ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Trump admin found a way for veterans to lose their disability benefits — and it went as expected

The new rule proposed by the VA allegedly changed the basis of determining the benefits.
PUBLISHED FEB 20, 2026
Representative Image Source: Getty Images | Anna Moneymaker
Representative Image Source: Getty Images | Anna Moneymaker

The Department of Veterans Affairs (VA) has backed off from enforcing an amended interim final rule that changed the basis for evaluating disabilities for veterans. The rule that instructed medical examiners to look at a veteran's "actual level of functional impairment" was seen as a breach of trust in the community, and the Veterans of Foreign Wars (VFW), a non-profit organization, criticized it. It also drew massive backlash, with veterans filing at least one lawsuit calling for a review of the rule. Following the response, the VA decided to halt the enforcement of the rule until further notice, CNN reported.

Representative image of a metal plaque on the facade of the Department of Veterans Affairs building in Washington, D.C.(Image source: Getty Images/Photo by Robert Alexander)
Representative image of a metal plaque on the facade of the Department of Veterans Affairs building in Washington, D.C.(Image source: Getty Images/Photo by Robert Alexander)

On Tuesday, the VA amended an interim final rule that aimed to clarify the department's interpretation of the CFR 4.10 in the Code of Federal Regulations, which provides the basis for evaluating disabilities of veterans. Under the new regulation, medical examiners conducting disability assessments were instructed to look at a veteran's “actual level of functional impairment” and take into account any effects of medication or treatment. This meant that a veteran’s disability level would be based on how well they function while on medication for an injury or illness and not based on the impairment alone.

For instance, reports noted that a veteran suffering from a service-related knee injury may function better with medication, and this could reduce benefits, as it will be taken into account. “If medication or other treatment lessens the functional impairment a disability causes and thereby improves a veteran’s earning capacity, that is the proper disability level for which the veteran should be compensated,” the interim rule stated in the Federal Register. Veterans Affairs Secretary Doug Collins speaks during a hearing with the Senate Committee on Veterans' Affairs (Image source: Getty Images/Photo by Anna Moneymaker)

Veterans Affairs Secretary Doug Collins speaks during a hearing with the Senate Committee on Veterans' Affairs (Image source: Getty Images/Photo by Anna Moneymaker)

The move that was set to go into immediate effect drew massive backlash, with the VFW saying it was rushed and risked penalizing veterans who follow doctors’ orders. While the VA argued that the rule would “have no impact on any Veteran’s current disability rating,” and it was constituted to help readjudicate 350,000 claims decisions, veterans and advocacy groups were infuriated. Within the first 60 hours of posting the rule, the comments of the Federal Register got over 10,000 responses, and at least one lawsuit was filed for a review, as per Military Times.  “All this does is provide a perverse incentive for veterans to forego treatment,” said Paul Jennings, an Army veteran and attorney for MilVet Law Firm. 

Thus, the VA on Thursday said it will halt the enforcement of the rule, amid the backlash. “While VA does not agree with the way this rule has been characterized, the department always takes Veterans’ concerns seriously. To alleviate these concerns, VA will continue to collect public comments regarding the rule, but it will not be enforced at any time in the future,” VA Secretary Doug Collins said in a statement on X.

VA Secretary Doug Collins' Tweet (Image source: X|@SecVetAffairs)
VA Secretary Doug Collins' Tweet (Image source: X|@SecVetAffairs)

However, the halt was also met with cynicism as Illinois Democratic Sen. Tammy Duckworth,  a combat-wounded veteran, and former VA Assistant Secretary claimed that the VA was backtracking because they knew the rule would "hurt our heroes' access to care". "If you take Veterans’ concerns seriously, you’d rescind the rule entirely,” Duckworth wrote on X.

More on Market Realist: 

‘Trump Accounts’ promise big benefits — but there’s a catch that could cost you $90k

Experts warn Trump admin's changes to SNAP could impact millions of Americans

Trump's approval ratings keep dropping — and Americans say a few issues stand out

MORE ON MARKET REALIST
Jeopardy! threw indirect shade at the actor for saying no one cares about Ballet and Opera .
4 hours ago
Harvey, in his wildest imagination, couldn't believe the answer was popular.
9 hours ago
The host couldn't believe his eyes when the answer showed up on the board.
10 hours ago
David Malpass told Fox Business that U.S. energy independence will be crucial for growth measures
1 day ago
Sen. Rick Scott has proposed 'American Dream Accounts' that would help people save for a home.
1 day ago
The nonpartisan fiscal watchdog CFRB has warned that the U.S. may be heading blindly into the next crisis.
1 day ago
Anthropic CEO Dario Amodei explains if AI models can actually go rogue and rebel against humans.
1 day ago
By the end of the game, Harvey was left wondering what he had just heard.
1 day ago
Senator Cory Booker is set to introduce the new tax with the aim to curb the cost-of-living crisis
2 days ago
Illinois is looking to setup Newborn Equity Support Transfer program to help mothers with childcare
2 days ago
Harvey was disappointed with the players who couldn't come up with the most obvious answers.
2 days ago
Some of the answers were too bizarre even for the seasoned host, Steve Harvey.
2 days ago
While the host fumbled the card, it had just enough for Brenda to win a brand new car
5 days ago
The nonpartisan fiscal watchdog revised its estimates to add $2 trillion to its earlier projection.
5 days ago
Chevron president Andy Walz urged the state's regulators to review their climate policy.
5 days ago
Harvey looked like he had enough as yet another question popped up, targeting him on the show.
5 days ago
Frito-Lay has recalled certain bags of its popular Miss Vickie's Dill Pickle Potato Chips
5 days ago
Americans are paying 26 cents more for gas than a week ago.
6 days ago
Harvey was left holding his stomach after almost every answer the Hunter family gave.
6 days ago
The firm's chief global equities strategist, Peter Oppenheimer, has warned that a correction is imminent.
7 days ago