Published June 10, 2026. Retroactivity rules described reflect DoD guidance current as of that date and have continued to develop since — for the latest, see our CRSC back pay 2026 update. This is an archived issue of our weekly email — subscribe here to get new issues first.
Soto, in plain English (the updated version)
The short history, stated carefully:
- June 12, 2025 — the Supreme Court ruled unanimously in Soto v. United States that the old six-year cap on retroactive CRSC was improperly applied. Over 9,000 veterans had been shorted by it.
- August 20, 2025 / January 30, 2026 — DoD's implementing guidance honored the ruling for older claims but limited retroactive pay for applications filed on or after August 20, 2025 — generally to the month after application. Two tiers, keyed to a filing date.
- May 14, 2026 — DoD issued new guidance retracting those limitations. Per the guidance (surfaced in NVLSP's Ploe class action), the branches must now follow the effective date in the CRSC statute itself, and DoD says it will review the records of veterans impacted by the earlier guidance and issue revised, corrected decisions.
What that means in practice — carefully: if you applied after August 20, 2025 and your award's effective date was limited to the month after you applied, your case falls in the group DoD says it will review and correct. If you never applied because you heard the retroactive window had closed for new filers — that reason no longer holds under current guidance. Retroactive pay still isn't unlimited free money: the statutory effective date generally tracks when you were actually eligible, and your branch board still decides every case on the evidence.
What's still uncertain — and we label it that way: how fast the reviews will move, and whether the rules shift again. The guidance has changed three times in ten months. This is why every packet we prepare includes preservation language — wording that puts the retroactivity question on the record no matter where the guidance stands the day you file.
What moved this week
Burn pits are now "instrumentalities of war" — Army settlement.
In Smoke v. Driscoll (settled March 6, 2026, brought by NVLSP), the Army agreed to a policy defining open-air burn pits in combat zones as instrumentalities of war for disability determinations — and to review prior cases of veterans medically retired for PACT Act burn-pit-presumed conditions, targeting completion within about six months. If that's you, this materially strengthens the combat-related question. (Source: NVLSP.)
Major Richard Star Act — pending, not law.
The bill would let combat-injured Chapter 61 retirees receive retired pay and VA compensation concurrently. As of this issue it had strong bipartisan support but had been blocked in the Senate and had not come to a floor vote. We'll report if that changes — until then, nothing to act on. (Source: Congress.gov / MOAA. Pending.)
VA's medication-based rating rule is in court.
A rule effective February 17, 2026 directs raters to consider how veterans function on medication; a federal lawsuit challenging it is pending. If you're rated for a condition you manage with medication, watch this one. Lawsuit pending — outcome unknown. (Source: Military.com / Stars and Stripes.)
Texas property taxes
If you're a Texas veteran rated 100% (or paid at 100% for unemployability), you may qualify for a total residence homestead exemption — no cap, no income test. Partial exemptions run $5,000–$12,000 of assessed value for ratings of 10%–90%. And Proposition 13 (approved November 2025) raised the school-district homestead exemption to $140,000 for all homeowners. None of it is automatic — file with your county appraisal district. Out-of-state readers: nearly every state has a version; search "[your state] veteran property tax exemption." (Source: Texas Comptroller / county appraisal districts.)
Dig out two pieces of paper: your CRSC application date and your decision letter (if you have one). If you applied on or after August 20, 2025 — or your award's effective date was capped at the month after you applied — write that effective date down. That's the line that should change if DoD's review reaches your case. Never applied? The math on whether to start just changed — run it.
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