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119-hr-7027119th CongressWALLET

Restore Veterans’ Compensation Act of 2026

Sponsored By: Representative Bilirakis, Gus M. [R-FL-12]

In Committee

Summary

Preserving VA disability compensation by stopping reductions tied to separation, severance, or readjustment pay and by tightly limiting how much can later be recouped from retired or retainer pay. This bill would protect disability awards while allowing a constrained, installment-based recovery from retirement pay under specific rules.

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  • Service members and veterans: It would bar cuts to Department of Veterans Affairs disability pay just because a member previously got separation, severance, readjustment, or similar payments. This keeps monthly disability checks intact for affected veterans.
  • Retirees and retainer-pay recipients: Any recoupment from retired or retainer pay would be limited. Recoveries must be calculated net of tax withholding, generally capped at 25 percent of monthly retired/retainer pay, and cannot start until 90 days after the applicable month.
  • Voluntary separation participants: The bill adds rules so voluntary separation incentives and voluntary separation pay cross-reference retirement and VA disability rules. It also prevents certain deductions from VA disability pay for some Voluntary Separation Incentive recipients and excludes people already eligible to retire from VSI repayment rules.
  • Repayment process and hardship relief: The Secretary of Defense would set repayment rates in consultation with the member. The process requires consideration of ability to pay, allows installment plans, and creates waiver and hardship procedures.
  • Timing: The changes would take effect on the first day of the first month after enactment and apply to deductions from retired/retainer pay beginning in the applicable month.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Shield VA disability and separation pay

If enacted, the bill would protect VA disability compensation from being reduced to recover voluntary separation pay for eligible disabled retirees. It would apply the same protections to members who took voluntary separation incentives or pay and later qualify for retired or retainer pay or VA disability benefits. The bill would also say a repayment requirement after retirement does not apply to someone who was already eligible to retire when they applied for voluntary separation pay.

Limits on retired pay recoupment

If enacted, the bill would limit how the Defense Department can take back separation, severance, or readjustment pay from your retired or retainer pay. Deductions could not start until 90 days after the Secretary notifies you, and notices must show the total amount and installment plan. Monthly deductions would generally be capped at 25% of that month's retired or retainer pay unless you ask for faster repayment. The total amount that can be recovered would be reduced by the federal income tax already withheld from the separation payment, and the Secretary must consider your ability to pay and may waive deductions for financial hardship. These rules would start on the first day of the first month after enactment.

Sponsors & CoSponsors

Sponsor

Bilirakis, Gus M. [R-FL-12]

FL • R

Cosponsors

  • Rep. Levin, Mike [D-CA-49]

    CA • D

    Sponsored 1/13/2026

  • Rep. Langworthy, Nicholas A. [R-NY-23]

    NY • R

    Sponsored 9/21/2026

Roll Call Votes

No roll call votes available for this bill.

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