Skilled Legal Representation For Members Of Every Service Branch

Incarceration can affect a veteran’s benefits

On Behalf of | Oct 23, 2026 | MILITARY LAW - Military Law

A case has made it all the way up to the U.S. Supreme Court (SCOTUS) that highlights the effect of a criminal conviction on a military veteran’s benefits. The court has yet to rule on the case.

A former Army infantryman is among the 107,000-plus veterans currently serving time in state or federal prison. He was sentenced to 40 years for felony offenses. He has been diagnosed with post-traumatic stress disorder (PTSD) and given an 80% disability rating by the Department of Veterans Affairs (VA). However, under Section 5313 of the U.S. Code, the disability rating and benefits (even for a service-related disability) are reduced for a veteran who is incarcerated for over 60 days for a felony for the remainder of their incarceration.

The VA changed his disability rating to just 10%. He has been fighting that in court, claiming that his constitutional rights are being violated. His legal team has also noted that “30% of all veterans experience service-connected disabilities, and veterans with PTSD are disproportionately at risk of incarceration.”

How disability benefits are reduced

According to the VA, “Veterans rated 20 percent or more are limited to the 10 percent disability rate. For a Veteran whose disability rating is 10 percent, the payment is reduced by one-half.”

The benefits not paid to the incarcerated veteran “may be apportioned to the Veteran’s spouse, child or children, and dependent parents on the basis of individual need.” Once they’re released from prison, “compensation payments may be reinstated based upon the severity of the service connected disability(ies) at that time.”

What about pension payments?

Incarceration also affects VA pension payments. According to the VA, these payments will be “terminated effective the 61st day after imprisonment in a Federal, State, or local penal institution for conviction of a felony or misdemeanor. Payments may be resumed upon release from prison if the Veteran meets our eligibility requirements.” They are not, however, compensated for the amount they lost while incarcerated.

Likely, the SCOTUS ruling in this case won’t be handed down until next year. It remains to be seen what, if anything, a future ruling will mean for those whose disability ratings and benefits are reduced and their pension benefits unpaid because they are incarcerated. As the law on this subject continues to evolve, it’s important to keep in mind that having experienced legal guidance can help veterans understand and assert their rights to their benefits regardless of the particulars of their specific circumstances.