What Is the Major Richard Star Act?

The Major Richard Star Act is a bipartisan bill designed to end the so-called 'Wounded Veteran Tax.' If enacted, it will allow combat-disabled military retirees to receive both their full military retirement pay and VA disability compensation without any offset or reduction. Previously, federal law required that retirement pay be reduced by the amount of VA disability compensation for most veterans with less than 20 years of service, unless rated 50% or higher under concurrent receipt rules (see 10 U.S.C. § 1414; 38 U.S.C. § 5304).

This legislation specifically targets medically retired veterans—those forced to leave service due to combat-related injuries—who have long faced financial penalties because of the offset. The Act passed the House by a wide margin (392-18), reflecting broad support for correcting this longstanding issue.

Who Qualifies Under the Richard Star Act?

The Act applies to military retirees who were medically retired due to combat-related injuries, regardless of years of service. This group is often referred to as Chapter 61 retirees (named after 10 U.S.C. Chapter 61), and includes those with less than 20 years of service who were separated for disability. Under current law, these veterans' retirement pay is reduced dollar-for-dollar by their VA disability compensation, unless their disability rating is 50% or higher and the disability is not combat-related.

If the Richard Star Act becomes law, eligible veterans will be able to receive both payments in full. For example, a veteran medically retired after 10 years of service due to a combat injury and rated 70% disabled by the VA would no longer see their retirement pay reduced by their VA compensation amount.

How Will This Affect Your Benefits?

Currently, if you are a medically retired veteran with a combat-related disability, your military retirement pay is offset by your VA disability compensation. This is often called the 'Wounded Veteran Tax.' The Richard Star Act would eliminate this offset, allowing you to receive both payments in full. This could mean hundreds or even thousands of extra dollars per month, depending on your retirement pay and disability rating.

For example, if your retirement pay is $2,000 monthly and your VA disability compensation is $1,500, you currently receive only $2,000 (not $3,500). Under the new law, you would receive the full $3,500. Use our VA disability rating calculator to estimate your combined rating and potential compensation.

What Should You Do Next?

  • Stay Informed: The bill has passed the House but must still pass the Senate and be signed by the President. Track its progress through official channels and veteran service organizations.
  • Review Your Retirement and Disability Status: Check your current status as a Chapter 61 retiree and your VA disability rating. See our VA claims guide for more information.
  • Prepare Documentation: Gather your retirement orders (DD Form 214, retirement orders) and VA disability award letters. These will be needed if the law passes and you need to update your pay status.
  • Consult with a VSO: Reach out to a Veterans Service Organization for help understanding your eligibility and next steps. See our explainers for more details on the claims process.

What Happens Next?

The Major Richard Star Act must still be approved by the Senate and signed into law. Given the strong bipartisan support in the House, prospects for passage are high, but nothing is final until all steps are complete. If enacted, the Department of Defense and VA will issue guidance on how to apply for or automatically receive the corrected payments. Veterans should monitor updates and be ready to submit any required forms or claims.

For ongoing updates and detailed guides on military retirement and disability compensation, visit our military retirement hub and disability ratings hub.