Supreme Court Eliminates Six-Year Cap on Veteran Disability Pay

On June 12, the Supreme Court ruled unanimously in favor of a class action lawsuit for over 9,000 disabled Army, Navy, Marine Corps, Air Force, and Coast Guard veterans who were wrongfully denied their full retroactive combat-related special compensation, or CRSC. CRSC is a monthly benefit for retired or medically retired veterans with combat-related disabilities. Veterans may lose part of their military retirement pay due to receiving VA disability benefits at a dollar-to-dollar match. CRSC restores that lost amount for combat-related injuries, allowing for partial or full retirement and disability pay based on how much of the veteran's disability rating is tied to combat. The case that led this landmark decision largely centered around Simon Soto, a Marine Corps veteran who developed PTSD after serving two tours in Iraq. In 2016, he applied for CRSC benefits. While the Navy approved his eligibility, it limited his retroactive compensation to just six years. Soto challenged this cap in court. In June of 2025, the Supreme Court unanimously ruled that there is to be no six-year cap on retroactive CRSC payments. As a result, thousands of veterans may now be eligible for compensation dating back to when their entitlement began, even if it was more than six years ago. The decision is especially impactful for retirees who faced systematic delays in applying, received delayed disability ratings from the VA, and were unaware of eligibility due to miscommunication. To apply for CRSC, veterans need to submit DD Form 2860 with evidence like service medical records, Purple Heart citation, or VA decision notes to their service branch. Processing takes 60 to 90 days. Declined applicants can appeal through their military branch.