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01 Oct 2025 14:36

Military retirees, disabled vets to receive 2.8 percent increase
WASHINGTON — Military retirees and disabled veterans will receive a 2.8 percent increase to their monthly payments in 2026, the Social Security Administration announced Friday, providing a modest boost to help beneficiaries keep pace with inflation.
The cost-of-living adjustment, or COLA, represents an increase from the 2.5 percent raise beneficiaries received in 2025, though it remains below the larger increases seen in recent years following periods of elevated inflation. The increase takes effect in January.
The announcement came after a nine-day delay caused by the federal government shutdown. Nearly 71 million people receive Social Security benefits, according to officials, with an estimated average monthly increase of $56 for typical beneficiaries.
For military retirees, the 2.8 percent increase translates to $28 for each $1,000 received monthly in retirement pension. A military retiree with $2,500 in monthly retired pay will see an increase of approximately $70 per month.
Disabled veterans will experience more modest increases. A veteran receiving disability compensation rated at 10 percent will see an increase of about $4.91 per month, while a 100 percent-rated disabled veteran without dependents will receive approximately $107.28 more monthly.
For veterans receiving $1,500 per month in benefits, the increase will amount to about $42 in 2026.
The COLA increase applies to disability compensation, clothing allowances, dependency and indemnity compensation benefits, and some other Veterans Affairs assistance programs. Surviving spouses of disabled veterans who receive dependency and indemnity compensation will also receive the 2.8 percent increase.
Military retirees who opted for the Career Status Bonus, also known as the CSB/Redux retirement plan, will receive a reduced increase. Those entering military service on or after Aug. 1, 1986, and who chose this retirement plan option will receive $18 per $1,000 in monthly pension, as their COLA increases are reduced by one percentage point.
Survivors receiving Survivor Benefit Plan payments will receive increases identical to those given to retirees. Service members retiring in 2025 will receive a prorated COLA in 2026 based on the quarter of the year in which they retired.
In 2024, Congress passed legislation tying increases in veterans' benefits directly to Social Security cost-of-living adjustments, ensuring that military retirees and disabled veterans receive automatic annual increases.
The COLA is designed to maintain the purchasing power of benefits as inflation fluctuates. The Department of Labor calculates the annual adjustment using the Consumer Price Index, a broad measurement of the cost of consumer goods and expenses. If the index increases compared to the previous year, benefits rise accordingly. When there is no increase in the index, there is no COLA, and benefits remain unchanged.
The 2.8 percent adjustment for 2026 comes after a period of volatile increases. The 2025 COLA of 2.5 percent was the lowest increase since before the COVID-19 pandemic. Prior years saw larger adjustments: 3.2 percent in 2023, 8.7 percent in 2022 and 5.9 percent in 2021. In 2020, the increase was 1.6 percent.
The increase also benefits other federal beneficiaries beyond veterans. Civil Service retirees and Social Security recipients will receive the same 2.8 percent increase to their monthly payments.
Social Security officials will begin notifying individuals of their new benefit amounts by mail starting in early December.

Donor provides $130 million for military pay
WASHINGTON — An unnamed donor is providing $130 million to the Pentagon to help pay U.S. troops amid a prolonged government shutdown, a decision that has sparked ethics concerns about the propriety of anonymous military funding.
President Donald Trump confirmed the gift on Saturday, describing the benefactor as a "patriot" and "wonderful man" who prefers anonymity. However, the New York Times identified the donor as Timothy Mellon, a billionaire and major financial backer of Trump who previously donated $50 million to a group supporting the president.
"He put up $130 million in order to make sure that the military got paid, and he's a big supporter of mine," Trump said before departing for Asia. "He prefers that his name not be mentioned, which is pretty unusual in the world I come from."
The donation represents approximately $100 per service member across the U.S. military's 1.32 million active personnel. Pentagon spokesman Sean Parnell said the funds were offered "on the condition that it be used to offset the cost of service members' salaries and benefits" and were accepted under the department's "general gift acceptance authority."
The contribution comes as the government shutdown enters its 26th day, making it one of the longest in U.S. history. The shutdown began more than three weeks ago after lawmakers failed to approve a funding deal.
Treasury Secretary Scott Bessent told CBS's "Face the Nation" on Sunday that the U.S. would likely be able to pay the military "beginning in November," but warned of a grim scenario if the impasse continues.
"But by November 15 our troops and service members who are willing to risk their lives aren't going to be able to get paid," Bessent said. "What an embarrassment."
The military's next scheduled payday is Oct. 31, at the end of this week. The Trump administration previously shifted $8 billion from military research to cover last week's military paychecks, but that funding source is limited.
Mellon, according to Forbes, is the heir to his family's $15 billion fortune and was previously involved in the U.S. railway industry before becoming more politically active in recent years.
The donation has triggered scrutiny from lawmakers and ethics experts. According to Pentagon rules, donations exceeding $10,000 must be reviewed by ethics officials to determine whether the donor is involved in claims, procurement actions, litigation or other matters affecting the Defense Department that could create conflicts of interest. Donations from non-American citizens require additional review, though Mellon is a U.S. citizen.
Delaware Senator Chris Coons, the top Democrat on the Senate's defense appropriations subcommittee, raised national security concerns about the arrangement.
"Using anonymous donations to fund our military raises troubling questions of whether our own troops are at risk of literally being bought and paid for by foreign powers," Coons said.
While the Pentagon sometimes accepts gifts from donors, such contributions typically must be designated for specific projects such as schools, hospitals, libraries, museums or cemeteries. Anonymous military funding is highly unusual.
Most federal government workers remain furloughed or are working without pay while the shutdown continues. Lawmakers in Congress have attempted without success to pass legislation guaranteeing military pay during the shutdown.
The impasse reflects a broader dispute over federal spending priorities, with negotiations stalled as the shutdown stretches toward records for length. If the government remains closed through Nov. 15, Treasury Secretary Bessent's warning about halted military payments would take effect, potentially leaving active-duty service members without compensation.