In the United States, the cost-of-living adjustment (COLA) for veterans’ disability compensation and other benefits is expected to increase by 8.7% in 2025, the largest increase in over 40 years.
This increase is due to the rising cost of living, as measured by the Consumer Price Index (CPI). The CPI is a measure of the average change in prices over time for a basket of goods and services purchased by urban wage earners and clerical workers. The COLA is designed to help veterans keep pace with the rising cost of living and maintain their quality of life.