H.R. 1329, also known as: “Veteran’s Compensation Cost-of-Living Adjustment Act of 2017” finally enacts what you would expect would happen… Veterans with service-connected disability will see an increase in their compensation payments for the purpose of offsetting inflation. You can think of inflation as simply what happens when you blink and your regular $3.00 gallon of milk is suddenly $3.06. Six cents may not seem like a lot but when you consider the amount of goods purchased by each household, it will certainly add up over time. Your grandma wasn’t kidding when she said a dollar doesn’t go as far as it used to.
Nevertheless, this newly-enacted law requires that VA disability compensation increase by the same percentage each year as the Social Security old age and disability compensation increases. This rate increase not only affects the basic service-connected compensation, but also benefits for clothing allowance (if a Veteran’s prosthesis/medical device causes unusual wear and tear of clothing), and benefits for surviving spouses and children. For 2018, the increase is 2% which is literally $2 for every $100 in compensation. Again, that may not seem like much but after hearing, reading, and witnessing the struggle of many Veterans and their surviving spouses and children, I can’t help but rejoice in those extra few dollars each month.
It is important to note that the rate of increase will not be the same each year. The 2% increase for this coming year is the highest in five years but also a far cry from the 14.3% cost-of-living adjustment in 1980. The Congressional Budget Office submitted their report on the cost of this bill in May 2017. Their estimate included a 2.5% increase, so adjusting for the lesser, actual increase, the cost of this bill will approximately in $1.44 billion in 2018. Inflation sucks (most of the time).