The Veterans’ Compensation Cost-of-Living Adjustment Act, introduced this week by Sen. Jerry Moran, R-Kan., will increase monthly compensation rates for disability and indemnity compensation from the Department of Veterans Affairs. The higher payments ensure that critical VA benefits keep pace with the higher costs from inflation. Moran, in 2021, is greeted by Air Force Lt. Col. David Hind at Naval Air Station Sigonella. (Kegan Kay/U.S. Navy)
WASHINGTON — Disabled veterans and qualifying relatives of service members killed in action or later died of service-connected conditions are in line for a cost-of-living increase to their benefits under a bill led by Sen. Jerry Moran, R-Kan.
The Veterans’ Compensation Cost-of-Living Adjustment Act, which Moran introduced this week, will increase the monthly compensation rates for disability and indemnity compensation from the Department of Veterans Affairs.
Sen. Richard Blumenthal, D-Conn., is a primary co-sponsor of the legislation, which has collected endorsements from seven Democrats, six Republicans and two independents.
The legislation — which stands to affect millions of veterans, widowed spouses and dependents — ensures that VA benefits keep pace with higher costs from inflation, according to supporters.
“With all of my health issues, any increase will certainly help. My budget is tight, because I’m on a fixed income,” said Kirby DeHaven, a 100% permanently disabled Army veteran who served from 1991 to 1995.
“Groceries are up. Gasoline is up. My rent is double from what it was six months ago,” said DeHaven, 58, of Indiana, who is unable to work due to a spinal injury, traumatic brain injury and post-traumatic stress disorder connected to military service.
The bill reflects changes in everyday expenses and aligns VA benefit increases with those of the Social Security Administration, Moran’s office said.
Federal law guarantees veterans’ cost-of-living adjustment to VA compensation matches the cost-of-living rate increase applied to Social Security, according to the VA.
“Congress has a responsibility to deliver meaningful benefits for veterans and their families, and the annual cost-of-living adjustment helps make certain VA benefits keep pace with changes in the economy,” Moran said Thursday.
The increase is calculated based on inflation and announced each year in October, with payments automatically adjusted the following January, according to the Social Security Administration.
“These increases will strengthen VA’s ability to support veterans with service-connected disabilities, as well as their dependents and survivors, by adjusting for inflation and aligning with Social Security benefit increases to provide the financial stability veterans and their families have earned,” Moran said.
Although the legislation authorizes the increase in payment rates, it does not give an exact dollar amount, according to the bill.
The cost-of-living adjustment is calculated by the Labor Department using the Consumer Price Index, a metric that figures price changes for a typical “market basket” of goods and services.
The bill, which is in the initial phase of the legislative process, was referred to the Senate Veterans’ Affairs Committee.
In 2026, the cost-of-living increase was 2.8%, up just 0.3% over the prior year.
Higher adjustments in recent years due to inflation included an 8.7% increase for 2022 and 5.9% for 2021, according to Disabled American Veterans.
The annual increase applies to all disabled veterans who receive compensation for service-connected illnesses and injuries, and to widowed spouses and certain dependents who collect Dependency and Indemnity Compensation.
