Lets veterans get flexible payment plans for disability pay deductions and apply for hardship waivers.
Veterans who receive disability compensation and also separation, severance, or readjustment pay currently have those payments automatically deducted. This bill would allow the Department of Veterans Affairs to offer different payment plans or waive deductions for those facing financial hardship. It aims to make the recoupment process less burdensome for veterans.
Today, if a veteran receives disability compensation and also got separation, severance, or readjustment pay when leaving the military, the government automatically deducts that earlier pay from their disability checks. There are no options for flexible payments or waivers for financial hardship. After this bill, the Department of Veterans Affairs would be able to offer veterans flexible payment plans, such as monthly installments, and could waive these deductions completely if a veteran proves financial hardship. Monthly deductions would also be capped at 25 percent of their disability compensation.
S 5266 · 119th Congress · AI Summary by gemini-2.5-flash · 9/10
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