Veterans and their families could see higher federal benefits in two areas next year. Not only are burial reimbursements already increasing, but disability compensation is also on track for what may be the largest cost-of-living adjustment (COLA) in three years. For some, this could represent a bump of roughly $1,800 per year in payments.
The Department of Veterans Affairs adjusts many benefits to help keep pace with inflation. For disabled veterans, a larger COLA means bigger monthly checks in 2027. And for surviving relatives, increased burial allowances can help offset funeral and interment expenses, which have risen sharply in recent years.
Americans are continuing to feel the cost-of-living crunch, even as inflation has cooled from its pandemic-era highs. Food banks nationwide reported a sustained increase in demand, with some networks attributing the surge to elevated grocery prices and the expiration of assistance programs. Feeding America warned rising costs continue to place pressure on families and hunger-relief groups.
At the same time, Americans are feeling the effects of higher costs, including high gas and diesel prices. Homeowners are also contending with rising insurance premiums, property taxes and maintenance expenses. The VA is expected to finalize its 2027 disability compensation increase after the September inflation data numbers are released on October 14.
Warrior Disability has projected a 2027 COLA between 3.2 percent and 3.6 percent, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is the same inflation measure used to determine Social Security cost-of-living adjustments. If that forecast proves accurate, the adjustment would exceed the 2.8 percent increase veterans received for 2026 and the 2.5 percent increase for 2025. Under a projected 3.2 percent increase, a veteran with a 10 percent disability rating would see monthly payments rise from about $180 to $186, adding roughly $69 annually.
Meanwhile, a veteran with a 100 percent disability rating, a spouse, two dependent parents and one child could see annual benefits rise by approximately $1,794, with monthly payments increasing from $4,671 to $4,821. However, the final COLA will depend on September inflation data and could vary from current projections. Separately, VA burial allowances increased for fiscal year 2026.
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