Military Spouses, Workers See Wins in $738 Billion Defense Bill

Negotiators on the 2020 Defense Authorization bill have agreed to repeal the “widow’s tax,” which had shortchanged military spouses on the amount of survivor benefits they could collect.

The repeal of the widow’s tax would be phased in over three years, according to two people familiar with the decision who asked not to be named because legislation isn’t yet public. Currently Defense Department survivor benefits are required to be reduced by amounts paid under the Veteran Affairs Department’s Dependency and Indemnity Compensation program when military service causes the members’ death.