Veterans will see a 2.8% increase in disability payments in 2026, but many are asking why the adjustment feels so modest when grocery bills and rents have surged far more than that.
The answer lies in how the government calculates inflation, and more importantly, when those calculations happen.
The VA's cost-of-living adjustment took effect Dec. 1, 2025, with the first higher payment hitting bank accounts Dec. 31. The increase applies to all disability ratings from 10% to 100% as well as survivors receiving Dependency and Indemnity Compensation.
Read More: See Your 2026 VA Disability Pay Rates
How COLA Gets Calculated
The VA bases its cost-of-living adjustment on the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W. This index tracks prices paid by households where at least half the income comes from clerical or wage jobs.
The 2026 COLA comes from a narrow window of inflation data: July, August and September 2025. The Social Security Administration compares prices during those three months to the same period in 2024. Whatever percentage increase occurred becomes the new COLA.
That calculation period matters because it captures only a snapshot of price changes, not the full year. And it definitely doesn't reflect the prices veterans are actually paying in late 2025.
Why It Feels So Small
Inflation peaked in 2022, when prices rose 8% overall and groceries jumped even higher. The VA responded with an 8.7% COLA for 2023, the largest increase in four decades.
Since then, the rate of inflation has cooled significantly. But that doesn't mean prices went down. It means they're still rising, just more slowly. A 2.8% COLA reflects that slower growth, not the cumulative effect of several years of elevated prices.
The disconnect is this: People remember what groceries cost in 2020, not what they cost in September 2023. The COLA adjusts for year-over-year change, not for how much prices have climbed overall since before the pandemic.
While overall inflation measured 2.8% during the July-September calculation period, not all prices rose equally. Food and shelter costs, which make up the biggest portion of most household budgets, have stayed stubbornly high even as other prices stabilized.
What You'll Actually Get
A veteran rated at 100% disability with no dependents will see monthly compensation rise from $3,737.85 to $3,841.71, an increase of roughly $104 per month or $1,248 annually.
For other common disability ratings:
- 70% rating: Increases from $1,716.28 to $1,764.36 (about $48 more monthly)
- 50% rating: Increases from $1,075.16 to $1,105.23 (about $30 more monthly)
- 30% rating: Increases from $524.31 to $539.00 (about $15 more monthly)
The Grocery Store Reality
The adjustment ensures disability payments don't lose ground to rising costs going forward. It doesn't make up for ground already lost.
How 2026 Compares to Recent Years
The 2026 COLA of 2.8% is higher than 2025's adjustment of 2.5% but much lower than recent years:
- 2023: 8.7% (highest in 40 years)
- 2024: 3.2%
- 2025: 2.5%
- 2026: 2.8%
The declining adjustments reflect cooling inflation, which has dropped from a peak of 9.1% in June 2022 to around 3% by mid-2024. But cumulative price increases over those years mean veterans are still dealing with costs far higher than pre-pandemic levels.
Social Security Connection
The VA disability COLA mirrors the Social Security cost-of-living adjustment announced in October. Both use the same inflation measurement and take effect at the same time.
For veterans receiving both VA disability and Social Security retirement, the combined increase provides some relief. However, Medicare Part B premiums are also increasing in 2026, which will offset some of the Social Security COLA for many veterans.
Read More: What Every Veteran Needs to Know About Medicare by Age 65
No Action Required
The adjustment happens automatically. Veterans don't need to file paperwork or contact the VA. The higher rates took effect Dec. 1, 2025, and the first increased payment will be made Dec. 31.
Check your bank account on pay day to confirm the new amount. If you don't see the increase, contact the VA at 1-800-827-1000.
What About Back Pay?
Veterans receiving retroactive disability payments should note that back pay is calculated using the rates in effect for each month of the retroactive period, not the 2026 rates.
If your claim is approved in January 2026 with an effective date of January 2024, you'll receive 2024 rates for those months, 2025 rates for 2025’s months, and 2026 rates going forward.
Looking Ahead
The 2026 COLA provides some cushion against inflation, but veterans facing financial hardship have other options. Contact your local veterans service organization about additional benefits you may qualify for, including:
- Aid and Attendance for veterans needing daily assistance
- Special Monthly Compensation for specific disabilities
- State-level veteran benefits that vary by location
For questions about your specific disability rating or payment amount, log into va.gov or call the VA's general information line at 1-800-827-1000.
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