Congress Redrew Military, VA Benefits in 2025. The Changes Are Massive.

U.S. Congress quietly rewrote the rules for military service, veterans’ benefits and troop transitions in 2025, forcing legislative changes on everything from tuition bills, foreclosure protections and toxic exposure records.

Between January and late December, Congress passed 14 laws reshaping military and Department of Veterans Affairs (VA) benefits in accordance to rising costs, ongoing deployments, and pressure from veterans’ groups. The laws take effect on staggered timelines into the new years, occurring with less fanfare and without the political theater that derailed previous bigger congressional battles over issues like immigration.

The lawful measures range from automatic increases for disability and survivor benefits; in-state tuition for Selected Reserve students to new foreclosure protections; repayment guarantees for stolen benefits; and required separation counseling for troops leaving the force. Several also fold in wildfire aircraft transfers, clinic construction, and major changes to tax and border spending.

Paychecks, Pensions and Tuition Shifts in 2026

Many of the changes are economically related and will impact the following:

• Under legislation known as the Veterans’ Compensation Cost-of-Living Adjustment Act of 2025, cost-of-living increases for disability and survivor benefits will now automatically match Social Security every year without separate votes. That change began Dec. 1 and stops benefits from lagging behind inflation.
• Beginning Aug. 1, 2026, under the MGIB-SR Tuition Fairness Act, Reservists using the Montgomery GI Bill Selected Reserve will qualify for in-state tuition at public colleges  Schools that refuse will be at risk of losing VA approval to accept military education benefits.
• Life insurance coverage under Servicemembers’ Group Life Insurance and Veterans’ Group Life Insurance must now be reviewed every five years and adjusted based on consumer price index data. That review cycle prevents coverage from lagging behind real-world housing and medical costs.
• Medal of Honor pensions will now track VA disability tables instead of a flat rate that trailed inflation.
• Payment tiers for Selected Reserve education benefits vary by enrollment status and training load, with monthly stipends adjusted annually to reflect housing and tuition shifts.

VA Can Step in Before Foreclosure

The VA now has the authority to buy a percentage of a delinquent mortgage and transfer that debt into a VA-managed loan, according to the Veterans Housing Protection Act.

The “partial claim” can cover up to 30% of unpaid principal for veterans who fell behind on payments between March 1, 2020, and May 1, 2025.

The law requires oversight audits to track how many veterans use partial claims, how many re-default, and what the cost is to taxpayers. Lenders cannot use the authority to inflate VA liability or accelerate foreclosure timelines. Lawmakers said the program acts as a post-pandemic bridge after temporary mortgage relief programs expired and filings increased.

Accessible housing grants, veteran transportation for medical appointments, and assistive technology programs were extended through Fiscal Year 2026 to prevent benefit gaps as the policy rolls out.

Less Room to Fail

Quarterly budget briefings to Congress are now mandatory under the PRO Vets Act—a law that demands disclosures before hiring freezes or appointment delays hit veterans. It also restricts executive bonuses until performance benchmarks improve.

Under the Veterans’ Fiduciary Fraud Reimbursement Act, victims of fiduciaries who steal benefits will now see VA repay stolen money in full. Repayment applies even if the veteran dies before the theft is discovered. VA must pursue the perpetrator, not surviving families.

More than 3,100 fiduciary fraud complaints sat unresolved last year, according to House Veterans Affairs Committee staff estimates.

Disability pay and cost-of-living adjustments follow tiered rating levels, medical evidence standards, and annual indexing that determines monthly compensation amounts.

No Walking Off Base Anymore

New separation rules in the recently passed National Defense Authorization Act require in-person counseling when possible, including financial planning instruction, debt management resources, medical record transfers and VA claims basics. Commands must prove compliance rather than treat transition counseling as optional.

About 200,000 service members separate each year, according to Department of Defense transition data. Missed paperwork deadlines, missing service treatment records and lost toxic exposure documentation routinely delay disability claims or wipe out GI Bill eligibility.

The law also orders DOD and VA to integrate toxic exposure records and service treatment files into a joint framework to stop evidence from disappearing in disconnected systems.

Another provision allows the transfer of surplus military aircraft to state wildfire fleets, linking aging platforms to climate-driven emergencies without new procurement.

More Rules Coming

Not every change hits at once.

Insurance reviews start Jan. 1, 2026. The GI Bill Selected Reserve tuition rule starts Aug. 1, 2026. Mortgage partial claims are active now but need VA regulations to finalize repayment terms.

Veterans could feel changes in bank accounts before they get clarity from the VA or their chain of command. Rollouts may be delayed by outdated forms, slow implementation guidance and inconsistent staffing.

Advocates say 2025 built a floor. The next Congress decides how high the ceiling goes.

The Legislation Behind the Changes

• H.R. 1 — 2025 Consolidated Budget and Policy Reconciliation Act: Tax, border and defense spending package; Indo-Pacific posture; CBP workforce; shipbuilding funds; debt limit.
• S. 160 — Aerial Firefighting Enhancement Act: Allows DoD aircraft transfers to states for wildfire missions.
• S. 2392 — Veterans’ Compensation Cost-of-Living Adjustment Act: Ties VA benefits to Social Security COLA.
• H.R. 2170 — VA Health Infrastructure Modernization Act: Repairs and expands VA clinics; electronic record modernization.
• H.R. 1968 — Full-Year Continuing Appropriations Act: Funds government at FY24 levels through Sept. 30; sustains VA and DoD operations.
• S. 5 — Military Unit Heritage Protection Act: Protects lineage and heraldry of historic U.S. military units.
• H.R. 695 — Medal of Honor Pension Adjustment: Aligns pensions to VA disability tables.
• H.R. 983 — MGIB-SR Tuition Fairness Act: In-state tuition for reservists.
• H.R. 970 — SGLI/VGLI Inflation Guard: CPI-based coverage reviews.
• H.R. 1815 — Veterans Housing Protection Act: VA partial mortgage claims.
• H.R. 1912 — Veterans’ Fiduciary Fraud Reimbursement Act: VA must repay stolen benefits.
• H.R. 5371 — FY25 Defense and VA Appropriations Act: Funds benefits, readiness, housing and shipbuilding.
• S. 423 — PRO Vets Act: Quarterly budget reporting; bonus limits.
• S. 1071 — NDAA FY26: Transition overhaul; records integration; wildfire aircraft rules.