In 2025, veterans and their families will see a significant Cost of Living Adjustment (COLA) to their benefits. The increase, amounting to $94 per month, is designed to help veterans keep pace with rising inflation and the increased cost of living. If you are a VA beneficiary, this boost could make a meaningful difference in your finances.
Here’s everything you need to know about the $94 COLA increase, including how it will affect your VA benefits, when you can expect it, and how to ensure you receive this increase.
What is the COLA Increase for VA Beneficiaries?
The Cost of Living Adjustment (COLA) is an annual increase to benefits that helps recipients maintain purchasing power as prices rise. This adjustment is based on the Consumer Price Index (CPI), which tracks changes in the cost of goods and services over time.
For 2025, the COLA increase for veterans will be 3.0%, resulting in an average $94 monthly increase for eligible VA beneficiaries. The increase applies to several types of benefits provided by the U.S. Department of Veterans Affairs (VA), including disability compensation, pensions, and survivor benefits.
How the $94 COLA Increase Will Impact VA Benefits
The $94 COLA increase will impact various types of VA benefits, including:
- VA Disability Compensation: If you receive disability compensation for a service-related injury or illness, you will see an increase of $94 per month. The exact amount will vary depending on your disability rating and whether you have dependents.
- VA Pensions: Veterans who qualify for pension benefits due to low income will also receive this increase. VA pensions are often designed to assist veterans who need financial support, and this adjustment is aimed at helping those with limited income.
- Survivor Benefits: Family members of veterans, including spouses, children, and dependent parents who receive Dependency and Indemnity Compensation (DIC) or other survivor benefits, will also receive the $94 increase.
- Other Benefits: Other VA assistance programs, such as the Aid and Attendance and Housebound Benefits, will reflect the COLA adjustment to ensure that veterans receiving these additional services aren’t left behind as costs rise.
When Will the $94 COLA Increase Be Paid?
The COLA increase will officially take effect starting January 1, 2025. However, the new payment amounts will be reflected in your February 2025 check. The VA typically distributes monthly payments, so you can expect to see the adjusted payment amount starting that month.
It’s important to note that the COLA adjustment will be applied automatically, so you don’t need to submit a separate claim to receive this increase, as long as you’re already receiving benefits.
How to Ensure You Receive the COLA Increase
If you are a current VA beneficiary, the $94 COLA increase will be applied to your benefits automatically. However, there are a few things to keep in mind to ensure you’re receiving the correct amount:
- File Your Taxes: The VA uses information from your tax returns and any other relevant financial data to determine your eligibility for benefits. It’s important that you file your taxes on time to ensure that the VA has the most up-to-date information regarding your income and dependency status.
- Ensure Your Information is Up-to-Date: If you have recently changed your address, bank account details, or dependents, make sure that the VA has the correct information. You can update your details through the VA.gov website or by contacting the VA customer service department.
- Check Your Payment: Once you receive your February 2025 payment, check to make sure the $94 increase has been applied to your benefits. You can view your payment details through the VA.gov portal, or you can review the payment statement you receive via direct deposit or check.
What to Do If Your Payment Doesn’t Reflect the $94 Increase
If you don’t see the $94 increase in your February 2025 check, there are steps you can take to resolve the issue:
- Log into VA.gov: Check your payment history and review your benefits statement on the VA’s website. The payment breakdown should show whether the COLA adjustment has been applied.
- Contact the VA: If you don’t see the increase or if something appears to be incorrect, contact the VA customer service team for assistance. They can help resolve any issues with your payments and ensure that the COLA increase is processed correctly.
- Appeal the Decision: If the issue cannot be resolved through customer service, you can file an appeal with the VA to review the decision and make any necessary corrections to your benefits.
How the COLA Increase Helps Veterans
The $94 COLA boost is intended to help veterans keep up with the rising costs of living. With inflation impacting the prices of everything from groceries to healthcare, the increase can provide some relief and ensure that veterans are not financially burdened by the increased cost of essential goods and services.
Additionally, many veterans rely on their disability compensation and pension benefits to cover important expenses like housing, healthcare, and transportation. The COLA adjustment helps ensure that veterans continue to have the resources they need to live comfortably.
Final Thoughts
The $94 COLA increase for VA beneficiaries in 2025 is a welcomed financial boost for veterans, their families, and survivors. If you are already receiving VA benefits, you don’t need to do anything to claim this increase—it will be automatically applied starting in February 2025.
If you are new to VA benefits or need to apply for assistance, be sure to file a claim with the VA to receive the benefits you’re entitled to, including this COLA boost. For existing recipients, ensure that your information is up-to-date and check your payments to confirm the increase.
This COLA adjustment is part of the ongoing effort to support veterans and ensure they can meet the rising costs of living with a little extra financial relief in 2025.