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H.R. 1200, Veterans’ Compensation Cost-of-Living Adjustment Act of 2019 (CBO Report for Congress)

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Congress 116th
Date Requested May 8, 2019
Requested By House Committee on Veterans’ Affairs
Date Sent May 15, 2019
Description:
H.R. 1200 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 2020. The increase would take effect on December 1, 2019. Relative to current law, CBO estimates that enacting this bill would increase spending for those programs by $1.5 billion in fiscal year 2020. CBO estimates that the COLA effective on December 1, 2019, will be 2.1 percent. (The annualized cost would be about $2.0 billion in subsequent years.) However, section 257 of the Balanced Budget and Emergency Deficit Control Act directs CBO to assume that COLA will occur in CBO’s baseline. Because the COLA is assumed in CBO’s baseline, authorizing that increase would have no budgetary effect relative to the baseline.

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