Sponsors (20)
The bill strengthens disability protections and raises earning allowances for Purple Heart recipients (helping injured veterans and their families), but it increases Social Security costs, can create work-disincentives at higher earnings, and introduces short implementation delays and some uncertainty.
Purple Heart recipients can earn more before losing disability benefits because the bill raises or applies a higher substantial gainful activity (SGA) threshold for them, preserving partial benefits for veterans who work.
Purple Heart recipients with disability benefits will remain entitled past the normal termination month, preserving income for injured veterans who would otherwise lose benefits.
Auxiliary/dependent benefits continue to be reduced proportionally to the primary beneficiary's reduction, preserving fairness so families' benefits track the primary recipient's status.
Expanding or extending entitlement and raising the SGA threshold will increase Social Security Disability outlays, adding costs for taxpayers and pressure on program finances.
Benefits are offset as earnings exceed the SGA threshold (e.g., $1 reduction per $4 over SGA), which creates an effective marginal benefit 'tax' that can discourage higher-paid work.
Because the change only applies starting more than six months after enactment, eligible veterans will not see the benefit immediately and must wait for the delayed effective date.
Based on analysis of 3 sections of legislative text.
Treats Purple Heart recipients on SSDI as having continuing entitlement while applying a $1 benefit reduction for every $4 in monthly earnings above the SGA threshold.
Official title: To amend title II of the Social Security Act to establish a disability benefit offset for Purple Heart recipients, and for other purposes.
Introduced January 15, 2026 by Austin Scott · Last progress January 15, 2026
Creates a special rule for Social Security Disability Insurance (SSDI) beneficiaries who were awarded the Purple Heart: their SSDI entitlement will continue past the normal termination month while still subject to an earnings offset based on the monthly substantial gainful activity (SGA) threshold (benefit is reduced by $1 for each $4 in earnings above the SGA amount, but not below zero). The changes amend the Social Security Act and take effect for benefits payable for months beginning more than six months after enactment.