Take Care of America’s Veterans Act: Offsets, Workforce, and Opposition

The Take Care of America’s Veterans Act is a bipartisan legislative package introduced in June 2026 that bundles more than 60 individual veterans bills into a single 554-page bill, paying for its new benefits and health care expansions largely by codifying cuts to disability ratings for sleep apnea and tinnitus.1Stars and Stripes. Major Veterans Legislation Bundles 60 Bills2Congress.gov. H.R. 9237 – Take Care of America’s Veterans Act3GovInfo. S. 4744 – Take Care of America’s Veterans Act A planned House floor vote was pulled on June 25 as opposition mounted, and no new date has been announced.4Government Executive. House Cancels Vote on VA Overhaul Bill as Opposition Mounts

What the Bill Would Do for Veterans

The headline provision is the Major Richard Star Act, which addresses the so-called “wounded veteran tax.” Under current law, military retirees who were medically retired for combat injuries with fewer than 20 years of service must give up a dollar of military pension for every dollar of VA disability compensation. The Star Act would end that offset.5Wounded Warrior Project. Understanding the Major Richard Star Act

Eligible veterans would choose annually during a January “open season” between receiving their existing Combat-Related Special Compensation or opting for concurrent receipt of VA disability compensation and full retirement pay. The change would not apply retroactively.5Wounded Warrior Project. Understanding the Major Richard Star Act Rep. Raul Ruiz (D-Calif.) has said the bundled version is “watered down” compared with the standalone bill because it caps the combined amount, preventing veterans from receiving both full military retirement pay and full disability benefits simultaneously.4Government Executive. House Cancels Vote on VA Overhaul Bill as Opposition Mounts

Other significant provisions in the package include:

How It’s Paid For: The Sleep Apnea and Tinnitus Offset

Section 108 of the bill would codify changes to the VA’s disability rating schedule for tinnitus and sleep apnea, two of the most common service-connected conditions. According to Congressional Budget Office and VA estimates cited by veterans organizations, the changes would reduce disability compensation by roughly $57 billion over the next decade and affect up to 1.5 million veterans.9Veterans of Foreign Wars. VFW Action Alert – Tell Congress to Oppose Veterans Benefit Cuts1Stars and Stripes. Major Veterans Legislation Bundles 60 Bills

Disabled American Veterans said the proposal would effectively eliminate compensation for service-connected tinnitus and dramatically reduce compensation for veterans with sleep apnea who use a CPAP machine.10DAV. DAV Condemns Congressional Proposal to Cut Disability Benefits for 1.5 Million Veterans The cuts would apply to new claims and to any reassessment or reevaluation of existing claims. The bill’s sponsors have emphasized that veterans currently receiving compensation at existing rates would not see reductions unless their condition is reevaluated.1Stars and Stripes. Major Veterans Legislation Bundles 60 Bills

The rating changes did not originate with this bill. The VA had floated a draft rule to revise these ratings in 2022 and testified in January 2026 that it planned to finalize the rule by October 2026. The legislation would put the changes into statute and redirect the savings to the package’s new provisions.11U.S. Senate Committee on Veterans’ Affairs. Chairmen Moran, Bost Introduce Comprehensive Veterans Legislation

The VA Workforce Provision

The bill would reclassify roughly 5,000 VA psychologists from a hybrid Title 5/Title 38 personnel system to Title 38 alone. Title 38 limits collective bargaining rights by statute, restricting these employees’ ability to negotiate scheduling, raise grievances about staffing shortages, or challenge payroll errors through the grievance process.12AFGE. Proposed Veterans Bill Would Betray Military Heroes and Workers Who Care for Them

The American Federation of Government Employees, the largest union representing VA workers, said stripping these protections would worsen recruitment and retention of mental health professionals. AFGE National President Everett Kelley said the bill would accelerate “privatization of the VA” through its expansion of the Veterans Community Care Program.4Government Executive. House Cancels Vote on VA Overhaul Bill as Opposition Mounts

Who Supports the Bill and Who Opposes It

The legislation has split the veterans community.

Supporters

The American Legion endorsed the package. National Commander Dan K. Wiley called it the “best path forward” to enact legislation otherwise stalled by budget rules. The Legion acknowledged concerns about the offsets but said the alternative was “continued gridlock” and noted the bill does not retroactively reduce anyone’s current benefits.13The American Legion. A Path Forward for the Major Richard Star Act and 62 Other Veteran Priorities On June 29, 2026, the Legion led a coalition letter signed by 22 veterans service organizations urging passage.14The American Legion. American Legion, 18 Other VSOs Urge Congress to Pass TCAVA

The Wounded Warrior Project also backed the bill with reservations. WWP expressed “concerns regarding the offsetting provisions” and said embedding rating schedule changes into statute is an “uncommon approach” it would normally oppose, urging Congress to waive pay-as-you-go requirements rather than fund benefits by cutting other benefits.15Wounded Warrior Project. Wounded Warrior Project Issues Statement on the Take Care of America’s Veterans Act

Opponents

Disabled American Veterans condemned the bill. National Commander Coleman Nee said, “A grateful nation should never try to balance its budget on the backs of the men and women who sacrificed so much for our freedom.” DAV called the rating cuts a “poison pill” in an otherwise worthy package.10DAV. DAV Condemns Congressional Proposal to Cut Disability Benefits for 1.5 Million Veterans

The Veterans of Foreign Wars opposes the bill unless the offsets are removed, arguing that using disability compensation as a funding mechanism creates a “dangerous precedent” and that “one group of veterans must not lose so another group of veterans can win.”16VFW. VFW Action Alert on Take Care of America’s Veterans Act

Iraq and Afghanistan Veterans of America opposed the rating changes as well. Jess Finucan, the group’s director of policy and advocacy, warned, “Once Congress starts rewriting the disability ratings whenever it needs money, there’s no limit.”4Government Executive. House Cancels Vote on VA Overhaul Bill as Opposition Mounts AFGE joined a coalition of 22 labor unions opposing the legislation and urged Congress to pass the standalone Major Richard Star Act instead.17AFGE. AFGE Opposition to Take Care of America’s Veterans Act

Where the Bill Stands

The House scheduled a floor vote for the week of June 23, 2026, under a closed rule allowing one hour of general debate and no amendments beyond a technical manager’s amendment.18House Rules Committee. H.R. 9237 – Rules Committee Page Leadership pulled the vote on June 25 as opposition mounted from Democrats, several veterans service organizations, and labor unions. Rep. Chris Deluzio (D-Pa.) said the bill “pits veterans against veterans” and “stabs those serving right now in the back.” Rep. Ruiz said it “takes away PACT Act benefits from 1.5 million veterans to pay for it.”4Government Executive. House Cancels Vote on VA Overhaul Bill as Opposition Mounts

On the Senate side, S. 4744 was introduced by Senator Moran with Senators John Boozman (R-Ark.) and Kevin Cramer (R-N.D.) among five total Republican cosponsors.19GovTrack. S. 4744 – Take Care of America’s Veterans Act As of late June 2026, the Senate bill had not been scheduled for committee markup or floor consideration, and no timeline for rescheduling the House vote had been announced.