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S. 5266

BillFederalSenateIn Committee
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.
About This Bill
Committee
Latest Action · August 5, 2026
Read twice and referred to the Committee on Veterans' Affairs.
Congress
119th (2025–2027)
Introduced
August 5, 2026
Cosponsors (0)
None
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Summary

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The Veterans' Earned Benefits Access Act of 2026 changes how the government collects money owed by military members who receive both separation pay and veterans' disability compensation. Currently, federal law requires the Department of Veterans Affairs to deduct the full owed amount from disability payments, but this bill gives the VA Secretary flexibility to collect the money through monthly installments, lump sum payments, or other arrangements. The legislation also allows the VA to waive collection entirely if a veteran can demonstrate that deductions would cause financial hardship. The VA must issue regulations within 90 days of the bill's enactment and is required to ensure that monthly deductions do not exceed 25 percent of a veteran's disability compensation and to establish a process for veterans to request hardship waivers. These changes take effect once the final regulations are published in the Federal Register and apply to all disability compensation payments made after that date.

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