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

This law requires the Department of Veterans Affairs to increase payments for veterans' disability compensation and related benefits. The increases apply to wartime disability compensation, additional compensation for dependents, clothing allowances for disabled veterans, and dependency and indemnity compensation for surviving spouses and children of deceased veterans.

The specific increase amount is tied to the cost-of-living adjustment that Social Security recipients receive, effective December 1, 2025. This means veterans' benefits will rise by the same percentage as Social Security benefits increase that month, helping these payments keep pace with inflation and rising living costs.