Contents

• Introduction
• The Armed Forces' Character of Service Determination
• Character of Service Categories
• Disputing an Armed Forces Discharge Characterization
• Discharge Review Board (DRB) Review Process
• Board for Correction of Military Records (BCMR) Review Process
• Discharge Appeal Review Board (DARB) Process
• Timeliness of Application and Review
• Special Considerations
• Judicial Review of a Correction Board Decision
• Service Criteria to Establish "Veteran" Status
• Active Service Requirement
• Character of Discharge Requirement
• Character of Discharge Review in VA
• VA Outreach Regarding Character of Discharge Review
• Overview of Selected VA Benefits Affected by Character of Service
• Disability Compensation
• Veterans Pension and Survivors Pension
• Veterans' Health Care
• Emergency Health Care Under Humanitarian Care Provisions
• Eligibility Based on Presumption of Mental Illness or Psychosis
• Special Eligibility Provisions for Those Seeking Mental Health Care Services from VA
• Emergent Suicide Care
• Military Sexual Trauma (MST) Treatment and Counseling
• Medical Care Tentatively Approved on Prima Facie Evidence
• Appealing a VA Character of Discharge Decision
• Higher-Level Review
• Supplemental Claim
• Board of Veterans' Appeals
• Judicial Review of BVA Decisions
• U.S. Court of Appeals for Veterans Claims
• U.S. Court of Appeals for the Federal Circuit and the U.S. Supreme Court
• Considerations for Congress

Summary

Character of service refers to the Armed Forces' evaluation of servicemembers' conduct during their service. Generally, there are five statuses under which servicemembers can be discharged: honorable, general (under honorable conditions), other than honorable (OTH), bad conduct, or dishonorable discharge. A servicemember's branch determines which discharge status he or she should be given. If a former servicemember believes there is an error in his or her service records or disagrees with the discharge status assigned, he or she may seek a discharge status upgrade by submitting an application to the appropriate Discharge Review Board (DRB) or Board for Correction of Military Records (BCMR).

On occasion, Congress has enacted laws affecting review conducted by these military correction boards. In 2010, Congress enacted the Don't Ask, Don't Tell (DADT) Repeal Act (P.L. 111-321), which initiated the removal of restrictions on gay servicemembers. Pursuant to the DADT repeal, the Department of Defense issued guidance instructing the military review boards to grant approval of requests to change narrative reasons for discharge, characterizations of discharge, and reentry codes for former servicemembers if (1) the original discharge was based solely on DADT and (2) there are no aggravating factors in the record, such as misconduct. Further, federal law provides that military correction boards shall give liberal consideration to discharge reviews in which mental health conditions typically associated with combat operations may have been factors in the original discharge decisions. This liberal consideration equally applies when sexual assault or harassment caused the applicable mental health conditions.

A servicemember's discharge status affects his or her eligibility for Department of Veterans Affairs (VA) benefits, including disability compensation, certain pension programs, and medical care. For most VA benefits, former servicemembers must meet the statutory definition of veteran, which includes basic eligibility requirements. As relevant to this report, to achieve veteran status under the statute, a former servicemember must have performed active service in the Armed Forces and be "discharged or released therefrom under conditions other than dishonorable."

Because the phrase "other than dishonorable" does not match any of the discharge statuses issued by the Armed Forces, VA may perform its own evaluation of a servicemember's character of service to determine basic eligibility for VA benefits. This process is called a character of discharge review. While an honorable discharge and a general discharge (under honorable conditions) are binding on VA and make former servicemembers eligible for most VA benefits, a dishonorable discharge is disqualifying for most VA programs. For discharge statuses that fall outside these categories (i.e., OTH and bad conduct discharges), VA evaluates the circumstances surrounding the discharge from service to determine servicemembers' eligibility. Federal statutes and VA regulations bar individuals who engaged in certain conduct from receiving VA benefits. Therefore, VA evaluates former servicemembers' service records to determine whether a statute or regulation (referred to as "statutory bars" and "regulatory bars" to benefits) precludes a servicemember from receiving VA benefits. If a servicemember is not barred from receiving benefits by statute or regulation, VA may determine that the discharge is "honorable" for the purposes of VA benefits. Any claimant who disagrees with a VA determination concerning his or her character of discharge may appeal VA's decision through the agency's appeal process.

Introduction

A servicemember's discharge status affects their eligibility for U.S. Department of Veterans Affairs (VA) benefits, including disability compensation, certain pension programs, and medical care.¹ The discharge status is determined based on the Armed Forces' (Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard) evaluation of servicemembers' conduct during their service. There are five discharge statuses under which servicemembers can be discharged. A servicemember's service branch² determines whether the servicemember should be given an honorable, general (under honorable conditions), other than honorable (OTH), bad conduct, or dishonorable discharge.³

Federal statutes (establishing "statutory bars" to benefits) and VA regulations (establishing "regulatory bars" to benefits) may preclude a former servicemember from receiving certain VA benefits based on his or her discharge status.⁴ Although statutory bars require legislative action from Congress to amend, VA—to the extent it acts within its statutory authority—may amend the regulatory bars to eligibility.⁵ For example, on April 26, 2024, VA published a final rule (1) removing the regulatory bar to benefits for those discharged under "other than honorable conditions" due to homosexual acts and (2) creating a compelling circumstances exception for certain former servicemembers discharged for "willful and persistent misconduct" or an "offense involving moral turpitude."⁶ The second change expanded the number of former servicemembers eligible for many VA benefits. The final rule took effect on June 25, 2024, and the change is reflected in Title 38, Section 3.12, of the Code of Federal Regulations.⁷

This report examines how the Armed Forces' character-of-service determination for discharged servicemembers may affect their eligibility for certain VA benefits and how servicemembers may challenge the determination with the Armed Forces or VA to become eligible for benefits. First, the report explains how the Armed Forces determine a servicemember's character of service and describes the five discharge statuses that the Armed Forces may assign. Next, it discusses how a discharged servicemember may contest a discharge status with the Armed Forces. The report then provides an overview of how VA determines whether a former servicemember qualifies as a "veteran" for the purposes of receiving VA benefits and health care. It also discusses the basic eligibility requirements for VA benefits and how VA makes its own determination on whether a former servicemember's character of service qualifies the individual for specific benefits and health care programs. Finally, the report concludes with an overview of the appeal process at VA for disputing a VA character of discharge determination.

The Armed Forces' Character of Service Determination

The Armed Forces provide discharged servicemembers with official documentation of their service as required by Title 10, Section 1168, of the U.S. Code. The DD Form 214 (DD214) is the primary discharge certificate or certificate of release from all active-duty service.⁸ The DD214 is typically used to verify eligibility for veteran benefits,⁹ and it includes the character of service, a separation code, and a narrative reason for separation. Military department officials determine the character of service based upon a number of factors, including length of service, performance, conduct, medical conditions, and other special circumstances.¹⁰ Military servicemembers may be separated voluntarily or involuntarily.

Character of Service Categories

The Armed Forces generally define five military discharge statuses:

• 1. Honorable Discharge. Servicemembers who receive ratings from good to excellent for their service and meet or exceed their required standards of duty performance and personal conduct.
• 2. General (Under Honorable Conditions) Discharge. Servicemembers whose performance is satisfactory but may have several incidents contrary to the performance and expected conduct of military servicemembers.
• 3. Other Than Honorable (OTH) Discharge. Servicemembers whose conduct and actions are a serious departure from the proper conduct of military members. Typically, this characterization may be given to servicemembers following military nonjudicial punishment actions or those convicted in civilian courts.¹¹
• 4. Bad Conduct Discharge. Servicemembers who receive punishment from courts-martial.¹² This is a disciplinary discharge roughly equal to a civilian misdemeanor.
• 5. Dishonorable Discharge. Servicemembers who receive disciplinary discharge for actions and behaviors seen as severe and reprehensible to the proper conduct of the military. Offenses that can result in a sentence of dishonorable discharge are roughly equivalent to civilian felonies.

A servicemember's discharge status may affect his or her eligibility for VA benefits. Table 1 shows the implications for each discharge status on selected VA benefits. A discussion of each benefit program is beyond the scope of this report, but Appendix B provides links to additional CRS reports on these benefits.

Disputing an Armed Forces Discharge Characterization

If a former servicemember believes a discharge characterization incorrectly or unfairly limits or prevents access to VA benefits, the servicemember may request an upgrade of his or her discharge. Each military department and the Department of Homeland Security (for the Coast Guard) has two corrections boards: a discharge review board (DRB) and a board for correction of military records (BCMR).¹³ In the FY2020 National Defense Authorization Act (NDAA; P.L. 116-92), Congress required the Secretary of Defense to create a "final review" process for discharge upgrade requests.¹⁴ DOD established the Discharge Appeal Review Board (DARB) in April 2021.¹⁵

The Air Force Review Board Agency, also launched in 2021, serves as the lead agency for oversight of DOD's corrections boards and review office.¹⁶ The agency is responsible for congressionally mandated reporting on board outcomes and other statistics.¹⁷

Discharge Review Board (DRB) Review Process

A DRB has authority to change an individual's reason for separation or service characterization through an administrative process. A former servicemember or the servicemember's surviving spouse, next of kin, or legal representative may make a request.¹⁸ A DRB, consisting of at least three members, typically initiates review of a discharge or dismissal when an application for review is submitted. The applicant is required to request consideration of specific issues that may change the character of discharge or reason for discharge.¹⁹ The DRB review process involves either a record review (without a hearing) or an in-person hearing.²⁰ The DRB is to review records submitted by an applicant and requested by the DRB. If an applicant elects to have an in-person hearing, the applicant may appear at the hearing to provide testimony or call witnesses.²¹ The applicant is allowed to have legal representation at the DRB, but the government does not pay attorney fees.²² Following the hearing, the DRB determines whether the military department characterized the discharge in a procedurally and substantively correct manner. A majority vote by the DRB members is needed for the DRB to make its findings, which are issued in a decisional document.²³

Board for Correction of Military Records (BCMR) Review Process

Relative to a DRB, a BCMR has broad authority to "correct an error" in, or "remove an injustice" from, an individual's service record.²⁴ It provides an administrative process for a current or former servicemember to request a record correction or present a monetary claim associated with the correction.²⁵ The BCMR typically serves as the next step following an unfavorable DRB decision. An applicant who has been denied a request for discharge characterization upgrade from a DRB or who is outside the 15-year window for DRB consideration may appeal to a BCMR. Typical scenarios in which a BCMR might act include procedural errors during a servicemember's separation, significant new evidence supporting the petitioner, or subsequent changes in policy that would affect the DRB's decision (e.g., changes to policies with respect to sexual orientation, as discussed in the "Sexual Orientation" section below).

Discharge Appeal Review Board (DARB) Process

The Under Secretary of Defense for Personnel and Readiness oversees the DARB's policies and procedures, while the Secretary of the Air Force, "as the designated lead agent for the DARB," makes appointments of DARB members.²⁶ The DARB serves as a final level of DOD administrative review—a petitioner must first exhaust all administrative remedies available through a DRB and BCMR before seeking review from DARB.²⁷

The DARB panel is to consider a petitioner's request and is responsible for reviewing the individual's record and the applicability of DOD policies and standards. The panel then makes recommendations to the DARB president on whether the request for a discharge characterization upgrade should be "granted, partially granted, or denied."²⁸

Timeliness of Application and Review

For a DRB, an applicant must request review within 15 years of the discharge or dismissal;²⁹ for BCMRs, the request must be made within three years of discovering the error or injustice.³⁰ In some cases, the relevant Secretary may waive the BCMR's three-year deadline.³¹ A petitioner must request a final DARB review within 365 calendar days of receipt of the respective military department's BCMR decision.³²

Corrections boards are required to complete reviews within a specified timeframe. Prior concerns from constituents about the timeliness of the boards' review action led Congress, in 1998, to require the boards to complete a certain percentage of their reviews within 10 months of receiving the applications.³³ This requirement was phased in, and since FY2011, the boards have been required to complete 90% of reviews within 10 months.³⁴ Statute also directs the DRB to prioritize and expedite any discharge review related to post-traumatic stress disorder (PTSD) or traumatic brain injury (TBI).³⁵

Special Considerations

Mental Illness

A DRB is also to give "liberal consideration" to a discharge review in which mental health conditions typically associated with combat operations may have been a factor in the discharge decision.³⁶ This "liberal consideration" equally applies to discharge reviews in which sexual assault or harassment caused PTSD, TBI, or other mental health conditions. In 2019, as part of the National Defense Authorization Act for Fiscal Year 2020 (FY2020 NDAA, P.L. 116-92, §521), Congress added a requirement that the DRB seek "advice and counsel" from a mental health specialist in cases where an applicant claims one of these circumstances. The advice and counsel requirement also applies to BCMRs.³⁷ The FY2020 NDAA also required DRB members to receive training on sexual trauma, intimate partner violence, spousal abuse, and the various responses of individuals to trauma.³⁸

Sexual Orientation

In 2010, Congress passed the Don't Ask Don't Tell (DADT) Repeal Act (P.L. 111-321).³⁹ This law initiated the removal of restrictions on gay servicemembers. During the period when DADT restrictions were enforced (and under similar DOD policies issued prior to DADT), openly gay individuals were ineligible to enlist and an estimated 32,837 were discharged from service.⁴⁰ In most cases, these discharges were administrative discharges under DOD policies first implemented in the 1980s.⁴¹

Following the enactment of P.L. 111-321, then-Undersecretary of Defense for Personnel and Readiness Clifford L. Stanley issued a memorandum (the Stanley Memorandum) instructing the review boards to grant requests to change narrative reasons for discharge, characterizations of discharge, and reentry codes for former servicemembers under the following conditions:

• the original discharge was based solely on DADT or a similar policy in place prior to the enactment of DADT and
• there are no aggravating factors in the record, such as misconduct.⁴²

The Stanley Memorandum also provides that the repeal of DADT should be a sufficient basis to support reconsideration of requests from applicants who were previously denied upgrades.

Ongoing congressional concern about DADT discharges led to a requirement in the FY2021 NDAA (P.L. 116-283, §525) for DOD to submit a report on the number of former servicemembers discharged due to their sexual orientation who applied for upgrades to their discharge characterizations. It further required DOD to report on discharge review decisions and the percentages granted and denied.⁴³

On September 20, 2023, DOD announced that it would proactively review military records of those separated due to sexual orientation who received discharges designated under less-than-honorable conditions.⁴⁴ DOD has since announced the completion of this proactive review.⁴⁵

COVID-19 Vaccine Refusal

Under the Biden Administration, on August 24, 2021, the Secretary of Defense issued a memorandum directing military department secretaries to "immediately begin full vaccination of all members of the Armed Forces under DoD authority … against COVID-19."⁴⁶ While this mandate was in place, many servicemembers who refused to get the vaccine were involuntarily separated from the military.⁴⁷ In response, Congress included a provision in the FY2023 NDAA (P.L. 117-263) that required the Secretary of Defense to "rescind the mandate that members of the Armed Forces be vaccinated against COVID-19."⁴⁸ On January 10, 2023, following the enactment of P.L. 117-263, the Secretary issued another memorandum rescinding the mandate.⁴⁹ In 2025, DOD estimated that while the mandate was in place, approximately 8,700 servicemembers were separated for failing to comply, and over 3,000 of them received a less than honorable discharge characterization.⁵⁰

On January 27, 2025, President Trump issued Executive Order 14184 to "make reinstatement available to all members of the military (active and reserve) who were discharged solely for refusal to receive the COVID-19 vaccine."⁵¹ Following the executive order, DOD officials published guidance directing the DRBs and BCMRs to "generally grant a discharge upgrade request" when a former servicemember was involuntarily separated based solely on refusal to be vaccinated for COVID-19.⁵²

In November 2025, VA issued a press release stating that, in September 2025, it "sent letters to Veterans who have already received upgraded discharges to inform them of their potential eligibility for GI Bill education benefits."⁵³

On December 6, 2025, the Secretary of Defense issued a memorandum directing "a proactive review of personnel records, to identify individuals who were involuntarily discharged solely for refusing to take the COVID-19 vaccine and facilitate appropriate discharge upgrades."⁵⁴ On December 10, 2025, the Under Secretary of Defense for Personnel and Readiness provided guidance on how to implement the proactive review.⁵⁵ An involuntarily discharged individual does not need to apply for a discharge upgrade. The guidance instructs the secretaries of the military departments to identify individuals eligible for review, refer their names to DRBs, and "ensure that the DRBs review and issue decisions to every individual identified as eligible … within one calendar year [of December 10, 2025] … and notify individuals who receive relief" in a timely manner on an ongoing basis.⁵⁶

Judicial Review of a Correction Board Decision

If a former servicemember is denied a request for a discharge upgrade or a correction to military records, the servicemember may seek judicial review of that decision in federal court.⁵⁷ Although the statutes related to DRB review and BCMR review are silent with regard to judicial review, a servicemember may seek review of a final agency action under the Administrative Procedure Act (P.L. 79-404).⁵⁸

Although judicial review is available, that review is limited in several respects. A court conducts review only on the administrative record—that is, it does not consider new evidence and makes a determination based solely on the record that was before the DRB or BCMR at the time of the board's decision.⁵⁹ Arguments not raised during the administrative adjudication before the correction board are waived, and the reviewing court does not consider them.⁶⁰ Further, the scope of review is generally "limited to determining whether a decision … is arbitrary, capricious, unsupported by substantial evidence, or contrary to applicable statutes and regulations."⁶¹ Such arbitrary and capricious review does not require the court to reevaluate the evidence but only to determine whether the board's conclusion is supported by substantial evidence.⁶² Thus, a court does not review the record to reach its own conclusion based on the presented facts but, instead, reviews only the board's decision to ensure that it is reasonable. Finally, courts employ a general principle that, in cases involving military personnel decisions, "the military is entitled to substantial deference in the governance of its affairs."⁶³

Despite the limited nature of judicial review, a court is to ensure that the board has applied the appropriate standards when considering a discharge upgrade request. For example, the U.S. Court of Appeals for the Ninth Circuit remanded a case back to the Army BCMR for failure to appropriately apply the "liberal consideration" standard to a former servicemember who suffered from PTSD.⁶⁴ In that case, the former servicemember sought an upgrade to his bad conduct discharge received as a sentence from a general court-martial.⁶⁵ The BCMR, in reviewing the case, accepted a psychologist's opinion that "PTSD does not cause the legal elements of the crime" for which the servicemember had been convicted and declined to upgrade the discharge status.⁶⁶ The court held that the "liberal consideration" standard requires a military correction board to consider the totality of circumstances surrounding the discharge—that is, "the Board is legally required to consider whether PTSD 'potentially contributed to' these 'circumstances,'" not just whether PTSD was the but-for cause of the crime leading to the discharge.⁶⁷ It further explained that "'[l]iberal consideration' requires the Board to resolve doubts" in the former servicemember's favor, and it remanded the case to the BCMR to apply the appropriate standard.⁶⁸

Similarly, courts have remanded cases to DRBs and BCMRs for failing to follow the appropriate procedures, such as failing to consider submitted evidence⁶⁹ or failing to provide adequate findings and conclusions⁷⁰ in the decision documents. As another example, in Jenkins v. Speer, the court remanded the BCMR's decision for failure to consider evidence provided by the former servicemember.⁷¹ The former servicemember argued before the BCMR that he had received inadequate legal counsel during his discharge from service, which led to him receiving an OTH discharge.⁷² In support of his claim, he submitted a letter he had received from his attorney from when he was being discharged from service.⁷³ The BCMR did not consider the letter and declined to upgrade his discharge.⁷⁴ The court remanded the case because the BCMR had failed to consider the potentially material evidence.⁷⁵

Service Criteria to Establish "Veteran" Status

VA benefits are available to former servicemembers (or certain survivors of former servicemembers) who can establish "veteran" status for VA purposes.⁷⁶ Title 38, Section 101(2), of the U.S. Code defines veteran as "a person who served in the active military, naval, air, or space service, and who was discharged or released therefrom under conditions other than dishonorable." Therefore, to qualify for VA benefits,⁷⁷ a former servicemember must (1) satisfy the active service requirement and (2) be discharged from service "under conditions other than dishonorable."⁷⁸ This section of the report discusses these eligibility requirements for VA benefits.

Active Service Requirement

First, to qualify as a "veteran" for VA purposes, a former servicemember must have "served in the active military, naval, air, or space service."⁷⁹ Therefore, former servicemembers must establish that they performed "active" service. For a former servicemember to establish veteran status, generally the individual must have completed active military service for a minimum period of time.⁸⁰ This period is usually the lesser of the full period the individual was ordered to active duty or 24 months, though there are certain exceptions.⁸¹ Figure 1 shows multiple pathways through which a servicemember may satisfy the active-duty service requirement.

Figure 1. Does the Individual Satisfy the Active-Duty Service Requirement? Applies to Former Servicemembers with Service that Began on or After September 8, 1980

Source: CRS, adapted from Section 2.3.2 of the National Veterans Legal Services Program's Veterans Benefits Manual 2023-2024. The minimum active-duty service requirement is housed at 38 U.S.C. §5303A (not to be confused with 38 U.S.C. §5303(a)) and 38 C.F.R. §3.12a (2022). Notes: AWOL = Absence without official leave; SM = Servicemember.

Character of Discharge Requirement

Second, to qualify as a "veteran" for VA purposes, a former servicemember must have been "discharged or released [from service] under conditions other than dishonorable."⁸² Therefore, VA must determine whether a former servicemember is eligible for benefits based on the circumstances that warranted the servicemember's character of discharge.⁸³ Congress and VA have established, respectively, statutory and regulatory bars to benefits that disqualify former servicemembers from receiving VA benefits due to their character of discharge.⁸⁴ If individuals are not barred from benefits pursuant to the statutes or regulations, they are considered to be discharged "under conditions other than dishonorable" and are generally eligible for benefits.⁸⁵ Table 2 summarizes these bars to benefits. There is a narrow exception to some of these bars to benefits: if VA determines that a former servicemember was insane⁸⁶ at the time of the offense that led to his or her discharge or release under dishonorable conditions, then that offense is not to serve as a bar to benefits.⁸⁷

Previously, "homosexual acts involving aggravated circumstances" served as a regulatory bar to benefits, but this bar was removed when VA finalized a rule change on April 26, 2024.⁸⁸ The removal of this bar did not change VA policy, as former servicemembers who were discharged strictly due to DADT had "been generally eligible for benefits" since the implementation of the DADT Repeal Act.⁸⁹

Character of Discharge Review in VA

Generally, VA presumes that a veteran with an honorable or general discharge is eligible for VA benefits and programs, and will not reexamine the service branch's discharge characterization if that individual is eligible for the benefits for which they are applying.⁹⁰ However, an individual with a less-than-honorable discharge may still be eligible for some VA benefits, even if he or she does not receive a discharge upgrade through the military correction boards. If an individual with a less-than-honorable discharge applies for benefits, VA is to look for additional service records to determine if the individual could qualify under another eligible period of service.⁹¹ If the individual has no other qualifying periods of service, VA is to conduct a character of discharge review to determine if the circumstances surrounding the former servicemember's discharge bars him or her from receiving benefits under statute or VA regulations. Figure 2 shows how an individual's military discharge status determines what factors VA considers in a discharge review, and how these factors determine whether VA considers an individual to meet the definition of a veteran under Title 38, Section 101(2) of the U.S. Code.

Figure 2. Does the Individual Meet the Veteran Status Requirement?

Source: CRS, adapted from RAND Corporation, "The Veterans Left Behind: Eligibility for Department of Veterans Affairs Benefits and Other Than Honorable Discharges," September 2024, page 9, Figure 1: Character-of-Discharge Determination and Benefits Eligibility, available at https://www.rand.org/content/dam/rand/pubs/perspectives/PEA1300/PEA1363-13/RAND_PEA1363-13.pdf.

When considering a veteran's character of service for a discharge review, VA assesses the veteran's entire period of military service. A dishonorable discharge during one period of service does not necessarily bar a veteran from receiving benefits based on a separate period of service that terminated under honorable or general conditions.⁹² VA may not need to perform a character of discharge review for a certain period of service if a veteran already has at least one other period of service with a discharge characterization that confers eligibility for the benefit sought.⁹³ In cases of multiple periods of service, VA uses the period of honorable service to establish eligibility for VA benefits.⁹⁴ VA's character of discharge review can take up to a year, but former servicemembers may apply for discharge upgrades from their service branches at the same time.⁹⁵

VA's review process cannot result in a discharge upgrade, as that can take place only through DRBs or BCMRs.⁹⁶ Through the review, VA determines that a veteran's record falls into one of three categories:

• 1. Honorable for VA Purposes. The evidence provided by a former servicemember supports a determination that the veteran's service was honorable for VA purposes. Such a determination establishes basic eligibility for all benefits administered by VA so long as all other requirements are met. VA accepts discharges that are characterized as honorable or general (under honorable conditions) as other than dishonorable for VA benefit purposes.⁹⁷
• 2. Health Care Eligible. Servicemembers who are not eligible for VA benefits may still qualify for VA health care if they meet the requirements in 38 U.S.C. §1710, "Hospital, Nursing Home, Domiciliary, and Medical Care."
• 3. Dishonorable for VA Benefits. A determination that the circumstances surrounding a former servicemember's discharge bar that individual from receiving any benefits or services provided by VA.

A claimant who is dissatisfied with VA's determination from the character of discharge review may appeal that decision through VA's appeal process.

VA Outreach Regarding Character of Discharge Review

In a press release on April 25, 2024, VA stated that it conducted "extensive outreach" to servicemembers with OTH and bad conduct discharges, "increasing the number who applied for VA care or benefits from approximately 1,700 in 2012 to more than 10,000 in 2023."⁹⁸ The 2024 press release also stated, "Over the past 10 years, VA's eligibility determination rate for these former service members has been 75%–meaning that VA provided care or benefits to 75% of them (57,000+ former service members)."⁹⁹

On October 2, 2024, VA proposed a rule to establish a pilot program to award grants to legal services providers to assist veterans to improve their characterization of service.¹⁰⁰ The comment period ended on December 2, 2024. As of April 15, 2026, VA has not published a final rule.¹⁰¹

Overview of Selected VA Benefits Affected by Character of Service

VA offers a wide range of benefits to veterans, many of which are affected by adverse character-of-service determinations. This section discusses several large VA benefit programs that are affected by a former servicemember's character of service: Disability Compensation, the Veterans Pension, and the Survivors Pension, which are administered by the Veterans Benefits Administration (VBA), and VA medical care, which is administered by the Veterans Health Administration (VHA).

For each of these programs, eligibility depends on veteran status.¹⁰² Veteran status is established by a former servicemember meeting two primary criteria:

• full-time active duty (other than active duty for training) military service (i.e., Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard),¹⁰³ and
• discharge or release from service under conditions other than dishonorable.

Disability Compensation

Disability Compensation is a monthly, tax-free benefit for veterans with service-connected disabilities, disabilities that were caused or aggravated by military service, or VA health care. VA assigns disability ratings based upon "the average impairments of earning capacity resulting from such injuries in civil occupations"¹⁰⁴ to provide veterans with an alternate source of income while they may be unable to work due to one or more service-connected conditions. Each disability is given a rating between 0% and 100% using the Veterans Affairs Schedule for Rating Disabilities, which is codified at 38 C.F.R. §§4.1–4.150. Ratings for individual disabilities are then combined using a table and rounded to the nearest 10%.¹⁰⁵ A veteran with a combined rating of at least 10% is eligible for Disability Compensation so long as he or she meets the character of discharge and active-duty requirements, as previously discussed.¹⁰⁶ A veteran with a combined rating of at least 30% may be eligible to receive increased payment amounts if the veteran has dependents (generally a spouse or children).¹⁰⁷

In FY2024, VA spent $152.50 billion on Disability Compensation for 5,992,967 beneficiaries.¹⁰⁸ The estimated average individual amount paid annually was $25,446.¹⁰⁹ To learn about other benefits for service-disabled veterans, see CRS Report R44837, Benefits for Service-Disabled Veterans.

Veterans Pension and Survivors Pension

Veterans must have been discharged other than dishonorably to qualify for the Veterans Pension. The Veterans Pension is a monthly, tax-free payment for certain eligible veterans who are 65 or older or have at least one nonservice-connected disability.¹¹⁰ Unlike with Disability Compensation, veterans are subject to a net worth limit¹¹¹ and must have served during a congressionally designated period of war to be eligible for the Veterans Pension.¹¹² Pension amounts are greater for veterans with more dependents and for veterans who require aid and attendance (such as in-home care).¹¹³ VA estimated that it paid an average individual amount of $14,486 to 137,817 Veterans Pension recipients in FY2024.¹¹⁴

When a veteran dies, his or her survivors may be eligible for the Survivors Pension, but only if the veteran was eligible to receive the Veterans Pension.¹¹⁵ Thus, a former servicemember's character of service affects a spouse's or other survivor's eligibility for a pension as well. VA estimated that it paid an average individual amount of $11,212 to 98,155 Survivors Pension recipients in FY2024.¹¹⁶ For more information on the Veterans and Survivors Pensions, see CRS Report R46511, Veterans Benefits Administration (VBA): Pension Programs, by Madeline E. Moreno.

Veterans' Health Care

VHA operates the nation's largest integrated direct health care delivery system. VHA provides care for approximately 9.1 million enrolled veterans¹¹⁷ at over 1,300 VA sites of care.¹¹⁸ VHA is primarily a direct provider of care—it owns the facilities and employs the clinicians. However, under certain circumstances, VA will pay for a veteran to receive care in the community.¹¹⁹ Generally, veterans are required to be enrolled in the VA health care system to obtain health care services.¹²⁰ Veterans who are enrolled have access to a comprehensive medical benefits package that includes a range of outpatient and inpatient services.¹²¹ Once enrolled, a veteran remains enrolled in the health care system and may access health care services at any VA medical facility.

Generally, after a veteran meets the basic eligibility criteria (active-duty status and discharge under conditions other than dishonorable), the veteran must qualify for enrollment based upon service-connected disability, income, and other factors, such as being a former prisoner of war or being awarded the Medal of Honor or Purple Heart.¹²² The veteran then may enroll in the VA health care system and utilize the standard medical benefits package.¹²³

In some circumstances, a former servicemember who does not receive an honorable or general discharge (under honorable conditions) may still be eligible to receive certain health care services from VHA, depending on certain character of discharge conditions. In the context of VA health care, an OTH discharge does not necessarily deprive a former servicemember of certain benefits. For example, a former servicemember with an OTH discharge for conduct that falls under a VA regulatory bar to benefits,¹²⁴ although ineligible for most VA health care, is still eligible for VA health care for a service-connected disability.¹²⁵ However, a former servicemember with a bad conduct discharge or an OTH discharge that serves as a statutory bar¹²⁶ for VA benefits would not be eligible for VA health care for that period of service.¹²⁷ A veteran with multiple periods of service may be eligible for VA health care services based on a prior period of other than dishonorable service.¹²⁸

Congress has created a number of exceptions with regard to discharge status and eligibility for VA health care for servicemembers. These exceptions relate primarily to mental health care: emergency mental health care under humanitarian care, presumption of mental illness or psychosis, special eligibility for those seeking mental health services, emergent suicide care, and military sexual trauma treatment and counselling. These exceptions are each described in the subsequent sections of this report.

Emergency Health Care Under Humanitarian Care Provisions

The Department of Veterans Affairs Health Care Programs Enhancement Act of 2001 (P.L. 107-135) provided the VA Secretary broad authority to furnish hospital care or medical services in emergency situations to any individuals, regardless of whether they meet the requirements for "veteran" status. This authority is generally referred to as the humanitarian care authority. Furthermore, the Jeff Miller and Richard Blumenthal Veterans Health Care and Benefits Improvement Act of 2016 (P.L. 114-315) requires VA emergency departments to, at minimum, screen individuals for medical emergencies. If a facility determines that a medical emergency exists, the individual is to be provided care with the intent of stabilizing the emergency condition.¹²⁹ The individual is generally billed for any emergency services provided.¹³⁰

A former servicemember with a bad conduct or dishonorable discharge who is in distress and in need of emergency mental health services may receive VA services under humanitarian care provisions.¹³¹ A former servicemember can access VA's system by calling the Veteran Crisis Line¹³² or visiting a VA emergency room, urgent care center, or veteran's center.

On March 7, 2017, during a hearing before the House Veterans' Affairs Committee, then-VA Secretary David Shulkin announced his intention to expand urgent mental health care services to former servicemembers with OTH discharges.¹³³ Under this initiative, effective July 5, 2017, a former servicemember with an OTH discharge with an urgent mental health need qualifies for a 90-day episode of care, which includes inpatient, residential, or outpatient care.¹³⁴ This initiative provides care beyond the requirement to stabilize the patient under humanitarian care provisions. During this 90-day period, VBA may have time to complete a character of discharge review determination and notify VHA of the former servicemember's discharge status. It also allows the chief medical officer of each Veterans Integrated Service Network¹³⁵ to authorize an additional 90 days of treatment on request.

Eligibility Based on Presumption of Mental Illness or Psychosis

Under two presumptions of eligibility—for psychosis¹³⁶ and mental illness other than psychosis—certain former servicemembers, including those with OTH administrative discharges, may qualify for free care for those conditions. Under the presumptive eligibility for psychosis, a former servicemember must have served on active duty during World War II, the Korean conflict, the Vietnam era, or the Persian Gulf War and developed an active psychosis (1) within two years after discharge from active duty and (2) before specific statutory dates associated with the war or conflict in which the servicemember served.¹³⁷

Under the presumptive eligibility for mental illness other than psychosis, a former servicemember must have served on active duty in the Persian Gulf War and developed an active mental illness other than psychosis (1) within two years after discharge and (2) before the end of the two-year period beginning on the last day of the Persian Gulf War.¹³⁸

Former servicemembers entitled to either of these presumptions do not have to meet the minimum active-duty service requirements and are not required to pay any copayments for the treatment of covered conditions.¹³⁹

Special Eligibility Provisions for Those Seeking Mental Health Care Services from VA

Section 258 of the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act of 2018 (P.L. 115-141, as amended by P.L. 115-182 and P.L. 115-251) authorized VA to provide initial mental health care assessments and subsequent mental health care or behavioral health care services to certain former servicemembers, including those who served in the reserve components and who meet the following criteria:

• Conditions of discharge. The individual served on active duty and was discharged or released under a condition that is less than honorable, but the individual did not receive a dishonorable discharge or discharge by court-martial (i.e., those with an honorable discharge, a dishonorable discharge, or a discharge by court-martial are not eligible for mental health care services under this special eligibility provision).
• Duration of service. The individual served for a period of more than 100 cumulative days.
• Conditions of service. The individual (1) was deployed in a theater of combat operations, in support of a contingency operation, or in an area at a time during which hostilities occurred, including by controlling an unmanned aerial vehicle from a location other than such theater or area, or (2) was the victim of a physical assault of a sexual nature, a battery of a sexual nature, or sexual harassment.
• Enrollment. The individual is not currently enrolled in VA's health care system.¹⁴⁰

An individual with an OTH administrative discharge who meets the above criteria does not need to enroll in VA's health care system, does not have to meet the minimum active-duty service requirements, and is not required to pay any copayments for mental and behavioral health care services included under VA's standard medical benefits package.¹⁴¹

Emergent Suicide Care

Section 201 of the Veterans Comprehensive Prevention, Access to Care, and Treatment Act of 2020 (P.L. 116-214) required the VA Secretary to provide emergent suicide care in a VA facility to a veteran experiencing an acute suicidal crisis or to pay for care in a non-VA facility or to reimburse the veteran for such care.¹⁴²

Individuals are eligible for emergent suicide care if they meet the statutory definition of veteran, discussed above,¹⁴³ or if they are former servicemembers, including for service in the Reserve components, who meet each of the following criteria:¹⁴⁴

• Conditions of discharge. The individual served on active duty and was discharged or released under a condition that is not honorable but is not a dishonorable discharge or a discharge by court-martial.
• Duration of service. The individual served for a period of more than 100 cumulative days.
• Conditions of service. The individual (1) was deployed in a theater of combat operations, in support of a contingency operation or in an area at a time during which hostilities occurred, including by controlling an unmanned aerial vehicle from a location other than such theater or area, or (2) was the victim of a physical assault of a sexual nature, a battery of a sexual nature, or sexual harassment.
• Enrollment. The individual is not currently enrolled in VA's health care system.

This provision authorizes VA to provide care for a period not to exceed 30 days on an inpatient basis or in a crisis residential care facility. If such care is unavailable or not clinically appropriate, VA must provide care on an outpatient basis for a period of no more than 90 days. After such time, if the Secretary determines that an individual remains in an acute suicidal crisis, the Secretary can extend the period of care as appropriate.¹⁴⁵

The Secretary may not impose any charges (i.e., no "cost sharing" or "out-of-pocket" costs) for emergent suicide care or emergency transportation.¹⁴⁶ However, VA can seek reimbursement from an individual's other health insurance if the individual receiving care has other coverage.¹⁴⁷

Military Sexual Trauma (MST) Treatment and Counseling

A specific exception exists regarding discharge status and eligibility for VA health care for former servicemembers who have experienced MST. According to statute, MST-related counseling and care must be provided to "former members of the Armed Forces who the [VA] Secretary determines require such counseling and care and services to treat a condition, which in the judgment of a health care professional employed by the Department, resulted from a physical assault of a sexual nature, battery of a sexual nature, or sexual harassment which occurred while the former member of the Armed Forces was serving on duty, regardless of duty status or line of duty determination.''¹⁴⁸ Furthermore, sexual harassment is defined as ''unsolicited verbal or physical contact of a sexual nature which is threatening in character.''¹⁴⁹

A former servicemember is not required to be enrolled in VA's health care system to receive MST-related counseling and care.¹⁵⁰ In addition, an individual does not need to have a VA service-connected disability rating or other documentation that the MST experience occurred to receive VA health care services.¹⁵¹ All VA health care services (inpatient, outpatient, and pharmaceutical services) for physical and mental health conditions related to experiences of MST are provided at no cost to eligible individuals.¹⁵²

Medical Care Tentatively Approved on Prima Facie Evidence

In some cases, VHA can provide treatment to a former servicemember, even if his or her character of discharge is at issue, based on prima facie eligibility. This situation typically arises when a former servicemember has recently been discharged from service (i.e., within six months) and seeks care at a VHA facility but does not yet have an established service-connected disability. VHA can provide care if in the "application of sound medical judgment" VHA tentatively determines that the condition "originated in, or was aggravated during, service."¹⁵³ If VHA initially authorizes treatment based on prima facie eligibility, VHA prepares VA Form 10-7131, Exchange of Beneficiary Information and Request for Administrative and Adjudicative Action, annotates it with "Medical care being authorized for (condition) on prima facie evidence of eligibility," and forwards the completed form (along with a copy of the VA examination, hospital report, or outpatient treatment report, as applicable) to the Veterans Service Center of the VBA office with jurisdiction over the servicemember's claims.¹⁵⁴ Upon receipt of VA Form 10-7131, the center is to determine if the claimant's character of discharge is favorable or if the claimant is otherwise eligible for VA health care services and return the completed form to VHA.¹⁵⁵

Appealing a VA Character of Discharge Decision

If a claimant disagrees with an initial decision of a VA agency of original jurisdiction (AOJ) (e.g., a regional office, medical center, or other VA entity) on a claim for benefits or reimbursement, the claimant may appeal it.¹⁵⁶ This right to appeal includes appealing a VA decision finding a claimant ineligible for benefits due to the claimant's character of discharge determination from VA.¹⁵⁷ This section of the report briefly outlines the appeal process for VA decisions under the Veterans Appeals Improvement and Modernization Act of 2017 (AMA; P.L. 115-55).¹⁵⁸

The AMA provides three avenues for review of an AOJ decision: (1) requesting higher-level review from a more experienced adjudicator within the AOJ, (2) filing a supplemental claim with new evidence at the AOJ, or (3) appealing to the Board of Veterans' Appeals (BVA).¹⁵⁹ Each of these options is discussed in further detail below.

The AMA provides that a claimant may seek an unlimited number of reviews and, so long as each subsequent appeal is filed within one year of the most recent decision, keep the original claim's effective date.¹⁶⁰ Therefore, requesting higher-level review or filing a supplemental claim does not preclude a claimant from seeking BVA review of the resulting VA decision.¹⁶¹ A claimant may also seek judicial review of a BVA decision.¹⁶²

Higher-Level Review

The first option for seeking review of an adverse decision from an AOJ is requesting higher-level review of the initial determination.¹⁶³ To elect higher-level review, the claimant must submit a completed Decision Review Request: Higher-Level Review form (VA Form 20-0996) within one year from the date the AOJ issued the initial decision.¹⁶⁴ This review is "conducted by an experienced adjudicator" within VA who did not participate in the AOJ's initial decision.¹⁶⁵

Review is conducted on the record as it existed at the time of the AOJ's initial decision.¹⁶⁶ The claimant is not permitted to submit additional evidence for consideration, and the higher-level adjudicator may not require the AOJ to develop evidence unless the adjudicator finds that the AOJ failed to comply with its obligations under VA's "duty to assist" claimants.¹⁶⁷ The higher-level adjudicator reviews the record de novo, giving no weight to the determinations made by the AOJ—except that the higher-level adjudicator is bound by all AOJ findings that are favorable to the claimant unless a finding is the result of a clear and unmistakable error.¹⁶⁸

A claimant is not entitled to a hearing when seeking higher-level review of an AOJ decision, but the claimant can request an "informal conference" with the higher-level adjudicator.¹⁶⁹ Typically, these informal conferences do not occur in person.¹⁷⁰ The informal conference provides the claimant, or the claimant's representative, the opportunity to make arguments regarding alleged errors of fact or law present in the initial decision but does not provide the opportunity to provide testimony as to new facts or evidence to be considered on the record.¹⁷¹ As discussed above, the decision is made on the factual record developed at the time the AOJ made the initial decision.

When the higher-level adjudicator reaches a determination on the claim, VA sends a detailed notice of the decision to the claimant,¹⁷² which must include information on any evidence that was not considered because it was submitted after the AOJ's determination on the claim.¹⁷³ That notice must also advise what steps the claimant may take to have that evidence considered.¹⁷⁴ If the claimant is still dissatisfied with the decision, the claimant may file a supplemental claim or appeal to the BVA.¹⁷⁵

Supplemental Claim

The second option for a claimant that has received an adverse decision from an AOJ is filing a supplemental claim.¹⁷⁶ A claimant must support the supplemental claim with "new and relevant evidence."¹⁷⁷ For evidence to be "new," it must not have been previously in the claim record considered by VA.¹⁷⁸ New evidence is "relevant" if it "tends to prove or disprove a matter in issue" or if it "raises a theory of entitlement that was not previously addressed."¹⁷⁹ VA's duty to assist applies to a supplemental claim,¹⁸⁰ and VA is required to make reasonable efforts to obtain the evidence necessary to substantiate the claim on behalf of the claimant.¹⁸¹

The option to file a supplemental claim is available to a claimant following any VA denial of a claim, including following an AOJ initial determination, higher-level review, BVA review, judicial review, or review of a previously filed supplemental claim.¹⁸² A supplemental claim may even be filed years after the denial of the initial claim.¹⁸³ However, if the supplemental claim is received within one year of the previous denial of the most recent claim, that initial claim is considered to be "continuously pursued," and the claimant retains the initial claim's effective date—typically, the original date of the claim—if the supplemental claim is ultimately granted.¹⁸⁴ Therefore, if the claimant is able to provide new and relevant evidence related to the claim after each subsequent denial, a claimant can potentially keep the original effective date of a claim until it is ultimately granted.

VA evaluates the previously provided evidence along with the newly submitted evidence to reach a new determination on the claim.¹⁸⁵ Once VA reaches a decision, it provides notice to the claimant and the claimant's representative detailing how the agency reached its conclusion.¹⁸⁶ If the claimant is dissatisfied with VA's decision, the claimant may seek higher-level review of that decision, appeal to the BVA, or submit another supplemental claim.¹⁸⁷

Board of Veterans' Appeals

The BVA is a distinct entity located within VA that "conduct[s] hearings and consider[s] and dispose[s] of appeals properly before the Board in a timely manner."¹⁸⁸ It has jurisdiction to review "all questions of law and fact necessary to a decision by the Secretary of [VA] under a law that affects the provision of benefits by the Secretary to veterans or their dependents or survivors."¹⁸⁹ Members of the BVA—also known as veterans law judges (VLJs)—are the adjudicators who make decisions on appeals to the BVA.¹⁹⁰ A final BVA decision is considered the final decision of the VA Secretary on the issue.¹⁹¹

To elect BVA review, a claimant must file a notice of disagreement using VA Form 10182 with the BVA within one year of an AOJ's decision (including an initial decision, higher-level review, or a decision on a supplemental claim).¹⁹² A claimant must select one of three review options available at the BVA: (1) the direct review docket, (2) the new evidence docket, or (3) the hearing docket.¹⁹³ The docket selected affects the claimant's procedural rights before the BVA and the time it takes for the BVA to reach a final decision on the appealed issue.

In all of these dockets, the BVA generally reviews the record de novo, meaning the assigned VLJ looks at the claim anew and does not accord any weight to the AOJ's conclusions.¹⁹⁴ There is one exception to the BVA's de novo review: the BVA is bound by all AOJ findings that are favorable to the claimant unless a finding is the result of a clear and unmistakable error.¹⁹⁵ The proceedings are non-adversarial—that is, there is no party that argues against the claimant.¹⁹⁶ Nonetheless, a claimant may elect to be represented before the BVA by an attorney, a claims agent, or a representative of a recognized veterans' service organization.¹⁹⁷ The representative must be accredited by VA to represent a claimant.¹⁹⁸

Each docket has different rules for the presentation of new evidence or the availability of a hearing before the VLJ. Under direct review, the VLJ reviews the decision based solely on the record evidence that existed when the AOJ made the initial determination.¹⁹⁹ There is no opportunity to submit additional evidence or have a hearing with the VLJ.²⁰⁰

If a claimant elects the new evidence docket, the claimant may submit additional supporting evidence with the notice of disagreement or within 90 days after submitting the notice.²⁰¹ There is no opportunity for a hearing, and the VLJ reviews the newly submitted evidence along with the evidence on which the original AOJ decision was based.

Only the hearing docket permits a claimant to schedule a hearing with a VLJ.²⁰² The claimant can elect to attend the hearing (1) in person at the BVA's office in Washington, DC; (2) virtually from a VA facility; or (3) virtually from a personal internet-connected device.²⁰³ Hearings are informal, and the claimant or the claimant's representative can provide testimony and argument. The claimant can submit additional evidence at the hearing and within 90 days following the hearing.²⁰⁴ The VLJ reviews the record evidence that was before the AOJ, the testimony and arguments from the hearing, and any additional evidence submitted.

When review is complete, the BVA grants, denies, or remands the claim to the AOJ for further development.²⁰⁵ The BVA's decision must include a written explanation of its findings and conclusions on all issues of fact and law presented in the claim.²⁰⁶ If the claimant disagrees with the BVA's decision, the claimant may continue the claim within VA by filing a supplemental claim with new and relevant evidence or seek judicial review of the BVA decision.²⁰⁷

Judicial Review of BVA Decisions

Three courts can review BVA decisions. First, a claimant who disagrees with a BVA decision can appeal that decision to the U.S. Court of Appeals for Veterans Claims (CAVC).²⁰⁸ Second, any party can appeal a CAVC decision to the U.S. Court of Appeals for the Federal Circuit.²⁰⁹ Finally, parties can seek review of Federal Circuit decisions by the U.S. Supreme Court.²¹⁰ Unlike proceedings at the BVA, judicial review of a VA decision is adversarial in nature—that is, VA may argue against the claimant and defend the BVA's determinations as correct.

U.S. Court of Appeals for Veterans Claims

If a claimant is not satisfied with BVA's decision, the claimant may appeal the decision to the CAVC,²¹¹ an Article I court with exclusive jurisdiction over appeals from the BVA.²¹² To appeal a BVA decision, a claimant must file a notice of appeal with the CAVC within 120 days after the date the BVA mailed notice of the decision to the claimant.²¹³

The CAVC's review of BVA decisions is limited in scope. The CAVC is permitted to review findings of fact only for clear error and is generally prohibited from making factual findings in the first instance.²¹⁴ The CAVC reviews questions of law de novo, and it must also consider whether the BVA acted arbitrarily, contrary to the Constitution, in excess of statutory authority, or without following proper procedures.²¹⁵

U.S. Court of Appeals for the Federal Circuit and the U.S. Supreme Court

If a claimant or the government is dissatisfied with the CAVC's determination, either party may appeal the decision to the Federal Circuit.²¹⁶ The Federal Circuit provides the last appeal of right for decisions on VA benefits, but the scope of the court's review is limited. The Federal Circuit is authorized to decide all questions of law, including statutory and constitutional interpretation, and can set aside regulations (or interpretations thereof) that are arbitrary or capricious, unconstitutional, in excess of statutory jurisdiction, or procedurally deficient.²¹⁷ The Federal Circuit is not permitted to review any challenge to a factual determination or a "challenge to a law or regulation as applied to the facts of a particular case."²¹⁸

Finally, if either party disagrees with the Federal Circuit's decision, the party may petition the Supreme Court for certiorari. Parties do not, however, have a right to Supreme Court review. If the Supreme Court grants certiorari and hears the case, its decision is final.

Considerations for Congress

Congress has long taken an interest in character of service and character of discharge determinations, as discharge status can have implications for former servicemembers' and their families' financial situations, standing in their communities, and physical and mental health.²¹⁹ On June 25, 2024, VA's rule change to 38 C.F.R. §3.12 took effect, which brought renewed congressional interest in discharge status characterizations. The rule change removed a regulation that barred servicemembers who were discharged due to "homosexual acts" from receiving benefits. The change also created "compelling circumstances" exceptions for two preexisting regulatory bars for offenses involving "moral turpitude" or "willful and persistent misconduct." The removal of the "homosexual acts" bar did not change VA policy. However, as a result of the other modifications included in this rule change, former servicemembers who were previously ineligible for VA benefits may now be eligible.

Congress may consider how to ensure that those who apply for discharge upgrades through the Armed Forces or VA character of discharge reviews are being evaluated fairly and according to the same standards. A July 2025 Government Accountability Office (GAO) report found that military boards inconsistently applied DOD's guidance to give "liberal consideration" to applicants with mental health conditions and applicants who experienced sexual harassment or assault.²²⁰ This resulted in servicemembers with similar applications for discharge upgrades experiencing different outcomes based solely on how the military board (of the branch with which a servicemember served) interpreted DOD guidance. Using data from cases closed between January 2018 and March 2024, GAO found that "rates of discharge upgrades granted ranged from 18 to 49 percent among the boards."²²¹ GAO issued nine recommendations for DOD, including that DOD update the "liberal consideration" guidance and communicate the estimated adjudication time frames with applicants.

Another area of consideration is how an influx in new benefits claims might affect VA's current spending and future budgetary needs. With Disability Compensation spending increasing due, in part, to the influx of claims filed after the passage of P.L. 117-168 (commonly known as the PACT Act) in 2022,²²² there has been concern about how much it will cost to continue expanding benefits to more veterans.²²³ In the FY2026 budget submission, VA noted that the number of veterans receiving Disability Compensation had grown 78% over 13 years, "from 3.3 million in 2011 to 5.8 million in 2024."²²⁴ VA estimates that it will disburse $181,235,708 in Disability Compensation benefits to 6,151,003 beneficiaries by the end of 2025.²²⁵

In the future, Congress may consider ways to expand or limit eligibility for some or all VA benefits. One option could be to amend the statutory bars to benefits discussed in this report. Another option could be to alter the definition of veteran for VA purposes and character of service determinations. A third possibility could be to change the eligibility requirements for a particular benefit, as Congress did to allow certain former servicemembers with OTH discharges to access emergent suicide care.

Appendix A. Table of Common Abbreviations

Appendix B. Additional CRS Resources

• CRS Report R47299, U.S. Department of Veterans Affairs: Who Is a Veteran?
• CRS Report R46511, Veterans Benefits Administration (VBA): Pension Programs
• CRS Report R44837, Benefits for Service-Disabled Veterans²²⁶
• CRS Report RL34024, Veterans and Homelessness
• CRS Report R42504, VA Housing: Guaranteed Loans, Direct Loans, and Specially Adapted Housing Grants
• CRS In Focus IF10555, Introduction to Veterans Health Care
• CRS Report R42747, Health Care for Veterans: Answers to Frequently Asked Questions
• CRS In Focus IF11886, Veteran Suicide Prevention
• CRS Report R46813, Department of Veterans Affairs: Burial Benefits and the National Cemetery Administration
• CRS Report R40757, Veterans' Benefits: Dependency and Indemnity Compensation (DIC) for Survivors
• CRS Report R42785, Veterans' Educational Assistance Programs and Benefits: A Primer

Research Librarian Tamar Breslauer and Research Assistant Joe Angert contributed to this report. Mari Lee and Jamie Bush, CRS Visual Information Specialists, prepared the figures in this report.

Footnotes