Restore Veterans’ Compensation Act of 2026

The Restore Veterans’ Compensation Act of 2026 prohibits the government from reducing disability compensation paid by the Department of Veterans Affairs for service members who previously received separation pay or severance benefits. For those receiving retired or retainer pay, the bill limits the repayment of any owed separation funds to a maximum of 25 percent of their monthly pension and requires a 90-day notice period before deductions begin. The legislation also mandates that the Secretary of Defense consult with affected members on repayment rates to prevent undue financial hardship and allows for waivers if repayment would cause significant economic difficulty.