Veterans Groups Warn Congress of Potential Benefit Cuts

Veterans of Foreign Wars (VFW), a leading veterans advocacy group, has alerted Congress about the potential long-term financial impact of a proposed benefits package. The organization expressed concern that the Take Care of America’s Veterans Act, a comprehensive legislative initiative including the Major Richard Star Act, might pose significant challenges for the future of disability compensation.

Concerns Over Changes in Disability Compensation

The VFW supports many provisions within the act, which includes goals they have long advocated for. However, they raised alarms over proposed changes that could entail cuts to Veterans Administration (VA) disability ratings for conditions such as tinnitus and sleep apnea. The VFW argues that these changes could reduce disability compensation by $57 billion over ten years and impact about 1.5 million veterans.

Disability compensation serves as a crucial source of income for many veterans. Altering evaluation criteria for common service-connected conditions like tinnitus and sleep apnea could lead to significant financial repercussions.

Potential Short-Term and Long-Term Effects

In the short term, veterans could benefit from increased income if reforms such as the Major Richard Star Act are enacted. However, such changes could also lead to decreased disability ratings for a much larger veteran population. These proposed cuts would primarily affect future claimants and those seeking rating increases.

Funding Mechanism Controversy

The VFW’s main dispute relates to the bill’s funding strategy. The Major Richard Star Act aims to allow combat-injured veterans to receive full retirement pay and disability compensation simultaneously, benefiting approximately 54,000 veterans.

Currently, medically retired veterans must sometimes sacrifice a portion of their retirement pay due to offsets with disability benefits. The new bill would remove this offset. To finance this change, lawmakers propose revising rating criteria for conditions like sleep apnea and tinnitus, which could alter standalone disability ratings and change compensation structures.

The VFW estimates that the long-term effect could impact between several hundred thousand and over one million veterans.

VFW’s ‘Honor the Contract’ Campaign

The VFW launched a campaign urging members and supporters to contact lawmakers, advocating for revisions to the bill. They argue that veterans’ benefits should not be compromised to fund new initiatives. They emphasize that these benefits represent an obligation to veterans.

Advocates indicate that changes in disability ratings could lead to financial challenges for households that rely on stable compensation.

Wider Opposition and Congressional Debate

Other major veteran organizations, like Disabled American Veterans (DAV), share the VFW’s concerns. DAV contends that veterans should not compete against each other for benefits.

The legislative package includes longstanding veterans groups’ priorities, like expanded caregiver support and improved prosthetic equipment. Still, DAV criticizes using future benefit reductions to adhere to budget regulations.

Some lawmakers, including Senator Richard Blumenthal, have expressed reservations about the bill’s offset structure, arguing that benefits for combat-injured veterans should not disadvantage others.

Similarly, some legislators believe offsets are necessary to progress with long-pending legislative changes. Senator Jerry Moran, chair of the Senate Committee on Veterans’ Affairs, explained that changes would only affect future claims.

Bill Status and Implications

The legislation is progressing through Congress but has not been finalized. It remains uncertain whether lawmakers will adjust the offset provisions or its ultimate impact on veterans.

For many disabled veterans, VA compensation forms a core component of retirement income. Changes to compensation can affect financial planning, longevity, and stability over decades.