What does Preamble of Restore Veterans’ Compensation Act of 2026 do?

This bill aims to amend Title 10 of the United States Code. It seeks to eliminate the recoupment of separation pay, special separation benefits, and voluntary separation incentive payments from Armed Forces members who later receive disability compensation from the Department of Veterans Affairs. The bill also intends to limit the Secretary of Defense's authority to recoup such payments from members who subsequently receive military retired or retainer pay.

What does SHORT TITLE. of Restore Veterans’ Compensation Act of 2026 do?

This bill is formally titled the Restore Veterans' Compensation Act of 2026.

What does RECOUPMENT OF SEPARATION PAY, SPECIAL SEPARATION BENEFITS, of Restore Veterans’ Compensation Act of 2026 do?

This section amends Title 10, United States Code, regarding the recoupment of separation pay, special separation benefits, voluntary separation incentive, and voluntary separation pay and benefits from members of the Armed Forces. It eliminates the deprivation of veterans disability compensation for members receiving separation pay, severance pay, or readjustment pay. Recoupment from members receiving retired or retainer pay is limited to the net amount of separation pay after deducting federal income tax. Deductions from retired or retainer pay may not exceed 25 percent of the member's pay unless the member requests an accelerated rate. Deductions cannot commence until 90 days after the Secretary of Defense notifies the member, and the notice must provide clear and comprehensive information. The Secretary of Defense may waive deductions if they would result in a financial hardship for the member. Section 1175(e) is amended to apply section 1174(h) to members who received the voluntary separation incentive and later qualify for retired or retainer pay or disability compensation. Subsection (h) of section 1175a is amended to coordinate voluntary separation pay with retired or retainer pay and disability compensation, preventing deductions from certain disability compensation payments. The amendments generally take effect on the first day of the first month beginning on or after the date of enactment.

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Restore Veterans’ Compensation Act of 2026

Last updated: 1/13/2026 · Introduced: 1/13/2026

Author: Gus Bilirakis (R-FL)

TL;DR (AI)

This bill prevents the Department of Veterans Affairs from reducing disability compensation payments to veterans based on separation pay, special separation benefits, or voluntary separation incentive payments they previously received.
The bill limits recoupment of separation pay from service members receiving military retired or retainer pay to a maximum of 25 percent of their pay, after deducting federal income taxes.
Service members will receive a 90-day notice and have the opportunity to request a waiver of recoupment deductions if they experience financial hardship.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

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