For veterans who receive VA disability compensation, a felony conviction and prison term don't necessarily mean the end of all benefits. While the Department of Veterans Affairs does reduce or suspend monthly disability payments for incarcerated veterans, benefits can be partially redirected to eligible family members through a process called apportionment.
When a veteran is incarcerated for a felony, VA disability compensation is reduced to 10% for a single veteran with no dependents, or to a lower rate if the veteran has dependents. However, the full benefit is automatically restored upon release. Many families are unaware that they can apply to receive a portion of the withheld payments to help cover living expenses.
The key takeaway: families should proactively contact the VA to request apportionment of benefits. Without this step, the money simply stays with the VA. For more information, veterans and their families can visit the VA's official website or consult with a veterans service officer.