Leading Military and Veterans Groups to Congress: End the Wounded Veteran Tax

WASHINGTON, DC, April 14, 2025 – Wounded Warrior Project® (WWP), joined by a coalition of top military and veterans service organizations, is leading the charge to help more than 50,000 wounded veterans who are unjustly being denied their full retirement benefits.
In a letter sent by 53 organizations representing millions of veterans across the country, the coalition called on members of Congress to co-sponsor The Major Richard Star Act (H.R. 2102, S. 1032), which was introduced by Sens. Richard Blumenthal (D-CT), Mike Crapo (R-ID), Rick Scott (R-FL), and Elizabeth Warren (D-MA), along with Reps. Gus Bilirakis (R-FL-12) and Raul Ruiz (D-CA-25).
Currently, veterans forced to medically retire due to combat or combat-related injuries (and are often severely disabled) see their Department of Defense (DoD) retirement benefits reduced for every dollar of their Department of Veterans Affairs (VA) disability compensation. However, Congress established these two benefits for entirely different reasons. DoD retirement pay recognizes years of service while VA disability compensation reflects the impact of injuries suffered.
“These veterans are effectively getting taxed because they were injured while serving their country,” said Jose Ramos, vice president of Government and Community Relations for WWP. “They may have significant combat injuries, lost limbs, or suffer from post-traumatic stress disorder (PTSD) or brain injuries, and they need the benefits they earned as they abruptly transition out of the military and try to restart their career. Yet, at the time when they need their country’s support the most, we tell them that they must suffer again – this time financially as the government taxes them for being injured. Congress must end this injustice and pass the Major Richard Star Act now!”
In the previous Congress, the Major Richard Star Act received immense bipartisan and bicameral support, with 327 co-sponsors in the House and 75 sponsors in the Senate. Although it was just introduced on March 14, the bill already has 222 co-sponsors in the House and 50 co-sponsors in the Senate.
“There is no good reason the Major Richard Star Act should not pass Congress this year,” continued Ramos. “We have an obligation to keep our promise to those who served and sacrificed for us.”
In the letter, the coalition calls on Congress to pass the bill as stand-alone legislation or ensure it is included in the Fiscal Year 2026 National Defense Authorization Act.
For a copy of the letter, or to talk with policy experts and/or veterans affected by the Major Richard Star Act, please contact Michael Nilsen at mnilsen@woundedwarriorproject.org.
Coalition Organizations
- Air Force Sergeants Association
- American GI Forum
- American Legion
- American Logistics Association
- American WWII Orphans Network
- America’s Warrior Partnership
- AMVETS
- Armed Forces Retirees Association
- Blinded Veterans Association
- Blue Star Families
- Burn Pits 360
- Catholic War Veterans of the USA & Auxiliary
- Chief Warrant Officers Association of the U.S. Coast Guard
- Code of Support Foundation
- Commissioned Officers Association of the U.S. Public Health Service
- Dixon Center for Military and Veterans Services
- Enlisted Association of the National Guard of the US
- Gold Star Spouses of America
- Grunt Style Foundation
- Healing Household 6
- Heroes Athletic Association
- Hire Heroes USA
- HunterSeven Foundation
- Japanese American Veterans Association
- Jewish War Veterans of the USA
- K9s for Warriors
- Marine Corps League
- Military Chaplains Association
- Military Family Advisory Network
- Military Officers Association of America
- Military Order of the World Wars
- Mission Roll Call
- National Defense Committee
- National Guard Association of the United States
- National Military Family Association
- Non Commissioned Officers Association
- Operation First Response, Inc.
- Paralyzed Veterans of America
- Project Sanctuary
- The Ranger Leadership and Policy Center
- Reserve Organization of America
- Sea Service Family Foundation
- Stronghold Freedom Foundation
- Student Veterans of America
- TBI Warrior Foundation
- Tragedy Assistance Program for Survivors
- TREA: The Enlisted Association
- United Through Reading
- U.S. Army Warrant Officers Association
- U.S. Coast Guard Chief Petty Officers Association
- Veterans of Foreign Wars
- Wounded Paw Project
- Wounded Warrior Project
About Wounded Warrior Project
Since 2003, Wounded Warrior Project® (WWP) has been meeting the growing needs of warriors, their families, and caregivers — helping them achieve their highest ambition. Learn more about Wounded Warrior Project.
For further information: -- Michael Nilsen, Communications Director, Government & Community Relations, mnilsen@woundedwarriorproject.org, 904.578.3437