New Bill Would Allow Vets to Accept Disability AND Retirement Benefits

    Article by Benefit Karma Editorial Team
    Published Apr 1, 2025

    5 min read

    Topics: Veterans/Military Benefits

    Thousands of combat-disabled veterans face a deeply unjust financial challenge that threatens their hard-earned benefits. Under current law, many veterans who have sacrificed their health in service to the nation are penalized for receiving disability compensation — their military retirement pay is reduced dollar-for-dollar when they claim VA disability benefits.

    The Major Richard Star Act represents a critical piece of legislation that aims to right this long-standing wrong. It’s named after Maj. Richard Star, an Iraq and Afghanistan veteran who died in 2021 from service-related cancer. His story embodies the struggles of countless veterans who the current system has negatively impacted.

    If passed, the bill would allow over 50,000 veterans to receive their full retirement and disability compensation, eliminating a bureaucratic system that effectively punishes those who have already given so much.

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    How does the current system penalize veterans?

    Current regulations create a bad situation for veterans with:

    The current law mandates that for every dollar received in VA disability benefits, a veteran loses a dollar from their military retirement pay. This means that despite earning these benefits through years of dedicated service and personal sacrifice, veterans are systematically shortchanged.

    What would the Major Richard Star Act do to fix this?

    If signed into law, the legislation would:

    • Eliminate the dollar-for-dollar offset for combat-disabled veterans

    • Ensure full military retirement and disability compensation without deductions

    • Provide fair treatment for veterans medically retired with less than 20 years of service

    The bill has garnered remarkable bipartisan momentum:

    • 185 co-sponsors in the House

    • 43 co-sponsors in the Senate

    Key political supporters span both parties, including Senators Mike Crapo (R-Idaho), Rick Scott (R-Fla.), Elizabeth Warren (D-Mass.), and Richard Blumenthal (D-Conn.).

    Veterans' organizations like the National Guard Association of the United States (NGAUS) have also strongly endorsed the legislation, calling it a "necessary correction" to a fundamentally broken system.

    So are there any obstacles to this becoming law?

    With growing advocacy and bipartisan support, the Major Richard Star Act stands at a critical juncture. The primary challenge remains finding a funding solution that balances budgetary concerns with the moral imperative of supporting those who have served.

    The Congressional Budget Office estimates the bill would cost $9.75 billion over 10 years (2024-2033). While this is a significant amount, supporters argue that the cost of fairness for injured veterans shouldn't be a point of negotiation.

    For thousands of combat-disabled veterans, this bill represents more than financial compensation — it's about recognition, respect, and a genuine commitment to honoring their sacrifices.

    Keep an eye on this space for updates as the bill makes its way through the halls of Congress.

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