Did you know that nearly 122,000 disabled veterans have been forced to return payouts in the last 12 years due to a little-known federal law? These veterans received lump-sum incentives to leave the military during downsizing but are now facing hardships as they have to repay these amounts.
The U.S. Department of Veterans Affairs reported over 17,000 recoupments in the 2018 fiscal year, the highest so far. The number decreased until the PACT Act in 2022, which caused a surge in recoupments in 2023.
Advocates argue that veterans are being blindsided by a law that connects special separation pay, based on military career, with disability pay, based on service-related illnesses or injuries. This results in veterans having thousands withheld for recoupment.
Although efforts have been made to change this law, progress has been slow. Rep. Ruben Gallego introduced a bill in 2022 to address the issue.