For millions of American veterans, the annual COLA update isn’t just a number but a crucial step toward their financial security. Especially for veterans whose income depends largely on VA Disability Compensation, the 2.8% COLA increase announced for 2026 is part of that hope, attempting to protect the true value of their income amid the ever-rising cost of living.
Veterans with a 90% disability rating will receive an estimated $2,362.30 per month in 2026. This increase may seem small, but when everyday expenses are constantly rising, this additional amount provides real relief throughout the year.
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Why is COLA 2026 so important?
At first glance, a 2.8% increase may seem minor, but the real difference is realized when factored into a year’s budget. Rising bills for rent, food, medical visits, medications, insurance, and utilities significantly impact the expenses of veterans who already rely on limited income.
After this update, veterans with a 90% rating will receive approximately $64 more per month, or approximately $770 more per year. This amount can help manage many expenses during critical times.
This increase is slightly better than the 2025 increase, as inflation has stabilized somewhat, but essential items remain expensive. This is why COLA is considered a necessary safety net, not a bonus.
90% Disability Payout in 2026: What’s Changing?
For 2026, the basic monthly amount for veterans with a 90% disability rating (without dependents) has been set at $2,362.30. This is significant for families who rely on monthly VA compensation.
If a veteran is accompanied by:
- Spouse
- Children
- Dependent parents
Additional increases will also apply to their monthly amount, based on predetermined conditions.
COLA increases have had a consistent impact over the past decade. These small annual increases have combined to maintain the real value of disability compensation. Without COLA, veterans’ income would have rapidly eroded amid rising inflation.
Automatic Adjustment: What do veterans need to do?
No veteran needs to apply or submit any documentation to receive the COLA increase. This update becomes effective December 1st each year, and payments are typically reflected in January.
Some banks may delay payments until December 31st due to holidays and processing.
What to look out for?
- If your bank account has changed, please update it on VA.gov.
- If your payment doesn’t arrive on time, wait 2–3 business days.
- Then check your VA Payment History.
- The amount may vary if there are changes to dependents or ratings.
In most cases, minor errors like an outdated bank account or unupdated dependents hinder payments.
What will the COLA affect besides Disability Compensation?
The 2026 2.8% increase will not only apply to VA Disability Compensation but will also impact several other related programs, such as:
- TDIU (Total Disability based on Individual Unemployability)
- Special Monthly Compensation (SMC)
- Dependency and Indemnity Compensation (DIC)
- Survivor Benefits
The COLA will be directly applied to all of these benefits, providing relief to veterans’ families.
Various advocacy groups believe that COLA increases are even more necessary at a time when medical expenses are rising faster than general inflation.
History and Future Changes
COLA rates are not always stable. Some years see very small increases, while during periods of high inflation, increases can be significant. This year’s 2.8% increase indicates a stable economy, but it also shows that essential expenses remain high.
Discussions are currently underway in Washington regarding the modernization of the VA system and changes to disability ratings. It is possible that these systems will be further strengthened in line with inflation in the coming years.
Reaction from the Veteran Community
Veterans’ response to the 90% Disability COLA Increase has been positive. They understand that this increase will not bring about a miraculous change, but it reinforces the government’s message that veterans will not be left behind in the face of economic pressures.
Economic experts also describe COLA as a robust and reliable system.
“COLA isn’t a reward. It’s a safeguard that prevents your income from declining over time.”
— Dana Ricks, Financial Researcher
The reality is that even though the percentage is small, its longevity is what matters most to veterans.
Conclusion
The 2026 2.8% COLA increase may not be a significant jump, but it is an important step toward protecting veterans’ incomes amid steadily rising inflation. The new amount of $2,362.30 per month for veterans with a 90% disability rating provides real relief for their essential expenses.
This increase is automatic, requiring no documentation or application. Veterans and their families can take full advantage of this benefit by keeping their information updated on VA.gov.
FAQs
A. The 2026 COLA increase is 2.8%, applied to all VA disability payments.
A. A veteran with a 90% rating is estimated to receive $2,362.30 per month.
A. No. The increase is automatic and requires no application.
A. Most veterans will see the new amount in their January 2026 payment.
A. Yes. It also applies to TDIU, SMC, DIC, and survivor benefits.
