Bill Overview
Title: Veterans' Compensation Cost-of-Living Adjustment Act of 2022
Description: This act requires the Department of Veterans Affairs (VA) to increase the amounts payable for wartime disability compensation, additional compensation for dependents, the clothing allowance for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children. Specifically, the VA must increase the amounts by the same percentage as the cost-of-living increase in benefits for Social Security recipients that is effective on December 1, 2022. The act requires the VA to publish the amounts payable, as increased, in the Federal Register. The VA is authorized to make a similar adjustment to the rates of disability compensation payable to persons who have not received compensation for service-connected disability or death.
Sponsors: Rep. Luria, Elaine G. [D-VA-2]
Target Audience
Population: US veterans, their dependents, and survivors receiving VA benefits
Estimated Size: 7500000
- The bill mandates an increase in compensation and benefits related to veterans' wartime service disabilities, which affects veterans who are currently receiving such compensation.
- This includes wartime veterans receiving disability compensation, as well as their dependents, who may receive additional compensation.
- The bill also extends to survivors, which impacts surviving spouses and children of veterans who receive dependency and indemnity compensation.
- The adjustment is tied to the cost-of-living increase applicable to Social Security recipients, indicating that this affects all eligible recipients under similar economic conditions.
- The inclusion of the clothing allowance for certain disabled veterans implies that those who require special clothing due to their service-connected disabilities are also impacted.
Reasoning
- The policy specifically targets veterans receiving compensation from the VA and their dependents, so the simulated population should include veterans, surviving spouses, and children impacted by these changes.
- This policy aims at providing financial adjustment aligned with the cost-of-living increase for Social Security, which would directly affect those relying on these funds.
- As it is a monetary adjustment, the impact is likely higher on those significantly dependent on such compensation for their daily living expenses.
- Given the budget, the distribution of beneficiaries might be wide, but the individual impact might range from moderate to high for some and unnoticeable for others.
- The policy affects a mix of demographics, considering diversity in age, gender, economic background, and geography across the US.
Simulated Interviews
Veteran, unemployed (Texas)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- The increase might help me budget better with my therapy costs and daily necessities.
- Clothing allowance is a necessary benefit - it’s often overlooked but critical for people like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 6 | 5 |
Retired, Surviving Spouse (Florida)
Age: 65 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- The COLA increase tends to be very helpful, especially with rising healthcare costs.
- It provides some security knowing the compensation aligns with cost changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Software Engineer (California)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- I appreciate these adjustments as they validate our service, although they won't significantly shift my finances.
- I believe it helps those who are in greater need, which is right.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Teacher (New York)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- My financial stability heavily depends on these benefits, so any increase is very impactful.
- The policy will improve not just my current situation but my savings for emergencies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 7 | 5 |
Part-time Retail Worker (Michigan)
Age: 28 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- With the rising costs of education and living, these adjustments are crucial.
- I hope it continues to keep up with inflation even after this policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Retired (Ohio)
Age: 70 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- As health needs increase with age, these allowances become more crucial to maintaining my wellbeing.
- The increase is a relief amidst current economic strains.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Student (Colorado)
Age: 22 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- I don't know how this affects my family yet, but any financial support is significant for us as I'm about to graduate.
- I hope it offsets costs that would otherwise pressure my parents.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Mechanic (Illinois)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- These cost-of-living adjustments help manage the rising day-to-day expenses.
- The assurance of adjustment helps plan long-term financial needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Freelance Artist (Pennsylvania)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- It’s assuring to see policies that recognize and mitigate financial burdens of those who served.
- While my income is fluctuating, compensation helps stabilize necessities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Construction Worker (North Carolina)
Age: 30 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- It's great to see adjustments for cost of living as I'm trying to stabilize post-military life.
- The added flexibility will help as I look for better job opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $1000000000 (Low: $950000000, High: $1050000000)
Year 2: $1025000000 (Low: $960000000, High: $1090000000)
Year 3: $1050000000 (Low: $975000000, High: $1120000000)
Year 5: $1100000000 (Low: $990000000, High: $1150000000)
Year 10: $1200000000 (Low: $1000000000, High: $1300000000)
Year 100: $3000000000 (Low: $2500000000, High: $3500000000)
Key Considerations
- The cost-of-living adjustment (COLA) is linked directly to changes in Social Security, which is typically adjusted annually for inflationary increments.
- Veteran demographics in terms of disability and dependent status play a critical role in determining the overall budget impact.
- Increasing benefits reflect both a rising monetary cost and a corresponding uplift in veteran well-being and economic stability, albeit with minimal direct GDP growth.
- Potential future increases in veteran populations or inflation rates could result in incremental cost adjustments.