Newsbytes September 6, 2024

In this Issue:
Concurrent Receipt in Senate NDAA
Congress List of must-pass Bills
Access Problems with 988 Veterans Crisis Line
How the CFPB helps Servicemembers

Put Concurrent Receipt in Senate NDAA
Congress will be back in session next week, and we need your help now at this critical stage of the National Defense Authorization Act (NDAA) process to end an unjust pay offset—one that costs tens of thousands of injured veterans a dollar of DoD retirement pay for every dollar of VA disability compensation. More than three-quarters of lawmakers have co-sponsored the Major Richard Star Act, a concurrent receipt reform bill. However, funding concerns and budgetary rules have so far prevented it from advancing as an amendment to the must-pass NDAA. Please ask your Senators to support a Senate floor amendment to include concurrent receipt reform in this year’s NDAA. With 74 Senators in support of the Major Richard Star Act, it deserves a vote. Please use the FRA Action Center to weigh in on this issue at: https://www.votervoice.net/FRA/Campaigns/116752/Respond

CR, NDAA, and VA Supplemental Funding
Congress returns from summer recess next week with a list of items to complete before the start of the new fiscal year. First, Congress must pass the 12 appropriations (spending) bills before September 30, which seems unlikely to happen. Instead, Congress will probably pass a temporary Continuing Resolution (CR) to keep the government operating after September 30 to avoid a shutdown while finishing its work on appropriations legislation. Without FY 2025 appropriations, there will be no new programs.

The FRA has signed a coalition letter to Senate Majority Leader Schumer, Senate Minority Leader McConnell, Speaker Johnson, and House Minority Leader Jeffries, urging them to pass all FY 2025 appropriations bills supporting our uniformed services—particularly Defense Appropriations and Military Construction, Veterans Affairs, and Related Agencies' Appropriations (MilCon-VA)—as soon as possible and at no less than the Senate Armed Services Committee-passed spending levels. The letter emphasizes that CRs do not permit new starts or increase investments in modernization priorities. Moreover, our nation’s service members, veterans, families, caregivers, and survivors deserve the best possible healthcare, including mental healthcare, as well as timely claims and rating decisions. Shutdowns and CRs hinder new investments to improve care, delay hiring additional health and mental health professionals, and postpone facility improvements. Additionally, new family housing and barracks projects cannot be initiated.

Delaying funding harms our defense posture nationally and globally. CRs also hurt the defense industrial base, including small businesses, by adding uncertainty to the procurement and manufacturing processes. CRs undermine the joint force’s ability to prepare to fight and win in the future and hinder readiness to counter today’s threats.

The annual National Defense Authorization Act (NDAA) passed the House in June, but the Senate version has only been approved by committee and has yet to receive a full Senate floor vote. As Newsbytes goes to press, no Senate vote is scheduled. The FRA supports a concurrent receipt amendment to the Senate NDAA (see above for more details).

Congress must also address the Department of Veterans Affairs' $3 billion budget shortfall for the current fiscal year (FY 2024) and secure additional funding for FY 2025. Without congressional funding, 7 million veterans and their survivors risk losing their pensions and other benefits in the coming months.

Access Problems with 988 Veterans Crisis Line
Veterans calling the Veterans Crisis Line (VCL) are experiencing issues with the "988, then press 1" audio prompt. The Department of Veterans Affairs (VA) is working with VCL to reroute calls and ensure dropped calls receive callbacks. If you or someone you know has experienced these difficulties, please use the VCL Chat option or connect via text messaging at 838255 as an alternative for support. These options are not affected by the current phone line problems. Additionally, veterans can call 1-800-MYVA411 and press 7 for further crisis assistance.

How the CFPB helps Servicemembers
The application of interest rate protections under the Servicemembers Civil Relief Act (SCRA) is a vital aspect of the Consumer Financial Protection Bureau’s (CFPB) work to assist individual consumers and seek systemic solutions. As the CFPB reviews complaints and monitors patterns and trends, they continue to hear from service members that they are not receiving the military interest rate reductions they are entitled to under the SCRA. Active-duty service members, including activated Guard and reservists, can request an interest rate reduction to 6% on loans taken out before active duty.

With current interest rates on car loans and mortgages well above 6% for many borrowers, more service members would benefit from a rate reduction than in previous years. The savings can be significant. An active-duty service member beginning a four-year enlistment could save nearly $2,500 on credit cards with a pre-service balance of $3,600 at 28% interest, assuming they continue to make minimum payments. However, difficulties in obtaining rate reductions for most loan types are long-standing and well-documented.