Restore Veterans’ Compensation Act of 2023

HR 3489, the Restore Veterans’ Compensation Act of 2023, prevents the military from reducing or taking back veterans’ disability compensation when they receive separation pay or voluntary separation benefits upon leaving service. The bill amends federal law to ensure veterans’ disability compensation (paid by the Department of Veterans Affairs) cannot be reduced because they received separation pay, and limits deductions from retirement pay to 25% per month, with hardship considerations. It requires the military to provide clear 90-day notice before deductions and allows waivers if repayment would cause financial hardship. This directly affects veterans who received separation pay and later qualify for disability compensation or retirement pay under VA or military programs.