Cost of Living Adjustments for Service-Connected Benefits

USDVA Veterans Health Administration — VISN-20 MIRECC sent this bulletin at 05/05/2026 09:56 AM PDT

NewsFlash

Cost of Living Adjustments (COLA) for Service-Connected Benefits

The 2026 COLA of 2.8% is derived from subtracting the FY25 calculated average from FY24 and then dividing from the FY24 baseline (317.265-308.729)/308.729 = 2.76%.

Annual COLA is calculated through monthly Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) reports of the current fiscal year (July, August, September) to the average for the same months of the previous fiscal year. In September, the CPI-W increased 2.9 percent over the last 12 months to an index level of 318.139 (1982-84=100). For the month of September, the index increased 0.3 percent prior to seasonal adjustment. The calculated average CPI-W for the last three months of FY25 is 317.265.

Annual COLA increases affect VA service-connected disability compensation. VA service-connected disability compensation provides payments to Veterans who got sick or injured while serving in the military. Eligible Veterans and family members began receiving this increase in their January 2026 checks. The monthly tax-free disability compensation includes Veterans whose service made an existing medical condition worse. Special benefit allowances, including automobile allowance, clothing allowance and Medal of Honor pension, are also provided a boost in benefit payments.

COLA allowances are also applied to the payments provided to surviving spouse, child or parent of a service member who died in the line of duty, or the survivor of a Veteran who died from a service-related injury or illness. These VA survivor benefits are tax exempt. This means you won’t have to pay any taxes on your compensation payments.

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As a member of the FDIC Money Smart Alliance, NW MIRECC helps promote financial capability to strengthen the financial education efforts of Veterans, Servicemembers, and their families. The Financial Readiness section of the VISN 20 MIRECC NewsFlash include:

Need help? Appoint a Veteran Service Organization (VSO), attorney, or claims agent to assist you. In most cases, it is not necessary for Veterans to get assistance from an attorney. However, many Veterans choose to get free assistance from organizations such as the Disabled American Veterans (DAV), Veterans of Foreign Wars (VFW), and the Military Order of the Purple Heart (MOPH). These organizations will typically ask you to sign a limited power of attorney, which will allow them to speak with the VA on your behalf. They can help you determine status, ask the VA to reconsider the severity of your rated ailments, and help you with other support actions. An accredited attorney, claims agent, or VSO representative can help you file a claim or request a decision review. Use our search tool to find one of these types of accredited representatives to help you. Use VA search tools to find accredited representatives to help you.

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About VISN 20 and NW MIRECC

VA's NW MIRECC serves to improve the mental health and well-being of Veterans through research and dissemination of information to providers both within VA and the general public. VA's Veterans Integrated Service Network (VISN) 20 serves Alaska, Washington, Oregon, most of Idaho, and one county each in Montana and California. Spanning 23% of US land mass, VISN 20 is the largest geographic region of VA. Operating across three time zones over 817,417 square miles, VISN 20 is home to 273 federally recognized American Indian and Alaskan Native tribes. As of the end of FY2024, 39% of VISN 20 enrollees resided in rural or highly rural areas.

NW MIRECC brings together complementary research, education, and clinical programs from VA Puget Sound (VAPSHCS) and the VA Portland Health Care System (VAPORHCS). The mission of NW MIRECC is to improve the quality of life and function of Veterans by developing, evaluating, and promoting the implementation of effective treatments for Posttraumatic Stress Disorder (PTSD) and its complex comorbidities. PTSD comorbidities include the behavioral consequences of repetitive blast mild Traumatic Brain Injury (mTBI), Substance Use Disorder (SUD), chronic pain (in particular, post-concussive headaches), cognitive impairment, and increased risk for neurodegenerative disorders (chronic traumatic encephalopathy [CTE] and Alzheimer’s disease [AD]).

VHA continually evolves and cultivates ongoing cutting-edge medical research and innovation to improve the lives of America’s patriots. The collaborative approach to mental health research, education and treatment has had a profound impact on the lives of Veterans. VAPSHCS and VAPORHCS were commissioned by Congress and the VA as one of the first three MIRECCs in the United States. VA MIRECC's provide for the improvement of the provision of health-care services and related counseling services to eligible veterans suffering from mental illness (especially mental illness related to service-related conditions) through—

• the conduct of research (including research on improving mental health service facilities of the Department and on improving the delivery of mental health services by the Department);

• the education and training of health care personnel of the Department; and

• the development of improved models and systems for the furnishing of mental health services by the Department.

As part of the VISN 20 NW MIRECC mission to enhance access to mental health expertise, the NW MIRECC collaborates and consults with other MIRECCs and Centers of Excellence, as well as with other VA, Department of Defense (DoD), Federal, State departments of Veterans Affairs, community agencies, and experts. The close geographic proximity (40 miles) of DoD Joint Base Lewis-McChord/Madigan Army Medical Center to VAPSHCS has provided an exciting opportunity to develop innovative and productive research, education, and clinical care collaborations with DoD personnel that address PTSD and its associated conditions in their early stages in active-duty Servicemembers.

VA ranks as one of the nation's leaders in health research. Every year, thousands of research studies are conducted at VA medical centers, outpatient clinics, and nursing homes. For example, the VA has:

• Developed artificial limbs that allow amputees to have more independence and better quality of life

• Invented the cardiac pacemaker

• Performed the first successful liver transplantation

• Developed the nicotine patch to help people stop smoking

• Played a major role in the development of the CT/CAT scan to view the inside of the body

• Tested new drugs and treatments for diseases such as AIDS, Diabetes, Alzheimer's and Osteoporosis

NW MIRECC research studies significantly contribute to advancements in our understanding of medical problems that lead to health improvements for Veterans and civilians alike. Research studies at NW MIRECC are currently enrolling Military Veterans, First Responders, Health Care workers, and Civilians in Seattle, Washington.

VA Portland Health Care System (VAPORHCS)
Mail Stop: P3MIRECC
3710 SW US Veterans Hospital Road
Portland, OR 97239

Vet Centers are community-based counseling centers that provide a wide range of social and psychological services, including professional readjustment counseling to eligible Veterans, active-duty Army, Navy, Marine Corps, Coast Guard, Air Force, and Space Force service members, including National Guard and Reserve components, and their families. Vet Center Call Center 1-877-927-8387 (1-877-WAR-VETS) is an around the clock confidential call center where Veterans, service members and their families can talk about their military experience or any other issue they are facing in transitioning after military service or trauma and get connected to their nearest Vet Center. The National Suicide Hotline Designation Act authorized 988 as the new three-digit number for the National Suicide Prevention Lifeline. The Veterans Crisis Line can help even if you're not enrolled in VA benefits or health care. Available 24/7: Dial 988 then Press 1, chat live (VeteransCrisisLine.net/Chat), or text 838255.

Use of these Materials and Finding VA Health Care: Please note that the health care information provided in these materials is for educational purposes only. It does not replace the role of a medical practitioner for advice on care and treatment. If you are looking for professional medical care, find your nearest VA medical center by using the Veterans Integrated Service Network (VISN) map . NewsFlash and Financial Readiness resources are also for educational purposes only. It does not replace the role of a financial advisor for advice on savings and investments. Investing in your future means saving for retirement, college or a rainy day fund. If you're working with an investment professional, or someone is trying to sell you an investment, check them out before handing over your hard-earned money. NewsFlash pages may contain links that will take you outside of the Department of Veterans Affairs website. VA does not endorse and is not responsible for the content of the linked websites.

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US Department of Veterans Affairs Veterans Health Administration · 810 Vermont Avenue, NW · Washington, DC 20420
Veterans Health Administration — VISN 20 MIRECC
1-877-222-VETS (877-222-8387)

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