Table Of Contents
The “Wounded Warrior Tax” : What The Major Richard Star Act Would Change
Some combat-disabled veterans who receive both military retirement pay and VA disability compensation don’t get the full amount of each. That rule has been sitting on the books for decades. It reduces one benefit to offset the other. A bill called the Major Richard Star Act would end that reduction for veterans with combat-related disabilities. It keeps getting reintroduced, and it still hasn’t passed.
The Current Rule
Under existing law, a veteran has to clear two hurdles to collect full military retirement pay and full VA disability compensation at the same time: at least 20 years of service and a VA disability rating of 50% or higher.
If a combat injury forced someone out before they hit 20 years, they often lose retirement pay dollar-for-dollar against whatever VA disability compensation they receive. Both benefits exist on paper. In practice, one eats into the other.
A lot of veterans call this the “wounded warrior tax.” The logic behind the name is pretty straightforward: a service member whose injuries ended their career early walks away with less than someone who served the same number of years and left on their own terms in good health.
What The Bill Would Do
The Major Richard Star Act would cut out that offset entirely for veterans with combat-related disabilities. Both benefits, paid in full, with neither one reducing the other.
Roughly 59,000 veterans nationwide would qualify for the Major Richard Star Act.
The legislation is named after Army Reserve Major Richard Star, who was medically retired due to a service-related illness and later died from cancer connected to burn pit exposure. He was medically retired, with a combat-related disability, subject to the offset, which is the exact gap the bill is written to close.
Where The Major Richard Star Act Stands
This bill has been introduced over and over across multiple congressional sessions. It currently has 79 Senate co-sponsors and 326 in the House, that’s not a bill without support. And yet it still hasn’t passed.
The sticking point is money, though nobody can agree on how much. The Congressional Budget Office landed at roughly $7 billion in appropriated spending over ten years, but separately projected around $63 billion in direct spending increases over the same window. The Senate Veterans’ Affairs Committee has thrown out $11 billion. Three different figures, none of them settled, and that gap is exactly why the bill keeps stalling.
The last real attempt was March 3, 2026. The bill came to the Senate floor for unanimous consent and got blocked. No vote is on the calendar.
What This Means For You Right Now
Nothing in your benefits has changed. If you are a combat-disabled veteran who was medically retired before 20 years of service, the current offset rules still apply.
Don’t wait on Congress to figure out where you stand. Know what you’re currently receiving, what you might be missing, and how your situation shifts if the bill becomes law.
FAQ
What is the Major Richard Star Act? It’s a bill that would eliminate the offset rule, reducing military retirement pay for combat-disabled veterans who also receive VA disability compensation.
Has the bill passed? No. It has not passed and no vote is currently scheduled.
Why hasn’t it passed with so many co-sponsors? Cost. The Senate Veterans’ Affairs Committee estimates the bill at roughly $11 billion over 10 years. Congress has not agreed on a funding mechanism.
Who qualifies under current law to receive both benefits in full? Veterans who served 20 or more years and have a VA disability rating of 50% or higher. If you were medically retired before 20 years of age, even due to combat injuries, you are likely subject to the offset under current rules.
Get The Answers You Need Today
If you’re a veteran, military retiree, or family member trying to understand what you’re entitled to under today’s rules, or how a law change might affect you, Veterans Help Group can help. We know the VA system, we’ll give you straight answers about your specific situation and help you fight for the benefits you deserve.
Contact the most trusted VA Disability advocates at Veterans Help Group today. CLICK HERE for a FREE case evaluation or give us a call at 855-855-8992. Don’t wait on Washington to figure out where you stand.
Disabled Veteran Resources:
Veterans Help Group Sponsors the 2026 PPSMA Golf Tournament
Veterans Help Group Sponsors the 2026 PPSMA Golf Tournament Helping veterans can take different...
Executive Order Aims to Expand Psychedelic Therapy Access for Veterans
Executive Order Aims to Expand Psychedelic Therapy Access for Veterans Veterans across the country...
Tinnitus – How Do I Prove Something Only I Can Hear?
Tinnitus - How Do I Prove Something Only I Can Hear? Tinnitus is the number-one disability among...
