Veterans’ Compensation Cost-of-Living Adjustment Act of 2025
This bill is designed to raise the monetary amounts paid by the Department of Veterans Affairs to two groups: (1) veterans who receive disability compensation for service-connected conditions, and (2) survivors who receive dependency and indemnity compensation (DIC) for the deaths of disabled veterans (spouses and children, among others). The increases would take effect December 1, 2025, and would apply to the specific benefit categories listed in the bill. The size of the increases would match the percentage change in Social Security benefit amounts (the Social Security Administration’s cost-of-living adjustment, or COLA) as determined for December 1, 2025. The bill also includes a provision allowing VA to adjust certain rates administratively for a subset of veterans with longstanding compensations under a particular law, and requires VA to publish the new rates in the Federal Register. In short, the bill ties VA compensation increases for disabled veterans and their survivors to the same COLA used for Social Security, ensuring that VA benefits keep pace with the general rise in living costs.
Key Points
- 1Automatic adjustment timing: The Secretary of Veterans Affairs must increase disability compensation and related benefits as of December 1, 2025, using the methodology described in the bill.
- 2Which benefits are increased: Wartime disability compensation, additional compensation for dependents, clothing allowance, DIC for surviving spouses, and DIC for children (as listed in the specified sections of title 38 U.S.C.).
- 3Method of calculation: Each increased amount is raised by the same percentage as the SSA Title II (Social Security) COLA determined for December 1, 2025 under the Social Security Act.
- 4Special administrative rule: The Secretary may adjust disability compensation rates administratively for certain veterans described in Public Law 85-857 (the group of veterans who did not receive compensation under chapter 11 of title 38) to align with the increases.
- 5Publication requirement: VA must publish the adjusted rates in the Federal Register by a date linked to SSA COLA publication timing in fiscal year 2026.