Military Benefits Report
The Major Richard Star Act:
What Every Combat-Wounded Veteran Needs to Know Right Now
54,000 veterans are losing thousands of dollars a month. Here's the full story — and exactly what you need to do today.
Right now, tens of thousands of combat-wounded veterans who were forced to medically retire before reaching 20 years of service are losing an average of $1,650 to $2,300 every single month because of an obscure federal offset rule. The Major Richard Star Act would fix that — permanently. It has near-universal support in Congress, the backing of every major veterans' organization, and now the Defense Secretary on record supporting it. And it still hasn't passed. Here's everything you need to know — and exactly what to do to be ready when it does.
Who Was Major Richard Star?
Major Richard Star was a U.S. Army combat engineer and veteran of both Iraq and Afghanistan. During his deployments, he was exposed to toxic burn pits — open-air waste incinerators used on military bases that released a cocktail of hazardous chemicals. That exposure gave him lung cancer.
Because his illness forced him to retire before completing 20 years of service, he fell into a cruel gap in the law: he couldn't receive both his military retirement pay and his VA disability compensation. He spent his final years fighting for legislation to close that gap for every veteran in his situation. He died in 2021. The bill that carries his name has now been fought over in four consecutive Congresses.
His brother, Retired Army 1st Sgt. David Star, stood before Congress in April 2026 and said it plainly: "My brother stood in this very spot asking for support of this bill. He passed away five years ago, and we've had four congresses since then to get it done."
The "Wounded Veteran Tax" — What's Actually Happening
Before 2004, federal law prevented military retirees from collecting both their DoD retirement pay and VA disability compensation at the same time. The logic was simple but flawed: Congress didn't want veterans "double-dipping" from federal funds.
The 2004 National Defense Authorization Act created two partial fixes — CRDP and CRSC — but left a major gap. Veterans who were medically retired due to combat injuries before hitting the 20-year mark were largely left out.
Here's how the offset works in practice: if a veteran receives $2,000 a month in VA disability compensation, their DoD retirement pay gets reduced by exactly $2,000. For veterans with severe disabilities and short service records, that can mean their retirement check is reduced to zero.
"This is not double-dipping. This is a double sacrifice. Veterans have fulfilled their obligation. Now the country must honor the contract."
— Carol Whitmore, VFW Commander-in-Chief, March 2026Supporters of the bill make the distinction clearly: military retirement pay rewards years of honorable service. VA disability compensation addresses injuries sustained while serving. These are two separate debts the government owes — and right now, it's only paying one of them for this group of veterans.
The Legislative Battle — A Four-Year Fight
The bill has been reintroduced each Congress with growing support, but never reached a floor vote. In the 118th Congress it had 326 House cosponsors and was placed on the Union Calendar — and still didn't advance.
H.R. 2102 introduced in the House, S. 1032 in the Senate. Both referred to committee. Bipartisan support continues to grow.
Senate leadership attempted to advance the bill via unanimous consent. A single objection stopped it cold.
Text of the Star Act was offered as an amendment to the FY2026 National Defense Authorization Act. It was not included in the final bill.
Sen. Blumenthal attempted unanimous consent a second time. Sen. Ron Johnson (R-WI) objected twice — once to the consent request, once to a proposed guarantee for a floor vote before August. VFW, DAV, and IAVA publicly expressed outrage.
Veterans groups, led by Sen. Blumenthal and Rep. Gus Bilirakis (R-FL), held a public press conference making another push. Richard Star's brother addressed Congress directly.
At a Senate Armed Services Committee hearing on the $1.5 trillion FY2027 defense budget, SecDef Pete Hegseth publicly committed DoD's support for the Major Richard Star Act — putting him at odds with the Senate's own committee chairman. Veterans groups called it a potential game changer.
Why Is It Being Blocked?
The objection has always come down to cost — but even that argument is disputed. The Senate Veterans' Affairs Committee estimated the bill costs about $11 billion over 10 years. Sen. Johnson cited figures over $70 billion. The CBO's March 2026 estimate landed at $78 billion over 2026–2036. That wide range gives opponents a large number to wave while supporters cite a smaller one.
What no one has tried to defend is the offset system itself. There is no good-faith argument that a veteran who lost both legs in Fallujah should have their retirement pay docked because they also receive VA disability compensation.
If This Were Law Today — What You Need to Do Right Now
The bill hasn't passed yet — but veterans who will benefit most are the ones who have their paperwork in order before the law takes effect. Here's your step-by-step action plan.
The bill is not retroactive. There will be no back pay. The clock starts the day it becomes law. Every month you delay getting your VA rating and CRSC application in order is money you may not recover.
Step 1 — Do You Qualify?
The Star Act targets a specific group: veterans who were medically retired due to combat or combat-related injuries before completing 20 years of service. Specifically, to be eligible you must be a Chapter 61 medical retiree with a VA disability rating of at least 30%, and your disability must stem from combat, hazardous duty, training for combat, or exposure to instruments of war.
If you were medically separated (not retired) — meaning you received no retirement pay at all — the bill does not currently apply to you. That's a different fight for a different day.
Step 2 — Establish or Update Your VA Service Connection
Everything under this bill flows from your VA disability rating. If you haven't filed a VA claim, or if you have conditions you haven't claimed, do it now. The VA claims process can take months. Getting your rating established before the law passes means you're positioned to receive benefits immediately upon enactment.
Go to VA.gov and file or update your disability claim. Make sure every service-connected condition is documented and rated — not just the most obvious ones. If your current rating feels too low, file a supplemental claim with new medical evidence.
Step 3 — Apply for CRSC Through Your Branch Right Now
This is the most important action you can take today, whether the Star Act passes or not. CRSC — Combat Related Special Compensation — already provides partial relief for combat-injured retirees, and those payments are completely tax-free. But unlike VA compensation, CRSC is not automatic. You have to apply.
To apply you'll need to gather: service medical records documenting your injury and its combat connection; official service records including After Action Reports, personnel action requests, and performance evaluations; and decoration and award documentation including Purple Heart citations, Combat Action Badges, and valor medals.
Fill out DD Form 2860 (Claim for Combat-Related Special Compensation) and submit to your branch:
U.S. Army Human Resources Command
Apply at HRC.army.mil
Secretary of the Navy Council of Review Boards
720 Kennon St SE, Suite 309, Washington Navy Yard, DC 20374
HQ AFPC/DPFDC
550 C Street West
JBSA Randolph, TX 78150
ARL-SMB-CGPSC-PSD-CRSC
@uscg.mil
Step 4 — Understand the Choice You'll Have to Make
If the Star Act passes, you will not automatically receive both benefits. You'll receive a letter during the annual "open season" (January 1–31) and you'll have to choose between staying in CRSC or switching to full concurrent receipt (CRDP). This is a significant financial decision that isn't one-size-fits-all.
✔ Completely tax-free payments
✔ May be better for high combat-disability ratings
✔ No change to current setup
✘ Payment amounts may be capped
✘ Can be reduced by SBP premiums
✔ Full retirement pay + full VA disability
✔ Higher gross monthly amount
✔ No offset applied
✘ Retirement pay is taxable income
✘ May net less after taxes depending on situation
Run the math on your specific situation before deciding. For most veterans the concurrent receipt option will be better, but for some — particularly those with severe combat-related disabilities and shorter service records — the tax-free CRSC may put more money in your pocket after taxes. A VSO or accredited financial counselor can help you model both scenarios.
Step 5 — Get a VSO in Your Corner Today
A Veterans Service Officer is free and can be the difference between a denied claim and an approved one. The DAV, VFW, American Legion, and MOAA all have accredited VSOs who can help you navigate the CRSC application, update your VA claims, and model your benefit options. This is not the time to go it alone.
Every service-connected condition needs to be documented and rated before the law passes. Do not wait.
Use DD Form 2860. Free money many veterans are leaving on the table right now — and it's tax-free.
Know your exact DoD disability rating and VA rating. Verify both are current and accurate.
Award citations, Purple Heart documentation, after-action reports — anything proving combat nexus for your disabilities.
DAV, VFW, American Legion, or MOAA. Get expert eyes on your case at no cost.
Know which option puts more money in your pocket after taxes before open season letters arrive.
The bill still needs to pass. Find your representatives at congress.gov and make your voice heard.
This Fight Isn't Over — But the Momentum Is Real
The Major Richard Star Act has passed through four Congresses with overwhelming bipartisan support and has been stopped every single time by cost objections from a small number of senators. The same veterans who were told "we can't afford to pay you what you're owed" watched Congress authorize a $1.5 trillion defense budget in the same session.
With 326 House cosponsors, 79 Senate cosponsors, the backing of every major veterans' service organization, and now the Secretary of Defense publicly on record, the question is no longer whether the votes exist. The question is whether leadership will allow those votes to happen.
Sen. Blumenthal has pledged to hold the Trump administration to their word by Veterans Day 2026. The FY2027 NDAA process represents another potential vehicle. The Supreme Court's expected June 2026 ruling in Soto v. United States — which could eliminate the six-year cap on CRSC back pay — adds further urgency.
Do not wait for this bill to pass to get your paperwork in order. The veterans who benefit first and most will be the ones who are already in the system when the ink dries.
Take Action Today
Contact your representatives and demand a vote. Find your senators and House members at congress.gov — it takes two minutes and it matters.
Disclaimer: This post is for informational purposes only and does not constitute legal or financial advice. Every veteran's situation is unique. For guidance specific to your case, consult an accredited Veterans Service Officer or attorney. The Major Richard Star Act has not been signed into law as of the date of this publication.
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