TDIU Reform Act of 2026
Sponsored By: Representative Self, Keith [R-TX-3]
Introduced
Summary
Codifies Individual Unemployability (IU) as a formal VA total disability rating to set clear rules for when veterans qualify for total disability pay because service-connected conditions keep them from securing substantially gainful work. It would also define how marginal work is judged and set an age limit for new IU awards.
Show full summary
- Veterans with service-connected disabilities would face clearer thresholds for IU eligibility. A single disability rated 60% or more or combined ratings reaching 70% are framed as qualifying standards.
- Older veterans would see a new eligibility cutoff. Veterans aged 67 or older who first receive IU on or after 2026 would not be paid IU compensation.
- VA adjudication would change for borderline cases. Rating boards must send employment, medical, education, and vocational records to the Director of Compensation Services for review, and marginal employment is defined by the Census Bureau one-person poverty threshold or a case‑by‑case assessment.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
New unemployability rules for veterans
This bill would let VA assign a total (100%) disability rating under Individual Unemployability (IU) when a veteran cannot get or keep substantially gainful work because of service‑connected disabilities. You would be presumptively eligible if one service‑connected disability is rated 60% or more, or if you have two or more service‑connected disabilities with at least one rated 40% and a combined rating of 70% or more. VA would treat certain related disabilities as a single disability for those tests (for example, both arms, injuries from the same accident, or multiple injuries in action). Work would not count as disqualifying if your earned annual income is at or below the U.S. Census poverty threshold for one person, or if the Secretary finds the job is marginal or in a protected setting. VA would ignore non‑service‑connected conditions and any prior IU status when deciding eligibility. These rules would take effect upon enactment.
Age limit on IU payments for veterans
This bill would bar payment of Individual Unemployability (IU) compensation to a veteran who is 67 or older if they first received IU on or after December 31, 2026. If a veteran first received IU before December 31, 2026, this rule would not apply.
Sponsors & CoSponsors
Sponsor
Self, Keith [R-TX-3]
TX • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov