The House voted 392 to 18 on Thursday for a bill that would let some combat-injured veterans collect their full military retired pay alongside their Department of Veterans Affairs disability compensation. The Major Richard Star Act vote advances a proposal for veterans who had to retire from the military before completing 20 years of service.
The proposal, H.R. 2102, targets a rule that reduces military retired pay by the amount a retiree receives in VA disability compensation. The Congressional Budget Office estimates that the affected retirees it analyzed would receive about $1,450 more per month on average if the House version became law. Individual amounts would depend on the retiree's pay and benefits.
Who would qualify under the House bill
The House text addresses veterans who retired under Chapter 61 of federal military law with fewer than 20 years of creditable service and qualify for Combat-Related Special Compensation. Chapter 61 is the military disability retirement authority. A veteran who receives VA disability compensation after an ordinary separation from the military is in a different position from someone who was medically retired under Chapter 61.
The combat-related determination also matters. Under the current special compensation program, veterans apply through their own branch of service. The military branch makes the determination, and the Defense Finance and Accounting Service handles payments for eligible retirees it serves. Veterans checking whether the proposal would affect them can look for their retirement authority in their orders and review their existing compensation determination.
Why military retired pay is reduced today
Military retired pay and VA disability compensation are separate benefits. The Defense Finance and Accounting Service says that in the usual case, military retirees give up a dollar of retired pay for each dollar they receive from the VA. The reduction appears as the VA waiver on a retiree's military pay statement.
There are two main exceptions. Concurrent Retirement and Disability Pay can restore retired pay for eligible career retirees. That program generally requires at least 20 years of qualifying service and a VA disability rating of 50% or more. Chapter 61 retirees who fell short of the service requirement cannot use that route. Combat-Related Special Compensation can restore part of the lost income for eligible retirees with combat-related disabilities. For a medically retired veteran with fewer than 20 years, that payment plus any remaining retired pay is limited by how much retirement pay the veteran would have earned based on years of service.
What the $1,450 estimate covers
The Congressional Budget Office used Defense Department records for September 2025, when roughly 58,000 Chapter 61 retirees with fewer than 20 years of service received Combat-Related Special Compensation. The average reduction in retired pay for that group was about $2,275 a month. Their special compensation averaged about $825. The difference, about $1,450 a month, is the average gain CBO estimated under the House version.
Someone whose current special compensation already replaces most of the reduction would have a smaller gap than someone whose service-based limit restores little of it. CBO estimated about $13 billion in additional direct federal spending from 2027 through 2036, assuming enactment in 2026. That budget assumption gives no date for an individual payment.
What happens after the House vote
The Senate still has to act. The House also passed the broader Take Care of America's Veterans Act on Wednesday, Nov. 11. That separate package includes a version of the Star Act alongside changes to health care and other benefits. Thursday's vote was on the standalone bill.
Under the standalone House text, the change would apply to payments for months beginning with the first month after enactment. The text gives no new application process or date for a check. Veterans who may qualify for Combat-Related Special Compensation can still use the existing branch application process while the legislation is pending.
