off poverty for those who served and were disabled as a result," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
"The likelihood, as always, comes down to financing and the politics of the current environment."
Newsweek reached out to the Wounded Warrior Project and Veterans of Foreign Wars for comment via email.
"Rep. Spartz played a key role in stopping Congress from cutting veterans benefits to pay for a military program. Her new bill is the latest signal that veterans shouldn’t be financing military retirement pay reform for those wounded in combat. We thank Rep. Spartz for listening to her veterans and seeking to advance responsible policy, instead of mortgaging future veterans on a bad deal," Ryan Gallucci, the executive director of the VFW Washington Office, told Newsweek.
"Congress still must vote on the full Major Richard Star Act when it returns in November. This is the policy we have advocated for since 2020, so we hope that new legislation will not divert from that momentum."
VA Benefits Snapshot
Who Would Benefit From the Restoration Act?
This law would primarily benefit combat-injured service members who:
- Were medically retired due to combat-related disabilities;
- Receive VA disability compensation;
- Did not reach the 20-year service requirement that generally allows concurrent receipt of both benefits.
"A combat disabled service member can be medically forced out before reaching 20 years. Then discover that receiving VA disability comp can reduce the military retirement pay they otherwise earned," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, said of today’s veteran laws.
"In plain English, you can lose the career you expected because you were injured in combat. And then lose part of the retirement income from that career too."
If the new bill were passed, that problem would go away, but it will likely come down to cost, Ryan said.
"The sticking point has been the price tag, not a lack of veterans to help," Ryan said, adding that this type of change could cost $11 billion.
Other Veterans Benefits Changes Being Considered
The Combat Veterans Retirement Restoration Act is not the only veterans benefits issue currently under discussion in Washington.
Lawmakers have continued to push versions of the bipartisan Major Richard Star Act, which would similarly allow medically retired combat-injured veterans to receive both military retirement pay and VA disability compensation without any penalty.
Separately, veterans groups and members of Congress have been debating potential changes to VA disability ratings for conditions like tinnitus and sleep apnea. There’s been strong backlash as the proposed changes could reduce compensation for some veterans, but it could also modernize the disability rating system.
The Department of Veterans Affairs is also continuing to implement the PACT Act, a sweeping law that expanded health care and benefits for veterans exposed to burn pits, Agent Orange and other toxic substances.
What Happens Next
For now, the bill faces long odds.
H.R. 10463 was introduced only days ago and remains in committee, and no cosponsors have come forward. But for many, it presents as a common-sense way to protect benefits for Americans who served their country.
"We can find the money to remove the WEP and GPO for Social Security, allowing individuals to receive both government pensions and their full Social Security benefits. Why not allow people who served this country, put their lives on the line, and suffered combat-related disabilities to receive the benefits they earned?" Thompson said.
"The money is there. The question is whether the will is there to get this done."
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.
Contact Newsweek editors on this story: Jason Lemon, James Debens and Gray R. Thomas
Update, 09/22/2026 10:59 a.m. ET: this article was updated with comment from Ryan Gallucci, the executive director of the VFW Washington Office.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines