# 119-s-5367: Restore Veterans’ Compensation Act of 2026

119-s-5367, Restore Veterans’ Compensation Act of 2026, is a 119th Congress bill sponsored by Sen. Gallego, Ruben [D-AZ] (D-AZ); status introduced; PRIA reads it as touching household money (as of 2026-08-26).

- Canonical: https://policyrisk.com/legislation/119-s-5367
- As of: 2026-08-26
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-5367
- Congress: 119
- Title: Restore Veterans’ Compensation Act of 2026
- Status: introduced
- Introduced: 2026-08-07
- Sponsor: Sen. Gallego, Ruben [D-AZ] (D-AZ)
- Cosponsors: 0
- Policy area: Armed Forces and National Security
- Touches household money: yes
- Last recorded action: 2026-08-26

## Summary

**Protects VA disability compensation from being reduced or recouped because of separation-related pay while creating a narrow, tax-aware recovery path from retirement pay with strict limits and hardship relief.** - Service members who separate: The bill bars recoupment of VA disability compensation that is attributable to separation pay, severance pay, or readjustment pay. It also forbids reducing disability compensation because a member received those payments. - Retirees and those on retainer pay: Recoveries may be taken from retired or retainer pay only to the extent of the net separation-related amount after federal tax withholding. Deductions are capped at 25% of monthly retired or retainer pay, can be adjusted upon request, require a 90 day delinquency notice before deductions start, and include a hardship waiver option. - Voluntary Separation Incentive (VSI) participants: VSI payments are aligned with retirement and disability rules so later retirees or disabled veterans face the same limited recoupment rules. The bill blocks certain deductions from disability compensation and exempts from VSI repayment anyone who was eligible to retire when VSI was approved.

## Provisions PRIA read

- Separation pay recoupment changes for veterans: mixed, medium. This bill would stop the VA from reducing or taking disability compensation because you received separation, severance, readjustment, or voluntary separation pay. It would allow recoupment of net separation-related pay from your retired or retainer pay if you later qualify for retirement or VA disa…

## Related bills

- 119-s-2838: Protecting Our Democracy Act
- 119-s-5283: Momnibus Act
- 119-s-3990: PrEP Access and Coverage Act of 2026
- 119-s-2823: FAMILY Act
- 119-s-2763: Keep Billionaires Out of Social Security Act
- 119-s-3869: Healthy Families Act

## Sources
- [119-s-5367 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/5367)

## Related
- [119-s-2838: Protecting Our Democracy Act](https://policyrisk.com/legislation/119-s-2838)
- [119-s-5283: Momnibus Act](https://policyrisk.com/legislation/119-s-5283)
- [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990)
- [119-s-2823: FAMILY Act](https://policyrisk.com/legislation/119-s-2823)
- [119-s-2763: Keep Billionaires Out of Social Security Act](https://policyrisk.com/legislation/119-s-2763)
- [119-s-3869: Healthy Families Act](https://policyrisk.com/legislation/119-s-3869)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-5367 (as of 2026-08-26).