The TDIU Reform Act of 2026 would establish federal law governing how the Department of Veterans Affairs awards disability compensation to veterans who cannot work due to service-connected injuries or illnesses. Currently, this authority exists through VA policy, but this bill would formally write it into law. Veterans qualify if they have one disability rated at 60 percent or higher, or multiple disabilities including one at 40 percent or higher that combine to at least 70 percent. The VA would assign these veterans a "total" disability rating, entitling them to full disability compensation. The bill also sets a cap preventing new applicants age 67 or older from receiving this benefit starting December 31, 2026, and defines "marginal employment" as earnings at or below the federal poverty line to clarify what counts as gainful work.
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