Technical corrections only. The changes between v4 and v5 consist of adding public law information, U.S. Code annotations, and legislative history, reflecting the bill's enactment. There are no substantive policy changes to the text of the Act.
Veterans’ Compensation Cost-of-Living Adjustment Act of 2025
- Sponsor
- Sen. Moran, Jerry [R-KS]
- Committees
- Veterans' Affairs Committee (primary)
- Last action
- Nov 25, 2025
Bottom line
The bill ensures that veterans' disability compensation and survivors' benefits keep pace with inflation by automatically adjusting them in line with Social Security's annual cost-of-living increase.
What it actually does
This Act mandates an increase, effective December 1, 2025, in the rates of compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation (DIC) for their survivors. The percentage increase will be identical to the cost-of-living adjustment (COLA) applied to Social Security benefits for the same period. It also requires the Secretary of Veterans Affairs to publish these adjusted rates in the Federal Register.
Proponents argue
Supporters argue that this bill is a crucial measure to protect the purchasing power of veterans and their families. By linking VA benefits to the Social Security COLA, it ensures that those who have served and their survivors do not see the real value of their compensation erode due to inflation, providing essential financial stability and honoring their service.
Opponents contend
No specific opposition is typically raised against routine cost-of-living adjustments for veterans' benefits, as it is widely supported as a matter of fairness and a necessary measure to maintain the value of earned benefits. Any general opposition would likely be part of broader concerns about federal spending, rather than targeting this specific adjustment.
The bill is exceptionally short and clear, making it very accessible for any reader to understand its provisions and implications quickly.
Section 2(a) and 2(c)
Automatic Cost-of-Living Adjustment for Veterans' Benefits
This provision mandates that the Secretary of Veterans Affairs increase the dollar amounts for disability compensation and dependency and indemnity compensation (DIC) that are in effect on November 30, 2025. The increase will be effective December 1, 2025, and will be the same percentage as the cost-of-living adjustment (COLA) determined for Social Security benefits for that year. This ensures that veterans' and survivors' benefits are automatically adjusted for inflation.
Supporters argue
Proponents argue that this automatic adjustment is essential to maintain the real value of benefits for veterans and their families, ensuring their financial security is not undermined by inflation. It is a fundamental commitment to those who have served.
Critics contend
No specific opposition is typically raised against this provision, as it is a widely accepted and routine measure to ensure fairness for veterans and their survivors.
Tradeoffs
The primary tradeoff involves the increased federal expenditure required to fund these higher benefit rates. However, this is generally accepted as a necessary cost to uphold the nation's commitment to its veterans and their families, balancing fiscal considerations with social responsibility.
Section 2(b)
Scope of Benefits Covered by COLA
This section explicitly lists the specific types of benefits under Title 38, United States Code, that are subject to the cost-of-living adjustment. These include wartime disability compensation (section 1114), additional compensation for dependents (section 1115(1)), clothing allowance (section 1162), and dependency and indemnity compensation for surviving spouses (subsections (a) through (d) of section 1311) and children (sections 1313(a) and 1314). This ensures comprehensive application of the COLA.
Section 3
Publication of Adjusted Rates
This provision requires the Secretary of Veterans Affairs to officially publish the new, increased dollar amounts for veterans' benefits in the Federal Register. This publication must occur by the same deadline that the Social Security Administration is required to publish its COLA determination for fiscal year 2026. This ensures transparency and timely public notification of the updated benefit rates.
This special rule allows the Secretary of Veterans Affairs to administratively adjust disability compensation rates for a specific group of individuals: those receiving benefits under section 10 of Public Law 85-857 (72 Stat. 1263) who have not received compensation under chapter 11 of title 38, United States Code.
Section 2(d)
Why it matters:Referencing existing law by Public Law number and statute citation is standard legislative practice. Its placement ensures that a potentially smaller, specific cohort of beneficiaries, whose compensation might be governed by older statutes, is not overlooked and also receives a COLA adjustment, maintaining equity across different beneficiary groups.
Case for: The case for this provision is that it ensures fairness and comprehensive coverage, guaranteeing that all veterans, regardless of the specific statutory framework under which they receive benefits, have their compensation adjusted for inflation. This prevents a subset of veterans from being disadvantaged.
Case against: No specific opposition is typically raised against ensuring that all eligible veterans receive cost-of-living adjustments, even those under older statutory provisions.
Estimated impact: This provision likely affects a smaller, specific cohort of veterans whose benefits are administered under an older law. The financial impact would be proportional to the number of eligible individuals within this group, ensuring their benefits maintain purchasing power.