McKinney v. Secretary of Veterans Affairs

CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 14, 2026
Docket23-1930
StatusPublished

This text of McKinney v. Secretary of Veterans Affairs (McKinney v. Secretary of Veterans Affairs) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKinney v. Secretary of Veterans Affairs, (Fed. Cir. 2026).

Opinion

Case: 23-1930 Document: 62 Page: 1 Filed: 01/14/2026

United States Court of Appeals for the Federal Circuit ______________________

HUGH CAMPBELL MCKINNEY, Petitioner

v.

SECRETARY OF VETERANS AFFAIRS, Respondent ______________________

2023-1930 ______________________

Petition for review pursuant to 38 U.S.C. Section 502. ______________________

Decided: January 14, 2026 ______________________

SETH A. WATKINS, Watkins Law & Advocacy, PLLC, Washington, DC, argued for petitioner.

DANIEL FALKNOR, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washing- ton, DC, argued for respondent. Also represented by ELIZABETH MARIE HOSFORD, PATRICIA M. MCCARTHY, YAAKOV ROTH; EVAN SCOTT GRANT, Y. KEN LEE, Office of General Counsel, United States Department of Veterans Affairs, Washington, DC. ______________________

Before PROST, REYNA, and CHEN, Circuit Judges. Case: 23-1930 Document: 62 Page: 2 Filed: 01/14/2026

CHEN, Circuit Judge. Hugh Campbell McKinney petitioned the United States Department of Veterans Affairs (VA’s) to institute rulemaking to expand coverage of the Traumatic Service- members’ Group Life Insurance (TSGLI) to include illness or disease caused by explosive ordnance. See Servicemem- bers’ Group Life Insurance Traumatic Injury Protection Program, 88 Fed. Reg. 15,907 (Mar. 15, 2023) (Final De- nial). TSGLI covers servicemembers who suffer a trau- matic injury and is designed to fill a gap between the time the injury occurs and when other benefits are available. This program is overseen by the VA, which also has the power to issue regulations enumerating various injuries that are covered. As it stands, the regulation covers phys- ical damage to a servicemember caused by, among other things, application of external force or chemical, biological, or radiological weapons. The regulation, however, does not cover an illness or disease, with a few exceptions. The VA denied Mr. McKinney’s petition to expand coverage due to several concerns, including that such coverage would be in- consistent with the types of injuries the TSGLI was de- signed to protect. Mr. McKinney now petitions this court under 38 U.S.C. § 502 to set aside the VA’s denial. For the following reasons, we deny the petition. BACKGROUND I On May 11, 2005, the President signed into law the leg- islation establishing TSGLI to provide financial assistance to servicemembers who suffer severe traumatic injuries. J.A. 83. The purpose of the program is to address a “gap” in benefits identified by Congress: the period immediately after a service member suffers a traumatic injury when “the need for additional financial resources becomes most acute.” J.A. 17–18. TSGLI provides that “[a] member of the uniformed service who is insured under Servicemem- bers’ Group Life Insurance shall automatically be insured Case: 23-1930 Document: 62 Page: 3 Filed: 01/14/2026

MCKINNEY v. SECRETARY OF VETERANS AFFAIRS 3

for traumatic injury in accordance with this section” and that “[i]nsurance benefits under this section shall be paya- ble if the member, while so insured, sustains a traumatic injury . . . that results in a qualifying loss.” 38 U.S.C. § 1980A(a)(1). The benefit, however, is payable only if the loss “results directly from [the] traumatic injury . . . and from no other cause.” Id. § 1980A(c)(1). Under the statute, a qualifying loss includes loss of limbs; total and permanent loss of sight, hearing, or speech; severe burns; paralysis; traumatic brain injury; and loss of ability to carry out the activities of daily living. See id. § 1980A(b)(1)(A–H). Additionally, the VA may prescribe additional qualifying losses by regulation. Id. § 1980A(b)(3). The VA defined these qualifying losses in 38 C.F.R. § 9.20. 1 According to 38 C.F.R. § 9.20, service members who ex- perience (1) a traumatic event that results in (2) a trau- matic injury directly causing (3) a qualifying “scheduled loss” are eligible to receive a TSGLI payment. The VA de- fined “traumatic event” as the application of external force, violence, chemical, biological, or radiological weapons, or accidental ingestion of a contaminated substance causing damage to a living body. 38 C.F.R. § 9.20(b)(1). Moreover, the VA defined “traumatic injury” as “physical damage to a living body that is caused by a traumatic event, as de- fined in [§ 9.20(b)].” Id. § 9.20(c)(1). However, “the term ‘traumatic injury’ does not include damage to a living body caused by,” inter alia, “physical illness or disease, except if the physical illness or disease is caused by a pyogenic in- fection, biological, chemical, or radiological weapons, or ac- cidental ingestion of a contaminated substance.” Id. § 9.20(c)(2) (emphasis added). The regulation thus draws

1 In 2023, the VA modified 38 C.F.R. § 9.20 to expand the definition of a “traumatic event.” However, we will only be discussing the pre-2023 version of 38 C.F.R. § 9.20. Case: 23-1930 Document: 62 Page: 4 Filed: 01/14/2026

a distinction, for the most part, between physical damage caused by a traumatic injury and damage caused by an ill- ness or disease for TSGLI benefits purposes. To be eligible for payment of benefits, service members must suffer a scheduled loss “within two years of the trau- matic injury.” Id. § 9.20(d)(4). Additionally, the scheduled loss must “result[] directly from a traumatic injury and no other cause.” Id. § 9.20(d)(2) (emphasis added). This means that “if a pre-existing illness, condition, or disease or a post-service injury substantially contributed to the loss,” then the scheduled loss “does not result directly from a traumatic injury.” Id. § 9.20(d)(2)(i). The VA explained that illness and disease were gener- ally excluded from the definition of “traumatic injury” be- cause “the term ‘injury’ refers to the results of an external trauma rather than a degenerative process.” Traumatic Injury Protection Rider To Servicemembers’ Group Life In- surance, 70 Fed. Reg. 75940, 75941 (Dec. 22, 2005), J.A. 24. The VA, however, carved out five exceptions for “physical illness or disease caused by a pyogenic infection, chemical, biological, or radiological weapons, or accidental ingestion of a contaminated substance because including immediate traumatic harm due to those unique hazards of military service is consistent with the purpose of TSGLI.” Id. (em- phasis added). Thus, the VA specified that diseases result- ing from those hazards are within the definition of “traumatic injury.” See 38 C.F.R. § 9.20(c)(2)(ii). II Mr. McKinney is an Iraq war veteran who sustained a traumatic brain injury (TBI) from the concussive force of an improvised explosive device (IED) while deployed in 2005. Within two years of his TBI, Mr. McKinney suffered a stroke and submitted a claim for TSGLI benefits based on his stroke. Mr. McKinney’s application was denied be- cause the United States Army determined that Case: 23-1930 Document: 62 Page: 5 Filed: 01/14/2026

MCKINNEY v. SECRETARY OF VETERANS AFFAIRS 5

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