Veterans' 2027 COLA may be erased by soaring energy costs
Veterans on VA disability compensation are set to receive a 3.6% cost-of-living adjustment starting Dec. 1, but according to Military.com, rising energy costs could offset much of the gain for some veterans.
Snapshot
Military.com reports the Social Security Administration's 3.6% COLA figure will apply to VA disability payments once Congress passes its annual veterans COLA law, a step it has taken every year for decades. The adjustment is based on CPI-W data, but the report notes that energy prices, especially gasoline and fuel oil, rose far faster than overall inflation over the same period, meaning the dollar increase may not stretch as far for veterans with long drives to VA appointments or oil heat.
Key points
- The dollar amounts: Military.com calculates that a veteran rated 10% would gain about $6.50 a month, while a veteran rated 100% with no dependents would gain roughly $141.79 a month, or about $1,700 a year, based on current VA rate tables.
- Energy outpaced the COLA: The Bureau of Labor Statistics reported overall consumer prices rose 3.7% over the 12 months through September, while the energy index climbed 20.4%, with gasoline up 34.2% and fuel oil up 74.2%.
- Mileage reimbursement doesn't move: Veterans rated 30% or higher who qualify for VA mileage reimbursement get a flat 41.5 cents a mile, a rate that does not adjust with gas prices, plus a $6 per-trip deductible up to an $18 monthly cap.
- The index question: Military.com notes the COLA is calculated from CPI-W, which tracks urban wage earners and clerical workers, not veterans with service-connected disabilities; the Bureau of Labor Statistics told the outlet it does not track how disabled households' spending compares to that index.
Quick take
The 3.6% COLA is a modest, mostly predictable bump, but the real-world value depends heavily on individual circumstances like commute distance to VA care and home heating type, a point the article's data make clear without offering a single easy fix.
Read the full story: military.com