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

The Veterans' Compensation Cost-of-Living Adjustment Act of 2025 mandates an increase in financial support for veterans with service-connected disabilities and for survivors receiving dependency and indemnity compensation (DIC). Effective December 1, 2025, these benefits, including wartime disability compensation, additional compensation for dependents, and the clothing allowance, will be adjusted. The percentage increase for these rates, as well as for DIC paid to surviving spouses and children, will be directly tied to the Social Security cost-of-living adjustment (COLA) determined for that date. The Secretary of Veterans Affairs is also authorized to administratively adjust certain other disability compensation rates and must publish all new adjusted rates in the Federal Register.