Increases Veterans' Disability Payments

Veterans' Compensation Cost-of-Living Adjustment Act of 2025This act requires the Department of Veterans Affairs (VA) to increase the amounts payable for wartime disability compensation, additional compensation for dependents, the clothing allowance for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children. Specifically, the VA must increase the amounts by the same percentage as the cost-of-living increase in benefits for Social Security recipients that is effective on December 1, 2025. The act requires the VA to publish the amounts payable, as increased, in the Federal Register. The VA is authorized to make a similar adjustment to the rates of disability compensation payable to persons who have not received compensation for service-connected disability or death.

1. Starting December 1, 2025, veterans with service-connected disabilities will receive higher compensation rates. 2. Survivors of certain disabled veterans will also see an increase in their dependency and indemnity compensation. 3. The increase will match the percentage rise in Social Security benefits effective on the same date. 4. The Secretary of Veterans Affairs will publish the new compensation rates in the Federal Register.