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

Overview: HR 2138, the Veterans' Compensation Cost-of-Living Adjustment Act of 2025, is a bill that has been introduced in the House of Representatives and referred to the Subcommittee on Disability Assistance and Memorial Affairs.

Purpose and Intent: The bill aims to provide a cost-of-living adjustment (COLA) for veterans' disability compensation and dependency and indemnity compensation (DIC) benefits. The COLA would help ensure that these benefits keep pace with the rising cost of living, allowing veterans and their families to maintain their purchasing power.

Key Provisions:
- Provides a COLA for veterans' disability compensation and DIC benefits
- Ties the COLA to the annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
- Ensures that the COLA is applied automatically, without the need for veterans to request it

Affected Parties and Impacts: The bill would directly benefit veterans who receive disability compensation and DIC benefits, as well as their families. The COLA would help these individuals maintain their standard of living and better cope with the rising costs of goods and services.

Procedural and Timeline Considerations: The Veterans' Compensation Cost-of-Living Adjustment Act of 2025 has been introduced in the House of Representatives and is currently in the Subcommittee on Disability Assistance and Memorial Affairs. The next step would be for the subcommittee to review the bill and potentially hold hearings or mark-up sessions before sending it to the full House for consideration.