VA Benefits: Change Impacting Thousands of Veterans Boosted by Trump Admin
The Major Richard Star Act, which aims to eliminate a benefit offset that reduces military retirement pay for combat-disabled veterans receiving VA disability compensation, is gaining momentum with support from the Trump administration. Currently, veterans medically retired before 20 years of service often lose retirement income dollar-for-dollar due to their VA benefits, a policy critics call a 'wounded warrior tax.' The legislation, backed by Defense Secretary Pete Hegseth, could impact around 54,000 veterans if passed.
- ▪The Major Richard Star Act would allow combat-disabled veterans to receive both full military retirement pay and VA disability compensation without offsets.
- ▪Approximately 54,000 veterans could benefit from the legislation if enacted.
- ▪Under current law, only veterans with 20 or more years of service and a 50% or higher VA disability rating can receive both benefits in full.
- ▪Defense Secretary Pete Hegseth publicly supported the bill during Senate testimony, giving it a significant boost.
- ▪The estimated cost of the legislation ranges around $11 billion over 10 years, though some projections are higher.
Opening excerpt (first ~120 words) tap to expand
By Suzanne BlakeReporter, Consumer & Social TrendsShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.A long‑stalled proposal to change how certain disabled military retirees receive their benefits is gaining new momentum after the Trump administration publicly backed the legislation.The proposal, known as the Major Richard Star Act, would eliminate a decades‑old rule that reduces military retirement pay for some combat‑disabled veterans who also receive Department of Veterans Affairs disability compensation. If the law were passed, it could affect roughly 54,000 veterans nationwide.
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