Senator Gallego introduces bill to stop VA recouping separation pay from disabled veterans

Published Aug 6, 02:13 PM UTC

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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.

Source

Army TimesWestern

Original headline: Senator introduces bill to stop VA from recouping military separation pay from disabled vets

Original language: EN

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Senator Gallego Introduces Bill to Stop VA Recouping Separation Pay from Disabled Veterans

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