Current Projections Suggest a 2.6 % Bump for VA Benefits to Adjust for Inflation 

The U.S. Department of Veterans Affairs (VA) has not yet formally announced the 2026 cost-of-living adjustment (COLA) for 2026 and they will not release the official COLA percentage until October.

It appears that Veterans receiving disability compensation will receive a modest COLA increase for 2026. Early projections suggest the increase will be about 2.6%, with some estimates as high as 3%. These estimates are based on the first and second quarters of 2025, so they are less accurate than what the final COLA increase will be.

The yearly COLA is meant to ensure the VA disability compensation payment reflects inflation. The Social Security Administration (SSA) calculates COLA from the Consumer Price Index in the third quarter of each year (July through September). Once the SSA determines the COLA rate, the VA applies it to their own benefits programs, including disability.

Until inflation and consumer prices stabilize, the SSA cannot reasonably predict the COLA percentage.

What Does This Mean for Veterans and Families?

The 2026 COLA takes effect on December 1, 2025, so Veterans will see the increase with their January 1, 2026 payments. The VA will provide a complete compensation rate table when they make the official COLA announcement later.

A 2.6 % COLA increase in your disability payment works out to an additional $26 per $1,000 of payment. For instance, if you receive a $1,500/month VA disability check, your new total would be $1,539.

Veterans with dependent children, spouses, or parents may receive larger increases. If you have questions or concerns, you should continue to monitor the VA website, discuss your concerns with a VSO (Veterans Service Organization), or contact a VA-accredited attorney like us at Jan Dils, Attorneys at Law.

Even though this increase might seem small at first glance, it can have a meaningful impact over the course of a year. That extra $39 on a $1,500 monthly benefit adds up to nearly $470 over twelve months—money that could go toward prescription costs, transportation to medical appointments, or other recurring household expenses. For families who rely on a Veteran’s benefits as a major part of their income, these modest yearly adjustments help keep up with the rising cost of living.

Why This Update Matters More Than It Looks

Inflation does not hit all expenses equally. When costs for housing, groceries, or medicine rise faster than the overall inflation rate, even a small percentage bump may hardly cover basic needs. Though 2.6 % sounds modest, it can make a difference in affording medications, transportation to medical appointments, or daily living expenses—especially for Veterans on fixed incomes.

Moreover, for Veterans receiving mid-range or higher disability ratings, the bump may still leave gaps in what they need. Rising healthcare costs and out-of-pocket expenses can outpace the COLA increase. Veterans should review their budgets now, estimating how rising living costs may affect them over the next year, so they can plan accordingly.

Another point to consider is that the projected COLA does not yet include potential legislative changes or supplementary benefits. Sometimes Congress enacts bonuses or adjusts benefits beyond the standard COLA—though those are less predictable. Staying informed through your VSO or a VA-accredited attorney can help you catch any extra opportunities.

This is also a good time to re-evaluate your disability rating. If your condition has worsened or new secondary conditions have developed, applying for an increased rating before the COLA takes effect could allow you to benefit from both the higher rating and the adjusted payment level. Because the VA system can be slow and confusing, starting that process early can be helpful.

What You Can Do Now

• Review your current benefits statement so you know what you receive currently—this will help you track the difference once COLA is applied.
• Update any paperwork with the VA especially if you have dependents or have had a change in your household status, as that can affect your total compensation.
• Connect with a Veterans Service Organization or accredited attorney who can help you verify whether the projected increase will impact your specific case—often small details in your rating or dependent status can change what you see in your benefits check.
• Plan for upcoming expenses, especially if your medical costs are rising, or if you are entering a year with higher expected inflation—knowing roughly how much more you may receive can help avoid surprises in your household budget.
• Keep documentation of your ongoing service-connected conditions. Even though COLA does not change your rating, having organized records can make it easier to request a rating increase in the future.
• Stay informed. Follow the VA’s announcements as well as reputable Veteran-focused news sources so you can react quickly if the final COLA is higher—or lower—than expected.

Keep Updated With Us on Whether VA Benefits Get Inflation-Adjusted by 2.6% or More

The projected 2.6 % bump for VA disability is welcome, but it does not eliminate the challenges many Veterans face. Watching the final numbers, staying diligent about your records, and seeking guidance where needed can help ensure you are not left behind when the COLA increase takes effect. Over time, even small steps like tracking these yearly adjustments can strengthen your financial stability and give you a clearer picture of your benefits. Call us to learn more about filing for benefits.