Will VA Disability Get a Raise in 2025?
The Cost-of-Living Adjustment (COLA) is an annual adjustment to Social Security and other federal benefits to keep pace with inflation. In 2023, the COLA was 8.7%, the largest increase in four decades. However, the VA disability compensation (VA) did not receive a COLA in 2023, causing concern among veterans. Will VA disability get a raise in 2025? The answer is yes, but the exact amount of the increase is still unknown.
The VA disability COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures the change in prices for a fixed basket of goods and services purchased by urban wage earners and clerical workers. The CPI-W is published monthly by the Bureau of Labor Statistics. The VA disability COLA is based on the average CPI-W for the third quarter of the preceding calendar year. For example, the VA disability COLA for 2025 will be based on the average CPI-W for the third quarter of 2024.
The CPI-W has been rising steadily in recent months due to rising inflation. As a result, the VA disability COLA for 2025 is expected to be higher than the 8.7% COLA for 2023. The exact amount of the increase will not be known until the CPI-W for the third quarter of 2024 is published. However, veterans can expect a significant increase in their VA disability compensation in 2025.
Will VA Disability Get a Raise in 2025?
The Department of Veterans Affairs (VA) has proposed a 4.6% cost-of-living adjustment (COLA) for 2025. This increase would impact all VA disability benefits, including those related to injury, illness, and disease. The COLA is intended to help offset the rising costs of living and ensure that veterans’ disability benefits keep pace with inflation.
The VA’s proposed COLA for 2025 is in line with the projected inflation rate for that year, which is estimated to be around 4.6%. The proposed increase would be the largest COLA since 1991, when the VA implemented a 7.4% increase.
The VA’s proposed COLA must be approved by Congress before it can take effect. The COLA is typically included in the VA’s annual appropriations bill, which is typically passed by Congress in the late fall or early winter.
People Also Ask About Will VA Disability Get a Raise in 2025
How much is the proposed COLA for 2025?
The VA has proposed a 4.6% COLA for 2025.
When will the COLA be applied?
The COLA is typically applied to VA disability benefits in January of each year. However, the exact date for the 2025 COLA has not yet been announced.
Will all VA disability benefits increase by 4.6%?
Yes, all VA disability benefits will increase by 4.6% if the proposed COLA is approved.
