The resolution urges Congress to amend federal law to allow veterans to receive disability compensation without the requirement to repay separation payments they received upon leaving military service. Currently, federal regulations prohibit veterans from receiving multiple forms of compensation for their service, a policy commonly referred to as "double-dipping." This results in the Department of Veterans Affairs (VA) withholding disability compensation until the full amount of any separation payment is recouped, often leading to unexpected financial difficulties for veterans who may not be aware of this policy until they apply for benefits.
The resolution highlights the significant financial burden this recoupment process places on veterans, with the VA having recouped over $1.6 billion from more than 79,000 veterans between 2013 and 2020. It argues that separation pay from the Department of Defense and disability compensation from the VA serve distinct purposes and should not be subject to the same restrictions. By urging Congress to pass legislation that eliminates the recoupment requirement, the resolution aims to protect disabled veterans from unnecessary financial hardship and ensure they receive the benefits they are entitled to without the burden of repayment.