H.R. 9135 — TDIU Reform Act of 2026

This section codifies payment of total disability compensation based on individual unemployability for veterans unable to secure or follow substantially gainful occupation due to service-connected disabilities. It limits eligibility to veterans with one service-connected disability rated 60 percent or more, or two or more disabilities with one rated 40 percent or more and a combined rating of 70 percent or more. It requires the Director of Compensation Service to review cases that do not meet those thresholds. It bars payments to veterans aged 67 or older who first receive the benefit on or after December 31, 2026. It defines marginal employment as earned income at or below the poverty threshold for one person.