Use the VA 100% service-connected rating flag where the law asks for a VA rating

changelog.d/veteran-total-disability-rating.fixed.md

@@ -0,0 +1 @@
+Use the VA 100% service-connected rating flag for the Medicaid work requirement veteran exemption, the Kansas disabled veteran exemption, Hawaii LIHEAP points and SNAP's elderly or disabled member, and document both VA rating flags.

policyengine_us/parameters/gov/usda/disabled_programs.yaml

@@ -9,6 +9,13 @@ values:
     - receives_ssi
     - ssi
     - social_security_disability
+    # Clause (6) of the definition covers "a veteran with a service-connected
+    # or non-service-connected disability rated by the Veteran's
+    # Administration (VA) as total or paid as total". The first flag covers a
+    # service-connected rating, temporary or permanent; the second covers a
+    # permanent and total rating, which a non-service-connected (pension)
+    # rating requires.
+    - is_fully_disabled_service_connected_veteran
     - is_permanently_disabled_veteran
     - is_surviving_spouse_of_disabled_veteran
     - is_surviving_child_of_disabled_veteran

policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/medicaid_work_requirement_eligible.yaml

@@ -412,3 +412,26 @@
     medicaid_community_engagement_pass_through_eligible: false
   output:
     medicaid_work_requirement_eligible: true
+
+- name: Case 42, a veteran with a 100% service-connected rating is exempt.
+  period: 2027
+  input:
+    age: 40
+    monthly_hours_worked: 0
+    is_veteran: true
+    is_fully_disabled_service_connected_veteran: true
+    medicaid_community_engagement_pass_through_eligible: false
+  output:
+    medicaid_work_requirement_eligible: true
+
+- name: Case 43, a veteran with only the tax permanent and total disability flag is not exempt as a veteran.
+  period: 2027
+  input:
+    age: 40
+    monthly_hours_worked: 0
+    is_veteran: true
+    is_permanently_and_totally_disabled: true
+    is_fully_disabled_service_connected_veteran: false
+    medicaid_community_engagement_pass_through_eligible: false
+  output:
+    medicaid_work_requirement_eligible: false

policyengine_us/tests/policy/baseline/gov/states/hi/dhs/liheap/hi_liheap_points.yaml

@@ -1067,3 +1067,39 @@
         county: HONOLULU_COUNTY_HI
   output:
     hi_liheap_points: [5, 5, 5, 4]
+
+- name: Case 17, a 100% service-connected veteran adds the disabled-adult point.
+  period: 2026
+  # Same income as Case 16's person3 (5 points with the disabled point).
+  input:
+    people:
+      person1:
+        age: 40
+        ssi: 0
+        employment_income: 12_000
+        is_fully_disabled_service_connected_veteran: true
+      person2:
+        age: 40
+        ssi: 0
+        employment_income: 12_000
+        is_fully_disabled_service_connected_veteran: false
+    spm_units:
+      spm_unit1:
+        members: [person1]
+        heating_type: NATURAL_GAS
+        hi_tanf: 0
+      spm_unit2:
+        members: [person2]
+        heating_type: NATURAL_GAS
+        hi_tanf: 0
+    households:
+      household1:
+        members: [person1]
+        state_code: HI
+        county: HONOLULU_COUNTY_HI
+      household2:
+        members: [person2]
+        state_code: HI
+        county: HONOLULU_COUNTY_HI
+  output:
+    hi_liheap_points: [5, 4]

policyengine_us/tests/policy/baseline/gov/states/ks/tax/income/exemptions/ks_disabled_veteran_exemption_2025.yaml

@@ -7,7 +7,8 @@
   input:
     people:
       person1:
-        is_permanently_and_totally_disabled: true
+        is_fully_disabled_service_connected_veteran: true
+        is_permanently_disabled_veteran: true
         is_veteran: true
         employment_income: 50_000
     tax_units:
@@ -28,11 +29,13 @@
   input:
     people:
       person1:
-        is_permanently_and_totally_disabled: true
+        is_fully_disabled_service_connected_veteran: true
+        is_permanently_disabled_veteran: true
         is_veteran: true
         employment_income: 40_000
       person2:
-        is_permanently_and_totally_disabled: true
+        is_fully_disabled_service_connected_veteran: true
+        is_permanently_disabled_veteran: true
         is_veteran: true
         employment_income: 30_000
     tax_units:
@@ -54,7 +57,8 @@
   input:
     people:
       person1:
-        is_permanently_and_totally_disabled: true
+        is_fully_disabled_service_connected_veteran: true
+        is_permanently_disabled_veteran: true
         is_veteran: true
         employment_income: 60_000
       person2:
@@ -81,7 +85,8 @@
   input:
     people:
       person1:
-        is_permanently_and_totally_disabled: true
+        is_fully_disabled_service_connected_veteran: true
+        is_permanently_disabled_veteran: true
         is_veteran: true
         employment_income: 50_000
     tax_units:
@@ -102,7 +107,8 @@
   input:
     people:
       person1:
-        is_permanently_and_totally_disabled: true
+        is_fully_disabled_service_connected_veteran: true
+        is_permanently_disabled_veteran: true
         is_veteran: true
     tax_units:
       tax_unit:

policyengine_us/tests/policy/baseline/gov/states/ks/tax/income/exemptions/ks_disabled_veteran_exemptions_eligible_person.yaml.yaml

@@ -1,8 +1,8 @@
 - name: Case 1, the filer is a disabled veteran, get exemptions. 
   period: 2023
   input:
-    is_permanently_and_totally_disabled: true
-    is_veteran: true
+    is_fully_disabled_service_connected_veteran: true
+    is_permanently_disabled_veteran: true
     state_code: KS
   output:
     ks_disabled_veteran_exemptions_eligible_person: true
@@ -33,3 +33,21 @@
     state_code: KS
   output:
     ks_disabled_veteran_exemptions_eligible_person: false
+
+- name: Case 5, a 100% service-connected rating that is not permanent gets no exemption.
+  period: 2025
+  input:
+    is_fully_disabled_service_connected_veteran: true
+    is_permanently_disabled_veteran: false
+    state_code: KS
+  output:
+    ks_disabled_veteran_exemptions_eligible_person: false
+
+- name: Case 6, a permanent and total rating below the 100% service-connected rate gets no exemption.
+  period: 2025
+  input:
+    is_fully_disabled_service_connected_veteran: false
+    is_permanently_disabled_veteran: true
+    state_code: KS
+  output:
+    ks_disabled_veteran_exemptions_eligible_person: false

policyengine_us/tests/policy/baseline/gov/states/ks/tax/income/ks_2025_integration.yaml

@@ -290,8 +290,8 @@
         is_tax_unit_head: true
         age: 50
         employment_income: 45_000
-        is_permanently_and_totally_disabled: true
-        is_veteran: true
+        is_fully_disabled_service_connected_veteran: true
+        is_permanently_disabled_veteran: true
     tax_units:
       tax_unit:
         members: [person1]

policyengine_us/tests/policy/baseline/gov/usda/is_usda_disabled.yaml

@@ -67,3 +67,12 @@
     social_security_disability: 100
   output:
     is_usda_disabled: true
+
+- name: Case 9, a veteran with a 100% service-connected rating that is not permanent is USDA disabled.
+  period: 2026
+  input:
+    age: 40
+    is_fully_disabled_service_connected_veteran: true
+    is_permanently_disabled_veteran: false
+  output:
+    is_usda_disabled: true

policyengine_us/variables/gov/hhs/medicaid/eligibility/medicaid_work_requirement_eligible.py

@@ -10,6 +10,8 @@ class medicaid_work_requirement_eligible(Variable):
         "https://www.congress.gov/bill/119th-congress/house-bill/1/text",
         "https://www.medicaid.gov/federal-policy-guidance/downloads/cib12082025.pdf",
         "https://www.law.cornell.edu/uscode/text/42/1382c#a_3",
+        "https://www.govinfo.gov/content/pkg/PLAW-119publ21/pdf/PLAW-119publ21.pdf#page=242",
+        "https://www.law.cornell.edu/cfr/text/42/435.554",
     )
 
     def formula(person, period, parameters):
@@ -64,12 +66,10 @@ def formula(person, period, parameters):
         is_dependent = person("is_tax_unit_dependent", period)
         is_disabled = person("is_disabled", period)
         has_disabled = person.tax_unit.any(is_dependent & is_disabled)
-        # veteran and is_permanently_and_totally_disabled p.694 (IV)
-        is_veteran = person("is_veteran", period)
-        is_permanently_and_totally_disabled = person(
-            "is_permanently_and_totally_disabled", period
-        )
-        eligible_veteran = is_veteran & is_permanently_and_totally_disabled
+        # Clause (IV): a veteran with a disability rated as total under 38
+        # U.S.C. 1155, which 42 CFR 435.554(c)(4) reads as "a temporary or
+        # permanent disability ... rated as 100 percent (total)".
+        eligible_veteran = person("is_fully_disabled_service_connected_veteran", period)
         # blind or disabled or is_incapable_of_self_care p.694 (V)
         is_blind = person("is_blind", period)
         is_incapable_of_self_care = person("is_incapable_of_self_care", period)

policyengine_us/variables/gov/states/hi/dhs/liheap/hi_liheap_points.py

@@ -52,14 +52,16 @@ def formula(spm_unit, period, parameters):
         age = person("age", period)
         qualified = person("hi_liheap_qualified_member", period)
         # The manuals define a disabled individual by receipt of SSI or Social
-        # Security disability payments. Veterans' 100% ratings, governmental
-        # disability retirement and railroad disability have no separate input,
-        # so is_disabled stands in for them. This affects points only.
+        # Security disability payments, or "VA benefits for a 100%
+        # service-connected disability". Governmental disability retirement
+        # and railroad disability have no separate input, so is_disabled
+        # stands in for them. This affects points only.
         disabled = (
             person("is_disabled", period)
             | (person("ssi", period, options=[ADD]) > 0)
             | (add(person, period, ["receives_ssi"]) > 0)
             | (person("social_security_disability", period) > 0)
+            | person("is_fully_disabled_service_connected_veteran", period)
         )
         ages = p.payment.points.vulnerability
         vulnerable = spm_unit.any(

policyengine_us/variables/gov/states/il/rta/cta/free_ride/il_cta_military_service_pass_eligible.py

@@ -11,6 +11,9 @@ class il_cta_military_service_pass_eligible(Variable):
 
     def formula(person, period, parameters):
         is_in_active_duty = person("military_basic_pay", period) > 0
+        # NOTE: The CTA covers a veteran with VA disability compensation "of
+        # 10% or greater". The model has no input for ratings below 100%, so
+        # veterans rated 10% to 90% are missed.
         disabled_veterans = person(
             "is_fully_disabled_service_connected_veteran", period
         )

policyengine_us/variables/gov/states/ks/tax/income/exemptions/ks_disabled_veteran_exemptions_person.py

@@ -8,13 +8,22 @@ class ks_disabled_veteran_exemptions_eligible_person(Variable):
     unit = USD
     definition_period = YEAR
     reference = (
-        "https://law.justia.com/codes/kansas/chapter-79/article-32/section-79-32-121/"
+        "https://law.justia.com/codes/kansas/chapter-79/article-32/section-79-32-121/",
+        "https://www.kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0121b_section/079_032_0121b_k/",
+        "https://www.ksrevenue.gov/pdf/ip23.pdf#page=6",
     )
     defined_for = StateCode.KS
 
     def formula(person, period, parameters):
         p = parameters(period).gov.states.ks.tax.income.exemptions.disabled_veteran
-        disabled = person("is_permanently_and_totally_disabled", period)
-        is_veteran = person("is_veteran", period)
-
-        return p.in_effect * disabled * is_veteran
+        # K.S.A. 79-32,121b(b)(2): a veteran the VA certifies "to be in
+        # receipt of disability compensation at the 100% rate, if the
+        # disability is permanent and was sustained through military action
+        # or accident or resulted from disease contracted while in such
+        # active service". The VA flags already imply veteran status. The
+        # honorable-discharge condition has no input.
+        paid_at_100_percent = person(
+            "is_fully_disabled_service_connected_veteran", period
+        )
+        permanent = person("is_permanently_disabled_veteran", period)
+        return p.in_effect & paid_at_100_percent & permanent

policyengine_us/variables/gov/states/nc/tax/income/deductions/military_retirement/nc_military_retirement_deduction_eligible.py

@@ -16,7 +16,10 @@ class nc_military_retirement_deduction_eligible(Variable):
     def formula(person, period, parameters):
         p = parameters(period).gov.states.nc.tax.income.deductions.military_retirement
         # G.S. 105-153.5(b)(5a)a.: a retired member who served the minimum
-        # years or was medically retired.
+        # years or was "Medically retired under 10 U.S.C. Chapter 61".
+        # NOTE: The model has no input for a chapter 61 disability retirement,
+        # so the VA permanent and total rating stands in. It misses a member on
+        # the temporary disability retired list (10 U.S.C. 1202).
         is_medically_retired = person("is_permanently_disabled_veteran", period)
         served_minimum_years = person("years_in_military", period) >= p.minimum_years
         # (5a)b.: the Survivor Benefit Plan beneficiary of such a member.

policyengine_us/variables/household/demographic/person/is_fully_disabled_service_connected_veteran.py

@@ -6,3 +6,13 @@ class is_fully_disabled_service_connected_veteran(Variable):
     entity = Person
     label = "Is a fully disabled veteran who became so as a result of an injury during service"
     definition_period = YEAR
+    # True when the Department of Veterans Affairs rates or pays a
+    # service-connected disability at the 100% rate, temporary or permanent,
+    # including a total rating based on individual unemployability. A
+    # permanent rating is is_permanently_disabled_veteran. The model has no
+    # input for ratings below 100%.
+    reference = (
+        "https://www.law.cornell.edu/uscode/text/38/1155",
+        "https://www.law.cornell.edu/cfr/text/38/3.340",
+        "https://www.law.cornell.edu/cfr/text/38/4.16",
+    )

policyengine_us/variables/household/demographic/person/is_permanently_disabled_veteran.py

@@ -6,3 +6,12 @@ class is_permanently_disabled_veteran(Variable):
     entity = Person
     definition_period = YEAR
     label = "Permanently disabled veteran"
+    # True when the Department of Veterans Affairs has rated the veteran's
+    # disability permanent and total, for service-connected compensation or
+    # for a pension, which requires a permanent and total non-service-connected
+    # disability (38 U.S.C. 1521(a)). A 100% service-connected rating that is
+    # not permanent is is_fully_disabled_service_connected_veteran.
+    reference = (
+        "https://www.law.cornell.edu/cfr/text/38/3.340",
+        "https://www.law.cornell.edu/uscode/text/38/1521",
+    )