The VFW is calling on lawmakers to amend the Take Care of America's Veterans Act.. The group warns that the proposed funding for the Major Richard Star Act would strip disability pay from 1.5 million veterans with sleep apnea and tinnitus.

The $57 billion trade-off for 54,000 combat veterans

The Major Richard Star Act aims to eliminate the "offset" that currently forces combat-injured veterans, who retired before 20 years of service,to forfeit part of their retirement pay to receive disability benefits. According to the report, the Star Act Alliance estimates this change would provide roughly 54,000 veterans with an average monthly increase of $1,200 .

However, the Congressional Budget Office estimates that the cost of this expansion would be offset by $57 billion in savings over a decade. These savings would be achieved by reducing payments to a much larger group of service members,creating a stark disparity in who wins and who loses under the current proposal.

How CPAP and tinnitus ratings would be downgraded

The proposed funding mechanism targets two common service-connected conditions: tinnitus and sleep apnea. As the report says, the bill would fold tinnitus ratings into general hearing evaluations rather than treating them as separate issues.

For those with sleep apnea,the current automatic 50 percent rating for veterans using a CPAP machine would be scrapped. Instead, the Department of Veterans Affairs would issue ratings based on how effectively the device controls the condition.. The Veterans of Foreign Wars warns that these changes could destabilize the primary income source for 1.5 million veterans.

The PAYGO rule pitting veteran against veteran

The controversy stems from the "PAYGO" (pay-as-you-go) rule, which mandates that any new government spending must be offset by equivalent cuts elsewhere. While the Take Care of America's Veterans Act includes popular measures—such as improved prosthetic equipment, higher survivor benefits, and expanded caregiver support—the requirement for budget neutrality has led lawmakers to target common disability ratings.

The Veterans of Foreign Wars and the Disabled American Veterans have both condemned this approach. National commander Coleman Nee of the Disabled American Veterans described the benefit cuts as a "poison pill," arguing that the legislative package should not force one group of veterans to lose benefits so another can gain them.

Michael Ryan's warning on retirement purchasing power

Financial experts warn that the impact of these cuts extends beyond the immediate monthly check.. Michael Ryan, a finance expert, noted that veterans often manage their household budgets around specific disability ratings; a sudden drop in that rating reduces long-term purchasing power during retirement when returning to the workforce is often impossible.

Kevin Thompson, CEO of 9i Capital Group, added that scaling back compensation for sleep apnea and tinnitus essentially generates government savings at the direct expense of the veterans suffering from those conditions.. This financial volatility could push many families toward instability.

Which alternative funding sources could replace the benefit cuts?

While the Veterans of Foreign Wars insists that Congress find alternative funding, the source does not specify which budget lines should be tapped instead. It remains unclear if there is a bipartisan appetite to waive the PAYGO rule for this specific package or if other offsets are being considered.

Furthermore, the report focuses heavily on the opposition from the VFW and Disabled American Veterans, but it does not provide a detailed rebuttal from the lawmakers who authored the funding mechanism. It is unknown whether these legislators believe the new rating criteria are more "accurate" or if the move is purely a fiscal necessity.