S. 4487: Veterans’ Compensation Cost-of-Living Adjustment Act of 2026

This bill, known as the Veterans’ Compensation Cost-of-Living Adjustment Act of 2026, proposes to increase financial compensation for veterans with service-connected disabilities and certain surviving dependents. Here’s what the bill entails:

Effective Date

The proposed adjustments to compensation rates will take effect on December 1, 2026.

Compensation Increases

The bill mandates several increases in compensation rates, which include:

• Wartime disability compensation: Increases the dollar amounts for compensation as specified under section 1114 of title 38 of the United States Code.
• Additional compensation for dependents: Increases the amounts under section 1115(1) of the same title for veterans with dependents.
• Clothing allowance: Adjusts the clothing allowance amounts as specified in section 1162.
• Dependency and indemnity compensation to surviving spouses: Increases the amounts payable under sections 1311(a) through (d).
• Dependency and indemnity compensation to children: Adjusts amounts under sections 1313(a) and 1314 for child dependents.

Basis for Adjustment

The increases mentioned will be calculated based on the same percentage increase that is applied to benefits under title II of the Social Security Act, effective December 1, 2026. This percentage will be determined according to section 215(i) of the Social Security Act.

Administrative Adjustments

The Secretary of Veterans Affairs is authorized to make administrative adjustments to the rates of disability compensation. This applies to certain individuals who have not previously received compensation under chapter 11 of title 38.

Publication of Rates

Once the rates have been adjusted, the Secretary of Veterans Affairs is required to publish the new amounts in the Federal Register. This publication must occur by the time the Social Security Act mandates similar updates during the fiscal year 2027.

Relevant Companies

None found.