This long-overdue reform—backed by The American Legion and more than 60 other military and veteran organizations—would ensure that combat-injured retirees can receive both their Department of Defense retirement pay and the disability compensation earned through their sacrifices. Current law reduces retirement pay by the exact amount of VA disability compensation received, a policy that punishes wounded veterans for their service and injury. We call this what it is: a “wounded veteran tax,” and it must end.

The standalone bill has overwhelming bipartisan support, with 313 cosponsors in the House and 77 in the Senate as of January 2026—more than enough to pass if brought to a floor vote.

The American Legion urges Congress to do right by our nation’s combat-wounded heroes and pass this amendment without delay. These veterans have already paid more than their fair share.