New Bill Could End Unfair Pay Cuts for Combat-Injured Veterans
Many veterans who were hurt in combat continue to face challenges long after leaving the military.
One of their biggest frustrations is a benefits rule that reduces their retirement pay when they receive disability payments. A new push in Congress aims to change that.
What Is the Major Richard Star Act?
The Major Richard Star Act is a proposed law that would let certain combat-disabled veterans receive both their full military retirement pay and their VA disability benefits at the same time.
Right now, veterans who were medically retired before serving 20 years have their retirement pay reduced by the same amount they get in VA disability payments. This means they essentially lose one benefit to get the other.
Supporters call this reduction the "wounded warrior tax." They believe it unfairly punishes service members whose injuries forced them to leave the military early.
The bill is named after Army Reserve Major Richard Star, who was medically retired due to a service-related illness. He later died from cancer linked to burn pit exposure during his service.
Who Would This Help?
If passed, the bill would help about 54,000 veterans across the country.
Currently, only veterans who served at least 20 years and have a disability rating of 50 percent or higher can receive both payments in full. This leaves out many veterans who wanted to serve longer but couldn't because of combat injuries.
Advocates say this doesn't make sense. A veteran hurt in combat shouldn't receive less money simply because their injury ended their career early.
Kevin Thompson, CEO of 9i Capital Group, explained it this way: "It would allow veterans, especially those who've been physically impacted by service, to receive the full compensation they've earned without one benefit canceling another. That's not a handout; that's honoring the contract."
Why Hasn't It Passed Yet?
The bill has strong support from both political parties. Many senators and hundreds of House members have backed it. However, it has never made it to a final vote.
The main obstacle is cost. The Senate Veterans' Affairs Committee estimates the bill would cost about $11 billion over 10 years.
Drew Powers, founder of Powers Financial Group, said: "The issue here, as always, is funding. The money is there, of course, but it would have to be redistributed from one line item to another."
In simple terms, Congress agrees the bill is a good idea, but they haven't agreed on how to pay for it.
Recent Developments
The bill got a boost recently when Defense Secretary Pete Hegseth publicly supported it during a Senate hearing about the Defense Department's budget.
"As I have said in the past to other organizations, we support the Richard Star Act," Hegseth told lawmakers.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said this support is important: "Having Secretary Hegseth's pledge now backing the proposal is a significant step forward and could help to make the potential law a reality."
However, Thompson cautioned that Pentagon support doesn't guarantee the bill will pass. "At the end of the day, this lives and dies in Congress," he said.
What Happens Now?
For now, nothing has changed. Veterans affected by the pay reduction will continue under the current rules unless Congress passes the bill and the president signs it into law.
Supporters hope the new momentum will push Senate leaders to schedule a vote later this year, possibly around Veterans Day. But no vote date has been set yet.
After years of waiting, the Major Richard Star Act has new energy behind it. The question now is whether Congress will finally act.
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