[House Report 118-591]
[From the U.S. Government Publishing Office]


118th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     118-591

======================================================================

 
      VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 2024

                                _______
                                

 July 18, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Bost, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 7777]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 7777) to increase, effective as of December 1, 
2024, the rates of compensation for veterans with service-
connected disabilities and the rates of dependency and 
indemnity compensation for the survivors of certain disabled 
veterans, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Subcommittee Consideration.......................................     3
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Statement of General Performance Goals and Objectives............     4
Earmarks and Tax and Tariff Benefits.............................     4
Committee Cost Estimate..........................................     4
Budget Authority and Congressional Budget Office Estimate........     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     5
Applicability to Legislative Branch..............................     5
Statement on Duplication of Federal Programs.....................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

                          PURPOSE AND SUMMARY

    H.R. 7777, the ``Veterans' Compensation Cost-of-Living 
Adjustment Act of 2024,'' was introduced by Rep. Morgan 
Luttrell of Texas on March 21, 2024. The bill would require the 
Department of Veterans Affairs (VA) to increase the amounts 
payable for wartime disability compensation, additional 
compensation for dependents, the clothing allowance for certain 
disabled veterans, and dependency and indemnity compensation 
for surviving spouses and children. Specifically, VA would 
increase these amounts by the same percentage as the cost-of-
living increase in benefits for Social Security recipients that 
is effective on December 1, 2024. The bill would also require 
VA to publish the amounts payable, as increased, in the Federal 
Register. VA would also be authorized to make a similar 
adjustment to the rates of disability compensation payable to 
persons who have not received compensation for service-
connected disability or death.

                  BACKGROUND AND NEED FOR LEGISLATION

Section 1: Short title

    This Act may be cited as the ``Veterans' Compensation Cost-
of-Living Adjustment Act of 2024.''

Section 2: Increase in Rates of Disability Compensation and Dependency 
        and Indemnity Compensation

    Veterans who are disabled as a result of their military 
service may be eligible to receive disability compensation. The 
purpose of disability compensation is to provide relief to the 
veteran for the loss of earning capacity due to his or her 
service-connected disability. The amount of compensation a 
veteran receives varies according to the veteran's degree of 
disability.
    To be eligible to receive disability compensation, a 
veteran must have a disability incurred or aggravated during 
military service, which is not the result of willful 
misconduct. Additionally, the veteran must have been discharged 
under other than dishonorable conditions. The Department of 
Veterans Affairs (VA) is responsible for determining if a 
veteran is entitled to service-connection for a disability.
    Dependency and Indemnity Compensation (DIC) are monthly 
benefits paid to a surviving spouse and dependent children of a 
veteran who died while on active duty; or as a result of 
disabilities determined by VA to be serviced-connected, or had 
a service-connected disability rated at 100 percent for a 
certain period of time prior to death. Survivors who are 
housebound, require aid and attendance, or who have minor 
children may be paid additional amounts. The purpose of DIC 
benefits authorized under chapter 13 of title 38, U.S.C., is to 
provide partial compensation to the disabled veteran's 
surviving dependents for the loss in financial support due to 
the veteran's service-connected death. The dependent's income 
and need are not considered when VA determines a surviving 
spouse's or child's entitlement because the nation, in part, 
assumes the legal and moral obligation of the deceased veteran 
to support his or her spouse and children.
    The Committee believes this section is important because 
veterans and their survivors often depend on VA compensation 
benefits to pay for daily living expenses and support their 
families. While Social Security benefits are automatically 
adjusted for the increased cost of living annually, Congress 
must pass legislation every year to keep the rates of veterans' 
disability compensation and survivors' compensation in line 
with inflation. The Committee believes that this section is 
necessary to ensure that VA compensation benefits for veterans 
and survivors keep up with increasing cost of living and 
inflation so that they can meet their financial needs.

                                HEARINGS

    On April 10, 2024, the Subcommittee on Disability 
Assistance and Memorial Affairs held a legislative hearing on 
H.R. 7777 and other bills that were pending before the 
subcommittee.
    The following witnesses testified:
          The Honorable Keith Self, U.S. House of 
        Representatives; The Honorable John S. Duarte, U.S. 
        House of Representatives; The Honorable Jahana Hayes, 
        U.S. House of Representatives; Colonel Tiffany M. 
        Wagner, Clerk of the Court, U.S. Court of Appeals for 
        Veterans Claims; Mr. Daniel T. Shedd, Legislative 
        Attorney, American Law Division, Congressional Research 
        Service; The Honorable Jaime Areizaga-Soto, Chairman, 
        Board of Veterans' Appeals, U.S. Department of Veterans 
        Affairs; Ms. Brianne Ogilvie, Assistant Deputy Under 
        Secretary, Office of Policy and Oversight, Veterans 
        Benefits Administration, U.S. Department of Veterans 
        Affairs; Ms. Jessica Pierce, Assistant Director, 
        Compensation Service Policy Staff, U.S. Department of 
        Veterans Affairs; Ms. Candace Wheeler, Director, 
        Government and Legislative Affairs, Tragedy Assistance 
        Program for Survivors; Mr. Christopher Macinkowicz, 
        Deputy Director, National Veterans Service, Veterans of 
        Foreign Wars of the United States; Mr. Andrew Tangen, 
        First Vice President, National Association of County 
        Veterans Service Officers; and Ms. Renee Burbank, 
        Director of Litigation, National Veterans Legal 
        Services Program.
    The following individuals and organizations submitted 
statements for the record:
          The Honorable Dean Phillips, U.S. House of 
        Representatives; The Honorable Marilyn Strickland, U.S. 
        House of Representatives; Paralyzed Veterans of 
        America; Disabled American Veterans; National 
        Organization of Veterans' Advocates, Inc.; 
        Administrative Conference of the United States; The 
        American Legion; and Mr. Michael J. Wishnie.

                       SUBCOMMITTEE CONSIDERATION

    On April 16, 2024, the Subcommittee on Disability 
Assistance and Memorial Affairs held a markup on proposed 
legislation, including H.R. 7777. There were no amendments to 
this bill. A motion was made by Ranking Member Pappas to 
favorably forward H.R. 7777 to the Full Committee.

                        COMMITTEE CONSIDERATION

    On May 1, 2024, the Full Committee met in open markup 
session, a quorum being present, and ordered H.R. 7777 be 
reported favorably to the House of Representatives by voice 
vote.
    A motion by Ranking Member Takano to report H.R. 7777 
favorably to the House of Representatives was agreed to by 
voice vote.

                            COMMITTEE VOTES

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 7777 reported to 
the House.

                      COMMITTEE OVERSIGHT FINDINGS

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 7777 are to require VA to provide 
a cost-of-living adjustment for veterans and survivors 
compensation.

                  EARMARKS AND TAX AND TARIFF BENEFITS

    H.R. 7777 does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        COMMITTEE COST ESTIMATE

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

     BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 7777 would increase the amounts paid to veterans for 
disability compensation and to their survivors for dependency 
and indemnity compensation by the same cost-of-living 
adjustment (COLA) that recipients of Social Security receive in 
2025. The increase would take effect on December 1, 2024.
    CBO estimates that the new COLA will be 2.5 percent. CBO 
estimates that enacting H.R. 7777 would increase spending for 
those programs by about $4.8 billion in calendar year 2025 and 
by similar amounts in subsequent years relative to amounts that 
would be provided under current law. However, section 257 of 
the Balanced Budget and Emergency Deficit Control Act of 1985 
requires that CBO's baseline projections incorporate the 
assumption that the COLA will be provided. Thus, authorizing 
that increase would have no budgetary effect relative to the 
baseline.
    The CBO staff contact for this estimate is Logan Smith. The 
estimate was reviewed by Christina Hawley Anthony, Deputy 
Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                       FEDERAL MANDATES STATEMENT

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) is inapplicable to H.R. 7777.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
7777.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that H.R. 7777 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act.

              STATEMENT ON DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 7777 would establish or reauthorize a program of the 
Federal Government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 would establish the short title of the bill as 
the ``Veterans' Compensation Cost-of-Living Adjustment Act of 
2024.''

Section 2. Increase in rates of disability compensation and dependency 
        and indemnity compensation

    Section 2 would require the Secretary of Veterans Affairs 
to increase the rates of compensation for veterans with 
service-connected disabilities and the rates of dependency and 
indemnity compensation for the survivors of certain disabled 
veterans as of December 1, 2024.

Section 3. Publication of adjusted rates

    Section 3 would require the Secretary of Veterans Affairs 
to publish the increase in the Federal Register no later than 
the date specified in the Social Security Act.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    There are no changes to existing law made by the bill.

                                  [all]