Updated 6 days ago
Last progress December 12, 2025 (1 month ago)
Read twice and referred to the Committee on Veterans' Affairs.
Requires the Secretary to begin a review on January 1, 2026, and every five years thereafter, comparing the current automatic maximum life insurance coverage amount under the specified life insurance provisions to a formula-based amount. The Secretary must report the review results to the House and Senate Committees on Veterans’ Affairs; the report may be used to inform future coverage increases. The formula amount is defined as $500,000 multiplied by the average five-year change in the Consumer Price Index for All Urban Consumers (CPI-U). The provision creates a recurring administrative review and reporting requirement but does not itself change benefit payments or immediately raise coverage limits.
Last progress February 4, 2025 (1 year ago)
Introduced on February 4, 2025 by John Cornyn
On January 1, 2026, and every five years thereafter, the Secretary shall complete a review comparing the amount specified in section 1967(a)(3)(A)(i) to the amount described in subsection (b).
On the same schedule, the Secretary shall submit to the Committees on Veterans' Affairs of the House of Representatives and the Senate the results of the review; the results may serve as a guide for coverage increases within the existing administrative incremental structure.
Defines the amount described in subsection (b) as $500,000 multiplied by the average percentage change in the Consumer Price Index during the five fiscal years preceding the review.
Defines the term 'Consumer Price Index' to mean the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.
Adds new section 1980B (Periodic review of automatic maximum coverage) to the end of Subchapter III (chapter 19) of title 38, United States Code.
Directly affected: people who hold or are eligible for the specified automatic maximum life insurance coverage (primarily veterans and their designated beneficiaries). The provision does not immediately change insurance coverage or payments; instead it creates a recurring federal administrative review and reporting duty. Outcomes and potential effects:
Potential future increases: By comparing the statutory cap to a CPI-indexed formula and reporting findings to the House and Senate Committees on Veterans’ Affairs, the reviews could motivate future legislative or administrative action to raise coverage limits if the formula-based amount substantially exceeds the current cap.
Administrative impact: The Secretary’s office must calculate a five-year average CPI change, compute the formula amount, draft a comparison report, and transmit it to Congress every five years. This imposes a recurring but modest reporting burden on the administering agency.
Budgetary impact: The provision itself does not appropriate funds or mandate benefit increases, so immediate budgetary effects are minimal. Any future increase in coverage that results from these reports would have budgetary implications if implemented.
Clarity risk: The statutory phrase "multiplied by the average five-year change in the CPI" could be read in different ways (for example, whether the multiplier is a percent change like 0.05 or a factor like 1.05). This ambiguity could affect the computed formula amount and might require clarification in practice or by implementing guidance.
Equity and predictability: Linking review recommendations to CPI-U trends ties potential adjustments to a standard inflation measure, which can help maintain purchasing power of coverage over time if policymakers act on the reports. But because the provision only mandates review and reporting, beneficiaries will not see guaranteed automatic indexing without subsequent legislative or administrative action.