Not only are they entitled to full benefits in BOTH respects, the United States has a moral obligation to pay that debt. Fewer staff, increased claims backlog, longer wait times for benefits. For Example: Jim is on VA disability because an IED exploded when he was deployed to Iraq costing him his leg. FIVE-ALARM FIRE: The House Freedom Caucus' Extreme Budget Proposal We often blog about the intricate details of specific issues in VA law, so I wanted to take a moment to take us back to the basics of VA disability, When seeking financial support, a veteran has several options for what type of support they can receive. All rights reserved. Separately, the subcommittee legislation also includes more than $17 billion for the Defense Departments military construction projects and for military housing, an increase of more than $900 million from the Biden administrations request. The amount of this compensation depends on the severity of the disability, which is rated on a scale from zero to 100 percent. The VA can increase, reduce or terminate your disability compensation based on its reexamination. 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In addition to the traditional measures of the CPI, BLS computes another measure of inflationthe chained CPIwhich is designed to account for changes in spending patterns and to eliminate several types of statistical biases that exist in the traditional CPI measures. By contrast, the income that people receive from Social Security or private pensions after they retire usually is less than their earnings from wages and salary before retirement. There are two different ways the VA is considering taking away IU for full-retirement aged veterans. For workers who have earned relatively low wages over their career, the ratio is around one-half; for higher-income workers, it is around one-quarter or less. Speaking from Snake Island, Zelenskyy honored the Ukrainian soldiers who fought for the island. At the max income level, payments would cease all together. The amount of compensation is intended to offset the average amount of earnings that veterans would be expected to lose given the severity of their service-connected medical conditions or injuries, whether or not a particular veterans condition actually reduced his or her earnings. Disability compensation is not means-tested (that is, restricted to those with income below a certain amount), and payments are exempt from federal and state income taxes. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. In calendar year 2018, base compensation rates generally ranged from $135 to $2,975 per month. We will work with Congress and other stakeholders to advocate for the best interests of our servicemembers and veterans and ensure that any changes to military spending, veteran benefits, and TRICARE are made with the utmost care and consideration. Senate votes on PACT Act veterans health care bill. Read our privacy policy for more information. The CBO assessment proposes a list of options for reducing the deficit, but they are not considered to be recommendations. A Biden administration report required by Congress outlines research options for a last-ditch effort to slow the heating of the planet. Social Security and pension benefits would be unaffected by this option. According to the CBO, the VA paid four times the amount in disability compensation in 2021, $110 billion, than it paid in 2000, adjusting for inflation, even as the number of vets in the U.S. had dropped by more than 30%. Rep. John Carter (R-Texas), chairman of the Military and Veterans Affairs subcommittee, said Republicans did not accept the proposed shift of more than $14 billion to the mandatory side of the budget for the Toxic Exposure Fund. This proposal aims to cut benefits for veterans with higher incomes, which could directly impact your disability compensation. By contrast, workers who claim DI benefits before their FRA are not subject to a reduction in DI benefits, and when they reach their FRA, their DI benefits are automatically converted to full retirement benefits. The Congressional Budget Office (CBO) is a nonpartisan agency that provides economic analysis and cost estimates for proposed legislation in Congress. Indeed, Biden has been advocating for cuts to Social Security for roughly 40 years. First, the VA may stop making IU payments to veterans age 67 or older, which is the full retirement age for social security benefits. The second, veterans who begin receiving the IU supplement after December 2021 would no longer receive those payments once they reach age 67, and no new applicants age 67 or older would be eligible for IU benefits after that date. Over the next two posts, we will discuss the two most common types, When VA benefits are being discussed, we are generally referring to VA disability compensation benefits. It is a good reminder, though, to always read through the tens of thousands of pages of fine print that the government produces. Follow her on Twitter @patriciakime. Today, VA announced its eighth update: respiratory, auditory, and mental disorders body systems. We'll be in touch with the latest information on how President Biden and his administration are working for the American people, as well as ways you can get involved and help our country build back better. Two U.S. Air Force drones flying over Syria have had unsafe encounters with Russian jets in the past week. However, Congress, not the CBO, must act to make any changes to our care and benefits. (Current recipients would not be affected.). Reforming veterans benefits will be controversial, but necessary WASHINGTON A cost-saving proposal that sparked backlash from veterans in 2017 has resurfaced in a new Congressional Budget Office report as an option to help reduce the federal budget deficit. MOAA is closely monitoring the situation and will take swift action to oppose any of the CBO options that would negatively impact our uniformed services community. Consider just a few examples: These are just a few examplesthe list goes on and on. 3. ACE YOUR INTERVIEW: Join us July 11 and get tips to help you land the position! They also paid into the social security program while in the military and civilian sector. But Veterans Affairs Secretary Denis McDonough shot down the idea on Thursday, saying the VA does not "think that's a good idea. Payments are in the form of monthly annuities and typically continue until the beneficiarys death. irector of Veteran Benefits and Guard/Reserve Affairs, reduction or elimination of VA disability payments for veterans with higher incomes, MOAA Testimony to Joint Congressional Panel Outlines Key Priorities for Veterans, MOAA's Legislative Priorities for the 118th Congress, Mark an Iraq War Milestone by Supporting Combat-Injured Veterans, reduce the cost-of-living adjustment (COLA) for military retirees, Introduce Enrollment Fees for TRICARE For Life, Introduce Minimum Out-of-Pocket Requirements in TRICARE For Life, Means-Test VA Disability Compensation for Veterans with Higher Income, End VAs Individual Unemployability Payments to Disabled Veterans at the Full Retirement Age for Social Security, Reduce VAs Disability Benefits for Veterans Who Are Older Than the Full Retirement Age for Social Security, Narrow Eligibility for VAs Disability Compensation by Excluding Veterans with Low Disability Ratings, Use an Alternative Measure of Inflation to Index Social Security and Other Mandatory Programs, Cap Increases in Basic Pay for Military Service Members, Replace Some Military Personnel with Civilian Employees, Reduce the Basic Allowance for Military Housing to 80 Percent of Average Housing Costs, Increase Prescription Drug Copayments for All Veterans, End Enrollment in VA Medical Care for Veterans in Priority Groups 7 and 8, Include VAs Disability Payments in Taxable Income, Multiple reports and legislation beyond the CBO have outlined plans that would, Congress already has lowered the Basic Housing Allowance from 100% of all housing costs to 95%, making the CBOs. Like the possibility of means-testing disability payments from the Department of Veterans Affairs based on income, which would mean that the more money one earns at work, the less one would receive based on a service-related disability. ), and six of their colleagues introduced the Social Security Expansion Act. Tightening restrictions on who can access these programs could reduce spending by $327 billion over the same 2023-2022 timeframe, according to the proposal. What is MOAA doing to oppose these CBO options? Yesterday, Speaker McCarthy and Congressional Republicans doubled down on threatening default in order to extract a wish list of extreme, unrelated policies that will hurt hard-working families. Veterans who are already collecting disability compensation as of January 2020 would see no reduction in their VA disability benefits when they reach age 67. Monday, Apr 24 (Spencer Platt/Getty Images) Thirty million fewer healthcare visits. But lawmakers and advocates had questions and mixed opinions about the proposal during a June 14 hearing before the House Committee on Veterans' Affairs economic opportunity subcommittee. Houston, TX: 2925 Richmond Ave, 12th Floor, Houston, TX 77098 Nobody has made even a notional suggestion that these changes are on the table. CBO estimates that the number of veterans age 67 and older who would no longer receive their full preretirement disability compensation from VA would increase from 60,000 in 2020 to about 470,000 in 2028. Budget Cut Proposals Would Hurt Veterans - VA News DAV Resolution Number 036approved by members during the 2017 National Convention in New Orleans . So, no need to be overly concerned about anything in this proposal actually being enacted. It would eliminate President Bidens student debt relief plan, taking away breathing room for 26 million Americans who have already applied or are automatically eligible. Under such a policy, people who would have become eligible for DI benefits at age 62 or later under current law would instead have to claim retirement benefits if they wanted to receive Social Security benefits based on their own earnings. Veterans who are already receiving IU payments and are age 67 or older after the effective date of this option, would continue to collect their IU supplement. The CBO options include potential cuts to military spending, veteran benefits, and TRICARE. This was outlined in a proposal from the Congressional Budget Office (CBO) published last December on possible ways to reduce government spending. Other materials may receive publicity online or within veteran networks, but MOAA stays focused on programs actually at risk or improvements on the cusp of becoming law. The second alternative would require a 30 percent or higher disability rating only for new disability compensation applicants. We appreciate your support. Republican efforts to hide their desire to cut benefits were on full display at last week's Senate Budget Committee hearing on Social Security. Asked about the risks posed by cluster munitions, Colin H. Kahl, under secretary of defense for policy, said that the "worst thing" for civillians would be "Russia winning the war". The VASRD's 15 body systems had seen periodic rating criteria updates, but this continuing effort reflects the first comprehensive review since 1945. Here's what House Republican's proposed cuts would mean for veterans reduced veterans' access to care, fewer staff to process claims, longer wait times for benefits, less support for. The first way would be to Means-Test VA Disability Compensation for Veterans With Higher Income. That restriction would apply to both current and perspective recipients. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. Q. How does MOAA choose CBO items to address? Deland, FL: 1607 South State Road 15A Suite 12 Deland, FL 32720, Satellite Offices Claim Republican debt ceiling bill cuts veterans' benefits needs context Now that Jim is making decent money, he will no longer qualify for his VA compensation payments. Cincinnati, OH: 300 E Business Way, Suite 200, Summit Woods Corporate Center, Cincinnati, OH, 45241 Learn more about us, Veterans Disability Claim Started. So I want to be very clear about exactly what this plan would mean for families and communities across the country. By the Congressional Budget Office's estimates, the savings from this option would be about $11 billion between 2020 and 2028. Ukraine war latest: Wagner boss Prigozhin 'returns to Russia' in On Thursday, Veteran Warriors Inc., an advocacy group that supports wounded and ill veterans and caregivers, thanked reporters for asking McDonough about the option. Proposals from the CBO can be found here: https://www.cbo.gov/budget-options/58631, This site is protected by reCAPTCHA and the Google. The Congressional Budget Office recently published a proposal to reduce veterans benefits for the purpose of lowering the deficit. There would be no adjustment for household size, according to the option. and U.S. FLOOR ACTION ON H. RES. There was also $124 billion for medical care and $21 billion for education and vocational programs, as well as housing and administrative costs. For more information regarding these proposed changes, you can view the Congressional Budget Office statement here. If approved, they then receive larger benefits for the rest of their life than they would if they had applied only for retirement benefits. Provides that the . The Department of Veterans Affairs (VA) provides disability compensation to veterans with medical conditions or injuries that were incurred or worsened during active-duty service. House Republicans are fuming over the Department of Veterans' Affairs claiming that the GOP's debt limit and spending cut bill would endanger . This option would expand the use of the chained CPI. yet assertive representation for our clients. Congressional Republicans' Legislation: 22% Cuts That Would Harm It has also been proposed that the VA stop payments to Veterans with a disability percentage of less than 30%. MOAA also encourages members to join our advocacy efforts and help us advocate for the best interests of our military community. LEGISLATIVE ACCOMPLISHMENTS: Learn how MOAA's advocacy work has made a difference. The amount of compensation depends on the severity of their disabilities (which are rated between zero and 100 percent) and . MOAA believes our servicemembers and veterans have earned these benefits through their service and sacrifice, and any changes to these programs must be made with the utmost care and consideration. Health insurance for America's older population would be expanded under a $3.5 trillion budget plan released Monday by Senate Democrats. There are many other proposed cuts to VA disability and compensation that are not listed here, but the message remains the same. The Congressional Budget Office (CBO) has introduced budget options that might drastically reduce your veteran's disability benefits. For every additional two dollars of gross household income, disability compensation would decrease by one dollar. CBO periodically issues a compendium of policy options (called Options for Reducing the Deficit) covering a broad range of issues, as well as separate reports that include options for changing federal tax and spending policies in particular areas. And it would increase energy bills for families, while also increasing pollution. Include Disability Payments From the Department of Veterans Affairs in Taxable Income. The Road to VA Compensation Benefitswill help break down the claims process from start to finish. Here are the CBO options of interest to the wider uniformed services community, divided by funding rules: MOAAs vigilance and dedication on these issues, and any others that may seek to decrease or eliminate service-earned entitlements, are codified in our motto, "Never Stop Serving." When added to that disability cuts, thats roughly $580 billion total. To Senate Veterans' Affairs Committee. MANAGERS: Cole/McGovern 1. 1600 Pennsylvania Ave NW The number of veterans age 67 and older who receive disability compensation has increased in the past decade as Vietnam veterans have aged. CBO analysts observed that Americans who work and also receive Social Security disability benefits see a decrease in their government compensation when they demonstrate that they are able to work for extended periods of time. While MOAA regularly engages on this larger set of topics and would oppose CBO options pertaining to our uniformed services and veterans, we focus on items being discussed by committee leadership, backed by the administration, or included in draft legislation. The CPI measures overall inflation and is calculated by the Bureau of Labor Statistics (BLS). However, if you are considering filing an initial claim, or even if you are interested in learning about the appeals process, we offer a free ebook to get you started on the right foot! Those Social Security disability benefits are based on previous earnings and usually replace wages and salaries on less than a one-to-one basis.). Together, we can make a difference and ensure that our servicemembers and veterans receive the care and benefits they were promised. Service-connected disabilities vary widely in severity and type: Some examples are the loss of a limb, migraines, and hypertension. Signatures. VAs disability payments are intended to compensate the average earnings that veterans would be expected to lose given the severity of their service-connected medical conditions or injuries, whether or not a particular veterans condition actually reduced his or her earnings. Max Hauptman has been covering breaking news at Task & Purpose since December 2021. This scale continues until the 10-year threshold and the maximum DIC amount is awarded. Make sure you are signed up as an advocate in our Legislative Action Center. Use an Alternative Measure of Inflation to Index Social Security and Other Mandatory Programs, 6. The new evaluations are due to be tested this year, though it's unclear which unit will try out the new approach. End VA's Individual Unemployability Payments to Disabled Veterans at Contact the author here. A 22 percent cut to the National Institutes of Health would delay cancer and Alzheimers research. Republicans Push Back on Democratic Claims of Veterans' Health Care Here's what's in the House GOP debt limit bill 203, San Jose, CA 95134 We cannot give exorbitant amounts of financial aid to foreign countries while simultaneously cutting aid to the Men and Women that protected and defended the United States. This year's list, first published Dec. 7, addressed VA disability compensation, which CBO analysts said has increased substantially faster than inflation, in total spending and per veteran. The nonpartisan CBO has no say in political objectives and is simply fulfilling its mandated mission via these reports. Second, veterans receiving IU after December 2021 would no longer receive those payments after they reach age 67 and no new applicants age 67 or older would be eligible for IU benefits after that date. GOALS FOR THE 118TH CONGRESS: Learn more about MOAA's top priorities on Capitol Hill. Titus separated from the Army in 2017 as a captain and is MOAA's Director of Veteran Benefits and Guard/Reserve Affairs. That approach stands in stark contrast to the Presidents Budget, which invests in the American people, grows the economy from the middle out and bottom up, and reduces the deficit by nearly $3 trillion by asking the wealthy and big corporations to pay their fair share. A proposal in a December 2022 Congressional Budget Office (CBO) report suggesting the reduction or elimination of VA disability payments for veterans with higher incomes received significant attention on social media in recent weeks - enough that it was raised, and rebuked, during VA Secretary Denis McDonough's press conference March 23. House Republicans advance bill increasing veteran spending but reducing You have my commitment that we won't do it," McDonough said during a press conference with reporters in Washington, D.C. VAs disability payments are intended to compensate for the average earnings that veterans would be expected to lose given the severity of their service-connected medical conditions or injuries, whether or not a particular veterans condition actually reduced his or her earnings. Under this option, workers would not be allowed to apply for DI benefits after their 62nd birthday, nor would they receive DI benefits for a qualifying disability that begins after that date. In 2017, 4.5 million veterans with medical conditions or injuries that occurred or worsened during active-duty service received disability compensation from the Department of Veterans Affairs (VA). Click here to join or upgrade now. Have Questions About Appealing Your Claim or Understanding How the Claims Process Works? Republicans pledged not to cut the VA and said reduced spending could be made at other agencies instead. MOAA sponsors a variety of insurance plans to help meet your needs. The "savings" from these proposed changes will come directly at the cost of veterans. To find your local representative to contact them, you can use the House of Representatives service will assist you by matching your ZIP code to your congressional district. White House cautiously opens the door to study blocking sun's rays to It would repeal tax credits from the Inflation Reduction Act that are leading to hundreds of billions of dollars in private sector investment in the United States and thousands of jobs. Breaking a promise to Veteransand lying to us on top of it.. And after a Republican wave swept Congress in 1994, Biden's support for cutting Social Security, and his . While MOAA regularly engages on this larger set of topics and would oppose CBO options pertaining to our uniformed services and veterans, we focus on items being discussed by committee leadership, backed by the administration, or included in draft legislation. You can learn how to make a difference on all of MOAAs advocacy issues by visiting our Legislative Action Center. STATE REPORT CARD: An updated guide to taxes and more, exclusive to MOAA members. As MOAA outlined shortly after the report was released, the CBO options include potential cuts to military spending, veterans benefits, and TRICARE. This would include disqualifying veterans disability and compensation payments based off of their income bracket. Under current law, people who qualify for Social Security Disability Insurance (DI) are eligible until they reach their full retirement age (FRA). Max Hauptman (Tony Dejak/AP) A new House proposal . Each year, the CBO publishes proposals for reducing the federal deficit, which has reached nearly $723 billion since the beginning of fiscal 2023. Your paid membership has a direct impact on our ability to lobby on behalf of those who served, are serving now, and those who will serve in the future. Its important to note, though, that this is just a proposal. Rep. Debbie Wasserman Schultz (D-Fla.), the ranking member of the subcommittee, said the message Republicans are sending to the American people is they are not interested in protecting veterans.. When veterans reach age 67, all VA disability payments would revert to the amount associated with the rated disability level, veterans who were 67 years of age or older, who were already receiving would no longer receive them at all after the effective date of the option. Our website uses cookies to deliver safer, faster, and more customized site experiences. The threshold below which veterans would receive full benefits would be set at $125,000, and according to the CBO, roughly 1.5 million out of 5 million total veterans receiving disability benefits exceeded that threshold in 2019. How is the VA trying to take IU away from full-retirement aged veterans? Lump sum payments can provide veterans with the resources needed to buy a house, start a business, or make other decisions that. Make sure you are signed up as an advocate in our. Waives all points of order against consideration of the bill. Portland, OR: 650 N. E. Holladay Street, Suite 1600, Portland, OR, 97232 However, the health of the veteran population also affects the number of older veterans on the rolls, as do outreach efforts by VA and others to inform veterans about the benefit and other factors. In late 2017, VA began a multi-year effort to revise and update the VASRD, or VA Schedule for Rating Disabilities. The time for action from MOAA on these proposals is when these items reach even the earliest stage of meaningful debate in the halls of Congress," said MOAA President and CEO Lt. Gen. Brian T. Kelly, USAF (Ret). House Speaker Kevin McCarthy has unveiled his plan to address the nation's looming debt ceiling drama, offering to raise the borrowing cap by $1.5 trillion to prevent a default. Veterans who are already collecting disability compensation would see no reduction in their VA disability benefits when they reach age 67. The CBO are some cold-hearted bean counters. by Emily Brooks - 04/30/23 6:38 PM ET. The Congressional Budget Office recently published a proposal to reduce veterans benefits for the purpose of lowering the deficit. Today marks the 500th day of war in Ukraine and fierce fighting is continuing. For instance, the ratio of benefits from Social Security to average lifetime earnings is usually much less than 1 to 1. Senator Lisa Murkowski (R-Alaska) are introducing bipartisan legislation to end the unfair offset of retirement pay and disability benefits for nearly 400,000 military retirees.. What is the CBO, and why did it propose cutting veterans benefits? Patricia Kime can be reached at Patricia.Kime@Military.com. The report, filed at the start of each new Congress for the past 12 years, provides lawmakers with options to reduce the deficit through spending cuts and ways to increase revenue. Social Security and pension benefits would be unaffected by this option. To learn in more detail about all of the changes congress is considering, continue reading on. We dont think this is a good idea, said VA Secretary Denis McDounough when asked about the CBO proposal on Thursday by Military Times reporter Leo Shane III, adding that no one within the VA or in Congress was giving any serious consideration to the spending cuts. For each option, CBO presents an estimate of its effects on the budget but makes no recommendations. We guide our clients through the most difficult times in their lives with courtesy, respect, and professionalism. The options are derived from many sources and reflect a range of possibilities. In a time of excessive government spending including foreign aid, why should Veterans be the ones to lose funding? . CBO Proposal 1 would begin in January 2024 and reduce your disability benefits if your gross household income is over $125,000. Democrats' $3.5 trillion budget plan calls for Medicare expansion If you are intending toappeal a denied claim, you can contact us for an evaluation and we can help you with this process.