H.R. 9135

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9135 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9135

To amend title 38, United States Code, to codify the authority of the 
Department of Veterans Affairs to provide disability compensation based 
on individual unemployability, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 3, 2026

Mr. Self introduced the following bill; which was referred to the 
Committee on Veterans' Affairs

_______________________________________________________________________

A BILL

To amend title 38, United States Code, to codify the authority of the 
Department of Veterans Affairs to provide disability compensation based 
on individual unemployability, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Total Disability based on Individual 
Unemployability Reform Act of 2026'' or the ``TDIU Reform Act of 
2026''.

SEC. 2. CODIFICATION OF DEPARTMENT OF VETERANS AFFAIRS PAYMENT OF 
DISABILITY COMPENSATION BASED ON INDIVIDUAL 
UNEMPLOYABILITY.

(a) In General.--Chapter 11 of title 38, United States Code, is 
amended--
(1) by redesignating the second section 1167 (relating to 
mental health consultations) as section 1169; and
(2) by inserting after such section 1169, as so 
redesignated, the following new section:
``Sec. 1170. Individual unemployability
``(a) In General.--In the case of a veteran described in subsection 
(b), the Secretary may assign to the veteran a disability rating of 
total if the Secretary determines that the veteran is unable to secure 
or follow a substantially gainful occupation as a result of a service-
connected disability or combination of service-connected disabilities.
``(b) Eligible Veterans.--(1) A veteran described in this 
subsection is a veteran who has--
``(A) one service-connected disability rated at 60 percent 
or more; or
``(B) two or more service-connected disabilities, of 
which--
``(i) one disability is rated at 40 percent or 
more; and
``(ii) the other disability or disabilities bring 
the combined rating to 70 percent or more.
``(2) For purposes of a disability under paragraph (1)(A) or 
(B)(i), each of the following will be considered as one disability:
``(A) Disabilities of one or both upper extremities, or of 
one or both lower extremities, including the bilateral factor, 
if applicable.
``(B) Disabilities resulting from common etiology or a 
single accident.
``(C) Disabilities affecting a single body system, for 
example, orthopedic, digestive, respiratory, cardiovascular-
renal, or neuropsychiatric.
``(D) Multiple injuries incurred in action.
``(E) Multiple disabilities incurred as a prisoner of war.
``(3) In determining whether a veteran is eligible under this 
subsection, the Secretary shall disregard the existence or degree of 
any non-service-connected disabilities or previous unemployability 
status of the veteran.
``(c) Treatment of Other Veterans.--(1) In the case of a veteran 
who a rating board determines is unable to secure and follow a 
substantially gainful occupation by reason of one or more service-
connected disabilities but who is not eligible under subsection (b), 
the rating board shall submit to the Director of Compensation Service a 
full statement of--
``(A) the service-connected disability or disabilities of 
the veteran;
``(B) the employment history of the veteran;
``(C) the educational and vocational attainment of the 
veteran; and
``(D) any other factor the rating board determines 
relevant.
``(2) The Director of Compensation Services shall evaluate each 
statement submitted under paragraph (1) and make a determination with 
respect to the individual unemployability of the veteran.
``(d) Limitation.--(1) Compensation under this chapter based on 
individual unemployability may not be paid to a veteran aged 67 or 
older.
``(2) The limitation under paragraph (1) shall apply with respect 
to a veteran who first received compensation for individual 
unemployability on or after December 31, 2026.
``(e) Marginal Employment.--(1) For purposes of this section, 
marginal employment shall not be considered a substantially gainful 
occupation.
``(2) In this section, the term `marginal employment' means, with 
respect to a veteran, that--
``(A) the earned annual income of the veteran does not 
exceed the amount established by the U.S. Department of 
Commerce, Bureau of the Census, as the poverty threshold for 
one person; or
``(B) the earned annual income of the veteran exceeds the 
poverty threshold for one person and the Secretary determines 
based on the nature of the employment and, if applicable, the 
reason for the veteran's termination, that the employment is 
marginal, including in cases of employment in a protected 
environment such as a family business or sheltered workshop.''.
(b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended--
(1) by redesignating the second item relating to section 
1167 (relating to mental health consultations) as relating to 
section 1169 and moving the item to appear after the item 
relating to section 1168; and
(2) by inserting after such item 1169 the following new 
item:

``1170. Individual unemployability.''.
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