Social Security Administration officials announced the increase Thursday. The 2.5% boost is the smallest Cost of Living Adjustment (COLA) since the pandemic began. It’s a sign that inflation is slowing, says Marquis Barefield, assistant national legislative director for Disabled American Veterans.
“It's good to keep pace,” he said. “But you know, it wouldn't hurt to just be a little bit in front of inflation, especially when you had years where we were stagnant and we didn't get any increases at all.”
Veterans received no annual increase in 2010, 2011 and 2016. Last year, lawmakers passed legislation officially tying the cost of living increases that veterans receive directly to the increase planned for those receiving Social Security. It goes into effect this year. The law was designed to ensure that going forward veterans would receive an increase that kept pace with inflation, according to the Department of Veterans Affairs.
The increase is roughly an extra $48 a month for the average veteran, Barefield said.
“They look to this annual COLA increase every year to be able to make sure that they have all the basic things that they need, housing, food, clothing - their basic everyday needs,” he said.
The 2.5% increase for 2025 is well below the 3.2% in 2023, 8.7% in 2022 and 5.9% in 2021.
Roughly 215,000 veterans receive VA benefits in Virginia, part of roughly 5 million American veterans who receive payments from the Veterans Benefits Administration. The new rates take effect on December 1 and will be reflected on checks by the end of the year.
