Senator introduces bill to stop VA from recouping separation pay from disabled vets

Published Aug 6, 02:13 PM UTC

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.