Veterans’ Compensation Cost-of-Living Adjustment Act of 2025
Starting December 1, 2025, disabled veterans, their dependents, and surviving family members will receive higher monthly compensation payments and clothing allowances. The percentage increase will match the annual cost-of-living adjustment given to Social Security beneficiaries. The Department of Veterans Affairs will calculate and publish the final payment amounts once the new Social Security rate is set.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- Veterans with service-connected disabilitiesReceive a cost-of-living increase in their monthly disability compensation and clothing allowances starting December 1, 2025 (Sec. 2(a)-(c)).
- Surviving spouses and children of deceased veteransReceive higher dependency and indemnity compensation payments reflecting the cost-of-living percentage increase (Sec. 2(a)-(c)).
- Dependents of disabled veteransReceive increased benefit amounts through additional compensation paid to veterans on behalf of qualifying dependents (Sec. 2(b)(2)).
- Beneficiaries under legacy veterans' disability lawsMay receive an equivalent administrative cost-of-living increase in their disability compensation rates (Sec. 2(d)).
Who it burdens
- Department of Veterans AffairsMust implement the rate increases and publish the adjusted benefit payment amounts in the Federal Register (Sec. 2, Sec. 3).
The provisions, in plain language.
Increases monthly payments for veterans' disability compensation, additional compensation for dependents, clothing allowances, and dependency and indemnity compensation for surviving spouses and children, effective December 1, 2025, by the same cost-of-living percentage increase applied to Social Security benefits.
Authorizes the Department of Veterans Affairs to provide an equivalent cost-of-living increase to disability compensation rates for individuals receiving benefits under prior veterans' pension laws.
Requires the Department of Veterans Affairs to publish the newly increased benefit payment amounts in the Federal Register.