Ends government clawbacks of disability pay for veterans who received separation benefits.
This bill would stop the government from taking back separation pay from veterans who later receive disability benefits from the Department of Veterans Affairs. It would also set new limits and procedures for recouping separation pay from military retirement checks.
Today, the government can take back separation pay, severance pay, or voluntary separation incentives from service members who later receive Department of Veterans Affairs disability compensation or military retired pay, sometimes without specific limits on monthly deductions or considering taxes. This bill would stop taking back separation pay from VA disability compensation entirely. For military retired or retainer pay, it would limit monthly deductions to 25% of the pay and ensure only the after-tax amount of separation pay is recouped, with a 90-day notice and hardship waivers.
HR 7027 · 119th Congress · January 13, 2026 · AI Summary by gemini-2.5-flash · 8/10
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6 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.