119 S5266 IS: Veterans’ Earned Benefits Access Act of 2026 U.S. Senate 2026-08-05 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II119th CONGRESS2d SessionS. 5266IN THE SENATE OF THE UNITED STATESAugust 5, 2026Mr. Risch introduced the following bill; which was read twice and referred to the Committee on Veterans’ AffairsA BILLTo 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.

1.

Short title

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

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.