How a $10 billion veterans bill became a $78 billion debate
The Major Richard Star Act, designed to end a 'Wounded Veteran Tax' that forces combat-injured medically retired veterans to forfeit retirement pay when receiving VA disability compensation, 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 (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 fix a narrow gap affecting about 1,124 veterans, but CBO interpreted the revisions as making 255,000 retirees eligible. This disconnect has transformed the political debate around the once-broadly supported bill.
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