TDIU Reform Act of 2026: What Veterans Need to Know

CCK Law: Our Vital Role in Veterans Law

In June 2026, the TDIU Reform Act of 2026 was introduced in the House of Representatives. This bill would make two major changes to the Department of Veterans Affairs (VA) benefit, Total Disability based on Individual Unemployability (TDIU). The bill would:

• Write the benefit into federal law for the first time; and
• Prohibit new VA disability recipients 67 or older from receiving TDIU (for veterans who first receive TDIU status on or after December 31, 2026)

Currently, TDIU only exists in VA regulations, where it is easier to potentially amend or eliminate it as a benefit than it would be if it were written into federal law. Many veterans rely on TDIU to receive compensation at the 100 percent rate when their service-connected conditions keep them from finding or maintaining substantially gainful employment.

According to the language of the bill, veterans already getting TDIU before December 31, 2026, will not be impacted. The bill currently has no co-sponsors and is not yet law.

Watch CCK Law Partner Michael Lostritto discuss what veterans need to know about the TDIU Reform Act of 2026:

What Is TDIU, and Who Qualifies?

TDIU is a VA benefit that compensates disabled veterans at the 100 percent rating level, even though their combined disability rating is less than 100 percent. To be eligible for TDIU, a veteran’s service-connected disabilities must prevent them from getting or maintaining substantially gainful employment.

There are two ways to qualify for TDIU:

• Schedular TDIU — The veteran must have one service-connected disability rated at 60 percent or more, or two or more service-connected disabilities with a combined rating of at least 70 percent, where one has at least a 40 percent rating.
• Extraschedular TDIU — This is for veterans who do not meet the schedular requirements. Under 38 CFR § 4.16(b), extraschedular allows VA to grant TDIU based on the veteran’s unique disability circumstances when it still prevents them from getting and keeping substantially gainful employment.

TDIU is currently governed by 38 CFR § 4.16. Under 38 CFR § 4.19, age is specifically not a factor in veterans’ eligibility. The only factor that matters is whether their service-connected conditions prevent them from working.

As of 2026, TDIU compensates qualifying veterans at $3,938.58 per month for a single veteran with no dependents — the same as the 100 percent schedular rate.

What Would the TDIU Reform Act of 2026 Do?

This new bill, if passed, would make two fundamental changes to TDIU.

1. Codify TDIU Into Federal Statute

Right now, TDIU only exists in VA’s administrative regulations — it is not written into the United States Code. This new bill would add a new section 1170 to Title 38 of the U.S. Code.The codified version of the regulations would carry over these existing TDIU rules:

• The rating requirements for schedular TDIU
• The extraschedular pathway for veterans who do not meet those thresholds
• A definition of marginal employment

Adding TDIU into statute could make it more difficult to eliminate or narrow the benefit through future regulatory changes. However, it would also require an act of Congress to make future amendments.

2. Add an Age Cap for New Recipients

The bill would also, for the first time, add an age limit to TDIU eligibility. Per the proposed language of the bill, TDIU compensation “may not be paid to a veteran aged 67 or older.” This aligns with the Social Security retirement age for those born after 1959.

It is important to know that:

• Veterans who are already receiving TDIU before December 31, 2026, would not be affected.
• Veterans who first receive TDIU on or after December 31, 2026, could lose eligibility once they turn 67.
• Veterans who are 67 or older and do not already get TDIU could be barred from receiving it in the future.

How Does This New Bill Compare to Current Law?

Under the current law, VA is prohibited from denying or reducing a veteran’s TDIU benefits on a basis of age. Specifically, 38 CFR § 4.19 states that “rating agencies will not add additional ratings to account for age” and that “compensable disabilities may not be combined with disabilities that are the result of age.”Essentially, VA currently must focus on whether a veteran’s service-connected conditions prevent them from working, regardless of their age. The TDIU Reform Act would override this longstanding protection for veterans who first become eligible on or after the effective date of December 31, 2026.

What Is the Current Status of the TDIU Reform Act?

As of June 25, 2026, the TDIU Reform Act of 2026 has been introduced in the House of Representatives and referred to the House Committee on Veterans’ Affairs. It currently has no co-sponsors.

Right now, this bill is not law, and nothing about VA’s TDIU benefit has changed. It is very common for bills introduced in Congress to never advance beyond the stage of committee referral.

That being said, there are a few reasons why it is worthwhile to pay attention:

• TDIU is one of the most important benefits VA offers for veterans who cannot work but their conditions do not meet a 100 percent schedular rating.
• Codifying TDIU into federal statute has advantages and disadvantages: It could make it harder to remove protections but could also make it harder to repeal an age cap once enacted.
• The bill’s forward-focused approach means veterans who apply for TDIU in the future — particularly those approaching age 67 — would be most directly impacted by the age cap.

What Should Veterans Do Now?

Regardless of whether this bill advances, there are practical steps veterans can take if they already receive TDIU or are considering applying for it.

If You Already Get TDIU

Your benefits would not change, according to the bill’s proposed effective date of December 31, 2026. You do not need to take any action in response to this bill per its current language. Keep responding to any VA requests for employment questionnaires or any other documents in regard to protecting your current rating.

If You Are Approaching Age 67 and Have Not Yet Applied for TDIU

If you believe you meet the eligibility requirements for TDIU and you are approaching the age of 67, it may be worthwhile to pursue a TDIU claim under the current law. These kinds of claims can be complex and take time. You may want to consider having a VA-accredited representative help review your case.

If You Have Been Denied for TDIU

If VA has denied your TDIU claim, understanding the reason for the denial is the best starting point for an appeal. Common reasons for VA denials can include:

• Not meeting the rating requirements
• Insufficient evidence of unemployability
• Form errors

Appealing a TDIU claim denial can be a complex process for many reasons, including those mentioned above. It can be beneficial to contact a VA-accredited attorney or advocate for assistance in pursuing a TDIU appeal.

Frequently Asked Questions

Does the TDIU Reform Act affect veterans currently receiving TDIU?

No. According to the proposed language of the bill, veterans already receiving TDIU before December 31, 2026, would not be affected at all by the age cap. Because the bill has not yet passed, no changes to TDIU are currently in effect.

What is the difference between schedular TDIU and extraschedular TDIU?

Schedular TDIU requires one service-connected disability rated at 60 percent or more, or two or more with a combined rating of at least 70 percent, where one has at least a 40 percent rating.

Extraschedular TDIU is available for veterans who do not meet those thresholds but whose specific disabilities still prevent them from maintaining substantially gainful employment. This is a more difficult standard for veterans to meet and argue.

Can VA consider my age when deciding a TDIU claim today?

No. Under 38 CFR § 4.19, VA cannot assign or deny TDIU on a basis of age. VA can only make TDIU decisions based on whether your service-connected disabilities prevent you from obtaining or keeping substantially gainful employment.

What is substantially gainful employment under TDIU rules?

Substantially gainful employment is generally considered to be work that pays at or above the federal poverty threshold. Veterans who work but are earning less than that, or who work only in a protected or sheltered environment, may still be considered unemployable for TDIU purposes.

Watch CCK Law Partners Emma Peterson and Christine Clemens explain what veterans need to know about TDIU: