Restore Veterans’ Compensation Act of 2026
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Restore Veterans’ Compensation Act of 2026 aims to prevent the government from taking back pay received by veterans from the Department of Defense. Specifically, it prohibits recouping separation pay, special separation benefits, and voluntary separation incentive payments from veterans who later receive disability compensation from the Department of Veterans Affairs. The bill also limits the amount of retired or retainer pay that can be deducted to cover these payments, setting a maximum deduction of 25% per month and requiring the Secretary of Defense to consider financial hardship.
Key provisions
- Eliminates recoupment of separation pay, special separation benefits, and voluntary separation incentive payments from veterans receiving VA disability compensation.
- Limits deductions from retired or retainer pay to a maximum of 25% per month, subject to member’s financial ability and avoiding undue hardship.
- Requires the Secretary of Defense to consult with veterans regarding repayment rates and consider financial hardship.
- Establishes a 90-day notice period before deductions begin from retired or retainer pay.
- Allows the Secretary of Defense to waive deductions if they would cause financial hardship.
- Applies recoupment rules to voluntary separation incentive payments.
- Prevents deductions from disability compensation paid to retired or retainer pay recipients who received voluntary separation pay.
- Excludes members who were eligible to retire when they received voluntary separation pay from repayment requirements.
Bill text
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