THOMPSON, STEUBE, VARGAS, BERGMAN INTRODUCE BILL EXTENDING BENEFITS FOR MILITARY SURVIVORS

Washington, D.C. – Today, Rep. Mike Thompson (CA-04) introduced the Granting Rollover Access and Contribution Extensions (GRACE) for Military Survivors Act, legislation to extend the time period in which surviving family members of a military service member can make important financial decisions about their survivor benefits. Reps. Greg Steube (FL-17), Juan Vargas (CA-52), and Jack Bergman (MI-01) co-lead the bill. 

“Grieving military families have enough on their plates when they lose a loved one — they should not be forced to make urgent, consequential financial decisions on top of everything else. Ensuring families have the time they need to decide the best path forward just makes sense. Grateful to work with my colleagues to introduce this important legislation,” said Rep. Mike Thompson.  

“The families of our fallen service members have already sacrificed more than most Americans can imagine. The last thing they should have to worry about is financial deadlines while grieving the loss of a spouse, parent, or child,” said Rep. Greg Steube. “As a veteran, I understand the sacrifices made by military families, and they deserve to make thoughtful financial decisions without unnecessary pressure from the federal government.”

“When a service member dies in the line of duty, their families should never be forced to make urgent financial decisions while enduring the pain of immeasurable loss. They deserve time, flexibility, and grace,” said Rep. Juan Vargas. “I’m grateful to join my colleagues in introducing this critical legislation.”  

"When a servicemember makes the ultimate sacrifice, their family deserves our unwavering support - not unnecessary bureaucratic deadlines. Military families should have the time and flexibility to make important financial decisions without added pressure during one of the most difficult moments of their lives. I'm proud to support the GRACE for Military Survivors Act to ensure we honor their sacrifice by giving surviving loved ones the compassion and certainty they deserve,” said Rep. Jack Bergman. 

BACKGROUND 

When a service member dies in the line of duty, surviving families are forced to navigate immense grief while also making important financial decisions under compressed timelines. Current law allows surviving spouses and children to roll over military death gratuities and Servicemembers’ Group Life Insurance (SGLI) benefits into certain tax-advantaged savings accounts, but only within one year of receiving the benefits. For many military families, that timeline is simply too short. This legislation would provide surviving military families with additional flexibility and time to make thoughtful long-term financial decisions.

The bill would:

• Extend from one year to three years the period in which military death gratuities and SGLI payments may be contributed to Roth IRAs and Coverdell Education Savings Accounts without penalty.
• Ensure military families are not penalized while grieving and adjusting to life after the loss of a service member.

The GRACE for Military Survivors Act was developed in conjunction with Gold Star Spouses of America. Reps. Jake Ellzey (R-TX), Eleanor Holmes Norton (D-DC), Vern Buchanan (R-FL), Terri Sewell (D-AL), Pat Harrigan (R-NC), Gwen Moore (D-WI), Jen Kiggans (R-VA), and Shri Thanedar (D-MI) are original cosponsors. 

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

“Gold Star Spouses of America strongly supports the GRACE for Military Survivors Act. Surviving spouses are often advised not to make major financial decisions during the first year after the death of their loved one, a recommendation that can inadvertently cause families to miss opportunities to utilize military death benefits in tax-advantaged savings accounts. Extending the contribution period from one year to three years acknowledges the realities of grief and gives surviving families the time they need to make thoughtful financial decisions that strengthen their long-term financial security,” said Tamra Sipes, National President, Gold Star Spouses of America.

“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 Action. “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 Rep. Mike Thompson and Rep. Bergman for their strong commitment to honoring military families and those who served.”

“USAA is proud to support the GRACE for Military Survivors Act, which reflects both sound financial policy and compassion for military families. This bill gives military families the time and flexibility they need to make solid financial choices for the future, empowering them to achieve financial security.” said Maj. Gen. John Richardson, U.S. Army, Ret., USAA Senior Vice President, Head of Policy & Alliances.

“The current one-year deadline is often unrealistic for grieving military families navigating the emotional, financial, and logistical challenges that follow the loss of a loved one in service. The Veterans Survivor Coalition supports extending this window to three years gives survivors the time and flexibility they deserve to plan for their family’s future,” said the Veterans Survivor Coalition. 

The full text of the bill can be found here.

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Congressman Mike Thompson is proud to represent California’s 4th Congressional District, which includes all or part of Lake, Napa, Solano, Sonoma and Yolo Counties. He is a senior member of the House Committee on Ways and Means. Rep. Thompson is Chairman of the House Gun Violence Prevention Task Force. He is also Co-Chair of the bipartisan, bicameral Congressional Wine Caucus and a member of the fiscally-responsible Blue Dog Coalition.