Ensuring our veterans’ wellbeing and financial security is a crucial responsibility that our society holds dear. The Veterans Compensation Cost-of-Living Adjustment (COLA) Act of 2023 was recently signed into law by President Biden to address the rising costs and provide continued support to veterans. This bipartisan legislation aims to deliver an annual cost-of-living increase for veterans, further recognizing them for their sacrifices and contributions. Here, we will explain the key aspects and benefits of the Veterans Compensation COLA Act of 2023.
The Veterans Compensation COLA Act of 2023 is a significant piece of legislation that ensures veterans receive an annual cost-of-living adjustment to the benefits he or she receives from the Department of Veterans Affairs (VA). It acknowledges the rising costs of living and aims to keep Veterans’ Benefits in line with yearly inflation, providing them with the necessary financial support to lead fulfilling lives after their service to the nation.
The Act was introduced by Democratic Senator Jon Tester (Montana) and enjoys bipartisan support, signifying the collective commitment of Democratic and Republican lawmakers to care for our nation’s heroes and their families, even with cost-of-living increases. The collaboration and consensus demonstrated in passing this legislation highlights the importance of prioritizing our veterans’ needs.
The Veterans Compensation COLA Act mandates an annual cost-of-living adjustment to VA benefits. This adjustment is calculated based on the percentage increase in the Consumer Price Index (CPI), which measures changes in the average prices of household goods and services. If the price of goods goes up but the VA benefits remained the same, that money would not be able to provide as much.
The VA benefits that this Act applies to include clothing allowance, dependency and indemnity compensation (DIC), and disability compensation. This helps not only the servicemembers but also their spouses and children.
The new adjusted benefits will begin to take effect on January 1, 2024.
The Veterans Compensation COLA Act of 2023 is a testament to our nation’s commitment to honoring and supporting our military veterans and it adjusts the benefits you will receive from the VA according to the national CPI. The Act’s bipartisan support underscores lawmakers’ unity and dedication to prioritizing our veterans’ needs. To learn more about what this means for you, or to get help with your application for benefits, schedule a free consultation with Jan Dils, Attorneys at Law.