A unanimous ruling by the Supreme Court is clearing the way for thousands of medically retired U.S. service members to receive expanded combat-related compensation without being blocked by filing deadlines.
According to Military.com, in a 9-0 decision Thursday, the high court concluded that thousands of veterans like Simon Soto can claim additional retroactive benefits because a six-year legal time limit does not apply to combat-related special compensation (CRSC).
The case centered around Simon Soto, a former Marine who enlisted in 2000 and completed two combat tours in Iraq working in mortuary affairs. Soto was medically retired in 2006 due to post-traumatic stress disorder linked to his service. He later received Veterans Affairs disability compensation in 2009.
Soto applied for CRSC in 2016, a program that provides tax-free payments to certain combat-injured military retirees. While his application was approved, payments were only retroactive to July 2010, citing a six-year limit imposed by the Barring Act. The federal government maintained that the Barring Act, which limits financial claims against the government to six years, applied to CRSC determinations. Soto and his legal team contested this interpretation, arguing that the CRSC statute does not reference the Barring Act’s constraints.
Supreme Court Decision Overrides Lower Court
Justice Clarence Thomas delivered the court’s opinion, writing that the U.S. Court of Appeals for the Federal Circuit wrongly added legal hurdles not outlined in the CRSC statute. The opinion stated that Congress did not impose those barriers, and the court should not have introduced them.
Following the ruling, Soto becomes eligible for CRSC payments backdated to January 2008, the point at which Congress expanded CRSC to cover service members medically retired with under 20 years of service. His legal challenge was filed as a class-action suit, representing thousands of similarly situated veterans. About 9,000 veterans are expected to be directly affected by the decision. Legal experts estimate that each eligible service member may receive up to $10,000 in retroactive payments.
Wider Legal Impact and Future Actions
The impact of the ruling extends beyond the Soto case. A related class-action lawsuit, Paige v. USA, which had been paused pending this outcome, might now resume. Veterans in the Paige group may be owed even larger sums, potentially exceeding $10,000 each.
Law firm Sidley Austin LLP and the National Veterans Legal Services Program (NVLSP) provided pro bono legal support for the plaintiffs. Renee Burbank, director of litigation at the NVLSP, emphasized that the unanimous ruling leaves no room for further government resistance. “There is not [room] for the government to say, ‘Well, actually, here’s why these folks don’t get paid,’” Burbank said, noting the scope and binding nature of the class action. She confirmed that the decision applies to all members represented in the suit.
Potential Financial Payouts and Eligibility Limits
Burbank estimated that the total payout for both class-action groups could total as much as $50 million. Her estimate is based on a rough calculation of around 10,000 eligible individuals, each due an average of $5,000 in back payments.
Importantly, the ruling does not allow payments to be backdated earlier than January 2008, ensuring that compensation aligns with the law that expanded CRSC eligibility that year. That law marked the first time medically retired service members with fewer than 20 years of service became eligible for the benefit. The Supreme Court has shown an increasing willingness in recent years to side with veterans on issues affecting benefits. This includes other precedent-setting rulings, such as the 2024 case of Rudisill v. McDonough, which involved veterans’ education entitlements.
Legal Precedent Strengthens Veterans’ Claims
In Thursday’s unanimous decision, all nine justices agreed with Soto’s interpretation of the law. By striking down the application of the Barring Act to CRSC claims, the court has effectively removed a major obstacle that limited the amount of compensation retired combat veterans could seek.
The decision may prompt other veterans who previously missed out on full back payments to pursue compensation. Since the decision was class-wide, affected former service members do not need to individually bring lawsuits to receive updated CRSC payments. This ruling ensures that applicable veterans receive what they are entitled to without undergoing further legal action or facing bureaucratic resistance. Burbank emphasized the court’s clarity and the importance of direct relief to the group as a whole.
Conclusion Emphasizes Importance of Benefits
Justice Thomas wrote that the lower court’s attempt to enforce additional limitations had no basis in the statute's wording. The Supreme Court corrected what it saw as a misapplication of administrative law to a veteran support measure enacted through legislation.
With this decision, veterans who sustained combat-related injuries and were medically retired are more likely to receive full benefits as Congress intended. The case marks a meaningful moment for those who have waited years for the recognition and compensation they believe they earned. For Soto and thousands of others, the ruling represents a significant validation of their service and struggles. And while the government may face a $50 million payout, advocates stress that the human value far exceeds the dollar amount.
