Purple Heart Freedom to Work Act
- Sponsor
- Rep. Scott, Austin [R-GA-8]
- Committees
- Ways and Means Committee (primary)
- Last action
- Jan 15, 2026
Bottom line
The Purple Heart Freedom to Work Act aims to support combat-injured veterans by allowing them to earn more income without fully losing their Social Security disability benefits, thereby encouraging workforce participation.
What it actually does
This bill amends the Social Security Act to allow Purple Heart recipients who receive disability benefits for combat-related injuries to continue receiving those benefits even if they earn above the standard Substantial Gainful Activity (SGA) limit. It introduces a gradual benefit reduction (offset) for earnings above a higher SGA threshold, similar to that for blind individuals, and applies this higher SGA threshold to them. The goal is to remove disincentives for these veterans to return to work.
Proponents argue
Supporters argue that this bill provides much-needed flexibility and support for veterans who have made immense sacrifices for their country. They contend it removes a significant barrier to employment for severely injured veterans, allowing them to contribute to the economy and improve their financial well-being without fear of losing essential disability benefits. Proponents emphasize that it recognizes the unique circumstances and challenges faced by Purple Heart recipients.
Opponents contend
Critics might raise concerns about the long-term solvency of the Social Security trust fund, arguing that any expansion of benefits or relaxation of earning rules, even for a targeted group, could strain the system. They may also contend that creating special carve-outs based on the cause of disability, rather than solely on functional limitation, could complicate the disability system and set a precedent for other groups seeking similar exemptions, potentially leading to inequities.
The bill is short and relatively straightforward for those familiar with Social Security terminology, making it accessible for a quick review.
Section 2(a)(3) amending Section 223(e) of the Social Security Act
Establishment of Disability Benefit Offset for Purple Heart Recipients
This provision allows individuals receiving Social Security Disability Insurance (SSDI) benefits due to a Purple Heart-attributable injury to continue being entitled to those benefits even if their earnings exceed the standard Substantial Gainful Activity (SGA) limit. Instead of benefits being terminated, they will be reduced by $1 for every $4 earned above a specified higher SGA amount. This creates a gradual reduction rather than an abrupt loss of benefits, encouraging work.
Supporters argue
Proponents argue this provision removes a significant disincentive for severely injured veterans to re-enter the workforce. They contend it acknowledges the unique sacrifices of Purple Heart recipients by providing a more flexible safety net, allowing them to earn income without fear of losing crucial disability support entirely. This encourages economic independence and reintegration.
Critics contend
Opponents might argue that introducing a special offset for one group complicates the Social Security disability program, which is designed to provide benefits to those unable to engage in substantial gainful activity. They may also express concern that such carve-outs could create administrative burdens and potentially strain the solvency of the Social Security trust funds if applied broadly.
Tradeoffs
This provision balances the goal of supporting injured veterans' return to work with the need to maintain the financial integrity and consistent application of the disability insurance program. It trades off some program uniformity for targeted support.
Section 3(a) amending Section 223(d)(4)(A) of the Social Security Act
Application of Higher SGA Amount for Purple Heart Recipients
This provision extends the higher Substantial Gainful Activity (SGA) threshold, which is currently applied to individuals who are blind, to Purple Heart recipients whose disability is attributable to their injury. This means that these veterans can earn a greater amount of income each month before their work is considered 'substantial gainful activity' by the Social Security Administration, thereby delaying any potential benefit reduction under the new offset rules.