How Incarceration Affects Eligibility for VA Benefits

VA can pay certain benefits to Veterans who are incarcerated in a Federal, State, or local penal institution; however, the amount depends on the type of benefit and reason for incarceration. This information was taken from the VA website.

• Disability Compensation
  • VA disability compensation payments are reduced if a Veteran is convicted of a felony and imprisoned for more than 60 days. Veterans rated 20 percent or more are limited to the 10 percent disability rate. For a Veteran whose disability rating is 10 percent, the payment is reduced by one-half. Once a Veteran is released from prison, compensation payments may be reinstated based upon the severity of the service connected disability(ies) at that time. Payments are not reduced for recipients participating in work release programs, residing in halfway houses (also known as “residential re-entry centers”), or under community control. The amount of any increased compensation awarded to an incarcerated Veteran that results from other than a statutory rate increase may be subject to reduction due to incarceration.
• Pension
  • Veterans in receipt of VA pension will have payments terminated effective the 61st day after imprisonment in a Federal, State, or local penal institution for conviction of a felony or misdemeanor. Payments may be resumed upon release from prison if the Veteran meets VA eligibility requirements. Failure to notify VA of a Veteran’s incarceration could result in the loss of all financial benefits until the overpayment is recovered.
• Apportionment to Spouse or Children
  • All or part of the compensation not paid to an incarcerated Veteran may be apportioned to the Veteran’s spouse, child or children, and dependent parents on the basis of individual need. In determining individual need, consideration shall be given to such factors as the claimant’s income and living expenses, the amount of compensation available to be apportioned, the needs and living expenses of other claimants as well as any special needs, if any, of all claimants.

• Additional Information:
  • No apportionment may be made to or on behalf of any person who is incarcerated in a Federal, State, or local penal institution for conviction of a felony.
  • An apportionment of an incarcerated Veteran’s VA benefits is not granted automatically to the Veteran’s dependents. The dependent(s) must file a claim for an apportionment.
  • Health Care for Re-entry Veterans (HCRV) Program is designed to help incarcerated Veterans successfully reintegrate back into the community after their release. A critical part of HCRV is providing information to Veterans while they are incarcerated, so they can plan for re-entry themselves.
  • Each VA Regional Office has a Homeless Veterans Outreach Coordinator who assists justice-involved Veterans. They are a direct point of contact for you to learn more about what benefits you qualify for, assist you with applying for those benefits, and refer you to other organizations and resources that will help you with your specific needs.
• Educational Benefits
  • Beneficiaries incarcerated for other than a felony can receive full monthly benefits, if otherwise entitled. Convicted felons residing in halfway houses (also known as “residential re-entry centers”), or participating in work-release programs also can receive full monthly benefits.
  • Claimants incarcerated for a felony conviction can be paid only the costs of tuition, fees, and necessary books, equipment, and supplies. VA cannot make payments for tuition, fees, books, equipment, or supplies if another Federal State or local program pays these costs in full.
  • If another government program pays only a part of the cost of tuition, fees, books, equipment, or supplies, VA can authorize the incarcerated claimant payment for the remaining part of the costs.