Vets benefits to mirror Social Security cost-of-living boost

Congress on Wednesday finalized plans to guarantee a cost-of-living boost in veterans benefits next year equal to what Social Security beneficiaries will receive.

Senate lawmakers approved the move on a voice vote without any objections one week after House members similarly advanced the measure without opposition. President Joe Biden is expected to sign the legislation into law in the next few days.

About 5 million veterans and 2 million military retirees receive benefits checks each month through the Department of Veterans Affairs. The COLA increase legislation would apply to payouts for disability compensation, clothing allowance, dependency and indemnity benefits, as well as some other VA assistance programs.

Vets may see only a small cost-of-living boost in benefits next year

Although a non-controversial proposal, the legislation linking veterans benefits to Social Security increases is an annual responsibility of Congress. Without it, beneficiaries would see their payouts remain flat, even as other federal support programs were granted increases.

In a statement after the House passage, bill sponsor Rep. Morgan Lutrell, R-Texas, called the measure a critical step to ensuring disabled veterans remain financially healthy.

“Our veterans gave everything to defend our freedoms, and it is our duty to ensure they receive the care and compensation they deserve,” he said.

The Social Security increase last year was 3.2%, down from 8.7% in 2023 — the highest such raise in 40 years. Federal officials will announce the 2025 rate on Oct. 10.

Officials from the Senior Citizens League in August estimated that the figure is likely to be around 2.4%, based on analysis of economic conditions. If correct, that would be the lowest cost-of-living boost since 2020, when the rate was 1.3%.