The Senate has unanimously approved the Veterans’ Compensation Cost-of-Living Adjustment Act of 2025, a bipartisan bill introduced by Senator Jerry Moran (R-Kan.), chairman of the Senate Committee on Veterans’ Affairs, and Senator Richard Blumenthal (D-Conn.), ranking member of the committee. The legislation is designed to ensure that disability compensation and other financial benefits provided by the Department of Veterans Affairs (VA) keep up with inflation.
The bill mandates a 2.8% increase in certain VA benefits, including disability compensation, clothing allowances, and dependency and indemnity compensation for surviving spouses and children. This adjustment is intended to match annual benefit increases set by the Social Security Administration.
“Veterans and their families deserve peace of mind knowing their VA benefits will keep pace with changes in our economy,” said Sen. Moran. “The annual cost-of-living adjustment makes certain that VA can continue delivering support to those who have served, while alleviating the stresses of financial uncertainty due to circumstances that are out of their control.”
“This legislation makes necessary adjustments to ensure VA benefits keep pace with the cost of living crisis impacting veterans across the country,” said Sen. Blumenthal. “Veterans and their families deserve the best support we have to offer. Our bill provides them peace of mind and alleviates undue stress when facing financial uncertainty.”
The measure now moves to the House of Representatives for consideration.
A broad group of senators from both parties co-sponsored the legislation, reflecting widespread support for maintaining veterans' benefits in line with economic conditions.
