Bill · H.R. 7027· House(119-HR-7027)
Restore Veterans’ Compensation Act of 2026
- Introduced
- 1/13/2026
- Last activity
- 5/7/2026 — Referred to the Subcommittee on Disability Assistance and Memorial Affairs.
- Sponsored by
- Gus Bilirakis
- Cosponsors
- - 1 - 1
- Introduced
- In Committee
What this bill would do
This bill is known as the Restore Veterans' Compensation Act of 2026. It stops the government from taking back separation pay, special separation benefits, and voluntary separation incentives from members of the Armed Forces who later receive disability compensation from the Department of Veterans Affairs. It also places new limits on the Secretary of Defense when taking back this type of pay from members who later receive military retired or retainer pay. Specifically, it limits monthly deductions to 25 percent of a member's retired or retainer pay unless the member asks for a faster rate. Additionally, it gives members a 90-day notice before deductions begin and allows the Secretary of Defense to waive deductions to prevent financial hardship.
Yes
Would veterans be better off under this, taking everything together?+8
The bill protects veterans' disability compensation from being deprived by previous separation pay and imposes limits on how much retired pay can be deducted for recoupment.
Does this increase the pay, pensions or support veterans receive?+7
The bill prevents disability compensation from being reduced due to the receipt of separation pay and limits deductions from retired pay to protect veterans' financial stability.
Would households on low incomes be better off under this?+5
The bill provides protections against financial hardship by limiting monthly pay deductions and allowing for waivers.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Protection of Disability Compensation: Section 2(a)(1) ensures that members of the Armed Forces who receive separation pay, severance pay, or readjustment pay will not be deprived of their Department of Veterans Affairs disability compensation. Furthermore, it explicitly states that the amount of this disability compensation cannot be reduced because of the receipt of such separation pay. This is a positive outcome because it ensures disabled veterans receive the full compensation they are owed without unfair reductions.
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Limits on Retired Pay Deductions: Section 2(a)(3) limits the amount that can be deducted from a member's monthly retired or retainer pay to recover separation pay to a maximum of 25 percent, unless the member requests a faster rate. This helps protect individuals from overwhelming financial burdens by capping how much the military can take out of their monthly checks.
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Advance Notice and Hardship Waivers: Section 2(a)(3) also requires the Secretary of Defense to give members a 90-day notice before any deductions from retired pay begin, and allows the Secretary to waive these deductions entirely if they would cause a financial hardship for the member and their dependents. This benefits people by providing clear information ahead of time and offering a safety net for those facing severe financial trouble.
Potential Negative Impacts for People
- Continued Recoupment from Retired Pay: Section 2(a)(3) still allows the Secretary of Defense to recoup separation pay, severance pay, or readjustment pay from members who subsequently receive military retired or retainer pay, up to 25 percent of their monthly pay. This could be considered a negative consequence or burden for retired service members because they still have money deducted from their regular retirement checks to pay back previous separation funds.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Veterans+8Good For Low Income Households+5
- National Security And Foreign Policy
- Improves Veterans Benefits+7
- 9/21/2026
- 1 Cosponsor added.
- 5/7/2026
- Referred to the Subcommittee on Disability Assistance and Memorial Affairs.
- 1/13/2026
- Referred to the Committee on Armed Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Mike LevinDemocrat · California
Nicholas LangworthyRepublican · New York