HR 7027 — Restore Veterans’ Compensation Act of 2026

Bill Text

• Introduced Introduced in House Current html January 13, 2026

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill eliminates the recoupment of separation pay from veterans who receive disability compensation and imposes limits on recoupment for those receiving military retirement pay.

• 10 U.S.C. § 1174(h)(1)

  shall specify, taking into account the financial ability of the member to pay and avoiding the imposition of undue financial hardship on the member and member's dependents, → (subject to subparagraph (B)) shall specify

  This change clarifies the recoupment process, ensuring it takes into account financial hardship without mandating it.

• 10 U.S.C. § 1174(h)(1)

  the amount deducted under subparagraph (A) from a payment of retired or retainer pay may not exceed 25 percent of the amount of the member's retired or retainer pay for that month unless the member requests deductions at an accelerated rate.

  This introduces a cap on the recoupment amounts from retired pay to protect financial stability for service members.

• 10 U.S.C. § 1174(h)(1)

  The Secretary of Defense may waive the deduction of amounts from the retired or retainer pay of a member under this paragraph if the Secretary determines that deduction of such amounts would result in a financial hardship for the member.

  This allows for greater flexibility in managing individual financial hardships when recouping pay.

• 10 U.S.C. § 1174(h)(2)

  The amount of disability compensation to which a member may be entitled under the laws administered by the Department of Veterans Affairs may not be reduced on account of the receipt of separation pay, severance pay, or readjustment pay.

  This prevents veterans from having their disability payments decreased due to earlier separation payments.

• 10 U.S.C. § 1175(e)(3)(A)

  the deduction required under the preceding sentence → the deduction from the member's retired or retainer pay

  This clarifies the language regarding deductions from retired pay following receipt of voluntary separation incentives.

• 10 U.S.C. § 1175(e)(3)(A)

  Subsection (h) of section 1174 of this title shall apply to any member who has received the voluntary separation incentive and who later qualifies for retired or retainer pay under this title or for disability compensation under the laws administered by the Department of Veterans Affairs. → Subsection (h) of section 1174 of this title shall apply to any member who receives voluntary separation pay under this section and who later qualifies for retired or retainer pay under this title or title 14 or for disability compensation under the laws administered by the Department of Veterans Affairs.

  This aligns the treatment of voluntary separation pay with disability compensation and retirement pay.

• 10 U.S.C. § 1174(h)(1)

  Any notice under this subparagraph shall be designed to provide clear and comprehensive information on the deduction of amounts under this paragraph, including information on the determination of the amount and period of installments under this paragraph.

  This mandates clarity in communication regarding any deductions from retired pay.

• 10 U.S.C. § 1175a(h)

  the requirement under this subsection to repay voluntary separation pay following retirement from the Armed Forces does not apply to a member who was eligible to retire at the time the member applied and was accepted for voluntary separation pay and benefits under this section.

  This change exempts certain members from repaying voluntary separation pay after retirement, providing financial relief.

Action History

1. January 13, 2026

   Introduced in House

2. January 13, 2026

   Introduced in House

3. January 13, 2026

   Referred to the Committee on Armed Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

4. January 13, 2026

   Referred to the Committee on Armed Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

5. May 07, 2026

   Referred to the Subcommittee on Disability Assistance and Memorial Affairs.

Sponsors

• Mike Levin · Cosponsor
• Gus M. Bilirakis · Primary

Subjects