Bill Overview
Title: Veterans’ Compensation Cost-of-Living Adjustment Act of 2022
Description: This bill 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 bill 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: Sen. Tester, Jon [D-MT]
Target Audience
Population: Individuals associated with US veterans receiving disability, indemnity compensation, or benefits
Estimated Size: 5000000
- The bill impacts veterans who receive wartime disability compensation.
- It affects dependents who receive additional compensation for a veteran's service-related injury or death.
- Disabled veterans who receive a clothing allowance will see changes in their benefits.
- Surviving spouses and children who receive dependency and indemnity compensation are also impacted.
- The global veteran population is significant, comprising millions worldwide, but the direct impact is mainly on those associated with the U.S. military.
- Both veterans currently receiving compensation as well as those who have not yet received such compensation are impacted.
Reasoning
- The target population is primarily U.S. veterans receiving benefits, which includes about 5 million individuals eligible for adjustment due to this policy.
- Some veterans not initially receiving compensation might also be impacted, increasing the potential impact and coverage.
- Budget constraints suggest not every eligible veteran will experience significant life changes—the adjustments might be modest for individuals but widespread.
- Not all veterans may receive enhanced wellbeing due to varying personal circumstances like additional income sources, support systems, or different cost burdens.
- Individuals with higher dependence on these allowances (like disabled veterans) may feel the impact more strongly than those with other income streams.
- The policy could indirectly affect families of veterans, potentially improving their economic and psychological wellbeing as financial stress is alleviated.
- It is important to consider that the veteran population is geographically diverse, living in areas with varied living costs and community support.
Simulated Interviews
retired veteran (Alabama)
Age: 68 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- The increase in compensation is much needed to keep up with rising prices. It will help maintain my standard of living.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
stay-at-home parent (California)
Age: 35 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- The adjusted compensation will help offset increased living costs, but it's not a large amount. Better than nothing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
disabled veteran on pension (Texas)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- The increase will help cover some costs but barely keeps up with inflation. It's a relief to have anything.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
student (New York)
Age: 28 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I feel grateful for the adjustment, it supports my education costs and reduces my financial stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
retired (Florida)
Age: 73 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 19/20
Statement of Opinion:
- This helps me keep up with at least some of the medical expenses. It's a blessing this is considered.
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 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Part-time worker (Ohio)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- As a secondary income, these adjustments add a bit of relief, though it's still tight financially.
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 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Veteran affairs consultant (Illinois)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- The policy lifts morale but isn't a complete solution to financial struggles faced by many veterans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
freelance writer (Washington)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Every little bit helps. It gives me peace of mind knowing my income is stable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Unemployed veteran (Nevada)
Age: 40 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 11/20
Statement of Opinion:
- These adjustments are a temporary relief and help while I'm between jobs, but I'm concerned for the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 4 | 2 |
| Year 20 | 4 | 1 |
Caregiver (North Carolina)
Age: 64 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This won't cover everything, but it's a step in the right direction to ease some of my burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Cost Estimates
Year 1: $3000000000 (Low: $2000000000, High: $4000000000)
Year 2: $3090000000 (Low: $2060000000, High: $4120000000)
Year 3: $3180000000 (Low: $2120000000, High: $4240000000)
Year 5: $3360000000 (Low: $2240000000, High: $4480000000)
Year 10: $3740000000 (Low: $2490000000, High: $4990000000)
Year 100: $6480000000 (Low: $4320000000, High: $8640000000)
Key Considerations
- The COLA adjustment is tied to Social Security adjustments, reflecting inflation and economic conditions.
- This policy impacts millions of veterans and their families, increasing financial support in line with cost-of-living changes.
- The VA must ensure efficient processing and adequate communication of these adjustments to affected parties.