Published July 8, 2026. The benefits-news items below were current as of that date; pending bills were pending when written. This is an archived issue of our weekly email — subscribe here to get new issues first.
Concurrent receipt stalled again
The Major Richard Star Act — which would let combat-injured retirees draw full VA compensation and their retired pay with no offset — was blocked in the Senate again on June 17, the latest of several attempts stopped by a single objection. It now carries 79 Senate and 334 House cosponsors and the Defense Secretary's backing, but it is still pending — not law. Supporters have asked that the bill be discharged for a floor vote no later than August 7. Until something passes, the "wounded veteran tax" stands, and for combat-injured retirees CRSC remains the one tool that exists today to recover retired pay lost to the VA waiver. (Source: MOAA / Senate Veterans' Affairs Committee / Congress.gov. Pending.)
Separately, the 2027 COLA — which raises retired pay, VA disability, and CRSC by the same percentage — won't be set until October, based on this summer's inflation figures. Early-2026 projections have run in the high-2% to high-3% range. Nothing is official yet, so ignore any "confirmed rate" you see floating around. (Source: MOAA COLA Watch. Projection.)
A new SMC bill moved to the Senate
The Sharri Briley and Eric Edmundson Veterans Benefits Expansion Act cleared the House and was referred to the Senate Veterans' Affairs Committee on June 2. It would create a new Special Monthly Compensation allowance — about $833 a month, roughly $10,000 a year — for certain catastrophically injured veterans who need regular aid and attendance, with payments proposed to begin December 2026, plus a small increase to survivor DIC. Still pending in the Senate — not law. Why it matters for a CRSC packet: SMC and aid-and-attendance decisions ride on the same medical evidence your CRSC claim is built on. Also on the calendar — August 2026 marks the PACT Act's next mandatory two-year review of presumptive conditions, so more may be added. (Source: Congress.gov H.R. 6047 / CBO / VA.gov. Pending.)
Assuming CRSC is automatic
CRDP is automatic. CRSC is not. This one quietly costs eligible retirees the most. CRSC is tax-free, and you have to apply for it with your service branch — the VA and DFAS will not open it for you. It's also why the current Soto back-pay re-reviews (the Army is re-reviewing thousands of CRSC files after the Supreme Court struck down the six-year cap) only help people who already have CRSC on record. If you have combat-related conditions and never filed, there's no claim to re-review — and every month that passes is potential tax-free money left on the table. (Source: DFAS / Army HRC — Soto v. United States implementation.)
Pull your latest Retiree Account Statement (RAS) on myPay and find the CRSC line. If it shows a dollar figure, make sure the correct — usually higher, tax-free — benefit is being paid. If it's blank and you have conditions tied to combat, training, or an instrumentality of war, you likely never applied — and that's fixable. Run your numbers on our free CRSC calculator, then book a free 15-minute review below.
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