S. 5367 explained  ·  119th Congress  ·  Pending in Congress

Restore Veterans’ Compensation Act of 2026

Create a free account or sign in to follow S. 5367 and get alerts. Policy area: Armed Forces and National Security Create a free account or sign in to follow the Armed Forces and National Security policy area and get alerts. ▲ 73 days since action Sponsor: Ruben Gallego, AZ-Senate, D → Congress.gov

Cosponsors: none · per Congress.gov, 2026-10-14

Introduced: 2026-08-07

Latest action (2026-08-07): Read twice and referred to the Committee on Veterans' Affairs.

What S. 5367 does, in plain terms

The Congressional Research Service has not published a summary of S. 5367 yet. Its official title: “Restore Veterans’ Compensation Act of 2026”.

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Veterans Financial Security and Recoupment Reform Act of 2025

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To stop the Department of Defense from clawing back separation pay, special separation benefits, or voluntary separation incentive payments from veterans who later receive VA disability compensation, and to limit such claw-backs when veterans later receive military retirement pay, so that service members are not financially penalized for service-connected disabilities.

Bipartisan rationale: For Democrats: Protects veterans from financial hardship caused by recoupment of separation pay when they later receive VA disability compensation, and restores funds to veterans harmed in the past. For Republicans: Provides a hard budget cap, requires a sunset review, and retains recoupment for non-severe disability cases to prevent double-dipping, ensuring fiscal responsibility and accountability.

Funding: Transfer of funds from the Department of D $600 million per fiscal year, Sunset 5y Oversight: Comptroller General of the Uni Enforcement: Joint regulations by the Secretaries
→ Article I, Section 8, Clause 11 (power to declare war and raise armies) → Article I, Section 8, Clause 12 (power to raise and support armies, with two-year appropriation limit) → Article I, Section 8, Clause 13 (power to provide and maintain a Navy) → Article I, Section 8, Clause 14 (power to make rules for the government and regulation of land and naval forces) → Article I, Section 8, Clause 18 (necessary and proper clause)

Article I, Section 8, Clause 11 Article I, Section 8, Clause 12 Article I, Section 8, Clause 13 Article I, Section 8, Clause 14 Article I, Section 8, Clause 18

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