WASHINGTON — When Army veteran Dan Nevins had to medically retire after losing both his legs in combat, he believed his country would provide financial support.

However, Nevins soon learned about the “wounded veterans tax” — an unofficial term for a federal policy that prevents some injured veterans from receiving both their full retirement pay and disability compensation.

“I was told I couldn’t receive both,” Nevins told NBC News in an interview. “And I was like, ‘Wait a minute. That’s not what I thought was going to happen.’”

This issue impacts approximately 50,000 veterans, according to the nonpartisan Congressional Budget Office, with each losing about $1,900 per month.

Under current federal policy, veterans with less than 20 years of service and a disability rating below 50% have their retirement pay reduced by one dollar for every dollar they receive in disability compensation. The disability rating, assigned by the Department of Veterans Affairs, measures how much an injury or disability affects a veteran’s health and ability to function.

Now, Nevins is urging lawmakers in Washington to reform this policy.

In 2004, while deployed to Iraq as a squad leader, Nevins’ vehicle was struck by an improvised explosive device. The blast killed his platoon sergeant, and due to the severe injuries he sustained, both of Nevins’ legs were eventually amputated below the knee.

“People say when you’re about to die your life flashes before your eyes. That wasn’t really my experience. It was more like a slideshow of things left undone,” Nevins said, still wearing a bracelet daily to honor his platoon sergeant.

“The last vision was my 10-year-old daughter, but she was all grown up, dressed in white from head to toe, walking down the aisle without her dad. I thought, ‘I’m alive. I have to do something to keep it that way.’”

After a long and painful recovery, which included 36 surgeries and an 18-month stay at Walter Reed Hospital, Nevins began rebuilding his life. He even learned new skills, becoming a certified yoga instructor.

However, because of his injuries, Nevins had to leave the military earlier than planned. That’s when he was surprised to learn he would not receive his full retirement pay.

“It’s a tragedy, really,” Nevins said. “So many people give up things we all take for granted just to survive. It’s not a huge amount of money, but it would help and truly change lives and families for the better.”

Congress is now renewing efforts to end this offset through a bipartisan bill called the Major Richard Star Act, which would allow wounded veterans to receive their full retirement benefits alongside disability pay.

Senator Richard Blumenthal (D-Conn.) is leading the charge in the Senate, where the bill has 71 co-sponsors. Meanwhile, Representative Gus Bilirakis (R-Fla.) is pushing it in the House, which counts 274 co-sponsors.

“Veterans are forced to retire early because of their wounds and deserve disability compensation for those injuries, but their retirement pay is reduced dollar-for-dollar because of that compensation,” Blumenthal told NBC News. “They’re being penalized for being wounded. It’s about simple justice and fairness.”

However, the bill comes with a high price tag. The Congressional Budget Office estimated in 2022 that it would cost $9.75 billion between 2024 and 2033. With government spending cuts being considered, including within the Veterans Affairs Department, financial concerns could hinder its passage.

A VA spokesperson said the department typically doesn’t comment on pending legislation but assured that no veterans’ health care or benefits will be cut. The Department of Defense did not respond to requests for comment.

Blumenthal remains optimistic about the bill’s prospects. He plans to propose it as an amendment to the annual defense policy bill later this year and will seek unanimous consent in the coming weeks to see who supports denying veterans basic fairness.

Ahead of Memorial Day, Nevins traveled to Washington to advocate for the bill. He appeared at a press conference with Marine Corps veteran Jamel Daniels, who also lost a leg in combat. The two became friends during their recoveries and even raced wheelchairs in hospital hallways, Nevins said.

Now, Nevins and Daniels continue their fight for legislative change in the Capitol, with Nevins’ message to Congress clear: honor the nation’s commitment to its veterans.

“We should keep our promises,” Nevins said. “I teach my kids to keep their promises, even when it’s not convenient for them.”