Litigation Brought By NVLSP And Sidley Austin Leads To Department Of Defense Guidance Implementing Full Retroactive Combat-Related Special Compensation Benefits
–Prior Guidance improperly limiting retroactive Combat-Related Special Compensation benefits was rescinded after being challenged by the class action lawsuit–
FOR IMMEDIATE RELEASE: May 27, 2026
Arlington, VA—The Department of Defense (DoD) issued Guidance in August 2025 and January 2026 that instituted a new policy limiting retroactive benefits for Combat-Related Special Compensation (CRSC). The Guidance applied to applications received after August 20, 2025, and cut off all retroactive CRSC benefits prior to the month after the application was filed.
The new Guidance was issued in response to the Supreme Court’s June 2025 unanimous decision in Soto v. United States brought by the National Veterans Legal Services Program (NVLSP) and Sidley Austin LLP. The Supreme Court held in Soto that a DOD policy limiting the effective date of CRSC to 6 years prior to the date of application did not comport with the CRSC statute.
The August 2025 and January 2026 Guidance implemented a far more restrictive limit on retroactive benefits than the policy invalidated in Soto—not permitting any retroactive CRSC prior to the month after the application was received.
NVLSP and Sidley challenged the August 2025 and January 2026 Guidance in Ploe v. United States on behalf of Retired Sergeant First Class Timothy Ploe, Retired Army Staff Sergeant Kyle Montgomery, Retired Army Sergeant Jerry Coleman, and Retired Army Specialist Byron Benitez, and a class of similarly situated veterans. The named plaintiffs had copious combat awards: two veterans received the Purple Heart, one received the Combat Infantryman Badge, and one received the Combat Action Badge. They had deployed to combat areas including Iraq, Afghanistan, and Kuwait. A motion for class certification is pending in the Ploe case at the Court of Federal Claims.
On May 14, 2026, DOD issued new Guidance that retracted the limitations on retroactive CRSC benefits in the August 2025 and January 2026 policies. The May 2026 Guidance requires the branches to adhere to the effective date directed by the CRSC statute and further states that DOD will review the records of veterans impacted by the earlier Guidance and issue revised, corrected decisions.
“We are thrilled that the litigation has resulted in the rescission of the incorrect Guidance,” said National Veterans Legal Services Program Director of Lawyers Serving Warriors® Rochelle Bobroff. “NVLSP is committed to upholding the benefits conferred by Congress to veterans who incurred disabilities from combat-related service.”
“We are gratified that our clients and other combat-wounded veterans will receive the full measure of combat-related special compensation that Congress granted them and that the Supreme Court held they are entitled to,” said Tacy Flint, co-head of Sidley’s Supreme Court, Appellate, and Litigation Strategies practice and the lawyer who argued Soto. “Sidley’s Veterans Advocacy Project remains dedicated to advocating for veterans’ rights.”
The Sidley team also includes Christopher Eiswerth, Emily Wexler, Jacob Steinberg-Otter, and Joseph Hasbrouck. In addition to Ms. Bobroff, the NVLSP team includes Director of Litigation Renee Burbank and Staff Attorney Amy Fulmer.
For more information, see NVLSP’s Frequently Asked Questions or e-mail lsw.classaction@nvlsp.org.
About The National Veterans Legal Services Program (NVLSP)
The National Veterans Legal Services Program (NVLSP) is an independent, nonprofit veterans service organization that has served active duty military personnel and veterans since 1981. NVLSP strives to ensure that our nation honors its commitment to its 18 million veterans and active duty personnel by ensuring they have the benefits they have earned through their service to our country. NVLSP has represented veterans in lawsuits that compelled enforcement of the law where the VA or other military services denied benefits to veterans in violation of the law. NVLSP’s success in these lawsuits has resulted in more than $7.2 billion dollars being awarded in disability, death and medical benefits to hundreds of thousands of veterans and their survivors. NVLSP offers training for attorneys and other advocates; connects veterans and active duty personnel with pro bono legal help when seeking disability benefits; publishes the nation’s definitive guide on veteran benefits; and represents and litigates for veterans and their families before the VA, military discharge review agencies and federal courts. For more information, go to nvlsp.org.
About Sidley Austin’s Veterans Advocacy Project
The Veterans Advocacy Project at Sidley Austin provides legal assistance to disabled veterans seeking fair and timely benefits from the U.S. Department of Veterans Affairs and the Armed Forces. Sidley assists veterans with claims for service-connected disability compensation from the Department of Veterans Affairs. Sidley also represents veterans on claims for medical retirement benefits, combat-related special compensation, and discharge upgrades to the armed forces. In 2024, our lawyers and business professionals handled more than 100 individual matters and four class actions – totaling over 12,000 hours and serving thousands of veterans.
Media contacts:
NVLSP: Patty Briotta, 202-621-5698, patty@nvlsp.org