05/17/2026
Veterans News Digest
NATIONAL NEWS
VA Disability Compensation — Cost-of-Living Increase Bill Introduced
Senators Jerry Moran (R-KS) and Richard Blumenthal (D-CT) introduced the Veterans' Compensation Cost-of-Living Adjustment Act of 2026 (S.4487) on May 15. If passed, this bipartisan bill would increase monthly compensation rates for more than 5 million veterans receiving service-connected disability payments, as well as survivors receiving Dependency and Indemnity Compensation (DIC). The increase would keep benefits aligned with inflation — last year's COLA was 2.8%. The bill has been referred to the Senate Veterans' Affairs Committee.
What it means for our members: If you or your family members receive VA disability compensation or DIC, this bill could mean a meaningful increase by the end of 2026. Encourage members to contact their senators in support.
VA Reverses Controversial Disability Rating Rule
Earlier this year, the VA issued an interim rule that would have allowed the agency to reduce a veteran's disability rating if their condition was being managed by medication. The rule triggered a swift and unified response from the VFW, DAV, MOAA, and other VSOs. VA Secretary Doug Collins ultimately halted implementation, stating the rule "will not be enforced at any time in the future." However, public comment is still being collected.
What it means for our members: This was a significant win for veterans advocacy. Our organizations' voices matter — stay engaged. Members currently rated for conditions managed by medication should continue monitoring this space, as it is not formally rescinded.
VFW & DAV Release FY2027 VA Budget Recommendations
The VFW and Disabled American Veterans (DAV) have jointly released their co-authored fiscal year 2027 budget recommendations for the Department of Veterans Affairs. These recommendations represent the veterans community's priorities heading into the next appropriations cycle.
"Claim Sharks" Bill Introduced in Congress
A new bipartisan bill, championed by Rep. Chris Pappas and others, targets predatory companies that charge disabled veterans large fees for help filing benefits claims. These so-called "claim sharks" have increasingly used aggressive tactics, including auto-dialing, to target vulnerable veterans. The legislation aims to crack down on these practices following an NPR investigation.
What it means for our members: Remind post members — accredited VSO representatives, including our posts, provide claims assistance free of charge. No veteran should ever pay for help filing a VA claim.
VFW Day of Service — Ongoing Through May
The VFW's 5th Annual Day of Service kicked off May 2 and continues throughout the month. More than 2,300 events were held worldwide last year. This year's initiative — sponsored by Humana, USAA, CenterWell, and loanDepot — encourages veteran-led community service projects. If your post hasn't participated yet, there's still time.
Major Richard Star Act Gets New Momentum
The long-stalled Major Richard Star Act, which would eliminate the offset reducing military retirement pay for combat-disabled veterans who also receive VA disability compensation, has received a boost with backing from the Trump Administration. The bill would benefit approximately 54,000 veterans nationwide. It has been reintroduced and continues to gain legislative traction.
ILLINOIS VETERANS AFFAIRS
SB 3047 — Veterans' Disability Benefits Exempt from Public Aid Calculations
SB 3047 (104th General Assembly) would amend the Illinois Public Aid Code to prohibit the Departments of Human Services and Healthcare and Family Services from counting VA disability benefits as income when determining eligibility for Medicaid, child care assistance, and SNAP (food stamps). This is a critical protection for low-income veterans and their families. The bill remains in committee.
Action item: Contact your state legislators to push for movement on this bill.
HB 2777 — Expanded Veterans' Medical Leave
HB 2777 would amend the Illinois Personnel Code to grant veterans employed by state agencies four days per year of medical leave to attend VA-authorized appointments for service-connected conditions — at any health care provider or facility. This expands existing protections for Illinois veteran employees.
HB 925 — Veterans Service Organization State Charter Act
HB 925 establishes a formal state chartering process for veterans service organizations in Illinois, creating eligibility requirements and an application process through the Illinois Attorney General's office. State-chartered status could open additional avenues for VSO recognition and support.
IDVA Veterans Cash Grants
The Illinois Department of Veterans Affairs continues awarding quarterly Veterans Cash Grants — ranging from $25,000 to $100,000 — to organizations serving Illinois veterans facing homelessness, behavioral health challenges, and other service-related needs. Illinois Lottery funds support this program. Eligible organizations should check IDVA's application cycle.
HB 2572 — Signed Into Law: Veterans Scholarship Eligibility
HB 2572, which clarifies eligibility rules for the Deceased, Disabled, and MIA/POW Veterans' Dependents Scholarship and Educational Opportunity Grant, has been signed into law with an effective date of January 1, 2026. IDVA now determines eligibility by rule.
KEY DATES — MAY 2026
May 2 onward — VFW Day of Service (ongoing)
May 15 — COLA bill introduced in Senate
May 27 — Memorial Day — Honor those who made the ultimate sacrifice
June 1 — Deadline for Illinois Veteran Grant (IVG) budget submissions to ISAC
MEMBER REMINDER
Our posts provide free VA claims assistance through accredited service officers. If any member — or someone they know — needs help with a VA claim, connecting with a VSO representative is always the right first call. No fees, no claim sharks, just service.
Sources:
Stars & Stripes — Bill to Increase Payments to Disabled Veterans
Senate Veterans' Affairs Committee — COLA Act Introduction
Congress.gov — S.4487 Veterans' Compensation COLA Act of 2026
MOAA — VA Releases, Then Reverses, Disability Rating Rule
VFW — Demands VA Rescind Disability Rating Rule Change
Military Times — VA Halts Controversial Disability Rating Rule
NPR — Bill Aims to Stop 'Claim Sharks' Targeting Disabled Vets
DAV & VFW — FY2027 VA Budget Recommendations
Connecting Vets — VFW Day of Service May 2026
Newsweek — Major Richard Star Act Boosted by Trump Admin
LegiScan — Illinois SB3047
BillTrack50 — IL HB2777
IDVA — Recent Legislation
Illinois.gov — IDVA Veterans Cash Grant Recipients
