69–010 

Calendar No. 897 

110TH CONGRESS REPORT " ! SENATE 2d Session 110–430 

VETERANS’ COMPENSATION COST-OF-LIVING 

ADJUSTMENT ACT OF 2008 

JULY 24 (LEGISLATIVE DAY, JULY 23), 2008.—Ordered to be printed 

Mr. AKAKA, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

[To accompany S. 2617] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Veterans’ Affairs (hereinafter, ‘‘Committee’’), 

to which was referred the bill (S. 2617) to increase, effective as of 

December 1, 2008, 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, having considered the same, reports favorably thereon with 

an amendment in the nature of a substitute, and recommends that 

the bill, as amended, do pass. 

INTRODUCTION

On February 2, 2008, Committee Chairman Daniel K. Akaka introduced S. 2617, a bill to increase, effective as of December 1, 

2008, 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. Committee 

Ranking Minority Member Richard Burr is an original cosponsor of 

S. 2617, as are Committee Members John D. Rockefeller IV, Patty 

Murray, Sherrod Brown, Barack Obama, Bernard Sanders, Jon 

Tester, Jim Webb, Larry E. Craig, and Johnny Isakson. Senator 

Debbie Stabenow was later added as a cosponsor. The bill was referred to the Committee. 


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COMMITTEE HEARING

On May 7, 2008, the Committee held a hearing on legislation 

pending before the Committee. Among the measures on which the 

Committee received testimony was S. 2617. Testimony on S. 2617, 

among other bills, was offered by: Keith Pedigo, Associate Deputy 

Under Secretary for Policy and Program Management, Department 

of Veterans Affairs; Carl Blake, National Legislative Director, Paralyzed Veterans of America; Richard Paul Cohen, Executive Director, National Organization of Veterans’ Advocates, Inc.; Eric A. 

Hilleman, Deputy Director, National Legislative Service, Veterans 

of Foreign Wars; Ray Kelley, Legislative Director, AMVETS; Steve 

Smithson, Deputy Director, Veterans Affairs and Rehabilitation 

Commission, The American Legion; Joseph Violante, National Legislative Director, Disabled American Veterans; and Rick Weidman, 

Governmental Affairs Director, Vietnam Veterans of America. 

COMMITTEE MEETING

On June 26, 2008, the Committee met in open session to consider 

legislation pending before the Committee. Among the measures so 

considered was S. 2617. The Committee voted by voice vote to report favorably S. 2617, as amended, to the Senate. 

SUMMARY OF THE COMMITTEE BILL AS REPORTED

The Committee bill contains freestanding provisions that would 

require the Secretary of Veterans Affairs to increase, effective December 1, 2008, the rates of, and limitations on, certain benefits 

paid by the Department of Veterans Affairs (hereinafter, ‘‘VA’’) by 

the same percentage as the cost-of-living adjustment (hereinafter, 

‘‘COLA’’) provided to Social Security recipients and VA pension 

beneficiaries that become effective on the same date. The COLA 

would apply to: 

1. basic compensation rates for veterans with service-connected disabilities and the rates payable for certain severe disabilities; 

2. the allowance for spouses, children, and dependent parents paid to service-connected disabled veterans rated 30 percent or more disabled; 

3. the annual clothing allowance paid to veterans whose compensable disability requires the use of a prosthetic or orthopedic appliance (including a wheelchair) that tends to tear or 

wear out clothing or requires the use of a medication prescribed by a physician for a service-connected skin condition if 

the medication causes irreparable damage to the veteran’s 

outergarments; and 

4. the dependency and indemnity compensation (hereinafter, ‘‘DIC’’) rates paid to: 

(a) surviving spouses of veterans whose deaths were 

service-connected; 

(b) surviving spouses for dependent children below the 

age of 18; 

(c) surviving spouses who are so disabled that they need 

aid and attendance or are permanently housebound; 

(d) surviving spouses covered under section 1318 of title 

38, United States Code; and 


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(e) the children of veterans whose deaths were serviceconnected if no surviving spouse is entitled to DIC, the 

child is age 18 through 22 and attending an approved educational institution, or the child is age 18 or over and became permanently incapable of self-support prior to reaching age 18. 

The Committee bill would also codify benefit rates that were increased as a result of the Veterans’ Compensation Cost-of-Living 

Adjustment Act of 2007, Public Law 110–111. 

The Congressional Budget Office (hereinafter, ‘‘CBO’’) currently 

estimates that the COLA to be provided to Social Security recipients in 2009 will be 2.8 percent. 

BACKGROUND AND DISCUSSION

A. Disability compensation 

The service-connected disability compensation program under 

chapter 11 of title 38, United States Code, provides monthly cash 

benefits to veterans who have disabilities incurred or aggravated 

during active duty in the Armed Forces. 

The amount of compensation paid depends on the nature and severity of the veteran’s disability or combination of disabilities and 

the extent to which the disability impairs earning capacity. VA 

rates compensable disabilities according to its Schedule for Rating 

Disabilities on a graduated scale ranging from 10 to 100 percent, 

in 10 percent increments. VA pays higher monthly rates (known as 

‘‘special monthly compensation’’) to disabled veterans with certain 

specific, very severe disabilities or combinations of disabilities. 

According to VA, as set forth in its fiscal year 2009 budget, the 

department estimates that it will provide disability compensation 

to 3,014,841 veterans with service-connected disabilities in fiscal 

year 2009. Among the veterans estimated to receive such compensation are 2 World War I veterans; 267,250 World War II veterans; 157,690 Korean-conflict veterans; 1,031,410 Vietnam-era 

veterans; 956,090 veterans of the Persian Gulf War era; and 

602,399 veterans who served during peacetime. 

A veteran with a disability rated at 30 percent or more may receive additional compensation on behalf of the veteran’s spouse, 

children, and dependent parents. These dependents’ allowances are 

prorated according to the percentage of disability. 

B. Dependency and indemnity compensation 

Under chapter 13 of title 38, United States Code, VA pays DIC 

to the survivors of servicemembers or veterans who died on or after 

January 1, 1957, from a disease or injury incurred or aggravated 

during military service. Survivors eligible for DIC include surviving 

spouses, unmarried children under the age of 18, children age 18 

or older who are permanently incapable of self-support, children between the ages of 18 and 22 who are enrolled in school, and certain 

needy parents. Under section 5312 of title 38, United States Code, 

parents’ DIC rates are adjusted automatically at the same time 

and by the same percentage as Social Security and VA pension 

benefits. Surviving spouses, children, and parents who are receiving death compensation based on deaths before January 1, 1957, 

may elect to receive DIC instead of death compensation. 


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For deaths on or after January 1, 1957, but prior to January 1, 

1993, surviving spouses received DIC at rates determined by the 

pay grade (service rank) of the deceased veteran. For deaths on or 

after January 1, 1993, DIC is paid at a flat rate. Surviving spouses 

currently receive $1,091 per month and, if the deceased veteran 

was totally disabled for eight years prior to death, an additional 

$233 per month. Surviving spouses who had been receiving benefits 

under the prior DIC program are paid under whichever program 

will pay the higher benefit. 

A surviving spouse who is so disabled as to be housebound or in 

need of regular aid and attendance is eligible to receive an additional amount. A surviving spouse also may receive additional allowances on behalf of the veteran’s surviving children. 

Children are entitled to DIC if there is no surviving spouse, if 

they are 18 years of age or older and became permanently incapable of self-support before reaching age 18, or if they are 18 to 22 

years old and pursuing an approved course of education. 

Parents of deceased veterans whose incomes are below statutorily prescribed income thresholds are eligible for DIC under section 1315 of title 38, United States Code. As previously noted, parents’ DIC rates are adjusted automatically at the same time and 

by the same percentage as Social Security and VA pension benefits. 

In its fiscal year 2009 budget, VA estimates that it will pay DIC 

benefits to 342,669 survivors, a total that includes surviving 

spouses, children, and needy surviving parents. 

Under section 1318 of title 38, United States Code, VA pays benefits at DIC rates to the surviving spouses and children of veterans 

whose deaths are not service-connected if the veteran, immediately 

prior to his or her death, had been receiving (or had been entitled 

to receive) compensation at the 100 percent rate continuously for 

10 or more years or for at least five years from the date of discharge or release from active duty. VA also pays DIC benefits to 

the surviving spouses and children of veterans who were former 

prisoners of war who die after September 30, 1999, and whose 

deaths were not service-connected if the veteran had been receiving 

(or had been entitled to receive) compensation at the 100 percent 

rate continuously for not less than one year preceding death. 

Committee bill 

The Committee bill would direct VA to compute and provide increases in the monthly rates of compensation and DIC, effective 

December 1, 2008. The rates would be increased by the same percentage as the Social Security and VA pension COLA that will take 

effect on that date. In accordance with section 8031 of the Balanced 

Budget Act of 1997 (Public Law 105–33), amounts of compensation 

so computed that are not even multiples of $1 will be rounded 

down to the next lower whole dollar amount. In 2003, this provision was extended until 2013 by section 706 of Public Law 108–

183. 

The increases in DIC would automatically result in identical percentage increases in benefits paid at DIC rates under section 1318 

of title 38, United States Code, to the surviving spouses and children of veterans who had a service-connected disability at the time 

of death for which they continuously were rated totally disabled for 

at least (1) 10 years, (2) five years from the date of discharge from 


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active duty, or (3) one year if the veteran was a former prisoner 

of war who died after September 30, 1999, and whose death was 

not service-connected if the veteran had been receiving (or had 

been entitled to receive) compensation at the 100 percent rate continuously for not less than one year preceding death. 

Under section 156(e)(1)(A) of Public Law 97–377, the DIC increases also would automatically result in the same percentage increases in Social Security benefits that were terminated by section 

2205 of the Omnibus Budget Reconciliation Act of 1981 (hereinafter, ‘‘OBRA 1981’’) (Public Law 97–35). Prior to OBRA 1981, 

those Social Security benefits had been paid to certain surviving 

spouses of those who died on active duty or from a service-connected disability on behalf of their children under 18 and children 

over age 19 who were secondary-school students; OBRA 1981 reduced the eligibility cutoff age from 18 to 16 years old. 

Section 314 of Public Law 100–322 amended section 156(a)(1) of 

Public Law 97–377, the Further Continuing Appropriations Act of 

1993, to restore the benefits eliminated by OBRA 1981. The DIC 

increase also would apply to these restored benefits, effective December 1, 2000. 

The CBO, in its most recent baseline, estimated that the Social 

Security COLA affecting fiscal year 2009 payments, and thus the 

COLA provided for by the Committee bill, will be 2.8 percent. The 

actual Social Security COLA could differ from this estimate. Rather 

than selecting any particular percentage adjustment at the time 

the Committee ordered the bill reported, the Committee followed 

its prior practice of setting the COLA by reference to the Social Security increase. The Committee believes this is the most equitable 

means of providing increases in these important service-connected 

benefits. 

The Committee bill also contains a codification of benefit rates 

that were increased as a result of the Veterans’ Compensation 

Cost-of-Living Adjustment Act of 2007, Public Law 110–111. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate, the Committee, based on information supplied 

by the CBO, estimates that enactment of the Committee bill would, 

relative to current law, increase spending by $857 million in 2009 

and by $1.1 billion annually in subsequent years, but that such increases in spending are assumed in the budget resolution baseline 

and thus will have no budgetary effect relative to the baseline. Enactment of the Committee bill would not affect the budget of state, 

local, or tribal governments. 

The cost estimate provided by CBO, setting forth a detailed 

breakdown of costs, follows: 


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U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, July 17, 2008. 

Hon. DANIEL K. AKAKA, 

Chairman, Committee on Veterans’ Affairs, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 2617, the Veterans’ Compensation Cost-of-Living Adjustment Act of 2008. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Dwayne M. Wright. 

Sincerely, 

PETER R. ORSZAG, 

Director. 

Enclosure. 

S. 2617—Veterans’ Compensation Cost-of-Living Adjustment Act of 

2008 

S. 2617 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) payable to Social Security recipients. The increase would 

take effect on December 1, 2008, and the results of the adjustment 

would be rounded to the next lower dollar. S. 2617 also would codify the rates of disability compensation as adjusted by the 2007 

COLA. 

The COLA that would be authorized by this bill is assumed in 

CBO’s baseline, pursuant to section 257 of the Balanced Budget 

and Emergency Deficit Control Act, and savings from rounding it 

down were achieved by the Balanced Budget Act of 1997 (Public 

Law 105–33) and extended to 2013 by the Veterans Benefits Act 

of 2003 (Public Law 108–183). 

Because the COLA is assumed in CBO’s baseline, the COLA provision would have no budgetary effect relative to that baseline. The 

additional costs assumed in the baseline are $857 million in 2009 

and about $1.1 billion in subsequent years. This estimate assumes 

that the COLA effective on December 1, 2008, will be 2.8 percent. 

The Social Security COLA, which would apply to the veterans’

benefits, is based on the increase in the consumer price index for 

urban wage earners and clerical workers (CPI–W) from the thirdquarter of one calendar year to the third-quarter of the next year. 

Through June 2008, the CPI–W had increased by 5.6 percent from 

its level in June 2007. It is therefore very likely that the veterans’

COLA would be substantially greater than 2.8 percent and that 

CBO will revise its baseline projection upward to reflect a higher 

COLA. 

S. 2617 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

On May 12, 2008, CBO transmitted a cost estimate for H.R. 

5826, the Veterans’ Compensation Cost-of-Living Adjustment Act of 

2008, as ordered reported by the House Committee on Veterans’ Affairs on April 30, 2008. The estimated costs of the two bills are 

identical. 


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The CBO staff contact for this estimate is Dwayne M. Wright. 

This estimate was approved by Peter H. Fontaine, Assistant Director for Budget Analysis. 

REGULATORY IMPACT STATEMENT

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee on Veterans’ Affairs has made 

an evaluation of the regulatory impact that would be incurred in 

carrying out the Committee bill. The Committee finds that S. 2617 

would not entail any regulation of individuals or businesses or result in any impact on the personal privacy of any individuals and 

that the paperwork resulting from enactment would be minimal. 

TABULATION OF VOTES CAST IN COMMITTEE

In compliance with paragraph 7(b) of rule XXVI of the Standing 

Rules of the Senate, the following is a tabulation of votes cast in 

person or by proxy by members of the Committee on Veterans’ Affairs at its June 26, 2008, meeting. On that date, the Committee, 

by voice vote, ordered to report S. 2617, as amended, a bill to increase, effective as of December 1, 2008, 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. 

AGENCY REPORT

On May 7, 2008, Keith Pedigo, Associate Deputy Under Secretary for Policy and Program Management, Department of Veterans Affairs, appeared before the Committee on Veterans’ Affairs 

and submitted testimony on, among other things, S. 2617. Excerpts 

from this statement are reprinted below: 

STATEMENT OF KEITH PEDIGO, ASSOCIATE DEPUTY UNDER SECRETARY FOR POLICY AND PROGRAM MANAGEMENT, DEPARTMENT OF VETERANS AFFAIRS 

Mr. Chairman and Members of the Committee, good 

morning. I am pleased to be here today to provide the Department of Veterans Affairs (VA) views on pending benefits legislation. I will not be able to address a few of the 

bills on today’s agenda because VA received them in insufficient time to coordinate the Administration’s position and 

cost estimates, but we will provide that information in 

writing for the record. 

* * * * * * * 

S. 2617, the ‘‘Veterans’ Compensation Cost-of-Living Adjustment Act of 2008,’’ would authorize a cost-of-living adjustment (COLA) in the rates of disability compensation 

and dependency and indemnity compensation (DIC). This 

bill would direct the Secretary of Veterans Affairs to increase administratively the rates of compensation for service-disabled veterans and of DIC for the survivors of veterans whose deaths are service related, effective December 

1, 2008. Consistent with the President’s FY 2009 budget 


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request, the rate of increase would be the same as the 

COLA that will be provided under current law to Social 

Security recipients, which is currently estimated to be 2.5 

percent. We believe this COLA is necessary and appropriate to protect the benefits of affected veterans and their 

survivors from the eroding effects of inflation. These worthy beneficiaries deserve no less. 

We estimate that enactment of this bill would cost 

$687.2 million during FY 2009, $4.2 billion over the 5-year 

period FY 2009 through FY 2013, and $9.2 billion over the 

10-year period FY 2009 through FY 2018. However, the 

cost is already assumed in the budget baseline, and, therefore, enactment of this provision would not result in any 

additional cost. 

* * * * * * * 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the Committee bill, as reported, are shown as follows (existing law proposed 

to be omitted is enclosed in black brackets, new matter is printed 

in italic, existing law in which no change is proposed is shown in 

roman): 

TITLE 38. VETERANS’ BENEFITS 

* * * * * * * 

PART II. GENERAL BENEFITS 

* * * * * * * 

CHAPTER 11. COMPENSATION FOR SERVICECONNECTED DISABILITY OR DEATH 

* * * * * * * 

Subchapter II. Wartime Disability Compensation 

* * * * * * * 

SEC. 1114. RATES OF WARTIME DISABILITY COMPENSATION 

For the purposes of section 1110 of this title— (a) if and while the disability is rated 10 percent the monthly 

compensation shall be ø$115¿ $117; 

(b) if and while the disability is rated 20 percent the monthly 

compensation shall be ø$225¿ $230; 

(c) if and while the disability is rated 30 percent the monthly 

compensation shall be ø$348¿ $356; 

(d) if and while the disability is rated 40 percent the monthly 

compensation shall be ø$501¿ $512; 

(e) if and while the disability is rated 50 percent the monthly 

compensation shall be ø$712¿ $728; 

(f) if and while the disability is rated 60 percent the monthly 

compensation shall be ø$901¿ $921; 

(g) if and while the disability is rated 70 percent the monthly 

compensation shall be ø$1,135¿ $1,161; 


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(h) if and while the disability is rated 80 percent the monthly 

compensation shall be ø$1,319¿ $1,349; 

(i) if and while the disability is rated 90 percent the monthly 

compensation shall be ø$1,483¿ $1,517; 

(j) if and while the disability is rated as total the monthly compensation shall be ø$2,471¿ $2,527; 

(k) if the veteran, as the result of service-connected disability, 

has suffered the anatomical loss or loss of use of one or more creative organs, or one foot, or one hand, or both buttocks, or blindness of one eye, having only light perception, has suffered complete 

organic aphonia with constant inability to communicate by speech, 

or deafness of both ears, having absence of air and bone conduction, or, in the case of a woman veteran, has suffered the anatomical loss of 25 percent or more of tissue from a single breast or both 

breasts in combination (including loss by mastectomy or partial 

mastectomy) or has received radiation treatment of breast tissue, 

the rate of compensation therefor shall be ø$89¿ $91 per month for 

each such loss or loss of use independent of any other compensation 

provided in subsections (a) through (j) or subsection (s) of this section but in no event to exceed ø$3,075¿ $3,145 per month; and in 

the event the veteran has suffered one or more of the disabilities 

heretofore specified in this subsection, in addition to the requirement for any of the rates specified in subsections (l) through (n) of 

this section, the rate of compensation shall be increased by ø$89¿ 

$91 per month for each such loss or loss of use, but in no event 

to exceed ø$4,313¿ $4,412 per month; 

(l) if the veteran, as the result of service-connected disability, has 

suffered the anatomical loss or loss of use of both feet, or of one 

hand and one foot, or is blind in both eyes, with 5/200 visual acuity 

or less, or is permanently bedridden or with such significant disabilities as to be in need of regular aid and attendance, the monthly compensation shall be ø$3,075¿ $3,145; 

(m) if the veteran, as the result of service-connected disability, 

has suffered the anatomical loss or loss of use of both hands, or of 

both legs at a level, or with complications, preventing natural knee 

action with prostheses in place, or of one arm and one leg at levels, 

or with complications, preventing natural elbow and knee action 

with prostheses in place, or has suffered blindness in both eyes 

having only light perception, or has suffered blindness in both eyes, 

rendering such veteran so significantly disabled as to be in need of 

regular aid and attendance, the monthly compensation shall be 

ø$3,392¿ $3,470; 

(n) if the veteran, as the result of service-connected disability, 

has suffered the anatomical loss or loss of use of both arms at levels, or with complications, preventing natural elbow action with 

prostheses in place, has suffered the anatomical loss of both legs 

so near the hip as to prevent the use of prosthetic appliances, or 

has suffered the anatomical loss of one arm and one leg so near the 

shoulder and hip as to prevent the use of prosthetic appliances, or 

has suffered the anatomical loss of both eyes, or has suffered blindness without light perception in both eyes, the monthly compensation shall be ø$3,860¿ $3,948; 

(o) if the veteran, as the result of service-connected disability, 

has suffered disability under conditions which would entitle such 

veteran to two or more of the rates provided in one or more subVerDate Aug 31 2005 21:58 Jul 26, 2008 Jkt 069010 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\SR430.XXX SR430

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sections (l) through (n) of this section, no condition being considered twice in the determination, or if the veteran has suffered bilateral deafness (and the hearing impairment in either one or both 

ears is service connected) rated at 60 percent or more disabling and 

the veteran has also suffered service-connected total blindness with 

20/200 visual acuity or less, or if the veteran has suffered serviceconnected total deafness in one ear or bilateral deafness (and the 

hearing impairment in either one or both ears is service connected) 

rated at 40 percent or more disabling and the veteran has also suffered service-connected blindness having only light perception or 

less, or if the veteran has suffered the anatomical loss of both arms 

so near the shoulder as to prevent the use of prosthetic appliances, 

the monthly compensation shall be ø$4,313¿ $4,412; 

(p) in the event the veteran’s service-connected disabilities exceed 

the requirements for any of the rates prescribed in this section, the 

Secretary may allow the next higher rate or an intermediate rate, 

but in no event in excess of ø$4,313¿ $4,412. In the event the veteran has suffered service-connected blindness with 5/200 visual 

acuity or less and (1) has also suffered bilateral deafness (and the 

hearing impairment in either one or both ears is service connected) 

rated at no less than 30 percent disabling, the Secretary shall 

allow the next higher rate, or (2) has also suffered service-connected total deafness in one ear or service-connected anatomical 

loss or loss of use of one hand or one foot, the Secretary shall allow 

the next intermediate rate, but in no event in excess of ø$4,313¿ 

$4,412. In the event the veteran has suffered service-connected 

blindness, having only light perception or less, and has also suffered bilateral deafness (and the hearing impairment in either one 

or both ears is service connected) rated at 10 or 20 percent disabling, the Secretary shall allow the next intermediate rate, but in 

no event in excess of ø$4,313¿ $4,412. In the event the veteran has 

suffered the anatomical loss or loss of use, or a combination of anatomical loss and loss of use, of three extremities, the Secretary 

shall allow the next higher rate or intermediate rate, but in no 

event in excess of ø$4,313¿ $4,412. Any intermediate rate under 

this subsection shall be established at the arithmetic mean, rounded down to the nearest dollar, between the two rates concerned; 

(r) Subject to section 5503(c) of this title, if any veteran, otherwise entitled to compensation authorized under subsection (o) of 

this section, at the maximum rate authorized under subsection (p) 

of this section, or at the intermediate rate authorized between the 

rates authorized under subsections (n) and (o) of this section and 

at the rate authorized under subsection (k) of this section, is in 

need of regular aid and attendance, then, in addition to such compensation—

(1) the veteran shall be paid a monthly aid and attendance 

allowance at the rate of ø$1,851¿ $1,893; or 

(2) if the veteran, in addition to such need for regular aid 

and attendance, is in need of a higher level of care, such veteran shall be paid a monthly aid and attendance allowance at 

the rate of ø$2,757¿ $2,820, in lieu of the allowance authorized 

in clause (1) of this subsection, if the Secretary finds that the 

veteran, in the absence of the pro vision of such care, would 

require hospitalization, nursing home care, or other residential 

institutional care. 


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For the purposes of clause (2) of this subsection, need for a higher level of care shall be considered to be need for personal healthcare services provided on a daily basis in the veteran’s home by a 

person who is licensed to provide such services or who provides 

such services under the regular supervision of a licensed healthcare professional. The existence of the need for such care shall be 

determined by a physician employed by the Department or, in 

areas where no such physician is available, by a physician carrying 

out such function under contract or fee arrangement based on an 

examination by such physician. For the purposes of section 1134 of 

this title, such allowance shall be considered as additional compensation payable for disability. 

(s) If the veteran has a service-connected disability rated as total, 

and (1) has additional service-connected disability or disabilities 

independently ratable at 60 percent or more, or, (2) by reason of 

such veteran’s service-connected disability or disabilities, is permanently housebound, then the monthly compensation shall be 

ø$2,766¿ $2,829. For the purpose of this subsection, the requirement of ‘‘permanently housebound’’ will be considered to have been 

met when the veteran is substantially confined to such veteran’s 

house (ward or clinical areas, if institutionalized) or immediate 

premises due to a service-connected disability or disabilities which 

it is reasonably certain will remain throughout such veteran’s lifetime. 

SEC. 1115. ADDITIONAL COMPENSATION FOR DEPENDENTS 

* * * * * * * 

(1) If and while rated totally disabled and—

(A) has a spouse but no child, ø$139¿ $142; 

(B) has a spouse and one or more children, ø$240¿ $245 plus 

ø$70¿ $71 for each child in excess of one; 

(C) has no spouse but one or more children, ø$94¿ $96 plus 

ø$70¿ $71 for each child in excess of one; 

(D) has a parent dependent upon such veteran for support, 

then, in addition to the above amounts, ø$112¿ $114 for each 

parent so dependent; 

(E) notwithstanding the other provisions of this paragraph, 

the monthly payable amount on account of a spouse who is (i) 

a patient in a nursing home or (ii) blind, or so nearly blind or 

significantly disabled as to need or require the regular aid and 

attendance of another person, shall be ø$265¿ $271 for a totally disabled veteran and proportionate amounts for partially 

disabled veterans in accordance with paragraph (2) of this section; and 

(F) notwithstanding the other provisions of this paragraph, 

the monthly amount payable on account of each child who has 

attained the age of eighteen years and who is pursuing a 

course of instruction at an approved educational institution 

shall be ø$222¿ $227 for a totally disabled veteran and proportionate amounts for partially dis abled veterans in accordance 

with paragraph (2) of this section. 

* * * * * * * 


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Subchapter VI—General Compensation Provisions 

* * * * * * * 

SEC. 1162. CLOTHING ALLOWANCE 

The Secretary under regulations which the Secretary shall prescribe, shall pay a clothing allowance of ø$662¿ $677 per year to 

each veteran who—

* * * * * * * 

CHAPTER 13—DEPENDENCY AND INDEMNITY 

COMPENSATION FOR SERVICE-CONNECTED DEATHS 

* * * * * * * 

Subchapter II—Dependency and Indemnity Compensation 

* * * * * * * 

SEC. 1311. DEPENDENCY AND INDEMNITY COMPENSATION TO A SURVIVING SPOUSE 

(a)(1) Dependency and indemnity compensation shall be paid to 

a surviving spouse at the monthly rate of ø$1,067¿ $1,091. 

(2) The rate under paragraph (1) shall be increased by ø$228¿ 

$233 in the case of the death of a veteran who at the time of death 

was in receipt of or was entitled to receive (or but for the receipt 

of retired pay or retirement pay was entitled to receive) compensation for a service-connected disability that was rated totally disabling for a continuous period of at least eight years immediately 

preceding death. In determining the period of a veteran’s disability 

for purposes of the preceding sentence, only periods in which the 

veteran was married to the surviving spouse shall be considered. 

(3) * * * 

øPay grade Monthly rate Pay grade Monthly rate 

øE–1 .................................... $1,067 W–4 ..................................... $1,276 

E–2 ...................................... $1,067 O–1 ..................................... $1,128 

E–3 ...................................... $1,067 O–2 ..................................... $1,165 

E–4 ...................................... $1,067 O–3 ..................................... $1,246 

E–5 ...................................... $1,067 O–4 ..................................... $1,319 

E–6 ...................................... $1,067 O–5 ..................................... $1,452 

E–7 ...................................... $1,104 O–6 ..................................... $1,637 

E–8 ...................................... $1,165 O–7 ..................................... $1,768 

E–9 ...................................... 1 $1,215 O–8 ..................................... $1,941 

W–1 ..................................... $1,128 O–9 ..................................... $2,076 

W–2 ..................................... $1,172 O–10 ................................... 2 $2,276 

W–3 ..................................... $1,207 ............................................. ..............................

ø1 If the veteran served as sergeant major of the Army, senior enlisted advisor of the Navy, chief master sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty officer of the Coast Guard, 

at the applicable time designated by section 1302 of this title, the surviving spouse’s rate shall be $1,312. 

ø2 If the veteran served as Chairman or Vice-Chairman of the Joint Chiefs of Staff, Chief of Staff of the 

Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, at the applicable time designated by section 1302 of this title, the surviving 

spouse’s rate shall be $2,443.¿ 

Pay grade Monthly rate Pay grade Monthly rate 

E–1 ...................................... $1,091 W–4 ..................................... $1,305 

E–2 ...................................... $1,091 O–1 ..................................... $1,153 

E–3 ...................................... $1,091 O–2 ..................................... $1,191 

E–4 ...................................... $1,091 O–3 ..................................... $1,274 

E–5 ...................................... $1,091 O–4 ..................................... $1,349 

E–6 ...................................... $1,091 O–5 ..................................... $1,485 

E–7 ...................................... $1,129 O–6 ..................................... $1,674 


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Pay grade Monthly rate Pay grade Monthly rate 

E–8 ...................................... $1,191 O–7 ..................................... $1,808 

E–9 ...................................... 1 $1,242 O–8 ..................................... $1,985 

W–1 ..................................... $1,153 O–9 ..................................... $2,123 

W–2 ..................................... $1,1984 O–10 ................................... 2 $2,328 

W–3 ..................................... $1,234 ............................................. ..............................

1 If the veteran served as sergeant major of the Army, senior enlisted advisor of the Navy, chief master sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty officer of the Coast Guard, at 

the applicable time designated by section 1302 of this title, the surviving spouse’s rate shall be $1,342. 2 If the veteran served as Chairman or Vice-Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, 

Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant 

of the Coast Guard, at the applicable time designated by section 1302 of this title, the surviving spouse’s rate 

shall be $2,499. 

(b) If there is a surviving spouse with one or more children below 

the age of eighteen of a deceased veteran, the dependency and indemnity compensation paid monthly to the surviving spouse shall 

be increased by ø$265¿ $271 for each such child. 

(c) The monthly rate of dependency and indemnity compensation 

payable to a surviving spouse shall be increased by ø$265¿ $271 

if the spouse is (1) a patient in a nursing home or (2) blind, or so 

nearly blind or significantly disabled as to need or require the regular aid and attendance of another person. 

(d) The monthly rate of dependency and indemnity compensation 

payable to a surviving spouse shall be increased by ø$126¿ $128 

if the surviving spouse is, by reason of disability, permanently 

housebound but does not qualify for the aid and attendance allowance under subsection (c) of this section. For the purposes of this 

subsection, the requirement of ‘‘permanently housebound’’ will be 

considered to have been met when the surviving spouse is substantially confined to such surviving spouse’s home (ward or clinical 

areas, if institutionalized) or immediate premises by reason of a 

disability or disabilities which it is reasonably certain will remain 

throughout such surviving spouse’s lifetime. 

* * * * * * * 

SEC. 1313. DEPENDENCY AND INDEMNITY COMPENSATION TO CHILDREN 

(a) Whenever there is no surviving spouse of a deceased veteran 

entitled to dependency and indemnity compensation, dependency 

and indemnity compensation shall be paid in equal shares to the 

children of the deceased veteran at the following monthly rates: 

(1) one child, ø$452¿ $462; 

(2) two children, ø$649¿ $663; 

(3) three children, ø$846¿ $865; and 

(4) more than three children, ø$846¿ $865, plus ø$162¿ $165 

for each child in excess of three. 

* * * * * * * 

SEC. 1314. SUPPLEMENTAL DEPENDENCY AND INDEMNITY COMPENSATION TO CHILDREN 

(a) In the case of a child entitled to dependency and indemnity 

compensation who has attained the age of eighteen and who, while 

under such age, became permanently incapable of self-support, the 

dependency and indemnity compensation paid monthly to such 

child shall be increased by ø$265¿ $271. 

(b) If dependency and indemnity compensation is payable monthly to a person as a surviving spouse and there is a child (of such 

person’s deceased spouse) who has attained the age of eighteen and 


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who, while under such age, became permanently incapable of selfsupport, dependency and indemnity compensation shall be paid 

monthly to each such child, concurrently with the payment of dependency and indemnity compensation to the surviving spouse, in 

the amount of ø$452¿ $462. (c) If dependency and indemnity compensation is payable monthly to a person as a surviving spouse and there is a child (of such 

person’s deceased spouse) who has attained the age of eighteen and 

who, while under the age of twenty-three, is pursuing a course of 

instruction at an educational institution approved under section 

104 of this title, dependency and indemnity compensation shall be 

paid monthly to each such child, concurrently with the payment of 

dependency and indemnity compensation to the surviving spouse, 

in the amount of ø$225¿ $230. 

Æ 


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