Is CRDP Going Away? Program Status, Coverage, and Pending Bills

No, CRDP is not going away. Concurrent Retirement and Disability Pay is written into permanent federal law at 10 U.S.C. § 1414, and ending it would take an act of Congress repealing that statute.1Office of the Law Revision Counsel. United States Code Title 10 Section 1414 No bill in the 119th Congress proposes doing that. The bills that have been introduced move in the opposite direction: they would expand CRDP to retirees who don’t currently qualify.

Why the Program Is Secure

CRDP is a statutory entitlement, not a discretionary program that has to be renewed each year. Once Congress phased in full concurrent receipt for qualifying retirees, payments became a matter of law that DFAS is required to process. The President cannot cancel it. DFAS has no discretion to stop the checks. A budget deal cannot quietly dissolve it, because the underlying obligation sits in Title 10 and would have to be repealed or amended through normal legislation.

The rumor that CRDP might disappear tends to grow out of a separate discussion about how the program is paid for. The DOD Board of Actuaries has recommended that Congress re-examine the funding structure of concurrent receipt within the Military Retirement Fund. When CRDP was created, part of the cost was assigned to Treasury rather than the DOD budget. As VA disability claims have grown, Treasury’s share of the Fund’s normal cost payments has climbed from about 3% in 2005 to roughly 31% in 2025, while DOD’s share has dropped from 89% to 46%.2Department of Defense. Report to the President and Congress Regarding the Status of the Military Retirement Fund The Board wants that accounting realigned. That is an argument between DOD and Treasury about which line pays the bill. It is not a proposal to reduce or eliminate any retiree’s payment.

Who CRDP Covers Right Now

Two things trigger CRDP: you are receiving military retired pay, and you have a VA disability rating of 50% or higher. The statute defines a qualifying service-connected disability as a single disability or combination of disabilities rated at not less than 50% by the VA.1Office of the Law Revision Counsel. United States Code Title 10 Section 1414 If you meet both conditions, enrollment is automatic. DFAS handles it once your VA rating is in the system, and you don’t file an application.3My Army Benefits. Concurrent Receipt (CR)

Regular retirees with 20 or more years of active service qualify at a 50% rating or higher. Reserve and Guard retirees qualify once they are receiving retired pay and hold a 50% rating or higher. Retirees who left under the Temporary Early Retirement Authority qualify on the same terms.4My Army Benefits. Concurrent Receipt (CR) Chapter 61 disability retirees with 20 or more years qualify for partial CRDP, capped at the difference between their Chapter 61 retired pay and what they would have received under a regular longevity retirement.1Office of the Law Revision Counsel. United States Code Title 10 Section 1414

Two groups are shut out entirely under current law. Retirees with VA ratings below 50% still face the full dollar-for-dollar offset with no CRDP relief. And Chapter 61 medical retirees with fewer than 20 years of service are excluded by the statute regardless of rating.1Office of the Law Revision Counsel. United States Code Title 10 Section 1414 That second group is the focus of most current advocacy: service members forced out by service-connected injuries who then lose retired pay to receive their VA compensation.

The Bills That Would Expand CRDP

Two pieces of legislation in the current Congress would widen eligibility. Neither has passed as of this writing, but both illustrate that the political pressure on CRDP is toward growth, not cuts.

Disabled Veterans Tax Termination Act (H.R. 333)

H.R. 333 would make two changes to 10 U.S.C. § 1414. It would eliminate the 50% disability threshold, opening concurrent receipt to retirees at any VA rating.5Congress.gov. H.R.333 – 119th Congress (2025-2026) – Disabled Veterans Tax Termination Act It would also extend partial concurrent receipt to Chapter 61 retirees with fewer than 20 years, using a formula based on 2.5% per year of creditable service rather than the current total exclusion.6GovInfo. H.R. 333 Disabled Veterans Tax Termination Act

Major Richard Star Act (H.R. 2102)

H.R. 2102 focuses specifically on the Chapter 61 exclusion. It would extend concurrent receipt eligibility to medical retirees with fewer than 20 years of service.7Congress.gov. H.R.2102 – 119th Congress (2025-2026) – Major Richard Star Act Versions of the bill have been introduced in prior Congresses with bipartisan support but have not passed, largely because of the projected cost.

The direction of travel matters for the question people are actually asking. Concurrent receipt is popular across party lines, and voting to take it away would be a hard sell for any member of Congress. Every active proposal on the table would give more retirees access to it.

What to Do If You Don’t Currently Qualify

If your VA rating is below 50%, CRDP does not apply to you today, and you remain subject to the full offset on your retired pay. You have two practical options. File a claim with the VA for an increased rating if your conditions have worsened, since a combined rating of 50% or higher across multiple conditions triggers CRDP. And check whether you qualify for Combat-Related Special Compensation, which has no minimum rating requirement but requires the disability to be tied to combat, hazardous duty, duty simulating war, or an instrumentality of war.8Congressional Research Service. Defense Primer – Concurrent Receipt of Military Retirement and VA Disability CRSC requires a separate application through your branch of service. You cannot receive CRSC and CRDP at the same time.9Defense Finance and Accounting Service. CRDP-CRSC FAQs

If you are a Chapter 61 medical retiree with fewer than 20 years, the statute excludes you from CRDP regardless of rating. CRSC remains available if your disability is combat-related. Beyond that, the Disabled Veterans Tax Termination Act and the Major Richard Star Act are the legislative vehicles that would change your situation, and contacting your representatives about them is the most direct action available.