Bipartisan Bill Would Increase VA Disability Payments Starting in Late 2026

A bipartisan bill introduced in the 119th Congress would increase base monthly disability compensation paid by the Department of Veterans Affairs beginning in late 2026. Senate Bill S. 4487, sponsored by Republican Senator Jerry Moran with 15 co-sponsors from both parties, would lift existing disability and survivor payment rates across all eligibility levels.

If enacted, the increases under S. 4487 would apply automatically to existing recipients without requiring a new application. The bill would raise VA disability compensation rates for veterans with service-connected disabilities and would increase Dependency and Indemnity Compensation paid to eligible surviving spouses and dependents.

U.S. 4487 does not change how disability ratings are assigned. It does not create new eligibility categories and does not replace annual cost-of-living adjustments. The bill could impact more than 5 million veterans.

Nearly 6 million veterans are currently receiving VA disability compensation, according to the Department of Veterans Affairs. S. 4487 is waiting for a Veterans’ Affairs Committee hearing. A Congressional Budget Office cost estimate is pending for the legislation.

“Its bipartisan support gives it a stronger path than most bills, but with so many proposals positioned to boost veteran services, it’s not clear if this one will go through quickly,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.

The proposal arrives as rising living costs renew pressure on Congress to go beyond routine cost-of-living adjustments for VA benefits. Newsweek reported that any across-the-board increase in compensation rates would apply to all veterans already receiving payments for service-connected disabilities, as well as eligible survivors receiving DIC.

“Increasing compensation for service-related disabilities, especially alongside changes like automatic enrollment, could help improve recruitment and retention if people begin to view the government as treating veterans more fairly,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.

“ Its chances will come down to sponsorship and political momentum,” Thompson added. S.

4487 follows a series of recent legislative efforts aimed at expanding or increasing VA benefits, particularly for veterans with serious or catastrophic disabilities.