Grayson Bill Fights "Widow's Tax" by Extending Benefits for Veterans' Widows/Widowers for Five Years

Congressman Alan Grayson (D-FL09) has introduced a bill in the House of Representatives that will guarantee that thousands of widows and widowers of veterans continue to receive an important benefit that is due to expire next year.

Rep. Grayson's H.R. 4519, cosponsored by members of both parties, extends the Special Survivor Indemnity Allowance (SSIA) for another five years. The SSIA provides funds for approximately 60,000 widows and widowers who receive both the Survivor Benefit Plan (SBP) and Dependency Indemnity Compensation (DIC). Unless Congress acts to extend this allowance, the SSIA will expire on October 1, 2017.

SBP is a program, similar to life insurance, which provides funds for surviving spouses of service members who pay the premiums and are killed on active duty, or who die from a service-connected condition after retirement. DIC is a Veterans Administration benefit paid to survivors of veterans who die from injuries or disease incurred in the line of duty.

Current law reduces SBP benefit payments by the amount of the DIC payments. This subtraction of DIC payments can wipe out most or all of the SBP entitlement. (This is known as the "Widow's Tax.") Recognizing this, Congress established SSIA in 2008 to restore some or all of the benefit cut faced by surviving spouses. The current SSIA pays surviving spouses $275 a month in fiscal year 2016, and $310 a month in FY 2017. Congressman Grayson's bipartisan bill will extend the SSIA until 2022.

"The SSIA helps the families of our troops who die in service, or as a result of their service. How can we even contemplate allowing a program like that to terminate?" Congressman Grayson said. "We need to ensure that everyone who answers the call of duty knows, and knows well, that if he or she cannot make it home, then our nation stands with the bereaved families, and our loyalty to them will never expire."

29 Veterans Service Organizations have given their support for this bill, including the VFW, Iraq and Afghanistan Veterans of America, Vietnam Veterans of America, and Associations of the US Army and US Navy (see full list below).

"The Veterans of Foreign Wars (VFW) thanks the congressman for extending the authorization, and hopes this initiative will finally lead to the total elimination of the SBP/DIC offset," said Joe Davis, VFW spokesman.

"Supporting our men and women in uniform includes supporting their families," said Matt Miller, Chief Policy Officer for Iraq and Afghanistan Veterans of America (IAVA). "IAVA applauds Rep. Grayson for stepping up and having the backs of survivors of those who served by addressing an issue of fundamental fairness. Families suffer enough when they lose a loved one; it shouldn't be compounded by unfair financial hardships."

"AMVETS strongly supports the extension, and increase, of the Special Survivors Indemnity Allowance (SSIA) to help mitigate the negative effects of the unjust SBP/DIC offset, as outlined in Rep. Grayson's H.R. 4519," said Diane Zumatto, National Legislative Director for AMVETS. "Survivors whose spouses thoughtfully and voluntarily contributed to the SBP should not be penalized by having their DIC benefits offset."

"Vietnam Veterans of America (VVA) strongly supports the five-year extension of SSIA, and believes that it should be made permanent. The deduction of DIC from survivors' benefits plans has always been an unjust tax on widows. It is time to end the Widows Tax forever!" said John Rowan, National President VVA.

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