Veterans with a disability connected to their military service can receive monthly, tax-free compensation from the Veterans Benefits Administration. The VA assigns a rating from 0 to 100 percent in steps of 10, based on how much the conditions affect earning capacity, and combines multiple conditions into one rating. In 2026 a single veteran rated 100 percent received about 3,940 dollars a month, a 10 percent rating paid about 180 dollars, and veterans with dependents receive more. Payments rise each year with the Social Security cost-of-living adjustment.
To qualify, a veteran generally must show a current condition, an event or exposure in service, and a medical link between them, though for many conditions the law presumes the link, for example for Agent Orange or burn pit exposure. More than 6 million veterans receive compensation, and the number has grown as more veterans apply, ratings have risen, and Congress has added presumptive conditions. The VA processed a record of more than 3.1 million claims in fiscal 2026 and approved about 60 percent.
Veterans who disagree with a decision can request a higher-level review, file a supplemental claim with new evidence, or appeal to the Board of Veterans' Appeals and then the Court of Appeals for Veterans Claims, under a system reformed in 2017. Debates include whether the rating schedule reflects modern medicine, the rising cost of compensation, which exceeded 150 billion dollars a year, concerns about fraud and unaccredited claims consultants who charge fees, and long waits for some claims.
| Status | Active |
| Legal basis | 38 U.S.C. chapter 11 |
| Official site | va.gov |
| Paid to | More than 6 million veterans |
| Ratings | 0 to 100 percent, in steps of 10 |
| 100 percent, single veteran | About 3,940 dollars a month (2026) |
| Claims processed | More than 3.1 million in fiscal 2026 |
| Taxes | Tax-free |
| Date | Modern system since the War Risk Insurance Act amendments of 1917 |