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

This bill would require the Department of Veterans Affairs to increase the rates for wartime disability compensation, dependent compensation, and clothing allowances for certain disabled veterans. These adjustments would be based on the same cost-of-living percentage increase applied to Social Security benefits effective December 1, 2026. The bill also proposes similar increases for dependency and indemnity compensation for surviving spouses and children.

This bill directly affects veterans receiving wartime disability compensation and those eligible for clothing allowances due to certain disabilities. It also impacts the surviving spouses and children of veterans who receive dependency and indemnity compensation. Additionally, the Department of Veterans Affairs is affected as it must implement the cost-of-living adjustments and publish the updated payment rates.

• Cost-of-living adjustment for veterans' benefits. Requires the Department of Veterans Affairs to increase the rates for wartime disability compensation, dependent compensation, and clothing allowances for disabled veterans.
• Adjustment for surviving spouses and children. Directs an increase in dependency and indemnity compensation rates for the survivors of deceased veterans.
• Alignment with Social Security increases. Specifies that the percentage increase for these veterans' benefits must match the cost-of-living adjustment provided to Social Security recipients effective December 1, 2026.
• Public notification of adjusted rates. Mandates that the Department of Veterans Affairs publish the newly increased benefit amounts in the Federal Register.
• Discretionary adjustments for other compensation. Authorizes the Department of Veterans Affairs to provide similar rate adjustments for persons receiving disability compensation for service-connected disability or death who are not otherwise covered.

The cost-of-living adjustments for veterans' compensation and benefits are scheduled to take effect on December 1, 2026.

This bill requires the Department of Veterans Affairs to adjust veterans' benefits rates to match the cost-of-living increase provided to Social Security recipients effective December 1, 2026. It applies these adjustments to existing wartime disability compensation, dependency and indemnity compensation, and clothing allowances for disabled veterans.

The bill aims to adjust the rates of various veteran benefits to account for inflation by requiring the Department of Veterans Affairs to increase compensation for wartime disability, dependents, and clothing allowances by the same percentage as the 2026 Social Security cost-of-living increase.