PROJECT 2025 AND VA DISABILITY BENEFITS: WHAT CHANGES ARE COMING?
It’s not guaranteed that Project 2025 will cut Veteran benefits; however, many experts are critiquing that this is exactly what Vets can expect. Although the 2025 VA disability pay rates are increasing on par with others in the past, changes to benefits are being floated around. If they go through, access to healthcare and the compensation Veterans receive in 2025 may look much different than what is in place currently.
Key Veteran Benefits Changes Happening in 2025
Veteran benefits are increasing in 2025, and with that, there are a number of other changes going into effect. Several of these changes to VA benefits will go into effect on December 1st of 2024.
Here are the key changes to be aware of. Each one is explained in more depth below:
- Due to the latest COLA update, VA benefits are increasing for disability rates
- Retired Vets will receive more money for their pension
- Disability rates in 2025 are increasing
- Project 2025 could potentially cut VA benefits
How Does Project 2025 Affect VA Disability Benefits?
Keep in mind that Project 2025 could affect VA disability benefits and more but it’s still yet to be seen in action.
There are also several changes to VA benefits in 2025 due to other forms of legislation, already underway.
Here’s a breakdown of the changes coming to Veteran benefits in 2025 to keep an eye on:
VA Disability to Increase in 2025
Thanks to the Social Security Administration (SSA) increasing cost-of-living adjustment (COLA), the 2025 VA disability pay rates are increasing by 2.5%.
This rate is effective beginning on December 1, 2024, which is when the finalized figures will be released by the government.
If you’ve noticed previous COLA adjustments, 3.2% in 2024, 8.7% in 2023, and 5.9% in 2022, you may feel the increase is subpar.
However, it’s important to keep things in perspective. COLA was higher due to inflation. The current increase for 2025, is more in line with the 2.6% average increase found throughout the last ten or so years.
Retirement Benefits
If you’re receiving retirement benefits, get ready to receive more pay in your pockets beginning in 2025.
Military retirement pensions will receive an increase of $25 per $1,000 of benefits each month.
Retired Vets who are a part of the Career Status Bonus (CSB/Redux retirement plan), will only receive an increase of $15 per $1,000 in benefits for 2025, while survivors will maintain the same increase as retirees.
Disabled Vets and Survivors
The 2025 disability rates for Veterans are going up, though how much you’ll receive, of course, varies depending on the number of dependents you have as well as your disability rating.
For many, VA disability will increase by $4.28 per month for Vets with a 10% rating and $93.45 for those with a 100% disability rating—assuming there are no dependents.
If you are a surviving spouse of someone and qualify for Dependency and Indemnity Compensation (DIC), you’ll also receive a higher benefit, which is projected to be $1,653.07 in 2025.
Remember, the official VA DIC rates are not available at the time of this writing and should be close to these projections when they are released at a later date.
Furthermore, if you were affected by the “widow tax” that came to be in 2023, taking away Survivor Benefit Plan (SBP) payments for those who received both DIC and SBP payments, this is now being phased out—you’ll no longer have to deal with the deduction.
Project 2025 Could Cut VA Benefits in Multiple Ways
Project 2025 and VA disability benefits continue to be intertwined, though there is still a lot of speculation as to what will actually be implemented once the Trump administration takes over.
For what it’s worth, the controversial plan spearheaded by the Heritage Foundation continues to face scrutiny, yet, Trump has separated himself from the plan itself.
Still, there are people closely tied to Trump’s presidential run and tied to his incoming administration who are still pushing Project 2025.
Some of the things proposed include:
- controlling the VA politically
- removing access to abortion services for VA healthcare recipients
- hindering disability ratings, which could adversely affect the ability of Veterans to receive care through the PACT Act
The Veterans Healthcare Policy Institute (VHPI) continues to advocate against Project 2025 due to its potential damage to healthcare options for Vets.
Furthermore, your experience at the VA could change for the better, or worse, due to the efforts by Project 2025 to move executives while installing new leadership in the organization.
Healthcare for Vets can be complex. Project 2025 is also looking to move to methods more in line with the Department of Defense (DoD), which critics argue could undermine care for Veterans who may need more time during their appointments.
Transgender Veterans would also lose VA-provided gender-affirming care options under the agenda.
Finally, instead of increasing funding through the VA for improved healthcare on its own campuses, funds would be diverted toward expanding community-based clinics.
Again, these are a bit speculatory and it’s important to realize the following:
- Some of these changes may affect VA benefits in 2025, though others may take longer to implement.
- All of the changes could come to life or be discarded as there are several political processes that are involved in making anything listed in the plan a reality.
Overall, changes to Veteran benefits in 2025 and beyond are still taking shape. Increases to benefits are on the horizon but various changes could also take away access to healthcare our nation’s heroes have rightfully earned. For more information on Veteran benefit changes, the application process, burial benefits, and spouse & dependent benefits, visit our resource guide.
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