Veterans’ Compensation Cost-of-Living Adjustment Act of 2026

Key Points

• This bill raises monthly disability payments for veterans with service-connected disabilities and increases dependency and indemnity compensation for surviving spouses and children of deceased veterans. The increases take effect December 1, 2026.
• The size of the raise will match whatever cost-of-living adjustment Social Security beneficiaries receive in December 2026. This ties the increase to the same inflation formula used for Social Security, so veterans' benefits keep pace with rising prices.
• The bill covers several categories of benefits: wartime disability compensation, extra pay for veterans who have dependents, the clothing allowance for veterans who need special garments, and payments to surviving spouses and children.
• This is a bipartisan bill with 16 original co-sponsors from both parties, including senators like Moran, Blumenthal, Tillis, Sanders, Duckworth, and Blackburn. Congress passes a similar COLA adjustment for veterans nearly every year.
• The VA Secretary must publish the updated payment amounts in the Federal Register, timed to align with the Social Security Administration's annual cost-of-living determination for fiscal year 2027.