This bill mandates an annual increase in VA disability compensation and dependency and indemnity compensation rates, tied to the Social Security Act's cost-of-living adjustments.
Josh Gottheimer
Representative
NJ-5
This bill mandates an annual increase in compensation rates for veterans with service-connected disabilities and for the survivors of certain disabled veterans. Effective December 1st each year, these rates will automatically rise by the same percentage as the Social Security Act benefit increase. The Secretary of Veterans Affairs is required to publish these adjusted compensation and dependency/indemnity rates annually.
VA Disability Compensation to Get Automatic Annual Cost-of-Living Increase Tied to Social Security
This proposed legislation establishes a mandatory annual increase for veterans’ disability compensation and survivor benefits, effective every December 1st. The increase will be calculated using the exact same percentage determined for the Social Security cost-of-living adjustment (COLA) that year. Essentially, this means that if Social Security recipients get a 3% raise to offset inflation, veterans receiving compensation under sections like 1114, 1115, and 1162 of title 38 will also see a 3% bump in their monthly payments and clothing allowances. The bill requires the Secretary of Veterans Affairs to publish these adjusted rates annually in the Federal Register, ensuring transparency and timely implementation.
Inflation-Proofing Your Benefits
For veterans and their families, this bill is a big deal because it removes the annual uncertainty surrounding benefit increases. Currently, Congress often has to pass separate legislation each year to authorize a COLA for VA benefits. By linking VA compensation directly to the Social Security COLA mechanism—which is already designed to help benefits keep pace with inflation—the bill effectively automates the process. This means less waiting and more certainty that your monthly check won't lose purchasing power as the cost of groceries, gas, and housing continues to climb. The goal here is simple: if the cost of living goes up, the money meant to support disabled veterans and their survivors goes up right alongside it.
Who Gets the Boost?
The automatic adjustment applies to several critical payment streams. First and foremost, it covers the core wartime disability compensation rates under section 1114, which is the primary source of income for many disabled veterans. It also includes the additional compensation paid for dependents (section 1115) and the annual clothing allowance (section 1162). Additionally, surviving spouses and children receiving Dependency and Indemnity Compensation (DIC) under sections 1311, 1313, and 1314 will see their benefits increase automatically as well. For a surviving spouse relying on DIC, knowing this benefit will adjust every December 1st provides a crucial layer of financial security against the rising cost of living.
The Mechanics of the December 1st Deadline
The bill is specific about the timing: the adjustment must take effect on December 1st of every year, mirroring the Social Security timeline. This synchronization is key. It means that the Department of Veterans Affairs (VA) must move quickly once the Social Security COLA percentage is announced in the fall. The VA is required to publish the new dollar amounts in the Federal Register shortly after the COLA determination is made. While the bill aims for a smooth, automatic process, the VA’s administrative systems will need to be ready to implement the new rates on that hard December 1st deadline without fail. This bill essentially codifies a permanent, reliable mechanism to ensure the financial security of veterans and their families isn't eroded by inflation.