The Department of Veterans Affairs (VA) implemented new interim rule changes on Tuesday regarding the evaluation of disability ratings. The rule, which included provisions allowing for the consideration of medication use and earning capacity in disability assessments, faced immediate and widespread criticism from veterans organizations and lawmakers.
By Thursday, VA Secretary Doug Collins announced the department would halt enforcement of the rule, citing concerns from the veteran community.
Implementation of the Interim Rule
The interim final rule, titled "Evaluative Rating: Impact of Medication," became effective on Tuesday, June 25. It was introduced without prior public notice.
A public comment period for the rule commenced on the same day and is scheduled to conclude on April 20. By midday Thursday, more than 10,000 comments had been submitted.
Key Provisions of the Rule
The rule introduced two primary alterations to the criteria for determining veterans' benefits:
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Medication Consideration: The VA could consider the impact of medication when assigning a disability rating.
Under this provision, if medication was deemed to reduce a veteran's symptoms, it could potentially result in a lower disability rating or no rating at all.
This represented a shift from prior practice, where conditions were generally rated based on their underlying severity, independent of temporary symptom reduction by medication. -
Earning Capacity Factor: The VA could factor a veteran's earning capacity into their disability rating.
If a veteran was employed, this could potentially lead to the denial of disability or pension payments.
The rule directed VA examiners to incorporate the functional improvements veterans experienced from medication into their disability rating assessments. This contrasted with recent court rulings that had instructed the VA to base disability levels on the inherent severity of the condition.
VA's Stated Rationale
VA Press Secretary Pete Kasperowicz stated that the new regulation
"simply formalizes VA’s longstanding practice of determining disability ratings based on Veterans’ service-related disabilities and any medications they are taking to treat those disabilities,"
suggesting no significant policy change.
VA Secretary Doug Collins explained that the VA issued the rule to clarify existing policy and protect veterans' benefits in response to ongoing court actions. The VA asserted that the rule aimed to counter three previous court rulings, including Ingram v. Collins (2025), which the department deemed an "erroneous interpretation" of regulations.
The VA suggested that the prior interpretations would lead to high administrative costs, delays in benefits, and increased compensation expenditures for disability levels veterans were not actually experiencing. The rule explicitly aimed to "minimize the negative impact" of the Ingram v. Collins precedent.
Veterans' Groups and Congressional Opposition
Major veterans organizations, including the Veterans of Foreign Wars (VFW) and Disabled American Veterans (DAV), strongly criticized the rule following its implementation.
These groups asserted that the rule could potentially reduce disability compensation for millions of disabled veterans by allowing reductions for those who use medication to control their conditions.
VFW National Commander Carol Whitmore noted that courts had previously prevented the VA from reducing ratings based on medication effects, requiring evaluation of true functional impairment, and stated that this new rule reversed that standard. She also commented that the rule change appeared to have "unforeseen and harmful downstream effects," necessitating public scrutiny.
Coleman Lee, National Commander of DAV, voiced "disappointment and alarm." Concerns were also raised that veterans might stop taking prescribed medications for conditions like PTSD to avoid potential reductions in their disability ratings. Illinois Democratic Senator Tammy Duckworth, a combat-wounded veteran, also criticized the rule.
Disability claims constitute over 50 percent of the VA’s overall budget.
VA Halts Enforcement
On Thursday, June 27, VA Secretary Doug Collins announced an immediate halt to the rule's enforcement. Collins stated that
while the VA "does not agree with the way this rule has been characterized," the department prioritizes veterans' concerns.
He further affirmed that the VA would continue to collect public comments regarding the rule but would not enforce it "at any time in the future."
Collins emphasized his commitment to ensuring that "everyone applying for benefits receives everything they have earned as quickly and conveniently as possible," citing a reduction in the backlog of veterans awaiting benefits by over 60%. The DAV released a statement applauding the VA's decision, with Coleman Lee commenting, "We appreciate the secretary listening to and acting on the concerns of those who have served and sacrificed for this nation."
Continued Reactions and Legal Actions
The VFW acknowledged the VA's decision and expressed a desire to collaborate with the department for an equitable resolution. However, Senator Tammy Duckworth urged the VA to rescind the rule entirely rather than merely halting its enforcement.
Prior to the halt, a lawsuit had been filed by the Stone Rose Law Firm and MilVet Law Firm, representing hundreds of veterans, asking a federal appeals court to vacate the rule due to potential financial harm to their clients. The rule had also generated confusion among veterans and advocates, despite initial VA statements indicating it would not affect current disability ratings.