Rand Corp. recommends that policymakers consider whether VA disability income should count toward eligibility for various forms of government aid.
Many veterans who receive payouts for service-related disabilities are being shut out from a range of public assistance programs because the benefit puts them over income eligibility thresholds, according to a new study.
Rand Corp. researchers looked at 15 social safety net and public insurance programs and four veterans’ benefits programs as part of a report issued last week. A dozen required applicants to prove that their income or assets are low enough to qualify.
The think tank recommended that policymakers consider whether Veterans Affairs disability income should count toward eligibility for various forms of government aid.
VA disability compensation is the largest federal disability program in the U.S., the report said. It provides monthly cash payments to veterans with service-connected disabilities and those whose preexisting conditions were made worse through military service.
Rand triangulated the data using three surveys that quantify disability rating, income and program participation. The sample included households under 300% of the federal poverty line, which is $15,960 for a single-person household or $33,000 for a family of four, according to the Health and Human Services Department website.
Veteran households that do not receive disability compensation generally participate in public assistance at the same rates as those of non-veterans, the report said.
Households with at least one working-age member receiving veteran disability compensation are 10% less likely to report receiving SNAP aid, generally known as food stamps, researchers found.
Between 2021 and 2023, 17% of households with a disabled veteran used food stamps, compared with 27% of non-veteran households, the report said.
Disabled veterans under 62 were 3% less likely to receive housing assistance than non-veteran households, and the figure was double that for elderly disabled veterans.
Though not treated as income for tax purposes, disability compensation may count against eligibility for public assistance. The Rand report highlighted some of the discrepancies among programs.
For example, Medicaid and Social Security do not factor VA disability compensation into eligibility, but it is a consideration for the Housing Choice Voucher Program, otherwise known as Section 8, and Supplemental Security Income.
VA disability income is included in the eligibility calculations for the Low-Income Home Energy Assistance Program as well.
Disabled veterans under 62 were between 1.3% and 5% less likely to receive benefits from that program than non-veterans were, across two surveys, versus between 0.8% and 3% for veterans 62 and over, according to the data.
The disability program paid $163 billion in fiscal 2024, compared with $155 billion for Social Security disability insurance, the report said.
The amount of compensation is determined by the combined severity of documented conditions as well as personal factors like the presence of dependents or special needs.
Besides recommending “explicit coordination between policymakers overseeing and administering these programs and the veteran policy community,” Rand also called for improved data collection.
In addition, researchers said there should be better communication with veterans about how their benefits could affect their eligibility for public assistance programs.
- Veterans Benefits