A bill to amend title 10, United States Code, to eliminate the recoupment of separation pay, special separation benefits, and voluntary separation incentive payments from members of the Armed Forces who subsequently receive disability compensation under laws administered by the Department of Veterans Affairs and to impose limitations on the authority of the Secretary of Defense to recoup such pay from members who subsequently receive military retired or retainer pay.
Latest action (7 Aug 2026): Introduced
What this bill does
S. 5367 would change how the Department of Defense and Department of Veterans Affairs handle certain military separation payments. Currently, service members who receive separation pay, special separation benefits, or voluntary separation incentive payments when leaving the military can have that money "recouped," or deducted, if they later qualify for VA disability compensation or military retired/retainer pay. This bill would eliminate that recoupment when a veteran later receives VA disability compensation, and would place new limits on the Secretary of Defense's authority to recoup those payments when a veteran later receives military retired or retainer pay.
The change would primarily affect veterans who received one of these separation payments upon leaving service and later became eligible for VA disability benefits or military retirement pay. Under current law, such payments can reduce or offset those subsequent benefits; this bill would reduce or remove that offset in the situations described.
The bill was introduced in the Senate on August 7, 2026, by Senator Ruben Gallego (D-AZ), and its current status is "Introduced." Its official text has not yet been published, so only its title, sponsor, and status are known at this time; no further details about its specific mechanisms are available. As a next step, it would typically be referred to a Senate committee (such as Armed Services) for consideration before any further action, such as a committee vote or floor consideration, could occur.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on August 7, 2026. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
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