How a $10 billion veterans bill became a $78 billion debate
The Major Richard Star Act, which aims to end a 'Wounded Veteran Tax' for combat-injured retirees, saw its projected cost skyrocket from $10 billion to $78.1 billion between its 2023 and 2025 versions. The Congressional Budget Office attributed the increase to two provisions: extending Concurrent Retired and Disability Pay to Chapter 61 retirees with fewer than 20 years of service ($63 billion) and removing a cap for those with 20+ years ($2 billion). Congressional staffers intended to fix a narrow gap affecting about 1,124 veterans, but CBO interpreted the revisions as making 255,000 retirees newly eligible, based on Department of Defense actuarial data. This disconnect has transformed the political debate around the once-broadly supported bill.
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