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

H.R. 2138 would require the Department of Veterans Affairs to increase several types of veteran benefits to keep pace with inflation. Specifically, the bill would raise wartime disability compensation, additional payments for dependents, clothing allowances for disabled veterans, and dependency and indemnity compensation for surviving spouses and children. The increase would match the cost-of-living adjustment that takes effect for Social Security recipients on December 1, 2025.

If enacted, this bill would help ensure that veteran benefits maintain their purchasing power as prices rise. The VA would also have the option to apply similar adjustments to disability compensation rates for veterans who have not yet received compensation for service-connected disabilities or deaths. The bill currently is under consideration in the House Subcommittee on Disability Assistance and Memorial Affairs and has not yet been voted on by the full House.