Purple Heart Freedom to Work Act

Bill Number

H.R. 7120

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Social Welfare

Status

Introduced

Latest Action

2026-01-15: Referred to the House Committee on Ways and Means.

Last Updated

2026-07-06T22:06:15Z

AI-Generated Summary

Purpose

The "Purple Heart Freedom to Work Act" (H.R. 7120) aims to support veterans who received the Purple Heart—a U.S. military award for injuries sustained in combat—by modifying Social Security Disability Insurance (SSDI) rules. It allows these recipients to continue receiving disability benefits while working, with benefits reduced based on earnings rather than fully terminated, encouraging employment without financial penalty.

Key Provisions

• Disability Benefit Offset: For Purple Heart recipients whose disability stems from a combat injury, SSDI benefits continue indefinitely, even after the typical "termination month" (when benefits would normally end due to work). However, monthly payments are reduced by $1 for every $4 of earnings exceeding the substantial gainful activity (SGA) threshold—a benchmark amount of monthly earnings that indicates someone can work substantially (e.g., around $1,550 for non-blind individuals in 2024, adjusted annually).
• Minimum Benefit Floor: Benefits cannot be reduced below $0, meaning recipients retain some payment unless earnings fully offset it.
• Impact on Family Benefits: Auxiliary benefits (e.g., for spouses or children) based on the recipient's record are reduced proportionally if the primary benefit is offset.
• Higher SGA Threshold: Purple Heart recipients qualify for the higher SGA limit applied to blind individuals, allowing more earnings before the offset begins.
• Effective Date: Changes apply to benefits for months starting 6 months after the bill's enactment.

Significant Changes to Existing Law

• Amends Section 223(e) of the Social Security Act to create an exception for Purple Heart recipients, overriding the standard rule that SSDI ends after a trial work period and extended eligibility if work demonstrates recovery.
• Updates Section 223(a)(2) to include this offset in entitlement rules.
• Modifies Section 223(d)(4)(A) to extend the blind person's higher SGA threshold to Purple Heart cases, previously limited to blindness.

These changes shift from a "cliff" approach (full benefit loss upon substantial work) to a gradual offset, specifically for this veteran group.

Potential Impacts

• On Citizens: Enables Purple Heart recipients (primarily combat-wounded veterans) to work and earn more without abruptly losing SSDI, potentially improving financial stability, reducing poverty, and promoting workforce participation. Families may see proportional benefit adjustments.
• On Government Agencies: The Social Security Administration (SSA) must update systems to verify Purple Heart status, calculate offsets, and process claims, increasing administrative workload and costs (e.g., ongoing payments instead of terminations).
• On International Relations: No direct impact, as this is a domestic veterans' benefits measure.

Overall, it could raise federal spending on SSDI by sustaining benefits longer for eligible recipients.

Main Stakeholders Affected

• Purple Heart Recipients: Combat-injured veterans eligible for SSDI, who gain flexibility to work while retaining partial benefits.
• Families of Recipients: Spouses, children, or dependents receiving auxiliary SSDI benefits, whose payments may decrease based on the primary offset.
• Social Security Administration: Responsible for implementation, verification of Purple Heart awards, and benefit adjustments.
• Veterans' Organizations: Groups like the Veterans of Foreign Wars or American Legion may advocate for or assist with this policy.
• Taxpayers: Indirectly affected through potential increases in SSDI program costs.

Notable Legal, Constitutional, or Political Implications

• Legal: Requires SSA to cross-reference military records for Purple Heart verification, potentially raising administrative challenges but no major legal hurdles. Ensures compliance with existing SSDI frameworks by building on established offset mechanisms (e.g., for the elderly).
• Constitutional: Aligns with equal protection principles by targeting a specific, meritorious group (combat veterans) without broadly discriminating; no apparent free speech or due process issues.
• Political: Highlights bipartisan support for veterans' issues, as it rewards military service. Could set precedent for work-incentive reforms in disability programs, influencing future debates on welfare cliffs and fiscal responsibility. May face scrutiny over costs in budget-constrained environments.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Scott, Austin [R-GA-8]

Cosponsors (19)

Rep. Panetta, Jimmy [D-CA-19], Rep. Turner, Michael R. [R-OH-10], Rep. Mast, Brian J. [R-FL-21], Rep. Guest, Michael [R-MS-3], Rep. Bacon, Don [R-NE-2], Rep. Steube, W. Gregory [R-FL-17], Rep. Mills, Cory [R-FL-7], Rep. Hudson, Richard [R-NC-9], Rep. Lee, Susie [D-NV-3], Rep. Norcross, Donald [D-NJ-1], Rep. Wilson, Joe [R-SC-2], Rep. Davis, Donald G. [D-NC-1], Rep. McGuire, John J. [R-VA-5], Rep. Fleischmann, Charles J. "Chuck" [R-TN-3], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Bishop, Sanford D. [D-GA-2], Rep. Gimenez, Carlos A. [R-FL-28], Rep. Johnson, Julie [D-TX-32], Rep. Patronis, Jimmy [R-FL-1]

Recent Actions

• 2026-01-15: Referred to the House Committee on Ways and Means.
• 2026-01-15: Introduced in House
• 2026-01-15: Introduced in House

Bill Versions

• Purple Heart Freedom to Work Act — issued 2026-01-15 — PDF (4 pages)