For decades, combat-injured veterans who earned both a military retirement and a VA disability rating have faced a quiet penalty: for every dollar of VA disability compensation they receive, a dollar gets clawed back from their retirement pay. Veterans and advocates call it the disability tax, and this summer Louisiana became the latest state to formally ask Congress to end it.
A Resolution With Teeth, Even Without a Vote
As part of its 2026 legislative session, Louisiana lawmakers passed Senate Concurrent Resolution 70, urging Congress and the federal administration to pass the Major Richard Star Act, according to a recap of the session's veteran-focused legislation. The resolution took effect August 1 alongside a slate of other veteran protections the state enacted this year, including new penalties for stolen valor and fee waivers for medical records tied to disability claims.
State resolutions can't force Congress's hand, but they add to a stack of pressure that has been building for years.
What the Star Act Would Actually Change
The Major Richard Star Act (H.R. 2102 / S. 1032) would let combat-injured retirees keep both their full military retirement pay and their VA disability compensation, rather than forcing them to choose or accept an offset. Currently, many combat-injured retirees can only receive Combat-Related Special Compensation, a workaround that still leaves money on the table for a lot of veterans, according to MOAA's most recent SITREP on the bill. MOAA estimates more than 50,000 veterans would be eligible.
Broad Support, Repeated Roadblocks
Few bills in Congress can claim the kind of bipartisan backing the Star Act has. By early June 2026, the House version had more than 330 cosponsors and the Senate version had nearly 80, according to MOAA. That support hasn't translated into a floor vote. Sen. Richard Blumenthal has asked the Senate to pass the bill by unanimous consent multiple times since October 2025, most recently in June 2026, and each attempt has been blocked by a single objecting senator citing the bill's roughly $10 to $12 billion cost, Military Times reported. A House discharge petition aimed at forcing a floor vote has picked up signatures but has not yet reached the 218 needed.
Why This Matters for the OWF Community
A lot of the veterans OWF serves carry combat-related disabilities, and many know the offset firsthand: it can mean thousands of dollars a year that never show up in a retirement check. Whether or not the Star Act clears Congress this year, state-level resolutions like Louisiana's keep the issue visible, and veterans can track the bill's status and reach out to their representatives through organizations like MOAA.
If you're a combat-injured veteran, service member, or first responder looking for ways to stay active and connected while you wait on Washington, check your eligibility for a free race entry through Operation WarriorFit, browse our Louisiana veteran benefits guide, or take a look at races near you.