The Major Richard Star Act, backed by Rep. Gabe Vasquez, would allow qualifying medically retired veterans to receive full military retirement pay alongside VA disability compensation.

Damien Willis, Organ Mountain News

WASHINGTON - The U.S. House voted overwhelmingly Thursday to advance legislation that would allow tens of thousands of combat-injured veterans to receive full military retirement pay and Department of Veterans Affairs disability compensation, eliminating a longstanding reduction in benefits for qualifying medically retired service members.

The Major Richard Star Act, or H.R. 2102, passed Nov. 12 on a 392-18 vote, with support from 210 Democrats, 181 Republicans and one independent. Rep. Gabe Vasquez, D-N.M., whose district includes much of southern New Mexico, voted in favor of the measure.

The legislation would address a federal benefits rule that generally reduces military retirement payments for veterans who also receive VA disability compensation. Although certain military retirees who served at least 20 years can collect both benefits, veterans forced into earlier medical retirement because of combat-related disabilities face additional restrictions.

The bill would allow qualifying veterans medically retired before completing 20 years of service to receive both benefits in full, without the existing offset.

An estimated 59,000 veterans could benefit from the change, according to the House Veterans' Affairs Committee.

How the benefits would change

Under current law, military retirees who qualify for VA disability compensation generally have their retirement payments reduced by the amount of disability compensation they receive.

Some combat-disabled retirees receive Combat-Related Special Compensation, a separate benefit intended to partially restore retirement payments. However, restrictions tied to years of service can prevent those veterans from receiving their full retirement benefits.

The Major Richard Star Act would remove that restriction for qualifying disability retirees with combat-related conditions.

According to the Congressional Budget Office, eligible retirees could receive approximately $1,450 more per month in combined compensation on average under the proposed change. Individual increases would vary depending on retirement and disability benefits.

The legislation would not immediately change veterans' payments. It must still pass the Senate and be signed into law.

Vasquez supports legislation

Vasquez, who has advocated for the legislation, called its House passage an important step toward addressing disparities in veterans' retirement benefits.

"Veterans who raised their right hand to commit to faithfully serving our country and whose service was unfortunately cut short due to a medical retirement deserve full and fair compensation," Vasquez said in a statement Thursday.

"I'm proud to finally put an end to the wounded veterans tax and ensure no combat-injured hero is forced to forgo their military retirement pay," he said.

The term "wounded veterans tax" is used by supporters to describe the reduction in military retirement payments for affected veterans.

The legislation is named for Army Reserve Maj. Richard Star, who advocated for changes to the benefits system after being medically retired following a cancer diagnosis linked to military service. Star died in 2021.

Federal cost and next steps

The Congressional Budget Office estimates the House version of the legislation would increase federal direct spending by approximately $12.75 billion from fiscal 2027 through 2036.

The estimate reflects additional retirement payments to qualifying veterans nationwide, not a specific allocation to New Mexico.

The bill has drawn broad bipartisan support, although lawmakers have differed over how to finance expanded benefits.

A Senate companion measure, S. 1032, has also been introduced, but neither chamber's approval alone is sufficient to change the law.

For combat-injured veterans who were medically retired before reaching 20 years of service, the House vote brings the proposed change closer to enactment. Whether those veterans ultimately receive the additional retirement compensation now depends on further congressional action.

Damien Willis is founder and editor of Organ Mountain News. If you have a personal story to share or a lead we should follow up on, reach out at OrganMountainNews@gmail.com or connect with him on X at @damienwillis.