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Upcoming Cost-of-Living Increase to Veterans’ Benefits in 2024
President Joe Biden, on June 14, 2023, authorized the Veterans Compensation Cost-of-Living Adjustment (COLA) Act of 2023. The legislation, receiving cross-party support in the House and Senate, compels the Department of Veterans Affairs to align the cost-of-living adjustment for Veterans benefits in 2024 with the COLA applied to Social Security benefits, as determined by the Social Security Administration (SSA).
This annual procedure by Congress is crucial for Veterans as it guarantees a COLA that keeps step with inflationary costs.
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Impacted VA Benefits: What’s on the Rise?
The upcoming COLA will influence specific VA benefits. These include but aren’t confined to disability compensation, clothing allowance, and dependency and indemnity compensation (DIC) for spouses and children.
The exact adjustment amount for 2024 hasn’t been set but it will be based on the Consumer Price Index (CPI). The CPI represents the average shift in prices for goods and services compared to previous years, serving as the basis for the SSA to establish the annual COLA. By law, this adjustment now applies to VA benefits as well.
Veterans are currently benefiting from the last adjustment in January 2023, which recorded an 8.7% increase, a result of a consecutive year of high inflation.
Timeline: When Will Veterans See the Changes?
Historically, the SSA announces its COLA for the upcoming year early in the fiscal year, commencing on October 1. The VA aligns its compensation payment rates to match, with Veterans anticipated to notice the new amounts starting with their January 2024 payment.
To stay up-to-date on the COLA announcement and understand what it means for your VA benefits, consider subscribing to the #VetResources newsletter and #theSITREP podcast, your go-to sources for topics relevant to Veterans.
Source: Dept. of Veteran Affairs
