Blumenthal, Sheehy Introduce Bill to Extend Benefits for Military Survivors

[WASHINGTON, D.C.] - U.S. Senator Richard Blumenthal (D-CT), Ranking Member of the Senate Veterans' Affairs Committee, and U.S. Senator Tim Sheehy (R-MT) are teaming up to introduce the GRACE for Military Survivors Act-bipartisan legislation that would provide military survivors more time to make informed financial decisions about their benefits without facing tax penalties.

"Military survivors who lose loved ones endure life-changing grief. We shouldn't force them to make important, long-term financial decisions about their survivors' benefits while also going through such unspeakable pain," said Senator Blumenthal. "Our commonsense bill will give these families more time to make these critical decisions."

"When families lose a loved one, too often they are forced to make difficult financial decisions before being allowed time to grieve and process their loss; this is especially true when it comes to the surviving families of our fallen military heroes," said Senator Tim Sheehy. "America's military families sacrifice so much for this great nation - they deserve time to mourn and honor their loved one instead of being rushed into making long-lasting, consequential decisions about their survivors' benefits. Supporting this practical legislation to extend the time military families have to make these decisions is the least we can do for the families of our heroes."

When a servicemember dies, the surviving family has to make important financial decisions about their survivors' benefits while also grieving their loved ones. Current law only gives surviving spouses and children a year to decide if they want to put military death gratuities and Servicemembers' Group Life Insurance (SGLI) benefits into certain tax-advantaged savings accounts, including Roth IRAs and Coverdell Education Savings Accounts. The GRACE for Military Survivors Act would extend that time frame from one to three years-ensuring surviving families have additional time to make important long-term financial decisions.

U.S. Representative Mike Thompson (D-CA) and Jack Bergman (R-MI) have introduced the companion bill to this legislation in the House.

The GRACE for Military Survivors Act is supported by Tragedy Assistance Program for Survivors (TAPS), Gold Star Spouses, Vietnam Veterans of America (VVA), With Honor, The American Legion, AMVETS, the Elizabeth Dole Foundation, Military Family Advisory Network (MFAN), National Association of County Veterans Service Officers (NACVSO), United Services Automobile Association (USAA), Veterans of Foreign Wars (VFW), and Veterans Survivor Coalition.

"After the tragic loss of their military loved one, survivors are often forced to make long-term financial decisions during a period of profound grief. TAPS is grateful to Ranking Member Blumenthal and Senator Sheehy for introducing the GRACE for Military Survivors Act, which will provide our surviving families with much needed additional time to make these important decisions impacting their lives. We look forward to its swift passage!" said Bonnie Carroll, President and Founder of the Tragedy Assistance Program for Survivors (TAPS).

"Gold Star Spouses of America (GSSA) strongly supports the GRACE for Military Survivors Act. Surviving spouses are often advised to avoid making major financial decisions during the first year following the loss of a loved one," said Tamra Sipes, National President of Gold Star Spouses of America. "While well-intentioned, this guidance can inadvertently cause families to miss valuable opportunities to place military death benefits into tax-advantaged savings accounts. GSSA thanks Ranking Member Blumenthal and Senator Sheehy for introducing legislation that would extend the contribution period from one year to three years."

"Families who lose a loved one in service to our nation carry a sacrifice that most of us can never fully understand. As we have learned from the caregiving community, these families deserve time, dignity and the freedom to make the decisions that are right for them, without unnecessary pressure," said Steve Schwab, CEO of the Elizabeth Dole Foundation. "The GRACE for Military Survivors Act is an important recognition of what military survivors need as they navigate life after loss. We are proud to support this effort and stand behind the families who have given so much."

"Vietnam Veterans of America deeply understands the profound grief, sorrow, and devastation felt by the family of every service member lost in service to our nation. Our obligation to those who wear the uniform extends fully to the families they leave behind. In their deepest time of mourning, the very last thing a grieving family should have to worry about is navigating strict federal deadlines or the administrative burdens of financial filings," said Michael J. Fimmano, Chief Legislative Officer of Vietnam Veterans of America (VVA). "…By extending that contribution window from one year to three, the GRACE for Military Survivors Act gives Gold Star families the breathing room they need to make thoughtful, long-term financial decisions on their own timeline…Through the swift passage of this bill, we can honor the memory of the fallen while granting surviving families the dignity, time, and compassion they deserve in their most painful moments."

"Military families give more than most Americans will ever be asked to. When a service member passes, we should not ask surviving spouses and families to set aside their grief to focus on finances," said Rye Barcott, Co-Founder and CEO of With Honor. "This legislation is notable for what it is not-it is not partisan, costly, or controversial. It imposes no new federal spending, creates no new bureaucracy, and asks nothing of taxpayers. It simply removes an arbitrary constraint that punishes military survivors for taking the time they need to grieve. Keeping faith with military families means ensuring they are treated with dignity and compassion during life's most difficult moments. With Honor Action enthusiastically endorses the GRACE for Military Survivors Act and appreciates For Country Caucus members Reps. Mike Thompson and Jack Bergman, as well as Senators Richard Blumenthal and Tim Sheehy, for their strong commitment to honoring military families and those who served."

Bill text can be found HERE.