[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5266 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5266

 To amend title 10, United States Code, to provide flexibility in the 
recoupment of separation pay, severance pay, and readjustment pay from 
      members of the Armed Forces receiving veterans' disability 
                             compensation.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 2026

   Mr. Risch introduced the following bill; which was read twice and 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend title 10, United States Code, to provide flexibility in the 
recoupment of separation pay, severance pay, and readjustment pay from 
      members of the Armed Forces receiving veterans' disability 
                             compensation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Earned Benefits Access Act 
of 2026''.

SEC. 2. RECOUPMENT OF SEPARATION, SEVERANCE, AND READJUSTMENT PAY FROM 
              MEMBERS OF THE ARMED FORCES RECEIVING VETERANS' 
              DISABILITY COMPENSATION.

    (a) In General.--Section 1174(h)(2) of title 10, United States 
Code, is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by inserting ``(as provided under subparagraph (B))'' 
        after ``there shall be deducted''; and
            (3) by adding at the end the following new subparagraph:
    ``(B) The Secretary of Veterans Affairs may--
            ``(i) deduct the amount described in subparagraph (A) from 
        the disability compensation of a member in monthly 
        installments, as a lump sum, or using such other payment plan 
        as the Secretary determines appropriate; and
            ``(ii) waive the requirement for such deductions in the 
        case of a member who demonstrates to the Secretary that such 
        deductions would create a financial hardship for the member.''.
    (b) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall 
prescribe regulations to carry out subparagraph (B) of section 
1174(h)(2) of title 10, United States Code, as added by subsection 
(a)--
            (1) to ensure that a deduction from the veterans' 
        disability compensation of a member under that subparagraph in 
        a month does not exceed 25 percent of the member's veterans' 
        disability compensation for that month; and
            (2) to establish a process under which a member may apply 
        for a hardship waiver under clause (ii) of that subparagraph.
    (c) Effective Date.--The amendments made by this section shall--
            (1) take effect on the first day of the first month 
        beginning after the date on which final regulations under 
        subsection (b) are published in the Federal Register; and
            (2) apply to veterans' disability compensation paid on or 
        after that date.
    (d) Veterans' Disability Compensation Defined.--In this section, 
the term ``veterans' disability compensation'' has the meaning given 
the term ``compensation'' in section 101 of title 38, United States 
Code.
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