Field Manual · Money & Crisis
Veterans' Financial Playbook & Crisis Guide
What this “financial playbook” is (and isn't)
This page is a reference manual for benefits that touch your money and a crisis checklist you can use when things go sideways. It is not investing advice and it won't tell you what to buy or sell. The focus is strictly on:
- Cash benefits, stipends, and allowances.
- Housing & mobility grants and VA-backed mortgages.
- Penalty rules for tapping retirement money early.
- Work, education, and debt relief programs that are veteran-specific.
- A practical money crisis guide that starts with safety and housing, then works down the list.
Fast checks that move real money
- Student loans: VA determinations of total & permanent disability can qualify for federal student-loan discharge through the TPD process.
- SSDI fast-track: A VA 100% P&T rating doesn't guarantee Social Security disability, but it flags your SSDI claim for expedited processing.
- VA home loan: If you receive VA disability compensation (or are an eligible surviving spouse), the VA home loan funding fee is generally waived.
- Cash allowances: Auto allowance/adaptive equipment, annual clothing allowance, and the Medal of Honor pension all pay at statutory rates that move each year.
- Travel pay: VA reimburses eligible travel for covered appointments (mileage, tolls, some public transit) through Beneficiary Travel.
Cash Benefits, Stipends & Allowances
This section focuses on fixed cash payments that come from your status or medical needs - separate from your base VA disability compensation.
| Program | Who qualifies (high level) | What you get | Apply / Source |
|---|---|---|---|
| Automobile Allowance & Adaptive Equipment | Certain service-connected loss/loss of use (e.g., feet, hands, vision); adaptive equipment also covers installs like hand controls or lifts. | One-time Automobile Allowance (lump sum toward a vehicle) plus separate AAE reimbursements for approved equipment. | |
| Clothing Allowance | Prosthetic or orthopedic devices, or skin medications, that permanently wear out or stain clothing. | Annual payment, with one or more allowances depending on how many qualifying appliances/conditions you have. | Rate table |
| Medal of Honor (MOH) Pension | Medal of Honor recipients. | Monthly pension on top of other disability pay; adjusted annually. | Current rate |
| Caregiver Stipend (PCAFC) | Eligible veterans needing ongoing in-home personal care, plus approved primary/secondary family caregivers. | Monthly stipend to the primary family caregiver based on clinical “tier” and local pay rates, plus training and certain travel benefits. | Caregiver Support |
Exact dollar amounts change on fixed dates; always check the latest VA rate pages before planning around specific numbers.
Housing & Mobility Grants
These grants are about where you live and how you move inside and around your home. Think ramps, roll-in showers, widened doorways, or adapting a family member's home while you stay there.
- SAH (Specially Adapted Housing) - for certain severe service-connected disabilities; helps you build, buy, or modify a permanent home to live more independently.
- SHA (Special Housing Adaptation) - for other specific disabilities (e.g., certain burns or respiratory issues); helps pay for needed adaptations.
- TRA (Temporary Residence Adaptation) - smaller grant to adapt a home where you're temporarily living (for example, with a family member while you recover).
- Maximum grant amounts reset annually. Before signing remodel contracts, double-check the current year's caps and how many times you can use each grant type.
Loans, Fees & Mortgage Relief
VA-backed mortgages are a huge part of many veterans' financial lives. The key is using the benefits without getting boxed in by payment shock or ignoring trouble until it's too late.
- VA home loan funding fee: If you receive VA disability compensation (or you're an eligible surviving spouse), the funding fee is typically waived. That alone can save thousands each time you use the benefit.
- IRRRL (“streamline” refi): Lets you refinance an existing VA loan with reduced documentation, often to lower your rate or switch from ARM to fixed (lender rules still apply).
- Assumptions: VA loans can sometimes be assumed by a qualified buyer, which can be valuable when rates are high and your existing rate is low.
- Hardship & forbearance: If you're slipping behind, call your servicer early and ask about loss-mitigation options. You can also reach out to the VA Loan Guaranty team for help navigating options.
Penalty Rules for Retirement Withdrawals
This table is a reference only for when the IRS 10% early-withdrawal penalty may be waived. Income tax might still apply, and plan rules can be stricter than IRS minimums.
| Situation | IRA | 401(k) / TSP / other plan | Notes |
|---|---|---|---|
| Total & permanent disability | 10% penalty waived | 10% penalty waived | Federal income tax may still apply. If your 1099-R doesn't show disability code, the exception can be claimed on Form 5329. |
| Age-55 separation (plans) | - | 10% penalty waived on that employer's plan if you separate in or after the year you turn 55 (often 50 for some public safety workers). | Plan must allow the distribution. |
| SEPP / 72(t) (substantially equal payments) | 10% penalty waived | 10% penalty waived | Rigid rules for how much and how long; changing the schedule early can trigger penalties. |
| First-home purchase (IRA only) | 10% penalty waived up to a lifetime cap for qualified first-home expenses. | - | Exception applies to IRAs only, not plans. |
| Qualified Charitable Distribution (QCD) | Direct transfer to charity; usually excluded from adjusted gross income. | - | IRA-only; can count toward required minimum distributions once you're eligible. |
Always confirm current IRS rules and your specific plan documents—this is a map, not an instruction sheet.
Work, Education & Debt Relief
These programs don't replace a full financial plan, but they can change the math when you're juggling health, school, and work.
- SSDI fast-track: Veterans with a VA 100% P&T rating have their Social Security disability claims flagged for expedited processing - but SSA still uses its own disability rules.
- TPD student-loan discharge: VA determinations of total and permanent disability can qualify you for federal student-loan discharge through the TPD process (no more monthly payments on those loans if approved).
- UCX (Unemployment Compensation for Ex-Servicemembers): Recently separated service members may qualify for state-run unemployment benefits under federal rules.
- VR&E (Chapter 31): For eligible disabled veterans who need help with retraining, education, or adapting their work environment to stay employed.
Medical Travel Reimbursement
Eligible veterans and caregivers can be reimbursed for travel to certain VA and VA-authorized appointments. Think mileage, tolls, and some parking, minus small deductibles.
Claims are usually filed through VA's online Beneficiary Travel Self Service System (BTSSS) or at your facility's Beneficiary Travel office. There are time limits and documentation rules, so it's worth building “submit travel claim” into your routine.
State-by-State Extras (Property Tax, Tuition, More)
States stack their own benefits on top of the federal layer: property-tax relief, tuition waivers, license plates, hunting & fishing perks, and more. Some are tied to your percentage rating, others to 100% P&T or unemployability.
Use the State Benefits Finder to see what your state offers, then verify details with your local veterans' affairs office.
Money Crisis Guide: From “Oh no” to “What's next?”
This section is for the day you realize: “We can't pay all of this.” Job loss, separation, surprise bill, late notice - whatever it is, the goal is to slow things down, triage, and plug the worst holes first.
First 24-72 hours: Safety, housing, and basics
- Safety first: If you or a family member are in immediate danger or thinking about self-harm, treat that as the only priority and contact emergency services or a crisis line right away.
- Rent / mortgage: Look at the next 30-60 days of housing payments. If you can't make them, call the landlord or servicer before you miss a payment and ask what hardship options exist.
- Utilities & meds: Keep power, water, and essential medications current wherever possible - they affect health and housing stability.
- List the damage: Write a simple one-pager: who you owe, how much, and which bills are already late. You'll work from this list with helpers.
Next 2-4 weeks: Pull in reinforcements
- Talk to VA social work: Ask your VA facility's social worker about programs that fit your situation (SSVF, HUD-VASH, emergency grants, legal aid).
- Ask about SSVF & HUD-VASH: SSVF works through community nonprofits to help low-income veteran families at risk of homelessness with case management and short-term financial assistance (rent, utilities, deposits). HUD-VASH pairs housing vouchers with VA case management for eligible homeless veterans.
- Call 211 or local vet orgs: Many areas have utility assistance, food banks, and veteran-specific funds - but you usually have to call and ask.
- Credit counseling (nonprofit): A reputable nonprofit credit-counseling agency can help map out payment plans and talk to credit-card issuers; avoid anyone promising quick “credit repair.”
Next 3-12 months: Rebuild the system
- Lock in benefits: Make sure all applicable VA, SSA, and state benefits are actually turned on (compensation, health coverage, property-tax relief, tuition, caregiver stipends).
- Stabilize the budget: Once the fire is out, rebuild a simple written plan that prioritizes housing, food, transportation to work/medical, and minimum debt payments.
- Document the plan for your family: Create a one-page “crisis card” listing key logins, benefit contacts, and who to call first if things go sideways again.
Education only - not advice
This guide summarizes benefit mechanics and penalty rules known as of Dec 5, 2025. It is not tax, legal, investment, or individualized financial advice. Laws, benefit amounts, and agency procedures change. Always verify the details with VA, SSA, IRS, your lenders/servicers, and your own professional advisors before making major decisions.