Veterans Pensions Protection Act of 2025

Summary

Changes how the VA counts some outside payments when calculating annual income for veterans’ pensions and for surviving spouses and children. It instructs the VA to exclude reimbursements for medical expenses (including insurance settlements) and certain pain-and-suffering payments from pension income calculations, with limits and a case-by-case cap set by the Secretary; the change takes effect 180 days after enactment.

• Excludes medical expense reimbursements (including insurance settlements) from annual income used to calculate veterans’ pensions and survivors’ benefits.
• Excludes some pain-and-suffering payments from annual income, subject to a case-by-case cap set by the VA Secretary.
• Limits medical expense exclusion to the actual cost of medical care provided to the victim.
• Gives the VA Secretary authority to determine allowable pain-and-suffering exclusion amounts on a per-case basis.
• Applies to veterans and to surviving spouses and children who receive pensions.
• Amends 38 U.S.C. §1503(a) and renumbers existing paragraphs to add the new exclusion.
• Takes effect 180 days after enactment.
• Does not include new appropriations or specify offsets; potential cost increases would occur through benefit payments.
• Narrow, targeted change focused on how specific outside payments are treated for pension means-testing.