Senator Gallego introduces bill to end VA recoupment of separation pay from disabled veterans

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 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.