VA Update—Boost in Burial Benefits and Possible $1,800 Payment Bump in 2027
Disability compensation is also on track for what may be the largest cost-of-living adjustment (COLA) in three years.
Next year, veterans and their families might experience an increase in federal benefits, particularly in the areas of burial reimbursements and disability compensation. The Department of Veterans Affairs (VA) has planned for a possible COLA (cost-of-living adjustment) for disability compensation that could be the largest in three years, potentially leading to an additional $1,800 annually for some veterans.
These increases aim to maintain the purchasing power of benefits amidst rising costs of living. Financial literacy expert Alex Beene explained that even seemingly small adjustments can provide significant support to those dealing with the high costs associated with disabilities and funeral expenses. The VA is expected to finalize the 2027 disability compensation increase after the September inflation data, which is expected to be released on October 14.
If projections hold true, veterans with higher disability ratings and those receiving compensation for dependents would see the most substantial benefits. Meanwhile, burial allowances have already been increased for fiscal year 2026, providing up to $1,002 for non-service-connected burials and up to $2,000 for service-connected deaths.
Despite these improvements, the rising cost of funeral expenses remains a pressing concern for many families.
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