How a $10 billion veterans bill became a $78 billion debate
The Major Richard Star Act, designed to end the 'Wounded Veteran Tax' that forces combat-injured medically retired veterans to forfeit retirement pay when receiving VA disability compensation, saw its projected cost surge from $10 billion to $78.1 billion between its 2023 and 2025 versions. The Congressional Budget Office attributed the $68 billion increase to two provisions: extending Concurrent Retired and Disability Pay (CRDP) to Chapter 61 retirees with fewer than 20 years of service ($63 billion) and removing a cap on CRDP for those with 20+ years ($2 billion). Congressional staffers intended to address a narrow gap affecting only about 1,124 additional veterans, but CBO interpreted the revisions as making approximately 255,000 retirees newly eligible. This disconnect between legislative intent and budget scoring has transformed the political debate around one of Congress's most broadly supported veterans bills.
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