Analyses / Impact Analysis / 119 · HRES 1247 Impact Analysis

119-HRES-1247 Investigative Journalist Impact Analysis

119 · HRES 1247 Providing for consideration of the bill (H.R. 2102) to amend title 10, United States Code, to provide for concurrent receipt of veterans' disability compensation and retired pay for disability retirees with combat-related disabilities, and for other purposes.

account_balance Congress
This resolution provides for the consideration of the bill (H.R. 2102) to amend title 10, United States Code, to provide for concurrent receipt of veterans' disability compensation and retired pay...
Bottom-line assessment
Analytical stance (not advocacy).
Affected retirees (current)
50k
Avg. monthly gain
1200$/mo
10‑yr direct outlays
9.75B
DoD accrual (appropriated)
7.15B
Published
23 May 2026
Updated
23 May 2026
Tags
Impact analysis · Veterans policy · Defense retirement
Unvetted
01 · Section

What this measure does (and who it reaches)

Procedurally, H.Res. 1247 is a rule to consider H.R. 2102. Substantively, H.R. 2102 (Major Richard Star Act) ends the statutory dollar‑for‑dollar offset that currently reduces DoD retired pay by the amount of VA disability compensation for medically retired veterans (<20 YOS) whose disabilities are combat‑related—thereby enabling concurrent receipt for this cohort effective the first day of the first month after enactment. [2]GovInfo — H.Res. 1247 (IH) – GovInfo bill detail

  • H.Res. 1247: House rule providing floor consideration for H.R. 2102; a discharge petition to bring the rule forward was filed May 21, 2026. [2]GovInfo — H.Res. 1247 (IH) – GovInfo bill detail
  • H.R. 2102 core change: permits Chapter 61 retirees with <20 years and combat‑related disabilities to receive full retired pay and VA compensation without the 38 U.S.C. §§5304–5305 offset. [3]Congress.gov — H.R. 2102 (IH), 119th Congress – bill text (PDF)
  • Effective date: benefits start the first day of the first month after enactment. [3]Congress.gov — H.R. 2102 (IH), 119th Congress – bill text (PDF)
  • Population reached: “slightly more than 50,000” current CRSC recipients with <20 YOS (projected +~7,000 by 2033). [1]congress.gov
  • Background: CRDP/CRSC are the two existing concurrent‑receipt pathways; Chapter 61 with <20 YOS are generally excluded today—this bill closes that gap for combat‑related disabilities. [4]Congressional Research Service via Congress.gov — CRS: Concurrent Receipt of Mi…
Affected retirees (current)
50k
Avg. monthly gain
1200$/mo
10‑yr direct outlays
9.75B
DoD accrual (appropriated)
7.15B
House cosponsors (as of May 11, 2026)
326members
02 · Section

Summary

Bottom line: the measure primarily redistributes income within federal accounts toward a defined, medically retired cohort with combat‑related disabilities. Household‑level gains are substantial; macro‑level budget effects are modest in scale but persistent. Administrative and tax/benefit interactions warrant attention; environmental externalities are de minimis. [1]congress.gov

  • Economic: raises disposable income for affected households; federal direct spending rises (~$9.75B/10 yrs) and DoD accruals increase (~$7.15B/9 yrs) with no net outlay effect from accruals. [1]congress.gov
  • Social: benefits flow mainly to Chapter 61, often mid‑career enlisted, with potential poverty/financial‑stress reduction in this group. [5]pmc.ncbi.nlm.nih.gov
  • Environmental: neutral; no material resource or emissions implications identified.
  • Temporal: immediate household gains upon enactment; long‑run federal deficits increase by >$2.5B each decade post‑2034 per CBO. [1]congress.gov
03 · Section

Economic effects

Impacts span federal budget flows and household income; market‑wide effects are limited in magnitude.

  • Federal outlays: CBO projects $9.75B in additional direct outlays over 2024–2033, plus ~$7.15B in DoD accruals (appropriated) over 2025–2033 that are intragovernmental and do not increase net outlays. [1]congress.gov
  • Household income: average gain about $1,200/month for covered retirees, reflecting removal of the VA offset; inflation indexing implies rising dollar amounts over time. [1]congress.gov
  • Tax treatment: VA disability compensation is non‑taxable; restored retired pay (CRDP‑like) is taxable. Net take‑home changes will vary by election (CRSC vs. CRDP), filing status, and state tax rules. [6]U.S. Department of Veterans Affairs — VA – Combat-Related Special Compensation…
  • Distribution: recipients are disproportionately disability retirees and largely enlisted ranks; program participation (CRDP/CRSC) already covers ~45% of all retirees for other cohorts. [5]pmc.ncbi.nlm.nih.gov
  • Macroeconomy: given scale (<$1B/yr on average initially), negligible effects on aggregate employment, prices, or capital markets are expected; impacts are concentrated among affected households and localities with higher retiree density (per DoD OAct geographic distributions). [7]U.S. DoD Office of the Actuary — DoD Office of the Actuary – Statistical Report…
04 · Section

Social effects

Who benefits, and how the gains may change behavior or wellbeing.

  • Primary beneficiaries: medically retired (Chapter 61) veterans with combat‑related disabilities and fewer than 20 years of service; many are mid‑career enlisted (E‑4–E‑6), a group with relatively lower lifetime earnings. [3]Congress.gov — H.R. 2102 (IH), 119th Congress – bill text (PDF)
  • Income security: eliminating the offset increases predictable monthly cash flow, which research links to reduced financial stress; here the projected increase is material (~$1,200/month average). [1]congress.gov
  • Geographic concentration: CRDP/CRSC recipients are widely distributed, with notable clusters in states with large retiree populations; expanded eligibility will mirror these patterns. [7]U.S. DoD Office of the Actuary — DoD Office of the Actuary – Statistical Report…
  • Equity/consistency: narrows differential treatment between 20+ year retirees (already eligible for CRDP if ≥50% VA rating) and those medically retired early due to combat‑related conditions. [4]Congressional Research Service via Congress.gov — CRS: Concurrent Receipt of Mi…
05 · Section

Environmental effects

No direct environmental provisions or operational changes are implicated.

  • Emissions/resource use: none identified; policy changes cash flows only.
  • Federal facilities/operations: no material changes to DoD basing, procurement, or VA infrastructure attributable to this bill.
06 · Section

Temporal analysis

Short‑term implementation vs. long‑run fiscal trajectory.

  1. Immediate (post‑enactment month): retirees see offset removed and income rise; DFAS/VA coordination is required to implement elections and payments. [3]Congress.gov — H.R. 2102 (IH), 119th Congress – bill text (PDF)
  2. Near term (1–3 years): administrative adjustments and beneficiary communications (e.g., CRSC/CRDP open‑season elections) may shape after‑tax outcomes for households. [8]Defense Finance and Accounting Service — DFAS – CRDP/CRSC Frequently Asked Ques…
  3. Long term (10+ years): CBO projects persistent increases in direct spending, plus continued accrual effects; deficits rise by >$2.5B in each decade beginning 2034 absent offsets. [1]congress.gov
07 · Section

Unintended consequences and risks

Secondary effects to monitor based on prior program rules, tax law, and DFAS/VA administration.

  • Family‑law exposure: In contrast to CRSC (not divisible as property), restored retired pay can be divisible under the USFSPA; shifting composition of payments may alter obligations in divorce or garnishment contexts. [9]moaa.org
  • Program complexity: DFAS/VA coordination and annual open‑season elections can produce delays or confusion; clear implementation timelines and communications mitigate risk. [10]dfas.mil
  • Budget trade‑offs: Absent offsets, the measure contributes to higher long‑run federal deficits; opportunity costs depend on future appropriations and PAYGO enforcement. [1]congress.gov
08 · Section

Assessment

Analytical stance (not advocacy).

Neutral. The proposal is tightly targeted and corrects an acknowledged gap in concurrent‑receipt coverage for combat‑related disability retirees, delivering sizable household‑level gains at modest macro‑scale cost. The principal policy risks are fiscal (persistent but manageable increases in direct spending), election‑driven tax outcomes, and administrative complexity; environmental concerns are immaterial. [1]congress.gov

09 · Section

Key sources

Authoritative references used in this impact analysis.

  • House rule and floor vehicle: H.Res. 1247 (text/status) and discharge petition record. [2]GovInfo — H.Res. 1247 (IH) – GovInfo bill detail
  • Underlying bill text: H.R. 2102 (Major Richard Star Act), 119th Congress (effective‑date and statutory changes). [3]Congress.gov — H.R. 2102 (IH), 119th Congress – bill text (PDF)
  • Budget impacts and beneficiary counts: House Report 118‑149 (CBO estimate, methods, and uncertainties). [1]congress.gov
  • Program background and participation: CRS R40589 (CRDP/CRSC authorities, participation history). [4]Congressional Research Service via Congress.gov — CRS: Concurrent Receipt of Mi…
  • Administrative/tax rules: DFAS CRDP/CRSC FAQs and VA CRSC overview (tax‑free status). [8]Defense Finance and Accounting Service — DFAS – CRDP/CRSC Frequently Asked Ques…
  • Program scale/context: DoD Office of the Actuary, Statistical Report on the Military Retirement System (FY2022). [7]U.S. DoD Office of the Actuary — DoD Office of the Actuary – Statistical Report…
  • Sponsorship context: MOAA SITREP (cosponsor counts as of May 11, 2026). [11]Military Officers Association of America — MOAA SITREP – The Major Richard Star…
Sources cited
  1. [1] congress.gov
  2. [2] H.Res. 1247 (IH) – GovInfo bill detail GovInfo
  3. [3] H.R. 2102 (IH), 119th Congress – bill text (PDF) Congress.gov
  4. [4] CRS: Concurrent Receipt of Military Retired Pay and Veteran Disability (R40589) – Congress.gov (PDF) Congressional Research Service via Congress.gov
  5. [5] pmc.ncbi.nlm.nih.gov
  6. [6] VA – Combat-Related Special Compensation (CRSC) resource page U.S. Department of Veterans Affairs
  7. [7] DoD Office of the Actuary – Statistical Report on the Military Retirement System, FY2022 (PDF) U.S. DoD Office of the Actuary
  8. [8] DFAS – CRDP/CRSC Frequently Asked Questions Defense Finance and Accounting Service
  9. [9] moaa.org
  10. [10] dfas.mil
  11. [11] MOAA SITREP – The Major Richard Star Act (cosponsor counts, May 2026) Military Officers Association of America

Discussion