Veterans set to see cost-of-living increase to their benefits

On June 14, 2023, President Joe Biden signed into law the Veterans Compensation Cost-of-Living Adjustment (COLA) Act of 2023, which directs the Department of Veterans Affairs to provide a cost-of-living adjustment for Veterans benefits in 2024 equal to the COLA applied to Social Security benefits, as determined by the Social Security Administration (SSA).

The legislation, passed with bi-partisan support in the House and Senate, is an annual procedure for Congress but an important one, as it must be accomplished to ensure Veterans receive a COLA, and that it keeps pace with inflationary costs.

The COLA will affect certain VA benefits including, but not limited to: disability compensation, clothing allowance and dependency and indemnity compensation (DIC) for spouses and children.

While the exact amount of next year’s adjustment has not been determined, it’s based on the Consumer Price Index (CPI). The CPI measures the average change in prices of goods and services to preceding years and is used by SSA to determine the annual COLA, which, by law, now applies to VA benefits as well.