U.S. veterans can likely look forward to a boost in certain benefits beginning later this year.
The Veterans’ Compensation Cost-of-Living Adjustment Act of 2024 was passed by the Senate last week and will now be sent to President Joe Biden before it potentially becomes law. After being read twice, it was passed with unanimous consent.
It means millions of veterans are a step closer to receiving boosted benefits from December this year, including wartime disability compensation, additional compensation for dependents, the clothing allowance for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children.
Amounts will increase by the same percentage as Social Security benefits, which will also go into effect on December 1, 2024. An announcement for how much benefits administered by the Social Security Administration (SSA) will be boosted by is due to be made on October 10.
“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,” Senate Veterans Affairs Committee chairman Jon Tester said in a statement.
“We have a responsibility to provide care and support for our nation’s veterans and their families,” committee ranking member Jerry Moran said of the bill. “Making certain earned benefits stay on pace with rising prices will help provide veterans and their families with much-needed peace of mind. I am thankful for the support of my colleagues on this important legislation and look forward to the President signing it into law.”
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How Much Is the COLA Increase?
Benefits are expected to increase by around 2.5 percent to three percent according to various experts. Independent Social Security and Medicare policy analyst Mary Johnson has forecasted the COLA will be 2.5 percent, while Burt Williamson, retirement specialist at PlanPrep, has predicted a rise of three percent or higher.
“I believe they will increase Social Security benefits this year by no less than 3 percent,” he told Newsweek, taking into account “highly volatile energy costs are the leading factor holding inflation down. They have to consider a spike in those costs in the winter months, which would spike the cost of living for seniors.”
“Anything less than 3 percent will have a negative impact on the sentiment of most seniors, who continue to deal with much higher costs of everything that spiked over the last few years,” he continued.
Johnson said she expects the COLA to be 2.5 percent.
“The 2025 COLA will be the lowest received by Social Security beneficiaries since 2021, at the same time inflated prices persist on key essentials such as housing, meats, auto insurance, any type of service and repairs,” Johnson said in a statement to Newsweek. “Despite it being the lowest COLA since 2021, a 2.5 percent COLA would be considered about average.”
The SSA bases its annual COLA on the Consumer Price Index, which measures inflation, as determined each October by the Bureau of Labor Statistics.
