Sponsors (19)
The bill helps Purple Heart recipients work and retain disability benefits—improving income stability for many veterans—but does so at added fiscal cost, with administrative burdens and potential benefit reductions for some earners and their dependents.
Purple Heart recipients with service-connected disabling injuries can work more while keeping SSDI eligibility and face a higher SGA threshold with a gradual offset, reducing the chance they lose benefits for modest earnings and improving income stability.
Spousal and survivor payments under section 202 are coordinated so reductions happen proportionally, preventing unexpected mismatches in household benefit payments.
The change is narrowly targeted to Purple Heart recipients rather than broad SGA reform, which reduces the scope of rule changes and limits administrative disruption compared with larger reforms.
Recipients who earn modestly above the SGA threshold will see reduced SSDI payments due to the offset (lower household income for those who increase work hours).
Spouses or survivors receiving section 202 benefits could have their payments cut when the insured veteran earns above SGA, reducing household retirement or survivor income.
Raising the SGA threshold for Purple Heart recipients increases Social Security program costs that are ultimately borne by taxpayers.
Based on analysis of 3 sections of legislative text.
Introduced January 15, 2026 by Austin Scott · Last progress January 15, 2026
Creates a special rule for Social Security Disability Insurance (SSDI) beneficiaries who received the Purple Heart: they remain treated as entitled to SSDI even if they work above the normal termination threshold, but their monthly benefit is reduced by $1 for every $4 of earnings above the applicable substantial gainful activity (SGA) amount. The change also raises the SGA amount that applies to Purple Heart recipients and applies to benefits payable for months beginning more than six months after enactment. The bill also requires that any spousal or other insured benefits tied to the wages of an affected individual be reduced in the same proportion as the SSDI reduction. Administrative changes at the Social Security Administration will be needed to implement the new earnings-offset calculation and the higher SGA amount for this group.