Each year, millions of veterans and their families rely on federal benefits to help offset the rising cost of living. In 2026, the Cost-of-Living Adjustment (COLA) will increase by 2.8%, bringing important changes to VA compensation and survivor benefits. To understand how this increase affects your current or future VA claim, it’s important to know how it works and what it means. This will help you ensure that you receive the full value of your benefits.
What Is the 2026 COLA Increase?
The 2026 cost-of-living adjustment (COLA) is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of 2024 to the third quarter 2025. Due to this inflationary data, Social Security beneficiaries and Supplemental Security Income (SSI) recipients will receive an increase of 2.8% in their benefits for 2026.
By law, VA benefits are linked to this same adjustment. According to 38 U.S.C. § 5312, VA compensation rates must increase by the same percentage as Social Security benefits. This ensures that veterans’ benefits keep up with inflation and do not lose purchasing power over time.
Which VA Benefits Are Affected by the 2026 COLA?
The 2.8% cost-of-living adjustment (COLA) increase applies broadly to VA monetary benefits administered by the United States Department of Veterans Affairs (VA). These include:
- VA disability compensation
- Dependency and Indemnity Compensation (DIC) for survivors
- VA pension benefits
For veterans receiving monthly disability payments, whether rated at 10% or 100%, their payments will be adjusted upward automatically without the need for additional application.
When Will Veterans See the Increase?
Although the COLA is often referred to as the “2026 increase,” it will become effective on December 1st, 2025, with the first increased payments being issued in January 2026. This timing is in line with Social Security adjustments approved under 42 U.S.C. § 415(i) and managed by the Social Security Administration.
Why the COLA Increase Matters for Veterans
While a 2.8% increase may seem modest, its impact can be significant, especially for veterans with higher disability ratings, dependents, or those receiving special monthly compensation. The COLA increases compounds over time, so today’s adjustment becomes the baseline for future years.
As importantly, the COLA emphasizes the importance of accurate disability ratings. A veteran who is rated at 70% will receive a smaller dollar increase compared to a veteran who is rated 100%, despite receiving the same percentage increase. Ensuring that your rating accurately reflects the severity of your service-connected disabilities is crucial to maximizing the long-term value of your benefits.
COLA Increases and Pending VA Claims or Appeals
If you have a pending VA claim or appeal, the 2026 cost-of-living adjustment (COLA) may still affect your benefits. When a claim is approved retroactively, the VA will apply compensation rates that were in effect for each year covered by the claim. This means that approved claims covering 2026 and later will reflect increased COLA-adjusted rates.
Unfortunately, the VA often denies valid claims or assigns disability ratings that undervalue the veteran’s disability. The appeals process is governed by 38 U.S.C. § 7105, but it can be difficult to navigate without experienced legal representation.
Why VA-Accredited Legal Representation Matters
The VA only allows accredited attorneys and representatives to assist claimants in most benefit cases. Veterans and their families at Tabak Law receive assistance from professionals who understand both the law and the internal decision-making process of the VA.
Preparing for 2026 and Beyond
The 2026 COLA increase is a reminder that VA benefits are meant to grow with the cost of living, but only if veterans are receiving all benefits they are entitled to. If there is an unresolved claim, denied appeal or a low disability rating, it’s time for action.
Tabak Law is proud to assist veterans, their spouses, and dependents throughout the country. If you would like to schedule a free consultation, please contact our Milwaukee office at (414) 626-2668 or visit our website. We value your service and are here to ensure that your benefits reflect this, both now and in the future.