Congress Quietly Overhauls Military, VA Benefits for 2025

The U.S. made a covert move. Congress passed 14 laws in 2025 that brought substantial changes to military and veterans’ benefits. These revisions included automatic pay increases, enhanced tuition protections, new foreclosure relief measures, and stricter transition requirements for service members exiting the military.

The legislation, enacted between January and December, modifies the calculation and delivery of benefits by the Department of Veterans Affairs and the Department of Defense. Legislators advanced the bills with little political strife, in stark contrast to the ongoing impasses over immigration and the budget.

One of the most significant updates is that disability and survivor benefits are now automatically linked to Social Security cost-of-living adjustments. The recent update from the Veterans’ Compensation Cost-of-Living Adjustment Act of 2025 took effect on December 1, ensuring that benefits stay aligned with inflation. Pensions for Medal of Honor recipients have been recalibrated to align with VA disability tables, moving away from a flat rate that diminished in value over time.

In 2026, there will be an expansion of education benefits. Beginning August 1, reservists using the Montgomery GI Bill Selected Reserve will be eligible for in-state tuition rates at public colleges across the country. Institutions that choose not to comply may jeopardize their authorization to receive VA education benefits. Lawmakers characterized the measure as a form of “tuition fairness” aimed at supporting part-time service members who are juggling civilian careers alongside their deployments.

The scope of housing protections has also expanded. The Veterans Housing Protection Act enables the VA to acquire as much as 30% of a delinquent mortgage, transforming it into a VA-managed loan for veterans who experienced financial difficulties from March 2020 to May 2025. The legislation requires audits to monitor defaults and taxpayer expenses while prohibiting lenders from hastening the foreclosure process.

Stricter accountability measures enhance oversight within the VA. The PRO Vets Act mandates that Congress receive budget briefings on a quarterly basis and places limitations on executive bonuses until there is an improvement in performance benchmarks. A new law mandates that the VA must fully reimburse veterans for benefits stolen by their fiduciaries, regardless of whether the theft is uncovered posthumously. According to estimates from committee staff, over 3,100 complaints remained unresolved in the previous year.

The rules regarding transitions have also been altered. The most recent defense authorization law requires in-person separation counseling whenever feasible, addressing finances, medical records, and VA claims. Each year, approximately 200,000 service members transition out of the military, and delays in paperwork have historically hindered their access to benefits. Advocates, among them Jon Stewart, have cautioned that the loss of records can significantly impede disability claims for years.

Changes do not always manifest immediately. Starting in 2026, insurance reviews will commence, with tuition regulations set to follow later that same year. Meanwhile, mortgage protections are pending the final regulations from the VA. Veterans could experience changes in their pay prior to the issuance of official guidance.

Advocates contend that the laws slated for enactment in 2025 will set a fundamental benchmark. Congresses in the future will decide how far to expand benefits beyond their current scope.