It’s official—VA benefits are set to increase in 2025, mirroring the annual cost-of-living adjustment (COLA) received by Social Security recipients.
This change is significant for millions of veterans, helping them keep up with inflation and maintain their financial health.
Recently passed by Congress, the new COLA increase for VA benefits will provide a much-needed boost to veterans and military retirees across the country.
Who Benefits From the Increase?
Over 7 million veterans and military retirees are expected to benefit from the 2025 COLA increase. The Department of Veterans Affairs (VA) sends out monthly checks to about 5 million veterans and 2 million military retirees.
This increase will impact more than just regular disability payments; it will also extend to other VA assistance programs, such as dependency and indemnity benefits, clothing allowances, and more.
Congress is responsible for passing this legislation each year, ensuring that veterans’ benefits keep pace with the adjustments made to Social Security.
Without this legislation, VA benefit payouts would remain static, potentially leaving veterans behind as other federal programs adjust for inflation.
Why the COLA Increase Is Important
The cost-of-living adjustment is crucial for veterans, many of whom rely heavily on these benefits for day-to-day expenses.
Veterans, especially those with disabilities or retirees, face the same inflationary pressures as Social Security recipients. By linking VA benefits to the same COLA increase, Congress ensures that veterans’ benefits are protected against rising costs.
According to Rep. Morgan Lutrell, R-Texas, the bill’s author, ensuring that veterans receive the benefits they are due is a key responsibility. Veterans have sacrificed a great deal in service to the country, and this financial support helps honor that service.
Projected COLA Increase for 2025
While the final percentage for the 2025 increase has not yet been set, it will be announced on October 10, 2024.
Analysts from the Senior Citizens League have projected a possible increase of around 2.4%. If this estimate holds, it would be the smallest COLA increase since 2020, when the rate was just 1.3%. For comparison, the 2023 increase was a massive 8.7%, the largest in 40 years, while 2024 saw a 3.2% increase.
This change, though smaller than in recent years, still provides a financial cushion for veterans, helping them manage the increasing costs of goods and services.
Changes to Military Records and Eligibility
In addition to the COLA increase, other important changes are coming for VA benefits. One notable update involves service members who may have received an Other-Than-Honorable (OTH) discharge due to mental health conditions like PTSD, trauma, or military sexual trauma. Previously, these veterans faced significant hurdles in accessing VA benefits.
The Department of Veterans Affairs (DVA) now allows veterans to request a faster adjustment to their discharge status, based on proof that their mental health condition caused their actions.
This will make it easier for veterans to access higher-tier benefits, streamlining the process and providing more hope for those in need of financial assistance.
VA Disability Payment Rates for 2024
Here’s a look at the current monthly VA disability payment amounts for single veterans without dependents in 2024:
| Disability Rating | Monthly Payment |
|---|---|
| 10% | $171.23 |
| 20% | $338.49 |
| 30% | $524.31 |
| 40% | $755.28 |
| 50% | $1,075.16 |
| 60% | $1,361.88 |
| 70% | $1,716.28 |
| 80% | $1,995.01 |
| 90% | $2,241.91 |
| 100% | $3,737.85 |
These figures highlight the significant financial assistance provided to veterans with higher disability ratings. Veterans rated at 0% disability do not receive monthly payments, but they may qualify for VA health care benefits and other resources.
VA Payment Schedule for 2024
For those receiving VA benefits, here’s the payment schedule for the remaining months of 2024:
| Benefit Month | Payment Date |
|---|---|
| October | Friday, November 1 |
| November | Friday, November 29 |
| December | Tuesday, December 31 |
Veterans can expect their payments to be processed on the listed dates, ensuring consistent support throughout the year.
The upcoming 2025 COLA increase represents a critical step in protecting veterans’ financial well-being.
With inflation affecting nearly every aspect of life, these adjustments ensure that veterans’ benefits keep pace with rising costs. Additionally, the new process for addressing military discharges related to mental health conditions marks a major shift in how veterans access benefits.
These changes not only provide immediate financial relief but also improve long-term support systems for veterans across the country.
FAQs
How much will VA benefits increase in 2025?
The final rate will be announced in October 2024, likely around 2.4%.
How many veterans will receive the 2025 COLA increase?
Over 7 million veterans and military retirees will benefit.
What are the current VA disability payment rates?
Monthly payments range from $171.23 for 10% to $3,737.85 for 100% disability.
Can veterans with OTH discharges qualify for benefits?
Yes, if they prove the discharge was due to mental health issues.
When will the next VA payments be processed?
The next payment date is Friday, November 1, 2024.
