Newsbytes May 15, 2026

In this issue:
Hegseth Backs Maj. Richard Star Act
COLA Bill Introduced 
Senate Demands Reform 
Pentagon Seeks $26.8B For Barracks

Hegseth Backs Maj. Richard Star Act
In a significant turning point for combat-injured veterans, Secretary of War Pete Hegseth officially affirmed his support for the Major Richard Star Act (H.R. 2102/S. 1032) during testimony before the Senate Armed Services Committee this week. Responding to inquiries from Senator Richard Blumenthal, Hegseth’s endorsement marks a major shift in administration policy, potentially breaking the long-standing opposition centered on the bill's estimated ten-year cost. The Act aims to end the "wounded veteran tax" by allowing roughly 54,000 combat-injured veterans to receive their full earned retirement pay alongside their VA disability compensation. 

The FRA views this endorsement as a massive victory for our ongoing legislative surge. As we have argued during our Mid-Year Hill visits, the current dollar-for-dollar offset is a breach of the "Sacred Trust" for those forced into retirement by combat injuries before reaching the 20-year mark. We believe that military retirement pay and disability compensation are two distinct benefits earned for two different reasons, one for a career of service and the other for an injury sustained in the line of duty. 

With the Secretary of War now on the record in support, the FRA is calling on the House and Senate Armed Services Committees to move the bill to a public vote immediately. We maintain that honoring the contract with our injured warriors is a fundamental cost of national defense that cannot be ignored for budgetary convenience. Our members are urged to use the FRA Action Center to keep the pressure on leadership to ensure this momentum leads to a final vote. 

COLA Bill Introduced 
In a significant move to protect the purchasing power of those who served, lawmakers introduced the Veterans’ Compensation Cost-of-Living Adjustment (COLA) Act of 2026 this week. The bipartisan legislation, led by Chairman Mike Bost (R-IL) and Ranking Member Mark Takano (D-CA) of the House Veterans' Affairs Committee, would provide a mandatory increase in the rates of disability compensation for veterans and dependency and indemnity compensation (DIC) for surviving spouses and children. 

The bill is designed to ensure that VA benefits keep pace with inflation by mirroring the percentage increase applied to Social Security benefits. Under the proposed legislation, the increase would apply to several critical categories, including wartime disability compensation, additional compensation for dependents, clothing allowances for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children. Proponents of the bill argue that in an era of fluctuating economic stability, these adjustments are not just a fiscal necessity but a moral obligation to those who were injured in the line of duty. 

The FRA is proud to offer its full support for the Veterans' Compensation COLA Act of 2026. As an organization dedicated to the "Sacred Trust," we believe that earned benefits should never be eroded by the rising cost of living. For many of our members, especially those on fixed incomes or those living with severe service-connected disabilities, these annual adjustments are the difference between financial stability and hardship. Ensuring that these increases are codified into law provides our Shipmates and their families with the certainty they have rightfully earned. 

Beyond the immediate financial impact, the FRA views this legislation as a vital component of the broader Recruitment and Retention effort. To maintain an elite, high-tech force, the government must demonstrate that the "contract of trust" is lifelong. If potential recruits see that disability benefits do not keep pace with the real-world costs of housing, food, and healthcare, the incentive to serve is diminished. We believe that a robust COLA is a signal to current and future service members that their sacrifice will be honored with dignity regardless of the economic climate. 

The FRA will be actively lobbying for the swift passage of this bill as it moves through the House and Senate. 

Senate Demands Reform 
The Senate Veterans’ Affairs Committee (SVAC) held a critical oversight hearing this week to examine the state of the VA Police Force and the department’s broader security infrastructure. Lawmakers expressed deep concern over chronic staffing shortages, citing a high vacancy rate that has left many VA medical centers reliant on overtime and temporary security contracts. The hearing highlighted that these gaps not only compromise the safety of veterans and staff but also hinder the VA’s ability to respond to mental health crises on campus with the specialized care required. 

Witnesses from the VA Office of Inspector General (OIG) testified that inconsistent training standards and aging security technology, including outdated camera systems and broken physical barriers, have created "pockets of vulnerability" across the system. Senators questioned VA officials on the slow rollout of the Governance and Oversight reforms intended to centralize police management and improve officer accountability. The committee emphasized that a world-class healthcare system is meaningless if veterans do not feel safe or respected when they walk through the doors of a VA facility. 

The FRA is closely monitoring these security reforms, as many of our members rely on these facilities for life-sustaining care. We believe that VA police officers must be viewed as an extension of the clinical team, trained specifically in de-escalation and veteran-centric engagement. We are advocating for increased pay and better equipment for VA officers to ensure the department can recruit the high-caliber personnel needed to protect our community. 

Furthermore, the FRA is calling for a "veteran-first" security posture that balances safety with accessibility. We maintain that security measures should never act as a barrier to care, particularly for those suffering from PTSD or other service-connected mental health conditions. As the SVAC continues its investigation, we will push for a transparent timeline on infrastructure upgrades and a commitment to filling every police vacancy with qualified, well-trained professionals. 

Pentagon Seeks $26.8B For Barracks
The Defense Department has submitted a $26.8 billion military construction request for fiscal year 2027, which logistics leaders are calling a "generational investment" in unaccompanied housing. Of that total, $21.5 billion is specifically earmarked for barracks across all services, including a $7 billion "jumpstart" for Marine Corps housing and $2.5 billion for Navy infrastructure. The request follows the standards set by the newly formed Barracks Task Force, aiming to modernize rooms with kitchens, Wi-Fi, and improved maintenance systems. 

The FRA applauds this massive commitment to improving the daily lives of our Sailors and Marines. During recent Senate testimony, officials emphasized that substandard housing is a "direct and present threat" to power projection and force retention. We have seen far too many reports of mold, failing HVAC systems, and lack of privacy in current facilities, and this budget request is a necessary step toward remediating those "poor and failing" structures once and for all. 

While the House version of the bill currently sits significantly lower than the President's request, the FRA will continue to lobby for the full $26.8 billion. We believe that providing dignified, modern housing is not just a "benefit," but a critical component of readiness for the high-tech, lethal force of the future. We are also advocating for strict oversight to ensure these funds are used directly for their intended purpose, rebuilding the homes of our junior enlisted personnel.