Veterans’ Compensation Cost-of-Living Adjustment Act of 2025

The law helps veterans with service-connected disabilities and eligible survivors keep pace with rising living costs beginning December 1, 2025.

What the law does ​

• Raises veterans’ disability compensation by the same percentage as the Social Security cost-of-living adjustment.
• Increases additional compensation for dependents, clothing allowances, and survivor benefits for eligible spouses and children.
• Allows consistent adjustments for certain recipients covered by an older compensation provision.
• Requires the Department of Veterans Affairs to publish the new benefit rates in the Federal Register.

Who it affects ​

• Veterans receiving compensation for service-connected disabilities.
• Veterans receiving dependent supplements or clothing allowances.
• Eligible surviving spouses and children receiving dependency and indemnity compensation.

Breakdown ​

Veterans’ Compensation Cost-of-Living Adjustment Act of 2025 ​

This law increases certain Department of Veterans Affairs disability and survivor benefits beginning December 1, 2025. The increase matches the percentage cost-of-living increase applied to Social Security benefits, and the VA must publish the new payment amounts in the Federal Register.

Key takeaways

• The law raises disability compensation for veterans with service-connected disabilities.
• It increases additional compensation for dependents and the veterans’ clothing allowance.
• It raises dependency and indemnity compensation for eligible surviving spouses and children.
• The percentage increase is the same as the Social Security cost-of-living adjustment effective December 1, 2025.
• The Secretary of Veterans Affairs may make consistent adjustments for certain recipients covered by an older compensation provision.
• The VA must publish the adjusted benefit rates in the Federal Register.