How Pending Legislation Could Change VA Benefits for Disabled Veterans

The Major Richard Star Act could increase monthly income for about 54,000 disabled veterans. The bill aims to eliminate the mandatory set-off for certain disabled veterans who earned military retirement pay but now rely on VA disability benefits. The legislation has been stalled for years but may get a new chance in 2026.

The bill was first introduced in 2020 and has strong support on both sides of the political aisle. But leadership in both houses of Congress has been blocking the bill, in part because they say the country “can’t afford” to pay disabled veterans all of the benefits they earned through their service. Here’s what you need to know about the Major Richard Star Act, how it would impact veterans, what’s happening with the bill now, and how the plan to pass it could impact other veterans.

The Major Richard Star Act and VA Disability Benefits

As a general rule, veterans who earned military retirement pay and are rated at least 50% disabled by the VA can receive those two benefits concurrently. That means the veteran receives both their retirement pay and the full amount of VA disability benefits they would normally receive based on their disability rating and dependents.

However, that rule doesn’t apply to most veterans who were medically retired. Instead, a veteran must have at least 20 years of service to qualify for concurrent benefits. That means a veteran who served for 15 years–or even 19–and then suffered a disabling injury in service and was medically retired doesn’t get the same benefits. Instead, a dollar-for-dollar offset reduces the veteran’s benefits. Here’s what that looks like for the veteran.

Offsets for Disabled Veterans with Military Retirement Pay

Imagine that a veteran became disabled during their 15th year of military service and was medically retired. Say the veteran is entitled to $2,500 in military retirement pay–that’s close to the average in 2026. The veteran also files a VA disability claim. A 60% VA disability rating is assigned. In 2026, that means the veteran is entitled to $1,435.02 in disability benefits.

The VA subtracts that $1,435.02 from the veteran’s retirement pay. Now, instead of receiving $2,500 in retirement pay, the veteran is receiving $1,064.98 in retirement pay and $1,435.02 in VA disability pay. That’s a total of $2,500/month, just as if the veteran had never qualified for and received VA disability benefits.

Now, imagine that the veteran is rated 100% disabled. Monthly VA disability compensation at the 100% level is currently $3,938.58. That’s more than the $2,500 in military retirement pay–so the retirement pay is wiped out completely. The veteran receives a total of $3,938.58/month, just as if they had never earned military retirement pay.

If the veteran had served for 20 years, they would receive both benefits, perhaps significantly increasing their quality of life. But since a service-connected injury or illness took them out of service early, they don’t get the full benefit of the retirement pay they earned–in some cases, don’t get it at all.

Under the Major Richard Star Act, that would change, and tens of thousands of disabled veterans would start receiving all of the benefits they earned.

What’s Happening with the Bill Today?

Earlier this year, Defense Secretary Pete Hegseth endorsed the legislation, adding pressure on Congressional Republicans to move the bill forward. Then, in early June, the bill was included in a much larger package of veteran-related legislation. The package (the Take Care of America’s Veterans Act) contains more than 60 bipartisan bills addressing many issues impacting VA disability and other veterans’ issues.

Call 1-888-373-4722 or complete a Free Case Evaluation form

The Take Care of America’s Veterans Act

Some additional issues addressed in the larger package include:

The Veterans’ ACCESS Act, which aims to improve access to timely healthcare services for veterans
The Love Lives on Act, which would allow surviving spouses who otherwise qualified for survivor’s benefits to retain those benefits if they remarried
The Sharri Briley and Eric Edmundson Veterans Benefits Expansion Act, which would increase benefits for severely disabled veterans and for some surviving family members and Gold Star families

The package also includes legislation aimed at streamlining VA disability appeals and certain other processes, reforms to caregiver programs to assist with transitional healthcare and employment opportunities, expansion of grant eligibility to ensure veteran access to mental health services, expansion of GI Bill benefits, improved procedures to allow quicker opening of new VA healthcare facilities, and more.

Status of Veterans’ Reforms

The package bill was introduced in the U.S. House of Representatives on June 10, 2026. The bill was referred to two committees for review, as some issues addressed fall under Veterans’ Affairs and some under Armed Services. There are many steps between here and the passage of the bill, and there is some significant opposition to the package.

While the Major Richard Star Act has broad bipartisan support, many veterans’ advocacy groups are concerned that the larger package funds positive changes in a way that could negatively impact benefits for other veterans in the future. Some legislators continue to push for a “clean” passage of the Major Richard Star Act as a standalone bill and to debate how VA disability changes and other veterans’ reforms should be funded.

In short, the future of the bill is unclear, and many who support key provisions in the bill that would help veterans aren’t satisfied with the way those improvements would be funded.

Know Your Rights as a Veteran

As you can see, the web of veterans’ benefits can be tangled, and there are trade-offs and choices that many veterans may not be aware of. If you are pursuing a VA disability claim or have been denied disability benefits and want to appeal, it’s best to have an experienced VA disability benefits advocate on your side. At Disabled Vets, our VA-accredited advocates have learned the intricacies of VA disability and other benefits so you don’t have to. Call us today at 888-373-4722 or fill out our contact form.

Frequently Asked Questions

How many veterans would benefit?
About 54,000 veterans are currently affected by the offset.

Why doesn’t the 20-year rule apply to medically retired veterans?
The concurrent receipt rule was designed for career retirees. Veterans who were forced out early by a service-connected injury or illness fell through the gap, they earned retirement pay but aren’t treated the same way as someone who completed a full career.

How much more would a veteran receive each month?
It depends on their retirement pay amount and disability rating. In the example in this article, a veteran with $2,500 in retirement pay and a 60% disability rating is currently receiving the same total either way — the Star Act would add $1,435.02 on top of their retirement pay, not instead of it.

What is the Take Care of America’s Veterans Act?
A package of over 60 bipartisan bills introduced in the House on June 10, 2026. It includes the Major Richard Star Act alongside measures covering healthcare access, survivor benefits, mental health services, GI Bill expansion, and more.

Call 1-888-373-4722 or complete a Free Case Evaluation form