Should you take drill pay or VA compensation? This is an important question for many veterans and while some may wonder if this applies to them while serving on active duty (see below), those it affects have choices to make depending on what makes the most sense to the individual.

Before we examine the issues related to choosing drill pay or VA compensation, let’s define our terms including the basics–what is the definition of “drill pay” and how does the government decide who gets it?

Definitions: What Is Drill Pay?

The Department of Veterans Affairs defines the term drill pay as follows:

“The term drill pay refers to the monetary benefits a reservist or member of the National Guard receives for performing active or inactive duty training.” Some VA forms may use the term “military pay” or “training pay” interchangeably with “drill pay”.

All this information is found in a VA rulebook titled, M21-1, Part III, Subpart v, Chapter 4, Section C – Adjusting Department of Veterans Affairs (VA) Benefits Based on a Veteran’s Receipt of Active Service Pay.

Concurrent Receipt Prohibited

Why is the definition of drill pay so crucial? Because of another section in the same rulebook that explains that federal law found in 10 United States Code 12316 (and elsewhere) prohibit “double dipping” or the “concurrent receipt of drill pay “and Department of Veterans Affairs (VA) disability compensation or pension,” according to VA.gov.

That section is titled, Prohibition Against Concurrent Receipt of Drill Pay and VA Benefits and requires the following considerations:

• Federal law forbids concurrent receipt of drill pay and VA disability compensation or pension
• Veterans who perform active or inactive duty training must choose one and waive the other
• You will waive benefits for the specific number of days you would have been paid both at once
• VA literature advises, “Most Veterans choose to receive drill pay instead of disability compensation or pension”
• This is true “because drill pay is typically the greater benefit. These Veterans must waive their VA benefits for the same number of days they received drill pay”
• VA rules also say getting VA benefits and the subsistence allowance “that a Veteran in the Senior Reserve Officers’ Training Corps (SROTC) might receive” is not prohibited; only concurrent receipt “of VA benefits and pay the Veteran receives for active or inactive duty training in the SROTC is prohibited”

Some exceptions may exist for veterans who receive temporary compensation for disabilities. This is handled on a case-by-case basis.

Making A Decision

The ultimate choice about drill pay versus VA compensation is really up to the service member, but it’s important to remember that there are resources that can help you make the most fully informed decision.

Military finance officer reps, your command support staff, even a First Sergeant, Command Sergeant Major, Senior Chief, or detailer may be able to give some good advice based on experience or the experience of others.

The servicemember isn’t necessarily responsible for initiating this process. You definitely want to be prepared to make a decision when the time comes, but in most cases (according to the below) those drawing drill pay may be prompted by the Department of Veterans Affairs to provide their choices and information about their drill periods, though in some cases the service member may need to submit the information unpromoted (see below).

Consider what has been published online by some National Guard bureaus–the Washington National Guard official site advises its members:

“Normally, the VA Regional office in Seattle will send you a notice at the end of the fiscal year (Oct. to Sept.) usually in Nov. to Dec., asking you to verify how many days you collected military pay for the previous year. If you do not receive this notice, you can complete the form and send it to your regional office to ensure it is being processed correctly.”

In Washington, Guard members are also advised, “If you are AGR, ADOS or Title-10, you will be receiving military pay 24/7, and must stop VA compensation immediately” or else risk becoming indebted to the federal government.

In such cases the servicemember will have to make arrangements to repay the overage that occurs due to drawing both drill pay and VA compensation.

Advice From The Department Of Veterans Affairs

It’s always a good idea to know the government’s position on these issues–if you know what to expect when you contact the VA (especially about policies related to owing the government money) your discussions with the VA rep will be more productive and save time. In general, the VA advises people to keep certain issues in mind when choosing VA compensation or Drill Pay:

• VA Compensation is not taxable
• VA Compensation is subject to annual review–your benefits are subject to change
• If you don’t have a “permanent” disability rating, your VA disability rating (and pay) subject to being reduced if your conditions improve
• If you choose to waive military pay, you choose to have your military pay for the year recouped by the government. For those still serving in the National Guard, you could face (depending on circumstances) having two-thirds of your military pay for the coming year withheld. National Guard advice in this area? “Since you are only losing a portion of your comp, it is usually better to waive comp.” Be sure to do the math yourself to make sure this is right for you.

What Happens If You Draw Drill Pay And VA Compensation At The Same Time

If you don’t cancel one benefit for another as directed by federal law, you incur a debt to the federal government. Those who become indebted to the government will be contacted by the Department of Veterans Affairs Debt Management Center to arrange collection of the funds.

Why You Need To Pay Attention To The Issue

A February 11, 2020 report by the VA Inspector General found some ten thousand inaccurately processed “final disability benefit adjustments based on automated proposals.” Those are letters automatically (in many cases) generated for veterans that confirm “the correct number of training days used to reduce training pay from disability pay” completed within a range of dates covered by the report.

This resulted in roughly $14 million in “improper payments” from the VA to servicemembers. Some were overpaid, some were underpaid. According to the VA, these errors can happen when the VA does not “fully account for all military training days to accurately reduce a veteran’s disability benefits compensation” or when the VA reduces compensation using “too many training days.”

Of the number of inaccurate payments, nearly nine thousand of them resulted from forms that were completed using an automated process. Nearly two thousand inaccurate adjustments were manually accomplished.

This means that in a given year, it is entirely possible that some veterans were wrongly identified as having owed money to the federal government due to a VA accounting error. If you believe you were wrongly charged an indebtedness to the government you should contact the VA as soon as possible to work out the issue.

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Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News.

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If you seek grants for veterans, there are a lot of choices; you’ll have your pick of education grants, housing grants for veterans, even grants for veteran-affiliated non-profit organizations. Where you start looking likely depends on what you need from the grant and some needs may be easier to meet than others depending on demand, the nature of the grant you’re competing for, and more.

What follows is not a comprehensive list of veteran grant opportunities. Instead, this collection of grants for veterans is meant as a way to help get started exploring these and related resources that will inevitably cross your path while researching the types of grants offered to vets.

Veteran Housing Grants

Two of the most important grants for disabled veterans with qualifying medical conditions come from the Department of Veterans Affairs; the Specially Adapted Housing Grant and the Special Home Adaptation Grant.

These two programs are designed to help veterans who have medical issues that meet VA criteria for the grant to get funds to adapt a home to be more accessible for the disabled veteran.

Other housing grants may come from your state government–especially from your state’s Housing Finance Authority or Office of Veterans Affairs. Housing Finance Authority programs often feature first-time home buyer incentives and there may be local down payment assistance grant programs in your area that you should know about.

Check your state government official site or Google your state’s name with the key phrase “housing grants for veterans.”

A search for private housing grants for veterans disappoints many; this is one area where private resources don’t seem to be as plentiful as with education grants and general financial assistance.

One area that is not technically a housing grant solution but can be used for housing expenses? The assistance offered on an emergency basis from VSOs like the Red Cross, and from military relief societies such as the Navy-Marine Corps Relief Society, Air Force Aid Society, etc. Each of these programs has featured emergency financial relief for qualifying military members that can be used toward housing expenses in many cases.

Veteran Education Grants

There are many agencies offering financial help to veterans who want to complete higher education, get credentialed or certified, etc. Who provides such grants?

• The federal government
• Private veteran-focused groups
• State and local governments
• Foundations and scholarship funds

One of the best examples of government grants for education is the Pell Grant, but those who are currently serving may not qualify if they earn too much taxable income. A notable exception to this may apply to those who have been deployed recently–your taxable income in a war zone is lower due to combat zone tax exclusions (where applicable).

There are education grants offered by state governments–the Illinois Veterans Grant is one such program–veterans apply after filling out FAFSA forms and may qualify to have all tuition paid for college programs at approved institutions.

Another such grant program is administered by the Texas Veterans Commission (TVC). It provides education grants under the Hazelwood Act, described as a State of Texas benefit “that provides qualified Veterans, spouses, and dependent children with an education benefit of up to 150 hours of tuition exemption, including most fee charges, at public institutions of higher education in Texas.”

You will also find veteran education help via Veteran Service Organizations such as the following–some of these may offer both grants and scholarships, and some scholarship programs listed below may function more like grants depending on the program, circumstances, and other variables:

• DAV Jesse Brown Scholarship
• Fleet Reserve Association Scholarship
• Folds of Honor Foundation
• Green Beret Foundation Heroes’ Legacy
• Military Spouse Career Advancement Accounts (MyCAA) Program
• MOAA – Military Officers Association of America – Scholarships/Grants/Loans
• National Military Family Association
• Navy League

Veteran Grants For Business Needs

Some financial need is personal, some is organizational–there are grants for both, and veteran entrepreneurs should definitely explore their options for grants aimed at veteran owned businesses and non-profits alike.

One private organization called the Veterans Support Foundation (VSF) provides grants “supporting veteran related projects” including matching fund projects for “scientific, charitable, and educational purposes.”

Other grants may not be specifically aimed at veterans but can be used by them to get funding for qualifying activities. One such program has been offered by the U.S. Department of Energy is the Small Business Innovation Research (SBIR) Grant.

It’s part of a federal program that encourages small business research. How can a veteran or vet-owned business qualify for a program like this? Present a program focused on the required area (in this specific case the program requires an emphasis on scientific research that meets SBIR goals) and be able to prove your project has commercial potential.

SBIR grants are capped at one million dollars, which gives a good idea as to the scale and scope of this particular fund.

When looking for resources to get grants for a veteran-owned business, you will encounter a lot of lists that include business loans and other non-grant programs. Some vet-centric business grants can be hard to come by outside the usual channels (VA, SBA, state or local agencies) but you may find that some grant criteria is veteran-friendly if nothing else.

Veteran Grants For Personal Financial Hardship

For individual financial needs, there are many resources–the first place to check is with state and local agencies to get the usual types of assistance with food and shelter, but there are also avenues of relief for specific expenses–for example, the Department of Veterans Affairs provides need-based debt relief for VA copays and related expenses.

That may not be a grant per se but the financial relief can help in addition to grant programs. You may be able to request grant applications (or related financial relief) from the military aid societies listed above including Air Force Aid Society, Army Emergency Relief, etc.

Financial relief grants may also include options from VSOs such as the VFW and its Unmet Needs Program, defined as a financial aid grant (up to $1,500 at press time though amounts are always subject to change) for military families “who have run into unexpected financial difficulties as a result of deployment or other military-related activity or injury.”

The VFW grants under Unmet Needs are intended for basic life expenses and are paid to the family’s creditors directly. Programs like these often have specific rules about who qualifies and why.

The VFW criteria for Unmet Needs may be similar to some, but not all veteran grant assistance for financial crises–never assume you do not qualify unless you have been told otherwise. Qualifying criteria for Umnet Needs include meeting one or more of the following:

• Financial hardship is the result of a current deployment OR military pay error, or from being discharged for medical reasons
• Must have been discharged on or after September 11, 2001
• Must have financial hardship that is a direct result of military service-connected injuries and/or illnesses
• The financial hardship cannot be caused by civil, legal or domestic problems, etc
• The applicant must provide the most current bills due

What To Remember About Veteran Grants

Grants are NOT loans—there should be no expectation of repayment for your grant, though in some cases you may experience grant application requirements that do demand repayment in cases where the grant conditions are not successfully met. That is a very important distinction to remember; don’t make the mistake of assuming no grant funds are ever subject to a repayment demand in this regard—that is a costly mistake to avoid.

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Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News

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Many small business owners are veterans–some leave military service knowing they need funding such as business loans or SBA grants that can help launch or further a business.

Others may not realize they want to start a veteran-owned business until much later. Either way there are grants and programs available for those who wish to become small business owners after their military careers.

Remember, grants are essentially “free money” but the grant program itself may have strict requirements and regulations for how such funds may be used. Always read the full description of the grant, its intended awardees, and other fine print-type information before you apply.

Not knowing the specific rules for how to apply, when, and how funds may be used can be a serious problem where grant approval is concerned.

Does The GI Bill Offer Business Funds?

A myth about GI Bill options that persists to this day includes mention of a supposed business loan or grant offered to veterans. This has some basis in fact (ancient GI Bill history) but is not true at the time of this writing.

When the GI Bill was first introduced, it was known as the Servicemen’s Readjustment Act of 1944 and did include a provision for small business or farm loans for veterans.

That feature has long since passed into history, but today there are more small business grants for veterans than ever. Some assistance is provided on a situational basis (such as the CARES Act described below) but others are long-term programs that have traditionally supported veteran and non-veteran entrepreneurs alike.

Today’s GI Bill can be used to help you learn how to run a small business, but there are no funds directly available from that program to use as business capital.

Check With Your State Government

A significant number of state governments offer state-level veteran small business owner programs you can explore. There may be opportunities for grants and other funding, business development, entrepreneurial training, and much more. It’s best to search your state-level Department or Division of Veterans Affairs, or Office of Veterans Affairs to learn what is currently offered at the state level.

State resources are a very important part of small business funding and not just for veterans or dependents of veterans. Don’t miss out on additional funding or grant programs just because they are offered at a different level than federal or private versions.

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Small Business Funds For Veterans: The CARES Act

The CARES Act is one of the most discussed economic relief measures in the year 2020. Aimed at military and civilian applicants alike, CARES was drafted to help in a variety of ways but the Paycheck Protection Program was one of the most significant.

This program, referred to by CNN, Fox News, ABC, and NPR as PPP, offers up to eight weeks of payroll expenses with a forgivable portion (essentially a grant) for those who meet program criteria.

Small businesses are eligible alongside qualifying nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act. Self-employed business owners and independent contractors may also qualify.

This relief is administered via the Small Business Administration–you can apply there or via any participating lender.

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Boots to Business

The Small Business Administration also offers a training program called Boots To Business (BTB). No, BTB does not offer a grant, nor does the program provide funding for small businesses or veteran-owned businesses. So why is this program key for certain veteran entrepreneurs?

Because many state-level veteran business programs offer grants and/or other assistance to those who have completed Boots To Business. These agencies may require it as a condition of grant approval.

Boots To Business is described as a free, “two-step education and training program offered by the U.S. Small Business Administration to service members who want to become entrepreneurs.”

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Other SBA Programs

There are a variety of other grants offered by the Small Business Administration. They include the Small Business Innovation Research (SBIR) program and Small Business Technology Transfer (STTR) program.

These have specific requirements. They are for U.S.-based businesses only and there is an employee cap (500 employees in 2020) along with a requirement that the business be “organized for profit” and be headquartered in the USA. They are intended to “encourage domestic small businesses to engage in Federal Research/Research and Development” through a competitive program.

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The Nav Small Business Grant

In 2020, Nav ran a contest called “Legitify Your Small Business,” which encouraged small business owners who are or will soon be Nav customers to participate in an online contest with two business grant awards listed as prizes–one for $10,000 and one for $5,000.

While not a traditional grant, participating required tagging Nav on social media and describing the nature of the business. Veterans are not the only ones who are welcome to compete.

This is an example of a type of grant funding offered competitively–you may find many such programs at the state and local level and local lenders and Chambers of Commerce may also have their own versions of such promotions. It does not hurt to look for these avenues while considering more traditional grant opportunities.

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Small Business Grants: National Association for the Self-Employed (NASE) Growth Grant

Some types of small business grants that can help out a small veteran-owned business require membership in a professional association to qualify for consideration.

A good example of this is the National Association for the Self-Employed, which features a grant for up to $4,000 that can be used for financing “a particular small business need” including equipment, labor, and marketing.

In this particular case, a three-month membership to NASE is required before you may apply.

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Small Business Technology Transfer Program

Small Business Technology Transfer (STTR) Grant. The government awards the STTR Grant to qualifying veteran-owned businesses that carry out research for the federal government.

While the grant is managed by the SBA, various government agencies and departments designate research topics and accept business proposals. These agencies include Defense, Health, Energy, NASA, Human Services and the National Science Foundation.

To be eligible for the STTR Grant, a business must be American – and veteran-owned with fewer than 500 employees. Each small business is awarded up to $850,000 to carry out the assigned project for which the grant is awarded.

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Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News

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Veterans who receive or are eligible to receive VA compensation for service-connected medical issues may be qualified to receive Social Security Disability Insurance, also known as SSDI. A second Social Security benefit, Social Security Insurance, offers government funds to help those in need (with or without military service).

These benefits are completely separate. The VA and the Social Security Administration have their own qualifying criteria, payment guidelines, and benefits. But your VA payments may affect your Social Security benefits.

Does a veteran need to worry about having one benefit or the other diminished, cancelled, or revoked because they qualify and apply for both? It’s crucial before filling out application paperwork that you know how VA disability benefits can affect your SSDI payments and vice versa.

What Are SSDI And SDI?

SSDI, also known as Social Security Disability Insurance, is offered to those who have qualifying disabilities or conditions regardless of whether they have served in the United States military. SSDI is a federal-level benefit you earn after working long enough–after having earned 40 credits.

How are the 40 credits calculated? According to the Social Security Administration (SSA) those credits are earned by your work and payments into the Social Security fund (via federal tax withholding) for a maximum of four credits per year. The credits are based on your total earnings during the year and the requirement to earn those credits is subject to review and change.

Some may earn more credits than they can use in a lifetime, but this does not increase the level of benefit or payment amounts.

Social Security benefits (including SSDI but not limited to it) have medical requirements and non-medical criteria. Those meeting the non-medical requirements are paid benefits when it is determined their medical issues are expected to last a minimum of one year or result in the death of the patient.

Social Security Insurance, also known as SSI, is similar to SSDI in some ways, but is a need-based benefit and subject to income caps. Such caps mean that if you draw VA disability pay but not military retirement pay, you may qualify for SSI.

However, the Social Security Administration official site advises veterans that those approved for a VA pension “will not qualify to receive SSI because the pension amount is higher than the SSI payment amount,” exceeding the income cap.

Quick Breakdown Of SSA Benefits

• Earned by working/paying into the SSA system
• Four credits per year must be earned
• SSI is a benefit that is reduced by other forms of income/compensation (such as VA disability benefits) that exceeds program guidelines
• SSDI is a program that is not reduced by VA benefit payments

Let’s compare that to VA medical benefits paid to those with VA-rated disabilities.

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VA Benefits For Service-Connected Medical Conditions

VA compensation is awarded based on a medical review of qualifying conditions. Like the SSA program, there are criteria and guidelines for awarding disability ratings, payment, and treatment options. The veteran must provide medical documentation and other supporting evidence to show that the medical issues are related to or aggravated by military service.

Compensation is awarded on a scale of percentages (round numbers from 0% to 100% disabled) and culminates in a maximum award of 100% disability. No VA disability award may exceed 100%.

Quick Breakdown Of VA Disability Benefits

• Veterans go through a VA-directed medical review
• Veterans are rated on a percentage scale for disabilities and conditions that affect the ability to live and work
• Compensation is subject to review
• No income caps or asset caps to receive the benefit

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Drawing VA Benefits And SSA Benefits

Veterans may be permitted to draw both VA and SSA benefits, but depending on the SSA program you enroll in, you may or may not have your Social Security benefit amount reduced dollar-for-dollar by the amount of your VA disability pay (subject to a small exemption). Those drawing SSI may risk benefit reduction if they don’t meet income caps; those drawing SSDI are not.

With or without the benefit reduction, it can be helpful to have a VA disability rating established when you apply for SSA benefits such as SSDI or Social Security Income payments. Not in every case, but in some very important circumstances this can be a big help. Why?

Expedited Processing For Those With VA Disability Ratings At 100%

Some veterans who possess a VA rating of 100% permanent and total disability may qualify for expedited Social Security claims. Be sure to ask about this when applying for SSA options and make sure you self-identify on all application paperwork as a 100%-VA rated disabled veteran.

Other vets may qualify for help, too. Any veteran with “disabling mental or physical health injuries” on active duty on or after October 1, 2001 are eligible for expedited SSI/SSDI application processing. This does not need to have occurred during combat but the issue must be noted on the SSI/SSDI application.

Tips About VA Compensation And Social Security

• SSDI and SSI are not intended to provide a full living wage; the Social Security official site itself advises that in 2019 alone, Social Security paid an average monthly disability benefit amount “barely enough to keep a beneficiary above the 2018 poverty level” and any additional assistance you can apply for is crucial.
• If you have the ability to apply for VA benefits first, it can help to do so (when possible) if you already have a 100% disability rating from the VA. Some vets cannot do this, but those who can should take advantage of the option to have their SSDI or SSI benefit application expedited as described above.
• VA compensation and military retirement pay combined may render some applicants ineligible for SSI, but SSDI compensation may still be possible.
• Your financial need will determine which Social Security program you qualify for when claiming disability benefits.
• VA rules for disability pay require the veteran to establish or provide proof that establishes that the medical issue occurred on active duty or was aggravated by it.
• SSDI and SSI are federal programs, but not limited to the military.
• VA disability compensation is limited to the service member, but some VA benefits are payable for spouses, caregivers, and other family members. Be sure to ask about these.

VA disability ratings may be reviewed and adjusted if the condition(s) get better or worse. These adjustments can affect your eligibility for other disability benefits. Don’t hesitate to explore your options for expanded benefit payments from the Social Security Administration if you think your basic ability to qualify for SSDI or SSI has changed.

This is very important in cases where a veteran’s condition improves and there is substantial reduction in VA benefits. For any need-based benefit subject to an income cap (that includes the amount of your VA compensation) a reduction or increase in VA payments can affect your ability to qualify for your current payment amount.

What You Need To Apply For Benefits

In both cases (VA and SSA) you will need medical documentation to support your claim. For SSA applications you may be required to provide copies of your medical records, discharge paperwork, tax records or other proof of income, and more. For VA disability benefits you will need to furnish military records, medical records, proof of discharge, and schedule appointments as directed by the VA in order to be screened for your claim. Your Social Security Number, birth certificate, and other important documentation may be required by both agencies.

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Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News

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