11.01.07
VETS COST-OF-LIVING ADJUSTMENT (COLA) SENT TO PRESIDENT:

A bill ordering a 2.3 percent cost-of-living adjustment in veterans’ benefits passed in Congress on October 18th and was sent to the White House for President Bush’s signature.
The increase, effective December 1st and payable in January checks, would apply to about 3 million people. The 2.3 percent hike applies to disability compensation, dependency and indemnity compensation for surviving spouses and children, a clothing allowance for disabled veterans and a pension for low-income veterans.
The amount matches the increase announced in Social Security, military and federal civilian retired pay and other federal entitlements that are automatically adjusted each year to keep pace with the rising cost of goods and services.
Congress has resisted making annual cost-of-living adjustments in veterans’ benefits automatic because lawmakers like to be able to tell veterans they voted for an increase and because the annual veterans’ COLA bill is highly unlikely to face a presidential veto, leaving open the possibility that Congress could attach other legislation to the measure to get it enacted.
However, there are no attachments to this year’s bill, HR 1284. The House of Representatives had passed the veterans’ COLA bill in March by a 418-0 vote, long before the amount of the increase was known. That is why the measure says that the benefits boost should match the Social Security increase without mentioning a specific percentage. The Senate passed the bill last night by voice vote.