Urges Congress to allow veterans to collect disability compensation without repaying separation payments.

This New Jersey Senate Resolution (SR 111) urges Congress to change federal law so veterans can receive disability compensation without having to repay separation payments they received when leaving military service. Currently, veterans who get a lump-sum separation payment from the Department of Defense cannot receive full disability compensation from the VA until they repay that separation payment, often causing sudden financial hardship. The resolution cites that the VA recouped over $1.6 billion from more than 79,000 veterans between 2013 and 2020, averaging $32,800 per veteran. It specifically asks Congress to eliminate this recoupment requirement, arguing that separation pay and disability compensation serve different purposes. As a resolution, it does not change law but requests federal legislative action.