In June 2025, the US Supreme Court ruled unanimously in favor of veterans who seek combat-related disability pay. The case struck down a law the federal government used to limit veterans’ retroactive pay to six years. 

The ruling opens the door for approximately 9,000 veterans to receive retroactive benefits.

Facts and Arguments in the Case

The case was a class-action lawsuit representing approximately 9,000 medically retired service members. At issue was the Defense Department’s interpretation of a law that governs how veterans receive disability compensation for combat-related injuries.

The Defense Department interpreted the law to set a time limit of six years on the payment of benefits. The affected veterans, however, argued that the six-year time limit was not meant to be applied to combat-related special compensation.

The case focuses on the experiences of its lead plaintiff, retired Cpl. Simon Soto. Soto served as a Marine Corps mortuary affairs specialist before his medical retirement. Enlisting in the Marine Corps in 2000, Soto served two tours in Iraq before taking medical retirement in 2006. 

Soto received disability compensation in 2009. He applied for retroactive combat-related special compensation (CRSC) in 2016. However, the Navy only paid retroactive benefits to 2010, since its interpretation of the law cut off benefits after six years. 

Soto’s attorneys argue that Soto should have received back pay to January 2008. That’s the date on which Congress extended combat compensation to veterans who served fewer than 20 years. 

The Supreme Court’s Ruling 

The case first appeared in the U.S. District Court for the Southern District of Texas in 2017. There, the court ruled in favor of Soto and similarly-situated plaintiffs. The Southern District of Texas ordered the government to pay all eligible veterans up to $10,000 in additional retroactive CRSC benefits.  

However, the Federal Circuit Court of appeals sided with the Department of Defense. The US Supreme Court accepted the case to settle the disagreement between lower courts. 

At the Supreme Court, arguments focused on the impact of a law called the Barring Act. The Barring Act sets a six-year time limit for veterans to file compensation claims. The six years begins to run when veterans receive a disability ratings decision from the Department of Veterans Affairs (VA). 

The Department of Defense argues that the Barring Act’s six-year deadline applies to combat-related special compensation decisions, just as it applies to other compensation decisions. Attorneys for Soto and the other plaintiffs argue that the combat-related special compensation law is separate from the Barring Act. Since the CRSC law doesn’t include a time limit, they argue, no time limit should apply.

The Supreme Court, in a unanimous decision, agreed with the plaintiffs. The Court held that the Barring Act does not apply to the law that establishes combat-related special compensation. 

“The Federal Circuit erred by imposing undue requirements on Congress’ ability to confer settlement authority and by disregarding the statute’s plain text,” the opinion states. 

The case is Soto v. United States. Justice Clarence Thomas wrote the majority opinion.

Impacts for Veterans

Approximately 9,000 veterans are currently in Soto’s shoes: They are owed more than six years of combat-related special compensation, yet they have received six years or less of benefits. 

The ruling requires the Defense Department to compensate affected plaintiffs up to $10,000 for back benefits. Soto v. United States includes the class of veterans who are owed $10,000 or less. For these veterans, benefits will now backdate to January 2008, when Congress extended CRSC benefits to those with fewer than 20 years of military service. 

A related case, Paige v. United States, represents veterans who are owed more than $10,000 in retroactive CRSC benefits. That case was placed on hold until the Court could decide Soto v. United States. It is likely that those represented in Paige will also receive access to the retroactive benefits they have been denied to date. 

Navigating veterans’ benefits laws can be tough. It’s even more challenging when you’re dealing with a service-related disability. When issues arise over the interpretation of laws or rules, the fight becomes even tougher. 

You fought for the United States. Now, you deserve an attorney who will fight for you. 

If you believe this new ruling may affect you, speak to an experienced Tampa veterans disability attorney today. Attorney David W. Magann can answer your questions and help you seek any compensation you are owed.