What’s changing for veterans in late 2025?
Expect three headline items: (1) VA pay increases for 2026 tied to the Social Security COLA announced in October 2025, implemented Dec 1, 2025 (paid with January checks) if Congress passes the annual veterans’ COLA bill (H.R. 2138 / S. 2392). (2) Caregiver Support (PCAFC) is already extended for legacy participants through Sep 30, 2028, while broader eligibility changes remain proposed. (3) VA continues rating schedule (VASRD) updates, including a new proposed note for painful scars (DC 7804) published Sep 29, 2025; bigger changes to mental health, tinnitus, and sleep apnea are still not final. Federal Register+5Congress.gov+5Congress.gov+5
Source: Congress.gov; SSA; Federal Register; VA, last checked: October 10, 2025.
2026 VA COLA: How and when increases are set
The annual veterans’ COLA law mirrors Social Security’s cost-of-living adjustment. For 2026 benefits, Congress is moving the Veterans’ Compensation COLA Act of 2025 (H.R. 2138 / S. 2392). When SSA announces the 2026 COLA in October 2025, VA compensation and DIC rates for Dec 1, 2025 will match it once the bill is enacted (these laws typically pass with bipartisan support each year). Social Security+3Congress.gov+3Congress.gov+3
Source: Congress.gov; Senate Veterans’ Affairs Committee; SSA, last checked: October 10, 2025.
Timeline at a glance
- Mid-October 2025: SSA posts the new COLA. Social Security
- Dec 1, 2025: VA applies the COLA to compensation/DIC by statute once enacted. Congress.gov
- January 2026: You see the higher amount in your payment (Dec entitlement paid in January). Social Security
Source: SSA; Congress.gov, last checked: October 10, 2025.
Bottom line: Watch for SSA’s COLA announcement in October 2025; if the COLA bill passes as usual, your January 2026 VA payment reflects the increase. Social Security+1
Example amounts (illustrative only; verify against VA’s table when published):
Use VA’s published rate tables (updated annually). For 2025 rates (reflecting the 2024 COLA), see VA.gov; the 2026 table will post after the new COLA. Veterans Affairs
Source: VA.gov (current rate tables), last checked: October 10, 2025.
Caregiver Support (PCAFC): extensions and proposed expansions
What’s final now: On Sep 29, 2025, VA issued a final rule extending the transition period for the legacy cohort through Sep 30, 2028, preserving eligibility and supports while broader rulemaking continues. Federal Register
Source: Federal Register, last checked: October 10, 2025.
What’s proposed: VA has proposed to expand eligibility (e.g., a broader definition of “serious injury”) and add telehealth flexibilities, among other changes. These are not yet in effect while rulemaking proceeds. caregiver.va.gov+1
Source: VA Caregiver Support (proposed updates), last checked: October 10, 2025.
Bottom line: If you’re a legacy caregiver, you’re covered through 2028. For new applicants, watch for the final rule—changes are proposed, not final, as of today. Federal Register+1
Checklist: PCAFC steps before year-end
- Confirm legacy status and document recert dates in your VA.gov profile.
- Keep care plans and clinical notes current; proposed rules emphasize eligibility definitions.
- If you rely on home-visits, ask your team how telehealth may apply if finalized. caregiver.va.gov
- Save the Federal Register docket link and subscribe to updates. Federal Register
Source: VA & Federal Register, last checked: October 10, 2025.
Disability ratings (VASRD): what might finalize in late 2025
Confirmed movement: VA published a proposed revision to 38 CFR 4.118, DC 7804 (scars) on Sep 29, 2025, clarifying that objective evidence of pain is required for a compensable rating under that diagnostic code. This aligns the rule text with longstanding policy. Next step: public comments → potential final rule. GovInfo
Source: Federal Register (DC 7804 proposal), last checked: October 10, 2025.
Earlier proposals still pending: In Feb 2022, VA proposed modernizing parts of the rating schedule for respiratory, auditory/ENT (including tinnitus), and mental disorders (including PTSD, depression). As of today, these proposals have not been finalized department-wide; VA reiterated pieces of the respiratory/ENT framework in 2024 activity. If VA moves, late-2025 could bring targeted finals, but none are official yet. VA News+1
Source: VA VAntage Point; Federal Register (ENT/respiratory), last checked: October 10, 2025.
Bottom line: Expect incremental VASRD updates (e.g., scars) rather than a sweeping overhaul of mental health/tinnitus/sleep apnea by year-end—track the Federal Register for any late-season finals. GovInfo+1
VA home loans: funding fee rules and 2025 circular updates
Current fee framework: VA’s official page (updated Apr 4, 2025) lists funding-fee percentages by loan type/down payment, with statutory authority at 38 U.S.C. §3729. Exemptions apply (e.g., qualifying disability ratings). Veterans Affairs
Source: VA.gov Funding Fee, last checked: October 10, 2025.
What changed in 2025 mechanics:
- Circular 26-23-6 (Change 2, Jan 21, 2025) updated applicability dates for the funding-fee rate table to conform with new law (Sen. Elizabeth Dole Act references). This didn’t overhaul the percentages but aligned effective windows. Benefits
- Circular 26-25-2 (Apr 23, 2025) ended VASP new trial plans and allowed active plans to continue through Aug 31, 2025—a servicing-side change borrowers may feel if they were in loss-mitigation. Benefits
Bottom line: For late 2025 closings, use VA’s current fee table and confirm any exemption on your Certificate of Eligibility; servicing options changed, but funding-fee percentages remain as posted. Veterans Affairs+1
Comparison table: late-2025 funding-fee snapshots (illustrative)
| Scenario | First-use purchase, <5% down | First-use purchase, ≥5% down | Subsequent-use, <5% down | IRRRL |
|---|---|---|---|---|
| VA posted rate | 2.15% | 1.5% | 3.3% | 0.5% |
Verify final fees on VA’s page before closing. Veterans Affairs
Source: VA.gov Funding Fee, last checked: October 10, 2025.
Budget & oversight signals that could shape late-2025 changes
VA’s FY2026 Budget in Brief (June 2025) shows continued growth, including the Toxic Exposures Fund—supporting ongoing PACT Act implementation that can influence claims volumes and downstream rulemaking. Separately, investigations into the disability program and leadership changes keep congressional oversight high, which can produce year-end riders in appropriations. U.S. Department of Veterans Affairs+2The Washington Post+2
Source: VA Budget in Brief; Washington Post; Politico, last checked: October 10, 2025.
Bottom line: Expect incremental rule updates and status-quo COLA mechanics rather than dramatic cuts or expansions by December—watch the year-end omnibus for any riders.
How to prepare now (step-by-step)
Checklist: 7 moves before the holidays
- Bookmark the SSA COLA page and check mid-October. Social Security
- Track H.R. 2138 / S. 2392 on Congress.gov; sign up for alerts. Congress.gov+1
- Verify dependents in your VA profile so your new rates apply correctly on Dec 1. Veterans Affairs
- Caregivers: confirm legacy status and next reassessment; note 9/30/2028 extension. Federal Register
- Claimants: if filing for scars, document objective evidence of pain (clinic notes/photos), anticipating the DC 7804 note if finalized. GovInfo
- Homebuyers/refi: check funding-fee exemptions and ensure your lender uses the current table. Veterans Affairs
- Save source PDFs (rate tables, circulars) to your records.
Disclaimers & how to verify
This article is general information, not legal or financial advice. For personal guidance, consult a VA-accredited representative or attorney.
- Sensitive fact checks:
- COLA timing and linkage: SSA & Congress.gov. Source: SSA; Senate/House, last checked: October 10, 2025. Social Security+1
- PCAFC extension to 2028: Federal Register. Source: Federal Register, last checked: October 10, 2025. Federal Register
- Rating schedule proposals: VA/Federal Register. Source: VA & Federal Register, last checked: October 10, 2025. VA News+2Federal Register+2
- Home loan fees & circulars: VA.gov & VA Circulars. Source: VA, last checked: October 10, 2025. Veterans Affairs+2Benefits+2
Key takeaways
- COLA: 2026 VA pay increase will mirror SSA’s October 2025 COLA once the annual veterans’ COLA bill passes; effective Dec 1, 2025 (paid in January). Congress.gov+1
- Caregivers: Legacy PCAFC eligibility is extended to Sep 30, 2028; broader access changes remain proposed. Federal Register+1
- Ratings: Expect targeted VASRD changes (e.g., scars note); major mental health/tinnitus/sleep apnea updates are still not final. GovInfo+1
- Home loans: Use the current fee table and confirm any exemption; servicing policy around VASP changed earlier in 2025. Veterans Affairs+1
Next steps:
- Check SSA COLA and Congress.gov bill status in October. 2) Review your VA dependents and direct deposit. 3) If you’re a caregiver, set reminders for recert and follow the rulemaking docket. 4) Homebuyers: ask your lender to cite the current VA funding-fee page in your LE/CD. Social Security+1
FAQs
When will the 2026 VA COLA be announced, and when do I see it in my pay?
SSA announces COLA in October 2025; VA’s veterans’ COLA bill applies it Dec 1, 2025; you see the higher amount in your January 2026 payment. Social Security+2Congress.gov+2
Does COLA apply to both VA disability and DIC?
Yes. The annual veterans’ COLA act covers VA compensation and DIC. Congress.gov
Is the VA caregiver program extended through 2028?
Yes—VA’s final rule extends the legacy cohort through Sep 30, 2028; broader expansions are still proposed. Federal Register+1
Are new VA mental health, tinnitus, or sleep apnea ratings taking effect in late 2025?
Not yet. These remain proposals; watch the Federal Register for finals. VA News+1
What VA funding-fee rates apply at the end of 2025?
Use VA’s official table (e.g., 2.15% first-use purchase <5% down; 3.3% subsequent). Verify on VA.gov for your loan type/exemption. Veterans Affairs
What changed with VA home-loan servicing in 2025?
VA ended new VASP trial plans; active plans could run through Aug 31, 2025. Benefits
Where do I see my updated VA disability rates?
VA posts rate tables on VA.gov; new 2026 rates will reflect SSA’s COLA once enacted. Veterans Affairs