House passes bill helping families claim veterans' unpaid pensions

The House voted 405-1 on February 2, 2026, to pass H.R. 3123, the EPErnest Peltz Accrued Veterans Benefits Act. Rep. Lizzie Fletcher (D-TX) cast the only dissenting vote. The bill passed under suspension of the rules, which requires a two-thirds majority and limits debate.

The bill is named after World War II veteran EPErnest Peltz of Queensbury, 🗽New York. The VA approved his pension while he was alive, but due to a processing error, deposited the funds into his account seven days after he died. The VA then clawed the money back, classifying it as an "overpayment," and billed his estate to recoup the deposit. His family was left paying for his end-of-life care and funeral out of pocket.

CPCharles Peltz, Ernest's son and a conductor with the Glens Falls Symphony Orchestra, contacted Rep. Elise Stefanik's constituent services office for help. Stefanik's staff discovered that existing law did not clearly authorize the VA to pay approved-but-undelivered pensions to survivors, creating a legal gap that let the VA treat post-death deposits as overpayments.

The bill establishes a clear priority order for distributing unpaid pension payments after a veteran's death: living spouse first, then living children in equal shares, then dependent parents in equal shares, then the veteran's estate. If the estate would escheat (revert to the state because no heirs exist), the payment is not made. Survivors must file a claim within one year of the veteran's death.

Rep. Stefanik (R-NY) sponsored the bill with Rep. Ro Khanna (D-CA) as cosponsor, making it a bipartisan effort. Stefanik first introduced the bill in the 117th Congress as H.R. 7050 (2021-2022), reintroduced it in the 118th Congress as H.R. 4562 (2023-2024), and finally passed it in the 119th Congress as H.R. 3123. The bill took three Congresses — roughly six years — to reach a floor vote.

The Congressional Budget Office estimates the bill reduces net federal spending by $3 million over 2026-2035. But the accrued benefits provision (Section 2) actually increases spending by $1 million. The net savings come from a separate provision (Section 3) that extends pension payment reductions for veterans and survivors living in Medicaid-funded nursing homes, which saves $4 million.

The bill also extends an existing policy that reduces VA pension payments for veterans and survivors residing in Medicaid-funded nursing homes. This provision prevents veterans from receiving full VA pensions while Medicaid covers their long-term care costs. Congress often bundles related veterans benefits provisions into a single bill.

The bill now moves to the Senate for consideration. Given the 405-1 House vote and the fact that it codifies existing VA practice while saving money, Senate passage is likely. VA Secretary DCDoug Collins, confirmed by the Senate on February 4, 2025, would oversee implementation of the new procedures.