Veterans’ Compensation Cost-of-Living Adjustment Act of 2026

Overview

• Bill: HR 8552
• Session: 119th Congress, 2nd Session
• Title: Veterans’ Compensation Cost-of-Living Adjustment Act of 2026
• Purpose: To increase, effective December 1, 2026, the rates of compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation (DIC) for survivors of certain disabled veterans, and to provide related administrative and publication requirements.

Main Purpose and Intent

• The primary goal is to provide a cost-of-living adjustment (COLA) to key veteran compensation programs, aligning these benefits with increases in Social Security and other inflationary measures.
• The adjustment is scheduled to take effect on December 1, 2026.

Key Provisions and Changes

1. Rate Increase (Effective Date)

   • Effective December 1, 2026, the Secretary of Veterans Affairs must increase, in accordance with the statute, the dollar amounts in effect on November 30, 2026 for:
     • Disability compensation for veterans with service-connected disabilities.
     • Dependency and Indemnity Compensation (DIC) for surviving spouses and children of veterans.

2. Amounts to be Increased

   • The following categories will have their dollar amounts increased:
     • Wartime disability compensation (as listed in section 1114 of title 38, U.S. Code).
     • Additional compensation for dependents (section 1115(1)).
     • Clothing allowance (section 1162).
     • Dependency and Indemnity Compensation to surviving spouses (sections 1311(a)-(d)).
     • Dependency and Indemnity Compensation to children (sections 1313(a), 1314).

3. Determination of Increase

   • Each increased dollar amount will be raised by the same percentage as the increase in Social Security benefit amounts payable under Title II of the Social Security Act, as determined for December 1, 2026 (based on the SSA section 215(i) process).

4. Special Administrative Rule

   • The Secretary may administratively adjust the disability compensation rates for individuals who:
     • Are covered under section 10 of Public Law 85-857 (pre-1970 veteran benefits) and have not received compensation under chapter 11 of title 38, U.S.C.

5. Publication of Adjusted Rates

   • The Secretary must publish the adjusted rates in the Federal Register.
   • Publication should occur no later than when SSA’s 215(i)(2)(D) determination is required to be published for fiscal year 2027.

Affected Parties

• Veterans receiving:
  • Disability compensation for service-connected disabilities.
  • Clothing allowance related to disability benefits.
• Survivors eligible for:
  • Dependency and Indemnity Compensation (DIC) for spouses and children of veterans.
• Potentially affected groups include:
  • Veterans with dependent spouses and/or children who receive increased DIC (both level and structure).
  • Families of veterans who rely on wartime disability compensation and related dependent allowances.

Procedural and Timeline Aspects

• Introduction and Referral:
  • Introduced April 28, 2026, and referred to the House Committee on Veterans’ Affairs.
• Implementation Timeline:
  • December 1, 2026: Effective date for the increase.
  • December 1, 2026 (or shortly thereafter): Increases determined by SSA 215(i) process applied to all listed categories.
• Publication:
  • Adjusted rates to be published in the Federal Register in alignment with SSA publication schedules for fiscal year 2027.

Summary

HR 8552 seeks to provide a uniform, inflation-adjusted increase to several veteran compensation programs, with the core mechanism being a COLA tied to the same percentage increase as Social Security benefits. It covers disability compensation, dependent and survivor benefits, clothing allowances, and related provisions, while including a special administrative rule for certain pre-1980 benefits and a requirement to publicly publish the new rates.