Iraq Vet Fights ‘Wounded Veterans Tax
- A bipartisan effort is underway in Congress to address the "wounded veterans tax," a policy that reduces retirement pay for veterans receiving disability compensation.
- Nevins, like approximately 50,000 other veterans, found that the government reduces retirement pay by a dollar for every dollar received in disability, if they served less than 20...
- Now, Nevins is advocating for the Major Richard Star Act, a bill designed to eliminate this offset and ensure wounded veterans receive their full retirement benefits and disability...
Congress is considering a vital change for veterans: Eliminating teh “wounded veterans tax,” a policy that unfairly reduces retirement pay for those with service-related disabilities.This directly impacts roughly 50,000 veterans, including Iraq war veteran Dan Nevins, who lost both legs.This policy can cost veterans nearly $1,900 each month. The Major Richard Star Act, championed by lawmakers like Sen. richard Blumenthal and Rep.Gus Bilirakis, aims to provide full retirement and disability benefits.News Directory 3 follows these changes closely. But with a projected cost of nearly $10 billion, the bill’s future is uncertain. Will Congress prioritize veterans’ financial well-being? Discover what’s next …
Congress Eyes Action on ‘Wounded Veterans Tax’ Impacting Retirement Pay
Updated May 26, 2025
A bipartisan effort is underway in Congress to address the “wounded veterans tax,” a policy that reduces retirement pay for veterans receiving disability compensation. Army veteran Dan Nevins, medically retired after losing both legs in combat, discovered this offset firsthand.
Nevins, like approximately 50,000 other veterans, found that the government reduces retirement pay by a dollar for every dollar received in disability, if they served less than 20 years and have a disability rating below 50%. The Congressional Budget Office estimates this costs affected veterans about $1,900 each month.
Now, Nevins is advocating for the Major Richard Star Act, a bill designed to eliminate this offset and ensure wounded veterans receive their full retirement benefits and disability pay. Sen. Richard Blumenthal, D-Conn., and Rep. Gus Bilirakis, R-Fla., are leading the charge in the Senate and House, respectively.
Blumenthal emphasized the injustice of penalizing veterans for injuries sustained in service. The bill, however, carries a hefty price tag. The CBO projected a cost of $9.75 billion between 2024 and 2033,potentially hindering its passage amid efforts to curb government spending.
Nevins underscored the financial strain the current policy places on veterans. He noted that many are forced to cut essential expenses to make ends meet, and that the additional funds could significantly improve their lives and their families’ well-being.
“It’s a tragedy really,” Nevins said. “So many peopel are cutting what we would all take for granted out of their lives, just so they can survive.And I mean, it’s not a ton of money, but it will help and really change lives and families for the better.”
Nevins’ experience in Iraq in 2004, when an IED blast resulted in the amputation of both his legs, fuels his advocacy.he recalls a near-death vision of his daughter walking down the aisle without him, motivating his determination to live and fight for change.
Blumenthal plans to introduce the bill as an amendment to the annual defense policy bill and seek unanimous consent in the coming weeks.
What’s next
As Congress debates the Major Richard Star Act, the focus remains on balancing the financial needs of wounded veterans with broader budgetary concerns. The outcome will determine whether these veterans receive the full benefits they were promised.