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Congress·In Committee·about 2 months ago

Congress proposes letting Purple Heart recipients keep disability status while working, with benefit reductions

Also known as: Purple Heart Freedom to Work Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(2)
Child Tax Credit
Neutral
Federal Employee
Neutral
Positive Impacts(2)
Military Veteran
Helps
Disability Benefits
Helps

Key Points

  • Lets Purple Heart recipients keep Social Security disability eligibility even if they earn enough to normally lose it.
  • Still reduces the disability check as earnings rise: benefits drop $1 for every $4 earned above the monthly work-earnings limit.
  • Also applies a higher “allowed earnings” level (the same standard used for people who are blind) to Purple Heart recipients on disability.
  • If the disabled worker’s check is reduced, certain family benefits tied to that worker can be reduced by the same proportion.
  • Changes would start for monthly benefits paid beginning 6 months after the law is enacted.
Social SecurityVeteransLabor Employment

Milestones

2 milestones2 actions
Jan 15, 2026House

Referred to the House Committee on Ways and Means.

Jan 15, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

6 months after the bill is signed into law

New work-and-benefit offset starts for eligible Purple Heart recipients on Social Security disability

If you qualify, you can work and keep disability eligibility, with your check reduced as earnings rise instead of ending after a termination month

6 months after the bill is signed into law

Higher work-earnings limit (the “blind” level) applies to eligible Purple Heart recipients for deciding when work is substantial

You may be allowed to earn more before Social Security treats your work as too much for disability rules, making it easier to take more hours

Around the start date and in the months leading up to it

Social Security updates notices, payment systems, and staff guidance for the new Purple Heart rules

You may see new letters explaining how work affects your check, and you may need to report earnings so Social Security can calculate the monthly offset

Source Information

Document Type

Congressional Bill

Official Title

Purple Heart Freedom to Work Act

Bill NumberHR 7120
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.