The VA annually adjusts disability benefits rates in response to inflation to ensure that the purchasing power of veterans’ benefits remains stable. Will veterans see an increase in their VA benefits rates for 2026? What do we know about the upcoming changes to VA benefits next year?
What Drives VA Benefits Changes
Congress requires the VA to adjust veterans’ benefits annually using the same COLA adjustment calculated by the Social Security Administration for Social Security benefits. In most years, the Social Security Administration determines the COLA as a percentage by which government benefits will increase to counteract the effect of inflation on benefit rates. However, in years where the economy experiences deflation, the VA does not reduce benefits.
The Social Security Administration calculates the annual COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks the prices paid by urban consumers for various consumer goods and services, such as food, energy, shelter, medical care, and transportation.
Projected 2026 COLA & Benefit Rates
News outlets report that expert analysis from organizations such as the Senior Citizen League projects that the Social Security Administration will announce a COLA of 2.7 percent for 2026. The Social Security Administration typically announces the annual COLA in October of the preceding year, with the VA announcing the following year’s disability benefits by December. Those rates go into effect on January 1 of the new year. However, no one knows the exact VA disability rates for 2026 until the Social Security Administration announces the 2026 COLA.
What Might Change?
With an anticipated 2.7 percent COLA for 2026, examples of how VA disability benefits may change next year include:
- A single veteran with no dependents with a 30 percent disability rating, who received a monthly benefit of $537.42 in 2025, may see their benefits increase to $551.93
- A veteran with a spouse and no dependent parents or children with a 60 percent disability rating, who received a monthly benefit of $1,523.93 in 2025, may see their benefits increase to $1,565.08
- A veteran with a spouse and a dependent child with a disability rating of 70 percent, who received a monthly benefit of $2,018.19 in 2025, may see their benefits increase to $2,072.68
VA disability benefit rates vary based on a veteran’s disability rating, their marital status, and whether they have dependent children or parents in their household. The VA also adds to a veteran’s disability payments for children over 18 in qualifying school programs or for spouses receiving aid and attendance, with those benefit rates also affected by the same COLA increase as base benefit rates.
Why Budget Numbers Don’t Tell the Whole Story
Although the 2026 federal budget may include additional funding for “compensation and pensions,” with a 6.9 percent increase in funding currently included in next year’s budget, that extra funding only increases the amount of funds the VA has available to pay all veterans. Budget increases in the VA’s line-item for compensation and pensions do not directly correlate to a per-rata increase in veterans’ benefits.
What We Still Don’t Know
Currently, policy and economic analysts can only estimate the Social Security Administration’s announcement of the 2026 COLA based on present financial data. Economic data in the third quarter of 2025 and projections for the fourth quarter may lead to a different COLA number. Furthermore, legislative and administrative changes could affect eligibility requirements that may make it easier or more challenging for veterans to qualify for disability benefits or change veterans’ disability ratings.
Contact a VA Disability Attorney to Learn What You Can Do Now
Contact Veterans Law Attorneys today for a free, no-obligation consultation with a VA disability lawyer to learn more about the annual changes to disability benefits and understand what you may expect if you’ve applied for benefits or you currently receive VA benefits.
