Veterans’ Compensation Cost-of-Living Adjustment Act of 2025
Veterans’ Compensation Cost-of-Living Adjustment Act of 2025
Plain Language Summary
# Veterans' Compensation Cost-of-Living Adjustment Act of 2025 – Summary **What the Bill Does:** This law automatically increases payments that veterans and their families receive from the Department of Veterans Affairs to keep pace with inflation. Specifically, it ties VA disability payments, survivor benefits, and related allowances to the same cost-of-living adjustment (COLA) that Social Security recipients receive each year. The adjustment is set to match whatever percentage increase takes effect for Social Security on December 1, 2025, and can continue for future years.
The VA must publicly announce the new payment amounts in the Federal Register. **Who It Affects:** The law benefits millions of veterans who receive disability compensation for service-related injuries or illnesses, surviving spouses and children of deceased veterans who receive dependency and indemnity compensation, and disabled veterans who receive clothing allowances. Essentially, any veteran or military family member receiving VA compensation benefits will see their payments increase to match inflation. **Current Status:** This bill has already been signed into law and is now in effect. It was sponsored by Senator Jerry Moran (R-KS) and passed through Congress during the 119th session.
CRS Official Summary
Veterans' Compensation Cost-of-Living Adjustment Act of 2025This bill requires the Department of Veterans Affairs (VA) to increase the amounts payable for wartime disability compensation, additional compensation for dependents, the clothing allowance for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children. Specifically, the VA must increase the amounts by the same percentage as the cost-of-living increase in benefits for Social Security recipients that is effective on December 1, 2025. The bill requires the VA to publish the amounts payable, as increased, in the Federal Register.The VA is authorized to make a similar adjustment to the rates of disability compensation payable to persons who have not received compensation for service-connected disability or death.
Latest Action
Became Public Law No: 119-42.