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

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

This bill requires the Department of Veterans Affairs (VA) to increase the amounts payable for wartime disability compensation, additional compensation for dependents, the clothing allowance for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children. Specifically, the VA must increase the amounts by the same percentage as the cost-of-living increase in benefits for Social Security recipients that is effective on December 1, 2025. The bill requires the VA to publish the amounts payable, as increased, in the Federal Register.

The VA is authorized to make a similar adjustment to the rates of disability compensation payable to persons who have not received compensation for service-connected disability or death.

[119th Congress Public Law 42]
[From the U.S. Government Publishing Office]



[[Page 139 STAT. 665]]

Public Law 119-42
119th Congress

                                 An Act


 
To increase, effective as of December 1, 2025, the rates of compensation 
   for veterans with service-connected disabilities and the rates of 
   dependency and indemnity compensation for the survivors of certain 
disabled veterans, and for other purposes. <<NOTE: Nov. 25, 2025 -  [S. 
                                2392]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Veterans' 
Compensation Cost-of-Living Adjustment Act of 2025.>> 
SECTION 1. <<NOTE: 38 USC 101 note.>> SHORT TITLE.

    This Act may be cited as the ``Veterans' Compensation Cost-of-Living 
Adjustment Act of 2025''.
SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND 
                    DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) <<NOTE: 38 USC 1114 note.>> Rate Adjustment.--Effective on 
December 1, 2025, the Secretary of Veterans Affairs shall increase, in 
accordance with subsection (c), the dollar amounts in effect on November 
30, 2025, for the payment of disability compensation and dependency and 
indemnity compensation under the provisions specified in subsection (b).

    (b) Amounts To Be Increased.--The dollar amounts to be increased 
pursuant to subsection (a) are the following:
            (1) Wartime disability compensation.--Each of the dollar 
        amounts under section 1114 of title 38, United States Code.
            (2) Additional compensation for dependents.--Each of the 
        dollar amounts under section 1115(1) of such title.
            (3) Clothing allowance.--The dollar amount under section 
        1162 of such title.
            (4) Dependency and indemnity compensation to surviving 
        spouse.--Each of the dollar amounts under subsections (a) 
        through (d) of section 1311 of such title.
            (5) Dependency and indemnity compensation to children.--Each 
        of the dollar amounts under sections 1313(a) and 1314 of such 
        title.

    (c) Determination of Increase.--Each dollar amount described in 
subsection (b) shall be increased by the same percentage as the 
percentage by which benefit amounts payable under title II of the Social 
Security Act (42 U.S.C. 401 et seq.) are increased effective December 1, 
2025, as a result of a determination under section 215(i) of such Act 
(42 U.S.C. 415(i)).
    (d) <<NOTE: 38 USC 1114 note.>> Special Rule.--The Secretary of 
Veterans Affairs may adjust administratively, consistent with the 
increases made under subsection (a), the rates of disability 
compensation payable to persons under section 10 of Public Law 85-857 
(72 Stat. 1263) who have not received compensation under chapter 11 of 
title 38, United States Code.

[[Page 139 STAT. 666]]

SEC. 3. <<NOTE: Federal Register, 
                    publication. Deadline. Determination. 38 USC 
                    1114 note.>> PUBLICATION OF ADJUSTED RATES.

    The Secretary of Veterans Affairs shall publish in the Federal 
Register the amounts specified in section 2(b), as increased under that 
section, not later than the date on which the matters specified in 
section 215(i)(2)(D) of the Social Security Act (42 U.S.C. 415(i)(2)(D)) 
are required to be published by reason of a determination made under 
section 215(i) of such Act during fiscal year 2026.

    Approved November 25, 2025.

LEGISLATIVE HISTORY--S. 2392:
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CONGRESSIONAL RECORD, Vol. 171 (2025):
            Nov. 9, considered and passed Senate.
            Nov. 17, considered and passed House.

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