Sponsors (20)
The bill eases and preserves disability benefits and work allowances for Purple Heart recipients—helping injured veterans and their families—but raises program costs and creates short-term timing and clarity concerns for beneficiaries and administrators.
Purple Heart recipients with disability benefits (veterans with service-connected disabilities) will remain entitled to Social Security disability past the normal termination month, preserving ongoing income for injured veterans.
Purple Heart recipients will be allowed a higher substantial gainful activity (SGA) threshold, and beneficiaries can earn up to that threshold before benefits are offset, letting more veterans work modestly without losing benefits.
Dependents' (auxiliary) benefits will continue to be reduced proportionally so family members' benefits track changes to the primary beneficiary, preserving fairness in family benefit calculations.
Expanding entitlement and raising the SGA threshold will increase Social Security disability outlays, adding costs to the program and potentially to taxpayers.
The earnings offset (benefits reduced $1 for every $4 earned over SGA) creates an effective marginal benefit tax that can discourage higher-paid work by beneficiaries.
The delayed effective date (changes apply only after a six-month window) means eligible veterans will not receive the expanded protections and higher earnings allowance immediately.
Based on analysis of 3 sections of legislative text.
Allows SSDI beneficiaries who received the Purple Heart to remain entitled beyond the normal termination month while applying a $1 benefit reduction for every $4 of monthly earnings above the SGA threshold.
Introduced January 15, 2026 by Austin Scott · Last progress January 15, 2026
Creates a special rule so Social Security Disability Insurance (SSDI) beneficiaries who have been awarded the Purple Heart continue to be treated as entitled to benefits past the normal termination month, while keeping an earnings-based offset that reduces benefits by $1 for every $4 of monthly earnings above the Social Security substantial gainful activity (SGA) threshold. Changes to how a higher SGA amount applies to Purple Heart recipients are also inserted. The amendments take effect for benefit months beginning more than six months after enactment.