Story perspectives

VA to boost disability compensation 3.6% in 2027

By Drooid · Oct 15, 2026, 2:53 PM UTC · How we work

Summary

VA Increases Disability Pay

The U.S. Department of Veterans Affairs will raise disability compensation 3.6% in 2027, pending congressional approval.
The Social Security Administration announced a 3.6% cost-of-living adjustment on October 14, 2026.
The increase will affect over 6 million veterans and more than 8 million retirees starting Dec. 1, 2026.
Veterans need not file new claims; the COLA will apply automatically once Congress approves the 2026 Act.

Summary

Advocates Push CPI-E

Advocates say the CPI-W index misrepresents seniors’ spending and urge adopting the CPI-E measure.
Max Richtman, president of the National Committee to Preserve Social Security and Medicare, backs CPI-E legislation.
William Shackelford, NARFE president, warns FERS retirees will receive a COLA point lower under Equal COLA Act with 90 cosponsors.
AARP CEO Myechia Minter-Jordan warns the trust fund could run out by 2032, risking cuts exceeding 20%.

History

Historical Context

The 1972 amendments raised benefits 20% and set a COLA triggered at 3% CPI, but a formula error caused double-indexing and strain. After a 1982 projection the fund would run out, the Greenspan-led commission spurred the 1983 Reagan reforms, which added CPI-W adjustments, taxed benefits and $50 billion for 40 million recipients. Those changes shape the 2026 COLA debate and a 20% shortfall by 2032.

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VA Increases Disability Pay

The U.S. Department of Veterans Affairs will raise disability compensation 3.6% in 2027, pending congressional approval.
The Social Security Administration announced a 3.6% cost-of-living adjustment on October 14, 2026.
The increase will affect over 6 million veterans and more than 8 million retirees starting Dec. 1, 2026.
Veterans need not file new claims; the COLA will apply automatically once Congress approves the 2026 Act.

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