II
119th CONGRESS
2d Session
S. 5266
IN THE SENATE OF THE UNITED STATES
August 5, 2026
Mr. Risch introduced the following bill; which was read twice and referred to the Committee on Veterans’ Affairs
A BILL
To amend title 10, United States Code, to provide flexibility in the recoupment of separation pay, severance pay, and readjustment pay from members of the Armed Forces receiving veterans' disability compensation.
Short title
This Act may be cited as the Veterans’ Earned Benefits Access Act of 2026
.
Recoupment of separation, severance, and readjustment pay from members of the Armed Forces receiving veterans' disability compensation
In general
Section 1174(h)(2) of title 10, United States Code, is amended—
by inserting (A)
after (2)
;
by inserting (as provided under subparagraph (B))
after there shall be deducted
; and
by adding at the end the following new subparagraph:
The Secretary of Veterans Affairs may—
deduct the amount described in subparagraph (A) from the disability compensation of a member in monthly installments, as a lump sum, or using such other payment plan as the Secretary determines appropriate; and
waive the requirement for such deductions in the case of a member who demonstrates to the Secretary that such deductions would create a financial hardship for the member.
.
Regulations
Not later than 90 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall prescribe regulations to carry out subparagraph (B) of section 1174(h)(2) of title 10, United States Code, as added by subsection (a)—
to ensure that a deduction from the veterans' disability compensation of a member under that subparagraph in a month does not exceed 25 percent of the member's veterans' disability compensation for that month; and
to establish a process under which a member may apply for a hardship waiver under clause (ii) of that subparagraph.
Effective date
The amendments made by this section shall—
take effect on the first day of the first month beginning after the date on which final regulations under subsection (b) are published in the Federal Register; and
apply to veterans' disability compensation paid on or after that date.
Veterans' disability compensation defined
In this section, the term veterans' disability compensation has the meaning given the term compensation in section 101 of title 38, United States Code.