For Release: Friday, November 7, 2003
Contact: David Gillies: 202-225-5661

HOUSE PASSES DEFENSE AUTHORIZATION, COSTELLO VOTES TO END VETERANS "DISABILITY TAX"

Washington - The House of Representatives today approved the Defense Authorization bill for fiscal year 2004. U.S. Congressman Jerry Costello (D-IL) noted the bill authorizes $1.9 million for security upgrades to the Shiloh Gate and $2.52 million for planning and design of a new Tanker Airlift Control Center at Scott Air Force Base that were funded in the Military Construction Appropriations bill.

The bill also makes progress on the issue of "concurrent receipt," also known as the disability tax for veterans. Currently, disabled veterans who are also military retirees must use their military retirement benefits to pay for any service-connected disability benefits from the Department of Veterans Affairs.

The Defense Authorization bill will allow military retirees, including Guardsmen and Reservists, with a Purple Heart or combat-related disability to receive full benefits. Those military retirees with at least a 50% disability will have full benefits phased in over 10 years. Costello voted to change the bill to add full benefits for every veteran affected by the disability tax, however, this effort failed.

"While I am pleased that Congress has taken a step to get rid of the disability tax, this is not enough," said Costello. "At a time when we are spending $20 billion to rebuild Iraq, we should be able to honor the promises we have made to our veterans. I will continue to work to fully fund these benefits."

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