The administration of Donald Trump has thrown its support behind legislation that could significantly change how benefits are paid to thousands of disabled veterans, potentially paving the way for long-awaited financial reforms.

At the center of the proposal is the Major Richard Star Act, a bipartisan bill that aims to eliminate a long-standing rule reducing military retirement pay for veterans who were medically retired before completing 20 years of service. Under current law, those veterans see their retirement income reduced dollar-for-dollar if they also receive disability compensation from the Department of Veterans Affairs, News.Az reports, citing foreign media.

Defense Secretary Pete Hegseth confirmed the administration’s backing during Senate testimony, signaling renewed momentum for the measure after years of stalled progress in Congress.

If passed, the legislation would allow around 54,000 combat-disabled veterans to receive both their full retirement pay and disability benefits simultaneously — a shift supporters say would correct an unfair policy rather than create a new entitlement.

Advocates argue the current system penalizes veterans who were forced to leave service early due to injuries. Financial experts say ending the offset would ensure these individuals receive the full compensation they earned through their service.

Despite growing support, the bill still faces a key hurdle: cost. Previous estimates suggest the reform could require about $11 billion over a decade, a figure that has slowed its passage in the past. While the House has shown strong backing, the final decision ultimately rests with Congress.

Still, analysts say the administration’s endorsement could be a turning point, increasing the chances of a full vote and potentially bringing long-awaited relief to thousands of veterans.

News.Az 

By Aysel Mammadzada