The U.S. Senate on Nov. 9 approved a bipartisan bill led by U.S. Sen. Jerry Moran (R-KS) that would ensure the rate of disability compensation and other U.S. Department of Veterans Affairs (VA) financial benefits keep pace with the rate of inflation.
“Veterans and their families deserve peace of mind knowing their VA benefits will keep pace with changes in our economy,” Sen. Moran said. “The annual cost-of-living adjustment makes certain that [the] 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.”
The Veterans’ Compensation Cost-of-Living Adjustment Act of 2025, S. 2392, would increase certain VA benefits by 2.8 percent — including disability compensation, clothing allowances, and dependency and indemnity compensation for surviving spouses and children — to reflect changes in the everyday cost of living, and to align with annual benefit increases by the Social Security Administration.
Sen. Moran sponsored S. 2392 on July 23 alongside 15 original cosponsors, including U.S. Sens. Richard Blumenthal (D-CT), Bill Cassidy (R-LA), and Thom Tillis (R-NC). It is the companion bill to the identical H.R. 2138, introduced on March 14 by U.S. Reps. Morgan Luttrell (R-TX) and Morgan McGarvey (D-KY).
The Senate-passed version now heads to the U.S. House of Representatives to be reconciled with H.R. 2138.
“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.”