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U.S. Congress quietly rewrote the rules for military service, veterans’ benefits and troop transitions in 2025, forcing legislative changes on everything from tuition bills, foreclosure protections and toxic exposure records.
Between January and late December, Congress passed 14 laws reshaping military and Department of Veterans Affairs (VA) benefits in accordance to rising costs, ongoing deployments, and pressure from veterans’ groups. The laws take effect on staggered timelines into the new years, occurring with less fanfare and without the political theater that derailed previous bigger congressional battles over issues like immigration.
The lawful measures range from automatic increases for disability and survivor benefits; in-state tuition for Selected Reserve students to new foreclosure protections; repayment guarantees for stolen benefits; and required separation counseling for troops leaving the force. Several also fold in wildfire aircraft transfers, clinic construction, and major changes to tax and border spending.
Paychecks, Pensions and Tuition Shifts in 2026
Many of the changes are economically related and will impact the following:
- Under legislation known as the Veterans’ Compensation Cost-of-Living Adjustment Act of 2025, cost-of-living increases for disability and survivor benefits will now automatically match Social Security every year without separate votes. That change began Dec. 1 and stops benefits from lagging behind inflation.
- Beginning Aug. 1, 2026, under the MGIB-SR Tuition Fairness Act, Reservists using the Montgomery GI Bill Selected Reserve will qualify for in-state tuition at public colleges Schools that refuse will be at risk of losing VA approval to accept military education benefits.
- Life insurance coverage under Servicemembers’ Group Life Insurance and Veterans’ Group Life Insurance must now be reviewed every five years and adjusted based on consumer price index data. That review cycle prevents coverage from lagging behind real-world housing and medical costs.
- Medal of Honor pensions will now track VA disability tables instead of a flat rate that trailed inflation.
- Payment tiers for Selected Reserve education benefits vary by enrollment status and training load, with monthly stipends adjusted annually to reflect housing and tuition shifts.
VA Can Step in Before Foreclosure
The VA now has the authority to buy a percentage of a delinquent mortgage and transfer that debt into a VA-managed loan, according to the Veterans Housing Protection Act.
The “partial claim” can cover up to 30% of unpaid principal for veterans who fell behind on payments between March 1, 2020, and May 1, 2025.
The law requires oversight audits to track how many veterans use partial claims, how many re-default, and what the cost is to taxpayers. Lenders cannot use the authority to inflate VA liability or accelerate foreclosure timelines. Lawmakers said the program acts as a post-pandemic bridge after temporary mortgage relief programs expired and filings increased.
Accessible housing grants, veteran transportation for medical appointments, and assistive technology programs were extended through Fiscal Year 2026 to prevent benefit gaps as the policy rolls out.
Less Room to Fail
Quarterly budget briefings to Congress are now mandatory under the PRO Vets Act—a law that demands disclosures before hiring freezes or appointment delays hit veterans. It also restricts executive bonuses until performance benchmarks improve.
Under the Veterans’ Fiduciary Fraud Reimbursement Act, victims of fiduciaries who steal benefits will now see VA repay stolen money in full. Repayment applies even if the veteran dies before the theft is discovered. VA must pursue the perpetrator, not surviving families.
More than 3,100 fiduciary fraud complaints sat unresolved last year, according to House Veterans Affairs Committee staff estimates.
Disability pay and cost-of-living adjustments follow tiered rating levels, medical evidence standards, and annual indexing that determines monthly compensation amounts.
No Walking Off Base Anymore
New separation rules in the recently passed National Defense Authorization Act require in-person counseling when possible, including financial planning instruction, debt management resources, medical record transfers and VA claims basics. Commands must prove compliance rather than treat transition counseling as optional.
About 200,000 service members separate each year, according to Department of Defense transition data. Missed paperwork deadlines, missing service treatment records and lost toxic exposure documentation routinely delay disability claims or wipe out GI Bill eligibility.
The law also orders DOD and VA to integrate toxic exposure records and service treatment files into a joint framework to stop evidence from disappearing in disconnected systems.
Another provision allows the transfer of surplus military aircraft to state wildfire fleets, linking aging platforms to climate-driven emergencies without new procurement.
More Rules Coming
Not every change hits at once.
Insurance reviews start Jan. 1, 2026. The GI Bill Selected Reserve tuition rule starts Aug. 1, 2026. Mortgage partial claims are active now but need VA regulations to finalize repayment terms.
Veterans could feel changes in bank accounts before they get clarity from the VA or their chain of command. Rollouts may be delayed by outdated forms, slow implementation guidance and inconsistent staffing.
Advocates say 2025 built a floor. The next Congress decides how high the ceiling goes.
The Legislation Behind the Changes
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21 Comments
The change to the tuition benefits for Reservists is a big win, but what about the National Guard, will they also be eligible for in-state tuition?
I’m excited about the potential impact of the changes to the tuition benefits for Reservists, it could make a big difference for those who are trying to pursue higher education while serving.
The provision that allows the VA to buy a percentage of a delinquent mortgage and transfer that debt into a VA-managed loan is a game-changer for veterans who are struggling to make ends meet.
I’m skeptical about the effectiveness of the partial claim provision in the Veterans Housing Protection Act, will it really make a significant difference for veterans who are struggling to make mortgage payments?
I’m concerned about the potential impact of the Veterans Housing Protection Act on the housing market, could it lead to an increase in housing prices?
The review cycle for life insurance coverage will help prevent coverage from lagging behind real-world costs, but what about the potential impact on premiums, will they increase as a result?
The change to the cost-of-living adjustments for disability and survivor benefits is a positive step, but what about the potential impact on the budget, will it lead to an increase in taxes or cuts to other programs?
The increase in benefits for Medal of Honor recipients is well-deserved, but what about other veterans who have made significant sacrifices, will they also see an increase in benefits?
The automatic cost-of-living increases for disability and survivor benefits, which now match Social Security every year, will greatly benefit many veterans who were previously struggling to keep up with inflation.
This change is long overdue, as many veterans were falling behind due to the rising costs of living.
The payment tiers for Selected Reserve education benefits vary by enrollment status and training load, which could be confusing for some Reservists, perhaps more guidance is needed to help them navigate the system.
The provision that requires oversight audits to track how many veterans use partial claims is a good step towards ensuring accountability and transparency in the system.
This will help identify areas where the system can be improved to better support veterans.
The fact that Medal of Honor pensions will now track VA disability tables instead of a flat rate is a significant improvement, as it will help ensure that these heroes receive the benefits they deserve.
The provision that requires separation counseling for troops leaving the force is a great step forward in supporting veterans’ mental health and transition to civilian life.
This will hopefully help reduce the number of veterans who struggle with PTSD and other mental health issues after leaving the military.
The requirement for life insurance coverage to be reviewed every five years and adjusted based on consumer price index data will help ensure that veterans’ coverage keeps pace with real-world costs.
This is especially important for veterans with families, as it will provide them with greater financial security.
The fact that the VA can now step in before foreclosure to help veterans who are struggling to make mortgage payments is a huge relief, it will help prevent many families from losing their homes.
The increase in cost-of-living adjustments for disability and survivor benefits is a welcome change, but I wonder if it will be enough to keep up with the rising costs of living in certain areas.
I’m curious about the impact of the MGIB-SR Tuition Fairness Act on private colleges, will they also be required to offer in-state tuition to Reservists using the Montgomery GI Bill Selected Reserve?