Bills
| 3.23.22

Do Disability and Survivors Benefits for Veterans Need an Annual COLA? (H.R. 677)

Do you support or oppose this bill?

What is H.R. 677?

(Updated October 13, 2018)

This bill would require the Dept. of Veterans Affairs (VA) to provide a permanent annual cost-of-living adjustment (COLA) to the amounts paid to veterans for disability compensation. In addition, the COLA increase would cover compensation to survivors, the clothing allowance for certain disabled adult children, and dependency and indemnity compensation for surviving spouses and children.

The annual COLA would be based on the percentage used to modify Old Age, Survivors and Disability Insurance benefits under Social Security. Increases in benefit amounts based on the COLA would be rounded down to the nearest whole dollar.

Argument in favor

An annual cost-of-living adjustment would ensure that the benefits received by disabled veterans and their survivors remain relatively constant and aren’t eroded by inflation.

Argument opposed

There will be enough years where the cost-of-living adjustment is a very minor change that an annual COLA is unnecessary. The VA can apply a COLA only in years where it is needed.

Impact

Veterans receiving disability or burial benefits and their survivors, and the VA.

Cost of H.R. 677

The CBO estimates that implementing this bill would increase spending by $5.8 billion over the 2016-2025 period.

Additional Info

In-Depth: Sponsoring Rep. Ralph Abraham, M.D. (R-LA) introduced this legislation to provide veterans and their families peace of mind that their disability and survivors benefits will arrive at consistent levels each year:

“These benefits are instrumental to supporting those who have honorably served our nation. Passing the American Heroes COLA Act would provide our veterans much-needed peace of mind so that they know their benefits will be secure each year. We must demand higher protection of our veterans and their financial security. These bills, which enjoy bipartisan support, ensure our veterans and their families’ needs are met.”

The House Veterans’ Affairs Committee passed this legislation by voice vote.



Media:

Summary by Eric Revell
(Photo Credit: Flickr user Expert Infantry)