Veterans Survivor Bill Boosts Base Pay But Scales Back Benefits for Shorter Disability Periods

The “Caring for Survivors Act of 2025” is looking to change how the VA calculates and pays Dependency and Indemnity Compensation (DIC) to surviving spouses of veterans. This bill tackles two major areas: how much money survivors get each month and who actually qualifies for the benefit.

The New Math: Raising the Base Pay

If you’re a surviving spouse currently receiving DIC, Section 2 is the big news. Right now, the standard monthly payment is a fixed amount (around $1,154, depending on the veteran’s grade). This bill scraps that fixed number and instead ties the DIC payment to a percentage of a higher compensation rate used elsewhere in VA benefits (specifically, 55 percent of the rate set in section 1114(j)). This is a significant change because it means the standard DIC payment will increase immediately and will also automatically rise whenever that underlying compensation rate goes up. Think of it as switching from a flat fee to a percentage of a larger pot—a definite boost for most survivors, especially those relying on this income to cover rising costs of living. This increase is set to kick in six months after the bill becomes law.

Expanding Eligibility, But With a Catch

Section 3 addresses a long-standing requirement for survivors to qualify for DIC benefits when the veteran died from non-service-connected causes but was rated totally disabled at the time of death. The old rule required the veteran to have been continuously rated as totally disabled for 10 or more years before passing away. This bill lowers that barrier, allowing survivors to qualify if the veteran was continuously rated as totally disabled for five or more years (Section 1318(b)(1)). This is great news for survivors who were previously shut out because their veteran spouse passed away in year six, seven, eight, or nine of their disability.

However, there’s a major asterisk here. If the veteran’s continuous total disability rating was less than 10 years—meaning they qualified under the new five-year minimum but not the old 10-year minimum—the survivor’s benefit is proportionally reduced. For example, if the veteran was rated totally disabled for seven years, the survivor will only receive 7/10ths of the full benefit. While this provision expands eligibility, it also creates a tiered system where a survivor of a veteran disabled for 9 years gets 90% of the benefit, while a survivor of a veteran disabled for 10 years gets 100%. This proportional reduction means that while more people will qualify, those who qualify between years five and nine will be receiving significantly less than the full amount.

What This Means for Everyday Life

For most surviving spouses, the immediate takeaway is a higher monthly check due to the new calculation formula in Section 2. This extra money could translate directly into covering higher grocery bills or keeping up with rent.

For the survivors of veterans who died after being disabled for five to nine years, this bill is a mixed bag. Before, they received nothing under this specific rule. Now, they get a partial benefit. While a partial benefit is better than zero, it means the VA is now required to calculate a reduced payment based on the years of disability. This complex calculation could add administrative friction, and it means the financial support for these families will be less robust than for those who hit the 10-year mark. It’s a classic policy trade-off: expanding access while diluting the financial commitment for the newly eligible group.