12/10/2025
Prospective Key Changes in 2026:
COLA (Cost-of-Living Adjustment): A 2.8% boost to most VA benefits.
Disability Pay Rates: Expect higher monthly amounts; for example, a 10% disabled vet gets about $4.91 more monthly, while a 100% disabled vet without dependents gets roughly $107.28 more.
Clothing Allowance: The rate for those needing to replace clothes damaged by prosthetics or skin conditions increases to about $1,053.19.
VR&E Subsistence Allowance: Rates for the Veteran Readiness and Employment (VR&E) program (Chapter 31) also increased in October 2025, with a new maximum of $3,439.23 for full-time students with dependents.
VA Rating Schedules: The VA is updating rating criteria for mental health, neurological, respiratory, and auditory conditions, which might make it harder to get higher ratings, so filing claims now under current rules might be better, say some experts.
VA Home Loans & Trusts: There's growing discussion and potential changes around putting VA home loans into trusts for estate planning or for family, though this requires careful legal advice.