Bills
| 3.23.22

Raising the Cost-of-Living Compensation Rates for Veterans and Their Survivors (H.R. 1200)

Do you support or oppose this bill?

What is H.R. 1200?

(Updated October 17, 2019)

This bill was enacted on September 26, 2019

This bill would direct the Secretary of Veterans Affairs (VA) to increase the rates of compensation for several areas of veterans’ living expenses. As of December 1, 2019, the rates of veterans’ disability compensation, additional compensation for dependents, the clothing allowance for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children would be increased. Each of these increases would be based on the percentage used to raise Social Security benefits.

Argument in favor

While it doesn’t establish automatic cost-of-living increases, this bill does provide a boost the benefits received by veterans and their families for another year.

Argument opposed

Rather than having to approve this cost-of-living adjustment each year, the benefits provided to veterans and their survivors should just be indexed to inflation or increases in Social Security benefits so the increases are automatic.

Impact

Veterans and their survivors, the VA.

Cost of H.R. 1200

Relative to current law, the CBO estimates that enacting this bill would increase spending for veterans' disability payments by $1.5 billion in FY 2020. The CBO estimates that the COLA effective on December 1, 2019 would be 2.1%.

Additional Info

In-Depth: Sponsoring Rep. Elaine Luria (D-VA) introduced this bill to provide a cost-of-living adjustment to veterans for 2020: 


“Our veterans put their lives on the line to keep America safe, and I remain committed to ensuring they receive the benefits they have earned. I’m honored to champion a cost-of-living adjustment for our nation’s veterans. I look forward to working with DAMA Ranking Member Bost to get this critical bill through Congress and signed by the President.”
This bill passed the House Veterans' Affairs Committee with the support of 14 bipartisan cosponsors, including eight Democrats and six Republicans in the current Congress. Last Congress, the Veterans' Compensation COLA Act of 2018 passed the House unanimously and was signed into law to provide a COLA for 2019.

Of Note: While the Veterans of Foreign Wars (VFW) would prefer to see automatic cost-of-living adjustments for the benefits provided to veterans and their survivors, the VFW was supportive of 2017's increase.

Last Congress, the Disabled American Veterans (DAV) also expressed support for the cost-of-living increase -- but qualified that support by pointing out that this legislation contains a round-down provision which they oppose. The round-down provision results in benefits being reduced to the nearest whole dollar. Over time, this has reduced monthly benefits by about $10 per month.

The 2015 cost-of-living adjustment was about 1.7 percent based off of the increase in Social Security benefits.


Media:

Summary by Eric Revell
(Photo Credit: The U.S. Army)