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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

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