Congressional Republicans introduced a nearly 600-page veterans benefits package on June 10 that would end a longstanding pay offset for combat-injured veterans but would cut disability compensation for up to 1.5 million other veterans to cover the cost.
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The bill, called the Take Care of America’s Veterans Act, was introduced by House Veterans’ Affairs Committee Chairman Mike Bost and Senate Veterans’ Affairs Committee Chairman Jerry Moran. It bundles more than 60 pieces of bipartisan legislation and is anchored by the Major Richard Star Act, a measure that has drawn more than 315 House cosponsors but stalled in Congress for years.
The Major Richard Star Act
Under current federal law, veterans who were medically retired from the military before completing 20 years of service due to combat-related injuries cannot receive their full military retirement pay and VA disability compensation simultaneously. Their retirement pay is reduced dollar-for-dollar by whatever disability compensation they receive from the Department of Veterans Affairs—a policy critics call the “wounded veteran tax.”
The offset affects an estimated 50,000 to 54,000 veterans. In some cases, the reduction eliminates retirement pay entirely.
Two existing programs provide partial relief. Concurrent Retirement and Disability Pay (CRDP) allows veterans with 20 or more years of service and a disability rating of 50% or higher to receive both payments without reduction. Combat-Related Special Compensation (CRSC) provides tax-free payments to veterans with combat-related disabilities but does not eliminate the offset for those who were medically retired before 20 years.
The Major Richard Star Act would allow CRSC-eligible veterans to choose, during an annual January open enrollment period, between staying in CRSC or switching to full concurrent receipt of both their retirement pay and VA disability compensation. The change would not be retroactive.
The bill is named for Army Maj. Richard Star, who enlisted in 1988 and served as an engineering officer in Iraq and Afghanistan. He was medically retired after developing lung cancer attributed to burn pit exposure and died in 2021 at age 51.
Beyond the Major Richard Star Act, the bill includes provisions to increase survivor benefits, raise Special Monthly Compensation payments for catastrophically disabled veterans, expand family caregiver support programs, improve access to prosthetic equipment, modernize VA health care and benefits delivery infrastructure, and strengthen GI Bill and other education programs for student veterans.
The Poison Pill
The Congressional Budget Office has estimated the Major Richard Star Act alone would cost $78 billion in direct federal spending over the 2026-2036 period. Under congressional PAYGO rules, that cost must be offset.
That offset comes from the effective elimination of VA disability compensation for tinnitus and sharply reduce compensation for veterans with obstructive sleep apnea who manage the condition with a CPAP device. The changes would apply to all new claims and to future reassessments of existing claims.
The Department of Veterans Affairs projects Section 108 would reduce disability compensation payments by up to $57 billion over 10 years and affect up to 1.5 million veterans.
Tinnitus, ringing in the ears caused by noise exposure, including weapons fire and explosions, is the most prevalent service-connected disability. Obstructive sleep apnea is commonly associated with blast exposure and traumatic brain injury.
VSO Reactions
Major veterans service organizations responded quickly and critically to the bill’s PAYGO provisions. The Veterans of Foreign Wars announced its opposition the day after the bill was introduced.
“The VFW strongly opposes the Take Care of America’s Veterans Act as currently drafted because it asks future disabled veterans to bear the cost of expanding benefits through changing the VA rating schedule for tinnitus and obstructive sleep apnea, which are common conditions associated with combat poly trauma,” said VFW National Commander Carol Whitmore. “Veterans’ benefits are an earned obligation of the nation, a promise made through the military service contract, and should not be financed through offsets, fee increases or reductions that place additional burdens on veterans, military families and survivors. A grateful nation pays its debts to veterans; it does not send them the invoice.”
The VFW called on Congress to remove the PAYGO section and find alternative funding, warning that adjusting VA disability ratings for budget reasons rather than medical evidence would set a dangerous precedent.
DAV National Commander Coleman Nee acknowledged the package included provisions the organization sought for years but said the tinnitus and sleep apnea cuts were unacceptable.
“We reject the premise that the only way to fulfill the promises made to the men and women who served in the past is by cutting benefits for veterans in the future,” Nee said. “Eliminating compensation for sleep apnea and tinnitus is not a reflection of improved outcomes for veterans—it is a budget-driven decision that shifts the burden onto those who have already sacrificed.”
The DAV called on Congress to waive PAYGO for veterans legislation, noting that Congress has routinely waived the rules for other priorities.
Iraq and Afghanistan Veterans of America also formally opposed the bill. IAVA said it opposed the legislation “based on its intent to finance new veterans benefits by reducing or restricting earned disability compensation for other disabled veterans.”
Political Context
The bill was introduced the day after House Democrats filed a discharge petition to force a standalone floor vote on the Major Richard Star Act. The petition was led by Ranking Member Mark Takano and Rep. Raul Ruiz.
Senate Veterans’ Affairs Committee Ranking Member Richard Blumenthal, who co-sponsored the bipartisan Major Richard Star Act as a standalone bill, condemned the Republican package.
“Republicans unveiled a nearly 600-page veterans bill that includes a provision to fund the Major Richard Star Act by slashing benefits for other disabled veterans,” Blumenthal said in a statement. “Their proposal includes up to $57 billion in cuts over the next 10 years for veterans eligible to receive disability benefits for tinnitus and sleep apnea.”
The bill was referred on June 10 to the House Committees on Veterans’ Affairs and Armed Services. The Senate companion, S. 4744, was referred to the Senate Committee on Veterans’ Affairs. No committee markups are currently scheduled.
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