TDIU Reform Act of 2026
- Bill Number
- H.R. 9135
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2026-06-03: Referred to the House Committee on Veterans' Affairs.
- Last Updated
- 2026-06-15T17:50:03Z
AI-Generated Summary
Purpose
This legislation aims to codify into federal law the Department of Veterans Affairs' existing practice of providing total disability compensation to veterans who cannot work due to service-connected conditions, even if their combined disability ratings do not reach 100 percent. It also introduces reforms and limitations to this benefit.
Key Provisions
- Codification of Authority: Adds a new section (1170) to title 38 of the U.S. Code, allowing the Secretary of Veterans Affairs to grant a total disability rating if a veteran cannot secure or maintain substantially gainful employment because of service-connected disabilities.
- Eligibility Criteria: Veterans qualify if they have one service-connected disability rated at 60 percent or higher, or multiple disabilities where one is rated at 40 percent or higher and the combined rating reaches 70 percent or more. Certain related disabilities (such as those from the same cause or affecting one body system) count as a single disability for eligibility.
- Special Cases: For veterans who do not meet the percentage thresholds but are still found unemployable, a rating board must submit details to the Director of Compensation Service for a final decision.
- Age Limitation: Veterans aged 67 or older cannot receive this compensation. This restriction applies only to those who first receive the benefit on or after December 31, 2026.
- Marginal Employment Definition: Employment is not considered "substantially gainful" if annual earnings fall below the federal poverty threshold for one person or if it occurs in a protected setting (such as a family business or sheltered workshop), based on the Secretary's determination.
- Other Rules: Non-service-connected disabilities and prior unemployability status are ignored when assessing eligibility.
Significant Changes to Existing Law
- This bill places the VA's current regulatory authority for individual unemployability into statute, reducing reliance on administrative rules.
- It introduces a new age-based cutoff for future recipients, which did not previously exist in law.
- It expands the definition of marginal employment to include specific income and employment context factors.
Potential Impacts
- On Government Agencies: The VA would administer the benefit under clearer statutory guidelines, potentially affecting how claims are processed and reviewed by the Compensation Service.
- On Citizens: Eligible veterans may continue receiving total disability payments, but those turning 67 after the cutoff date could lose access to this enhanced compensation.
- On International Relations: No direct effects identified.
Main Stakeholders Affected
- Veterans with service-connected disabilities seeking total disability ratings.
- The Department of Veterans Affairs, including its Compensation Service and rating boards.
- Congress, as the body establishing these statutory rules.
Notable Legal, Constitutional, or Political Implications
- The bill strengthens congressional oversight by embedding an existing VA practice into permanent law rather than leaving it to regulations.
- The age restriction may raise questions about equal treatment under the law for older veterans, though it applies prospectively.
- No constitutional issues are addressed in the legislation itself.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-03: Referred to the House Committee on Veterans' Affairs.
- 2026-06-03: Introduced in House
- 2026-06-03: Introduced in House
Bill Versions
- Total Disability based on Individual Unemployability Reform Act of 2026 — issued 2026-06-03 — PDF (6 pages)