If you have been locked out of VA benefits because of a less-than-honorable discharge, you probably know you have the right to pursue a discharge upgrade. Unfortunately, many veterans have been discouraged from filing because the facts of their case don’t seem to fit the mold. This is especially true of veterans whose mental health problems contributed to their discharge.
If this situation applies to you, you should be aware that over the last decade, the VA has made several substantial policy shifts, clarifying how discharge review boards and boards for correction of military records should treat mental health conditions when evaluating upgrade requests. Understanding these changes and how to leverage them is vital for veterans and their advocates seeking to build stronger cases.
The Rise of “Liberal Consideration” for Mental Health-Related Discharges
A major shift in approach started within the Department of Defense well before VA rule changes: the introduction of “liberal consideration” guidance for discharge review boards.
In 2014, Secretary of Defense Chuck Hagel issued what has come to be known as the Hagel Memorandum, directing discharge review boards and boards for correction of military records to give liberal consideration to cases where a veteran shows that a mental health condition, such as Post Traumatic Stress Disorder, may have contributed to the misconduct that led to their discharge. The Memo states that for many veterans seeking upgrades, “PTSD was not recognized as a diagnosis at the time of [their] service and, in many cases, diagnoses were not made until decades after service was completed.” Sec. Hagel’s goal in issuing the Memo was to help review bodies reach “fair and consistent results in these difficult cases.”
Subsequent memoranda under DoD, most notably the Kurta Memorandum in 2017, expanded this guidance. Instead of focusing narrowly on PTSD, the policy now applies to any mental health condition, traumatic brain injury (TBI), military sexual trauma (MST), sexual assault, or sexual harassment that may have affected a service member’s behavior, even if those conditions were undiagnosed at the time.
This series of memoranda makes clear that:
- Boards must consider a veteran’s mental health evidence liberally
- A formal diagnosis is not strictly required if other credible evidence shows symptoms or effects consistent with a mental health condition
- Evidence from VA determinations, civilian providers, family members, or even the veteran’s own testimony may support a claim.
Before 2014, many veterans were denied upgrades simply because their mental health conditions weren’t documented in service records or weren’t even recognized by the medical community at the time of discharge. Liberal consideration aimed to correct this shortcoming by allowing boards to look beyond outdated clinical records to understand how conditions like PTSD, TBI, or depression truly affected behavior.
VA’s Expanded Access to Care: A Signal of Policy Evolution
While DoD policy guides discharge review boards, the Department of Veterans Affairs has also adjusted its view of mental health conditions in relation to benefits eligibility.
In April 2024, VA published a final rule expanding access to VA care and benefits for former service members with less-than-honorable discharges. That new rule allows the VA to consider whether mental or physical health hardships, discrimination, or survival of trauma played a role in a veteran’s service and separation, and to offer benefits even when a veteran doesn’t have a fully honorable discharge.
This policy doesn’t directly change discharge upgrade standards, which still fall under the purview of DoD. But it signals a broader federal trend: mental health conditions that impair service performance should not automatically bar access to care and benefits.
The Medical Science Behind the Policy Shift
These policy changes are grounded in decades of evolving psychiatric understanding. What was once dismissed as “behavioral misconduct” is now recognized as a possible result of trauma and stress-related disorders.
For example, “in 2013, the American Psychiatric Association revised the PTSD diagnostic criteria in the 5th edition of its Diagnostic and Statistical Manual of Mental Disorders (DSM-5; 1).” This change moved PTSD out of a narrow anxiety category. It reclassified it as a trauma- and stressor-related disorder with criteria that include intrusive memories, avoidance, negative mood changes, and hyperarousal.
This deeper understanding matters to discharge upgrade cases because it helps veterans and their attorneys argue that the behavior leading to discharge wasn’t willful misconduct, but rather a symptom of an underlying, service-connected mental health condition that was not understood or diagnosed at the time. This argument aligns with the liberal consideration policy and can provide a compelling narrative for reviewers.
How These Policies Help Veterans Build Stronger Discharge Upgrade Cases
When preparing a discharge upgrade application, attorneys and advocates should implement these potentially decisive steps:
- Document mental health conditions thoroughly —Even if a veteran’s PTSD or other condition was not diagnosed during service, later VA or civilian diagnoses matter. Under liberal consideration guidance, boards can consider this evidence and might weigh it substantially if it connects the condition to service trauma and the problematic behavior at issue.
- Use VA evidence to support DoD review — A VA service-connection or disability rating for PTSD or TBI can be persuasive in a discharge upgrade case. DoD guidance, specifically the Kurta Memo, acknowledges that VA determinations of these conditions are valuable evidence that a mental health condition existed during service and may have impacted conduct.
- Connect symptoms to discharge-triggering events — Boards don’t require perfect documentation, but you do need to show that the condition likely affected behavior that contributed to the discharge. Providing lay statements, treatment histories, and contextual information, such as timelines, helps fulfill the four key questions boards should ask:
- Did the veteran have a condition that may excuse or mitigate discharge?
- Did it occur or exist during service?
- Does it actually mitigate the discharge?
- Does it outweigh the discharge characterization?
Veterans need not prove their case beyond a reasonable doubt. Though regulations do not dictate a specific evidentiary standard, the ‘preponderance of the evidence’ standard prevails. Thus, the veteran must show that it is ‘more likely than not’ that an inequity exists. This is satisfied when the applicant provides “substantial credible evidence” sufficient to overcome the presumption of propriety and equity.
The Current Implementation Gap
Despite these policy improvements, challenges persist. A 2025 Government Accountability Office (GAO) report found that discharge review boards are still inconsistent in applying liberal consideration to cases involving mental trauma or PTSD, and upgrade success rates remain relatively low in many boards.
This makes working with experienced legal counsel even more important. Attorneys who understand the policy framework and know how to present compelling evidence, including mental health evaluations, service context, and treatment histories, can significantly improve a veteran’s chances of success.
Over the last decade, meaningful policy evolution from both the Department of Defense and the Department of Veterans Affairs has reshaped how discharge upgrade requests involving mental health conditions are considered. The shift toward liberal, trauma-informed review means more veterans have a fair opportunity for relief when their service-related mental health issues contributed to misconduct or separation.
For veterans and their attorneys, the key is to leverage these policy changes with thorough documentation and a compelling, medically grounded narrative. Doing so not only increases the chances of a successful discharge upgrade but also helps ensure veterans receive the benefits and care they earned.
You served your country, and your mental health should never erase that service. If trauma, PTSD, TBI, or other conditions played a role in your discharge, evolving VA and DoD policies may give you a path forward. We help veterans translate these policy shifts into compelling, evidence-based upgrade applications. Reach out today for a consultation and learn how we can help you pursue the benefits and recognition you deserve at 470.751.9910 or online.