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Home » Major Richard Star Act Ends ‘Wounded Veteran Tax’ for 58,000 Combat-Injured Veterans

Major Richard Star Act Ends ‘Wounded Veteran Tax’ for 58,000 Combat-Injured Veterans

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Major Richard Star Act Ends 'Wounded Veteran Tax' for 58,000 Combat-Injured Veterans

WASHINGTON, November 13, 2026 — The House of Representatives passed the Major Richard Star Act on Thursday by a 392-18 vote, allowing combat-injured veterans to receive their full military retired pay and VA disability compensation without reduction. This act specifically addresses the long-standing issue of concurrent receipt for combat-injured veterans, who were previously subject to an offset that reduced their military retirement pay by the amount of disability compensation they received.

Background And History

The issue of concurrent receipt has been a point of contention for many years, with veterans and lawmakers arguing that it unfairly penalizes combat-injured veterans who have made significant sacrifices for their country. The Major Richard Star Act aims to rectify this situation by eliminating the offset for eligible combat-related retirees with fewer than 20 years of service. According to Rep. Mark Takano, the ranking Democrat on the House Veterans’ Affairs Committee, the bill has been in the works for some time, with a discharge petition filed on May 21 to force consideration of the bill.

How It Works

Under current law, combat-injured veterans who receive disability compensation have their military retirement pay reduced by the amount of that compensation. The Major Richard Star Act would change this by allowing eligible veterans to receive their full military retired pay and VA disability compensation without reduction. This means that approximately 58,000 combat-injured veterans who were medically retired with fewer than 20 years of service would see their combined pay rise by an average of $1,450 a month, or about $17,400 a year, according to the Congressional Budget Office.

The Numbers

The Congressional Budget Office estimates that the bill would cost $12.75 billion over 10 years. However, the bill’s supporters argue that it is a necessary step to ensure that combat-injured veterans receive the benefits they have earned. As Rep. Dr. Raul Ruiz noted, “For every dollar in VA disability compensation these veterans receive, a dollar is taken out of their retirement pay. Our veterans deserve respect, they do NOT deserve to be treated like a burdensome, expendable line item in a budget.”

What It Means Now

The passage of the Major Richard Star Act is a significant step forward for combat-injured veterans, who have been advocating for this change for many years. However, the bill still needs to be passed by the Senate and signed into law by the president. As Rep. Brad Schneider, a cosponsor of the bill, noted, “I urge the Senate to swiftly take up this legislation and send it to the President’s desk to honor our contract to our veterans who served our nation with dedication and love of country.” If signed into law, the bill would take effect on the first day of the first month beginning after the date of enactment, meaning that payments could begin as early as January if the bill is signed in December.

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Photo: Sharon Waldron / Unsplash (Unsplash License)

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