Purple Heart Freedom to Work

Summary#

This bill changes how Social Security disability benefits work for people whose disability is tied to an injury that earned them the Purple Heart. It adds a rule saying those individuals are treated as continuing to be entitled to their monthly disability benefit without regard to the usual termination month. However, the monthly payment can be reduced based on the person’s earnings: the benefit is cut by $1 for each $4 that monthly earnings exceed the amount that shows the person can do substantial gainful activity. The benefit cannot be reduced below $0. If a related retirement or old-age benefit (section 202) is payable and the disability benefit is reduced, the retirement benefit is reduced by the same proportion. The bill also changes the rule that sets a higher substantial gainful activity (SGA) earnings amount for certain people who are blind so that it also applies to Purple Heart recipients whose disability is from a Purple Heart injury. The changes take effect for benefits payable for months beginning 6 months after the date the bill becomes law. The bill was introduced on January 15, 2026, and referred to the House Committee on Ways and Means.

What it means for you#

• If you received a Purple Heart and your Social Security disability is tied to that injury, this bill would let you keep being treated as eligible for monthly disability payments even if you start working.
• Your monthly benefit could be reduced based on a formula: $1 off the benefit for every $4 your monthly earnings are above the amount that shows you can do substantial gainful activity.
• Your benefit cannot go below $0.
• If you also get an old-age or retirement benefit tied to the same wages, that benefit would be reduced by the same proportion when the disability benefit is reduced.
• The bill also raises the earnings threshold considered for substantial gainful activity (the higher SGA amount) for these Purple Heart recipients, similar to a rule that already exists for people who are blind.
• The rules would apply starting with benefits for months that begin 6 months after the bill becomes law.

Expenses#

No publicly available information on estimated costs or budget effects is included in the bill text or metadata provided.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.