Starting in July 2025, veterans with a 100% disability rating from the Department of Veterans Affairs (VA) will receive an extra $94 per month, thanks to the latest Cost of Living Adjustment (COLA). This increase is automatic and aims to keep up with inflation, making sure veterans’ benefits retain their real-world value. Whether you’re a veteran or someone helping a veteran manage benefits, here’s everything you need to know about the 2025 COLA increase.
Table of Contents
Increase
Veterans receiving full disability benefits will see their monthly payments go from $3,737.85 to $3,831.30. That’s a 2.5% raise, effective July 2025. The VA automatically applies this adjustment, so you won’t need to take any action.
Let’s break down the change:
| Rating | Old Monthly Payment | New Monthly Payment | Increase |
|---|---|---|---|
| 100% Disability Rating | $3,737.85 | $3,831.30 | $94 |
Adjustment
COLA, or Cost of Living Adjustment, is based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It’s the government’s way of making sure your benefits aren’t losing value as everyday expenses rise.
In 2025, the COLA rate is set at 2.5%, which reflects higher prices across housing, food, healthcare, and other essentials. Without this, veterans would be stuck with flat payments while costs around them go up.
Eligibility
Every veteran receiving disability compensation will benefit from this adjustment—not just those rated at 100%. Here’s how it generally works:
- 100% disability rating: Full $94 monthly increase.
- Lower disability ratings: You’ll still receive a 2.5% increase, but the amount depends on your current compensation.
- With dependents: Veterans with spouses, children, or parents listed as dependents will receive more, as dependent pay also rises with COLA.
Dependents
If you have family members listed as dependents on your VA profile, your payment increase will be higher than $94. That’s because dependent-related allowances also adjust with COLA.
Make sure your dependent information is up to date. If a child has turned 18 or you’ve had a change in marital status, update your records with the VA to get the correct payment.
Benefits
This isn’t just about your monthly check—it’s about your financial stability. Here’s why this increase matters:
- Covers inflation: Groceries, gas, and healthcare are more expensive than they were last year.
- Protects purchasing power: Without COLA, your benefits would slowly lose value.
- Helps plan monthly budgets: Knowing you’ll receive a bit more can help cover essentials or ease the pressure elsewhere.
This increase also impacts other benefit programs, including:
- VA pensions: Low-income veterans receiving VA pensions will also get higher monthly payments.
- DIC (Dependency and Indemnity Compensation): Surviving family members of deceased veterans will see a 2.5% increase as well.
Claiming
Here’s the good news: you don’t need to do anything. The VA will automatically adjust your payment starting in July 2025. You’ll likely see the change in your payment issued at the end of June or early July.
Steps
Want to be sure everything’s working as it should? Follow this checklist:
- Check your disability rating on your VA.gov account or award letter.
- Review your July 2025 compensation statement for the new amount.
- Monitor your direct deposit to confirm the correct payment was issued.
- Update contact info with the VA to receive official notices.
If anything looks off, you can call the VA at 1-800-827-1000. If you need to file a correction, a Notice of Disagreement (NOD) can help fix miscalculations.
Veterans with dependents should double-check that their family info is correct. Inaccurate or outdated dependent details could mean you’re missing out on extra money.
The 2025 COLA increase is more than just an extra $94—it’s a commitment to making sure veterans are financially supported in the face of rising living costs. As inflation continues to challenge budgets, this adjustment ensures that your compensation keeps pace. Just remember to check your info, monitor your payments, and stay updated.
FAQs
How much is the 2025 VA COLA increase?
$94 more monthly for veterans with a 100% disability rating.
When does the increase start?
The increase takes effect in July 2025.
Do I need to apply for the COLA?
No, the VA applies it automatically.
Will dependents increase my payment?
Yes, you may receive more with eligible dependents.
Where to check my updated VA payment?
Log into VA.gov or review your July payment statement.
