U.S. veterans are likely to see an increase in certain benefits later this year, thanks to the recent passage of the Veterans’ Compensation Cost-of-Living Adjustment Act of 2024 by the Senate. The bill, which received unanimous consent after two readings, is now headed to President Joe Biden’s desk for final approval.
If enacted, this legislation will enhance benefits for millions of veterans starting December of this year. These enhancements include adjustments to wartime disability compensation, added benefits for dependents, clothing allowances for specific disabled veterans, and dependency and indemnity compensation for surviving family members.
The increase will mirror the percentage rise in Social Security benefits, which is also set to take effect on December 1, 2024. The Social Security Administration (SSA) is expected to announce the exact increase on October 10.
Senate Veterans Affairs Committee Chairman Jon Tester emphasized the importance of providing certainty for veterans amid rising living costs. He stated, “At a time when folks are struggling with rising costs, from housing to groceries, veterans deserve absolute certainty when it comes to providing for their families.”
Committee ranking member Jerry Moran echoed this sentiment, noting, “We have a responsibility to provide care and support for our nation’s veterans and their families. Ensuring that earned benefits keep pace with inflation will offer vital peace of mind.”
Estimated COLA Increase
Experts predict that benefits could rise by approximately 2.5% to 3%. Mary Johnson, an independent analyst specializing in Social Security and Medicare, estimates a 2.5% increase, while Burt Williamson from PlanPrep anticipates a rise of 3% or more.
“Anything below 3% will likely affect the sentiment of many seniors grappling with rising prices in recent years,” Williamson noted. Johnson agreed with her forecast of a 2.5% increase.
The SSA’s annual Cost-of-Living Adjustment (COLA) is calculated using the Consumer Price Index, which tracks inflation and is determined each October by the Bureau of Labor Statistics.