If a combat-related injury ended your military service before you reached 20 years of service, your retirement pay may be reduced by every dollar of Veterans Affairs (VA) disability compensation you receive. This is not a mistake, it is current federal law. The Major Richard Star Act would change this, and for the first time, the bill has been scheduled for a vote on the House floor.
Why Your Retired Pay Is Offset Right Now
Military retirees generally cannot collect full retired pay and full VA disability compensation at the same time. To receive VA compensation, they waive an equal amount of retired pay. Congress created two exceptions, both of which were written with career retirees in mind.
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- Concurrent Retirement and Disability Pay (CRDP) Under 10 U.S.C. § 1414, CRDP restores retired pay for retirees with a rating of 50% or higher. Chapter 61 (Medical) retirees need at least 20 years of service to qualify which excludes most of them.
- Combat-Related Special Compensation (CRSC) – No 20-year rule and the payment is tax-free. The catch is that there is a cap: for military retirees, CRSC cannot exceed what would have been paid in retirement for your years of service in uniform.
That cap does real damage. In its March 2026 cost estimate, the Congressional Budget Office described a retiree with five years of service and a 100% rating. That veteran could be entitled to retired pay equal to 75% of salary. Under the current limit, CRSC plus leftover retired pay can’t exceed 10%.
What the Star Act Would Change
The House bill, H.R. 2102, would allow Chapter 61 retirees with combat-related disabilities to receive full payments. According to the Congressional Budget Office (CBO), the current version of the bill goes further than most media reports suggest. It will:
- End the offset for medically retired veterans with combat-related disabilities, regardless of how many years they served.
- Eliminate the 20-year rule for the Combat-Related Disability Pay (CRDP) for Chapter 61 retirees rated at 50% or higher, so they can qualify even if their disability is not related to combat. CBO considers this the largest part of the bill.
- Remove the cap on CRDP for medical retirees who have not reached 20 years of service.
Two limits matter. Veterans who have never received military retirement pay gain nothing, because there is no retirement pay to offset. And the changes will apply only to payments beginning the first month after implementation. Past offsets will not be refunded.
Where the Bill Stands as of October 2026
It is not yet law. Here is the current situation:
- House: Discharge Petition No. 22 has reached 218 signatures as of September 15, 2026, which allows supporters to force a floor vote without the leadership’s approval. The petition will need to sit for seven days in the legislative session before a vote can be taken, and given that members are campaigning ahead of the November 3 midterm elections, a vote is not expected until after the House returns in November.
- Senate: The companion bill, S.1032, enjoys broad bipartisan support among cosponsors. However, efforts to pass the bill by unanimous consent have been stalled due to disagreements over how to fund it.
- The final step is for both chambers to pass identical legislation, and for the President to sign it into law.
A house win would be a real milestone. It wouldn’t change a single payment on its own.
Steps Worth Taking Now
Whatever Congress decides, your VA rating and combat-related conditions determine what benefits you receive. You shouldn’t wait for a vote to make sure you get the right benefits.
- If you haven’t already, apply for CRSC. Applications should be submitted to your branch of service, not to the VA. The DFAS lists qualifying causes, such as armed conflict, hazardous duty, simulated war, and war instruments.
- Make sure your VA rating corresponds with your actual condition. If you have an underrated injury, it costs you now and may reduce what you would gain if the bill is passed.
- Keep all your records together, including Purple Heart documentation, deployment orders, and in-service findings.
- Beware of anyone offering to “help you file for the Star Act”. There is no application and the bill is not law.
Talk to Tabak Law Before the Vote
Combat-injured veterans have waited years for this fix, and November may bring the closest call yet. Whether the bill passes or not, an accurate VA rating is the basis of everything you receive. Tabak Law helps veterans establish a service connection and challenge ratings that do not reflect their injuries and appeal VA denials.
Contact Tabak Law today to have your claim reviewed and make sure your benefits reflect the cost of your service.
