The Social Security Administration (SSA) has officially announced its 2026 cost-of-living adjustment (COLA), and the rate is set for 2.8%.
For millions of veterans who receive VA disability benefits, this announcement is a key indicator of the pay raise they can expect to see in their monthly compensation starting in January 2026.
At Cameron Firm, PC, we know how important this increase is for you and your family. This post will break down what the 2.8% COLA rate means for your 2026 VA benefits, which benefits are affected, and what happens next.
What is the cost-of-living adjustment (COLA)?
The cost-of-living adjustment, or COLA, is an annual increase in Social Security benefits designed to help them keep pace with inflation. The rate is calculated by the Social Security Administration based on the Consumer Price Index (CPI-W) from the third quarter of the previous year to the third quarter of the current year.
In simple terms, COLA is an adjustment to ensure your benefits’ purchasing power isn’t eroded by the rising costs of goods and services.
How does the Social Security COLA affect VA benefits?
By law, the VA cost-of-living adjustment is tied directly to the rate set by the Social Security Administration.
While Congress must pass legislation each year, typically called the Veterans’ Compensation Cost-of-Living Adjustment (COLA) Act, to authorize this increase, the rate is statutorily set to match the SSA’s COLA. This means veterans can expect to see the same 2.8% increase in their 2026 VA benefits as Social Security recipients.
This 2.8% increase is slightly higher than the 2.5% COLA that was approved for 2025, but it is much lower than the historic 8.7% increase seen in 2023.
Which VA benefits will increase in 2026?
The 2.8% COLA will apply to several different VA benefits, ensuring that veterans and their families receive an increase.
The benefits set to increase in 2026 include:
- VA disability compensation: Monthly payments for veterans with service-connected disabilities.
- Dependency and Indemnity Compensation (DIC): Monthly benefits for the surviving spouses, children, or parents of service members or veterans who died as a result of their service.
- VA clothing allowance: The annual payment for veterans whose service-connected condition requires special clothing or damages existing clothing.
What does this mean for you?
Assuming Congress passes the legislation on its usual schedule, starting with your check for December 2025 (you should receive your first increased payment on or around December 31, 2025), your monthly VA benefit payments will be 2.8% higher.
For example, a veteran with a 100% disability rating and no dependents, who received $3,831.30 per month in 2025, can expect their payment to increase by approximately $107.28 per month.
The VA will release the official 2026 VA disability pay charts soon, which will reflect this 2.8% increase and provide the exact payment amounts for every disability rating and dependent status.
Is your VA rating correct?
The 2.8% COLA increase is essential, but it only helps if your underlying VA disability rating is correct. If your service-connected conditions have worsened, or if you have new conditions (including those secondary to an existing condition), you may be entitled to a higher disability rating.
An increase in your disability rating from 70% to 100%, for example, would result in a far more significant pay increase than the COLA alone.
If you have been denied benefits or if you believe you are under-rated for your service-connected conditions, you have the right to appeal. The team at Cameron Firm, PC, is dedicated to helping veterans get the full benefits they’ve earned. Contact us today for a free consultation to review your case.
