Missed Service Related Trauma Reporting Impacts Lost Benefits: How VA Failures and Supreme Court Limits Hurt Veterans with Unreported MST and PTSD

08/04/2025

Unreported Trauma Now Risks a Lifetime of Lost Veterans’ Benefits

Uniformed Military Personnel Leaving the Building

The evolving legal landscape surrounding military discharges, veterans’ benefits, and trauma-related claims, especially those involving military sexual trauma (MST), has reached a critical inflection point. Recent judicial and administrative developments have made one fact painfully clear: service members must ensure that their trauma, mental health diagnoses, and service-connected injuries are fully and accurately documented before they separate from the military. If they don’t, they may lose access to benefits that could have otherwise been rightfully theirs.

This shift in legal and policy frameworks directly affects how we advocate for service members, especially those who experienced MST or other forms of trauma that often go unreported. It is no longer enough to argue the credibility of a veteran’s experience post-discharge. The courts and the VA have begun closing the door on those arguments, placing more weight than ever on what is already recorded in the service member’s file.

The Burden of Silence: Why Trauma Goes Unreported

Military culture has historically been slow to recognize the lasting impact of trauma. Whether due to fear of retaliation, stigma, or command pressure, many service members, particularly those who are survivors of MST, choose not to report incidents while in uniform. The Department of Defense’s own estimates show that over 70% of sexual assault incidents go unreported [DoD SAPR Annual Report, 2023]. This silence, while often a survival tactic, now has lasting legal and financial consequences.

Even when trauma is reported, the system is not built to preserve it properly. Records may be incomplete, improperly coded, or missing altogether. Those gaps are no longer just bureaucratic problems; they are now legal barriers that can render veterans ineligible for the care and compensation they need.

SCOTUS Shuts the Door in Bufkin v. McDonough (2025)

In March 2025, the U.S. Supreme Court ruled in Bufkin v. McDonough, No. 22-883, that VA decisions can only be reversed by appellate courts if there is a “clear error” in the original decision. More importantly, the Court made it clear that post-discharge evidence, no matter how compelling, is unlikely to be sufficient to win a benefits claim unless it was already part of the service record.

This decision shifts the evidentiary burden squarely onto the veteran, not only to prove that a trauma occurred, but to prove that it was recorded during service.

For survivors of MST, PTSD, or moral injury, who may not have felt safe enough to report while serving, this is a legal earthquake. Bufkin doesn’t account for the realities of trauma. It only accounts for paperwork.

Read the decision: https://www.supremecourt.gov/opinions/22pdf/22-883_3f14.pdf

The GAO Report Confirms a Broken System

The Government Accountability Office (GAO) echoed this concern in its July 2025 report, GAO-25-107354, which found that the Department of Defense and the VA are failing to uniformly apply trauma-sensitive standards—especially in cases involving PTSD and MST. The report identified:

  • Inconsistent application of the “liberal consideration” standard in discharge upgrade boards;
  • Lack of mental health experts involved in board decisions;
  • Documentation gaps in official records that prevent accurate evaluations;
  • Command influence and suppression of trauma reporting that lead to inaccurate characterizations of discharge.

The GAO’s findings support what many attorneys already know: service members are being separated without a full and fair accounting of their trauma, and those errors are nearly impossible to correct after the fact.

Read the GAO Report: https://www.gao.gov/products/gao-25-107354

VA’s Continuing Failure to Handle MST Claims

Despite decades of internal reforms and public promises, the VA still struggles to adjudicate MST-related claims. Recent reporting by Stars and Stripes confirms that MST survivors face:

  • Delays and denials due to lack of corroborating records;
  • Insufficient training for VA staff handling trauma-sensitive cases;
  • A presumption of fraud, rather than credibility, when records are incomplete;
  • Lack of continuity between DoD reporting and VA adjudication.

This dysfunction is especially dangerous in light of Bufkin. The VA now has both the legal right and systemic bias to deny a claim that lacks perfect paperwork—even if the trauma was real and medically verified after discharge.

VA Claim Failures Reported: https://www.stripes.com/veterans/2025-07-28/gao-finds-inconsistent-discharge-standards-18584037.html

DoD’s Reforms May Be Too Late for Many

Executive Order 14092, signed in 2023, removed command authority from sexual assault prosecutions and placed decisions in the hands of independent military prosecutors. This reform—while necessary—is prospective. It does nothing to correct the failures of the past or to provide redress to those whose records were silenced by fear, retaliation, or command inaction.

DoD Policy Update: https://www.defense.gov/News/News-Stories/Article/article/3479106/executive-order-changes-how-military-handles-sexual-assaults/

What This Means for Service Members

The current legal environment leaves little room for error:

  • If a trauma is not recorded before discharge, it may never be legally recognized.
  • If a disability is not medically linked to service in the record, VA benefits may be denied.
  • If an MST report is missing or suppressed, there may be no path to justice, even with therapy records or affidavits post-service.

Attorneys must now encourage clients, especially those nearing separation, to immediately seek documentation of all physical, psychological, and traumatic incidents. This includes:

  • Visiting military mental health providers;
  • Obtaining written evaluations;
  • Filing IG or EO complaints, even late;
  • Submitting memos for record;
  • Requesting command letters, even if informal;
  • Asking chaplains or counselors for written notes.

Conclusion

We are entering an era where legal advocacy for veterans requires proactive, preventive action. The courts have made it clear: if it’s not in the record, it may as well not have happened.

This is a devastating message for many of our clients, especially those who endured trauma in silence. But it’s also a call to action. As military and veteran attorneys, we must adjust our strategy, inform our clients, and ensure the record tells the truth, before the discharge paperwork is signed.

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About the Law Offices of David P. Sheldon, PLLC

The Law Offices of David P. Sheldon, PLLC, based in Washington, D.C., is nationally recognized for representing military and federal personnel in correction of records, promotion denials, discharge upgrades, and other matters of military justice and federal administrative law.

Disclaimer

This press release is for informational purposes only and does not constitute legal advice. Outcomes vary based on specific facts and legal circumstances. Past results do not guarantee future outcomes.