VA Formally Rescinds Controversial Disability Ratings Rule

Joe Wallace

The Department of Veterans Affairs (VA) has moved to formally rescind a controversial interim final rule that would have changed how disability ratings are calculated for veterans. The agency had earlier moved to change VA disability rating criteria to assign disability percentages based on the condition as treated with medication or other means, rather than on the underlying condition.

A wave of resistance to this proposal from the veteran community forced the VA to reconsider. This admission of defeat by the VA may not be the last word on the controversy; the agency is still seeking ways to get around federal court decisions barring its implementation of the new rule. But for now, that rule is completely off the table.

VA Formally Rescinds Controversial Disability Ratings Rule

The conflict began after the VA published an interim final rule titled Evaluative Rating: Impact of Medication. This regulation directed medical examiners to assign disability ratings based on a disabled veteran’s “actual” level of impairment while using medication or getting care.

This rule was published in the Federal Register for public comment, but it became effective immediately, circumventing the usual process for VA interim and final rules. That move was seen by many as an attempt by the VA to skirt the usual requirements for such major policy changes.

Under the proposed new VA claims standard published in the Federal Register, if a veteran’s symptoms were effectively managed by medication, their disability rating would be lowered to reflect that improvement, potentially resulting in reduced monthly compensation.

All New VA Claims Affected

The proposed new rule would have affected all new VA claims. The implications for those having old claims revisited are that they, too, could be subject to the new standards. But can you really assign a disability rating based on the temporary effects of medication and/or treatment, rather than the basic nature of the condition itself?

There are many concerns.

• Advocates feared veterans would stop taking medications to avoid a medication penalty that would strip them of financial benefits.
• Lawmakers and clinicians argued that forcing veterans to choose between physical health and financial stability was a breach of the nation’s promise.
• VSOs expressed frustration that the VA bypassed traditional consultation processes, developing the rule in a closed and unnecessarily expedited manner.

More than 20 lawmakers called for an immediate revocation of the VA rule as published in the Register. They pointed out that while medication might mask symptoms, the underlying service-connected injury remains, and the ongoing need for treatment is itself a form of persistent impairment.

Handing Defeat to the VA

On February 19, 2026, the VA Secretary announced that the department would halt enforcement of the rule but would not rescind it.

Many cried foul, knowing that the VA could easily go back when the controversy dies down to quietly begin enforcing the new rules. The pressure on the VA was such that the agency announced a formal FULL cancellation of the rule on February 26, 2026, with the official notice scheduled for publication the following day. At press time, the interim final rule has been rescinded.

But VA policymakers are still trying to find a way to put this unwanted measure on the books.

Future Outlook

While the formal elimination of this rule is a positive step forward, the VA is appealing earlier court decisions that prompted the rule change, and the department continues to face pressure to modernize its Schedule for Rating Disabilities. This is likely not the last time the Doug Collins VA will attempt to push the new disability rating standards through in spite of federal court rulings against the agency such as Ingram V. Collins.

Those who read VA Secretary Doug Collin’s 2025 VA blog pledge to prioritize veterans’ needs at the VA will be less than pleased to know that if the Department of Veterans Affairs appeal is successful, it would allow the VA to revisit the entire controversy and try again to implement the ill-advised new rules.

For now, VA claim examiners will continue to use the previous standard for evaluating the severity of a disability, based on its baseline functional impact, generally without factoring in the relief provided by medication unless specific diagnostic codes require it.