Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
On August 6, 2026, Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act to bar the Department of Veterans Affairs from recouping military separation pay from veterans who later qualify for disability compensation. The bill also reduces the recoupment rate for retired veterans from 40% to 25% and allows repayment of net rather than gross amounts. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The legislation has bipartisan support and backing from Disabled American Veterans.
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Senator introduces bill to stop VA from recouping military separation pay from disabled vets
Senator Ruben Gallego (D-Ariz.) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit net rather than gross amounts. Gallego, a former Marine and Iraq War veteran, argues separation pay is for 'time served' while disability payments are akin to workers' compensation, making recoupment unfair. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill also reduces the recoupment rate for retired veterans from 40% to 25% of paychecks. A separate bill by Sen. James Risch (R-Id.) would cap monthly recoupment at 25% of disability checks. Similar legislation failed to advance in 2022.
Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act on August 6, 2026, which would bar the Department of Veterans Affairs from recouping military separation pay from veterans who later qualify for disability compensation. The bill also allows veterans qualifying for military retirement pay to repay only the net amount received after taxes. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans, often surprising them decades later. A separate bill by Senator James Risch (R-ID) would limit monthly recoupment to 25% of disability checks. Gallego, a former Marine and Iraq War veteran, argues disability payments are workman's compensation while separation pay is for time served, making recoupment unfair. The legislation has bipartisan support but previously stalled in committee.
Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans, allow those qualifying for military retirement pay to remit the net (after-tax) amount instead of the gross amount, and reduce the recoupment rate for retired veterans from 40% to 25% of their paychecks. Gallego, a former Marine and Iraq War veteran, argues that disability payments are akin to workers' compensation while separation pay is for time served, making recoupment unfair. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill has bipartisan support, including from Rep. Gus Bilirakis (R-FL) and Disabled American Veterans. A similar bill failed to advance in 2022.
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Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act on August 6, 2026, which would bar the Department of Veterans Affairs from recouping military separation pay from veterans who later qualify for disability compensation. The bill also allows veterans qualifying for military retirement pay to repay only the net amount received after taxes. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans, sometimes decades after separation. A case highlighted involves retired Air Force Maj. Raymond Thomas, who received $30,000 in 1990 and faced full disability check withholding in 2024. The bill has bipartisan support, with Rep. Gus Bilirakis (R-FL) co-sponsoring in the House. Separately, Sen. James Risch (R-ID) introduced the Veterans Earned Benefits Access Act to cap monthly recoupment at 25% of disability payments. Disabled American Veterans supports ending the practice.
Senator introduces bill to stop VA from recouping military separation pay from disabled vets
Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit only the net amount received after taxes. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans under existing law. The bill also reduces the recoupment rate for retired veterans from 40% to 25% of their paychecks. A separate bill by Senator James Risch (R-ID) would limit monthly recoupment to 25% of disability checks. The legislation is supported by Disabled American Veterans and aims to prevent veterans from facing financial hardship due to surprise recoupment demands, sometimes decades after leaving service.
Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to repay only the net amount received after taxes. Gallego, a former Marine and Iraq War veteran, argues the payments serve different purposes—disability as workman's compensation and separation pay as a force management tool. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill also reduces the recoupment rate for retired veterans from 40% to 25% of their paychecks. A separate bill by Senator James Risch (R-ID) would cap monthly recoupment at 25% of disability checks. The legislation has support from Disabled American Veterans.
Senator introduces bill to stop VA from recouping military separation pay from disabled vets
Senator Ruben Gallego (D-Ariz.) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit the net amount received instead of the gross amount. Gallego, a former Marine and Iraq War veteran, argues that disability payments are akin to workers' compensation while separation pay reflects 'time served' for force management. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill also reduces the recoupment rate for retired veterans from 40% to 25% of their paychecks. A separate bill by Sen. James Risch (R-Id.) would limit monthly recoupment to 25% of disability checks. The legislation has drawn support from Disabled American Veterans.
Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit only the net amount received after taxes. It also reduces the recoupment rate from 40% to 25% of paychecks for retired veterans. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill, co-sponsored by Rep. Gus Bilirakis (R-FL), previously failed in the House. Supporters, including Disabled American Veterans, argue disability payments and separation pay serve different purposes and that recoupment can cause severe financial hardship, as illustrated by a 75-year-old Air Force veteran facing loss of housing after a 34-year delay in recoupment action.
Senator introduces bill to stop VA from recouping military separation pay from disabled vets
Senator Ruben Gallego (D-Ariz.) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit only the net amount received after taxes. It also reduces the recoupment rate from 40% to 25% for retired veterans. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill is co-sponsored by Rep. Gus Bilirakis (R-Fla.) and has drawn support from Disabled American Veterans. A similar bill failed to advance in 2022. The legislation addresses cases like retired Air Force Maj. Raymond Thomas, who received a recoupment notice 34 years after receiving separation pay.
Senator Gallego Introduces Bill to End VA Recoupment of Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans, allow retirees to repay net rather than gross amounts, and reduce the recoupment rate from 40% to 25% of paychecks. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. Gallego, a former Marine and Iraq War veteran, argues disability payments are akin to workers' compensation while separation pay reflects time served. A companion bill was introduced in the House by Rep. Gus Bilirakis (R-FL). Separately, Sen. James Risch (R-ID) introduced the Veterans Earned Benefits Access Act to cap monthly recoupment at 25% of disability checks. The legislation responds to cases like retired Air Force Maj. Raymond Thomas, who received a recoupment notice 34 years after receiving $30,000 in separation pay.
Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-Ariz.) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit net rather than gross amounts. Gallego, a former Marine and Iraq War veteran, argues the payments serve different purposes: disability as workman's compensation and separation pay as a force management tool. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill also reduces the recoupment rate from 40% to 25% of paychecks. A companion bill was introduced in the House by Rep. Gus Bilirakis (R-Fla.). Separately, Sen. James Risch (R-Id.) introduced the Veterans Earned Benefits Access Act to cap monthly recoupment at 25% of disability checks.
Senator Gallego Introduces Bill to End VA Recoupment of Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-Ariz.) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit only the net amount received. Gallego, a former Marine and Iraq War veteran, argues that disability payments are compensation for service-related injuries while separation pay is a force management tool. The VA recouped $2.44 billion from 112,834 veterans between 2013 and 2023. A separate bill by Senator James Risch (R-Idaho) would limit monthly recoupment to 25% of disability checks. The legislation aims to prevent veterans from facing sudden financial hardship, as illustrated by a case where a 75-year-old retired Air Force major faced full withholding of his disability check 34 years after receiving separation pay.
Senator introduces bill to stop VA from recouping military separation pay from disabled vets
Senator Ruben Gallego (D-Ariz.) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit the net amount received instead of the gross amount. Gallego, a former Marine and Iraq War veteran, argues that disability payments are akin to workers' compensation while separation pay reflects time served, making recoupment unfair. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill also reduces the recoupment rate for retired veterans from 40% to 25% of their paychecks. A similar bill was introduced in the House by Rep. Gus Bilirakis (R-Fla.) but failed to advance in 2022. The legislation has support from Disabled American Veterans.
Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-AZ) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would bar the VA from collecting voluntary or involuntary separation pay from disabled veterans and allow those qualifying for military retirement pay to remit only the net amount received. Gallego, a former Marine and Iraq War veteran, argues that disability payments are akin to workers' compensation while separation pay reflects time served. The VA recouped $2.44 billion from 112,834 veterans between 2013 and 2023. The bill also reduces the recoupment rate for retired veterans from 40% to 25% of their paychecks. A similar bill failed to advance in the House in 2022. The legislation is supported by Disabled American Veterans.
Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans
Senator Ruben Gallego (D-Ariz.) introduced the Restore Veterans Compensation Act on August 6, 2026, to prevent the Department of Veterans Affairs (VA) from recouping military separation pay from veterans who later qualify for disability compensation. The bill would also allow veterans who later receive military retirement pay to repay only the net amount received after taxes, rather than the gross amount. Gallego, a former Marine and Iraq War veteran, argues that disability payments are compensation for service-related injuries, while separation pay is a force-management tool, making recoupment unfair. From 2013 to 2023, the VA recouped $2.44 billion from 112,834 veterans. The bill has bipartisan support, with Rep. Gus Bilirakis (R-Fla.) co-sponsoring a House version. Separately, Sen. James Risch (R-Id.) introduced the Veterans Earned Benefits Access Act, which would cap monthly recoupment at 25% of disability checks instead of allowing full withholding.