Newsbytes October 31, 2025 
 

In this issue:
2026 COLA Set at 2.8%
Veterans Go Without Critical Services
Senate Hearing Exposes VA Disability System 
FRA Calls on Congress to Pass Pay Our Troops Act 
Medicare-Eligible Patients Back to MTFs 
FRA National Convention

2026 COLA Set at 2.8%
The Social Security Administration announced a 2.8 % cost-of-living adjustment (COLA) for 2026, affecting Social Security recipients, veterans receiving disability compensation, and military retirees. For veterans rated at 100% disability with no dependents, the increase will add about $107 per month.

The adjustment becomes effective December 1, 2025, with the first payment reflecting the increase arriving December 31, 2025. Veterans and retirees do not need to apply, as the increase will be applied automatically.

While the COLA helps benefits keep pace with inflation, critics note that the increase remains modest compared to rising costs for housing, healthcare, and everyday goods.

Veterans Go Without Critical Services
The ongoing government shutdown has caused widespread disruption across the Department of Veterans Affairs (VA), forcing nearly 37,000 VA employees to either work without pay or face furlough. While VA medical centers, clinics, and benefits processing continue due to advance appropriations, several critical services for veterans have been halted, leaving many without essential support. 

Among the hardest hit areas are the GI Bill Hotline, which serves over 900,000 veterans and is now shut down, and the Veteran Readiness and Employment (VR&E) program, where more than 100,000 enrolled veterans have lost access to counseling and case management. Additionally, 56 regional benefits offices have closed to the public, and the VA’s Manila office faces permanent closure following the expiration of its legal authority on September 30. 

The Fleet Reserve Association (FRA) has also observed interruptions in Veterans Service Officer (VSO) support tools and limited availability of some key officers involved in the claims process due to furloughs or restricted duties. These disruptions further delay claims processing and make it difficult for veterans to access representation and assistance. 

FRA emphasized that veterans and their families should never be caught in the crossfire of political stalemates. The association urges Congress to do its job, reopen the government, and fully fund the VA to ensure those who served the nation are not left without the services they’ve earned. 

As the shutdown continues, FRA remains committed to monitoring the impact on veterans and advocating for swift legislative action to restore full operational capacity across all VA services. 

Senate Hearing Exposes VA Disability System 
The Senate Veterans’ Affairs Committee Chairman Jerry Moran (R-KS) led a critical hearing titled “Putting Veterans First: Is the Current VA Disability System Keeping Its Promise?” as the federal shutdown entered its 31th day. Prompted by a recent Washington Post op-ed alleging widespread fraud, testimonies from the VA Office of Inspector General (OIG), GAO, and major veterans service organizations (VSOs) revealed that fraud impacts only 3.7% of investigations, debunking claims of systemic abuse. Senators, including Tammy Duckworth (D-IL), condemned these portrayals as politically motivated and linked to efforts to cut essential veterans’ programs. 

Fraud among the 6.9 million beneficiaries is less than 0.1%, with wrongdoing often stemming from predatory claim sharks rather than veterans themselves. OIG’s Cheryl Mason recommended practical fixes, such as digitizing Disability Benefits Questionnaires, while VSOs including DAV and VFW warned that sensationalized media narratives erode trust and dishonor legitimate claimants. These findings support targeted prevention and better oversight, not sweeping benefit reductions. 

The FRA, alongside other VSOs, responded to the Washington Post op-ed with a joint letter highlighting inconsistencies and omissions that misrepresented the disability program’s integrity.

GAO testimony revealed that while claim backlogs have dropped to 135,000, average delays remain at 100 days due to staffing shortages and outdated 1945 rating schedules. Experts urged workload forecasting, telehealth expansion for PACT Act claims, and modernization of the disability framework. VSOs called for streamlined filings, protection against exploitation, and consistent funding to keep benefits accessible throughout the shutdown. 

Ultimately, the hearing highlighted that the VA disability system, though strained, remains vital to the nation’s promise to its veterans. 

FRA Calls on Congress to Pass Pay Our Troops Act 
As the government shutdown drags past its fourth week, uncertainty over pay and benefits is taking a heavy toll on America’s military families. While the administration has managed to cover two pay periods by reallocating funds, the stopgap measures have left service members anxious and emotionally exhausted. For many, the constant threat of missing paychecks has become a mental and financial burden compounding the daily pressures of military life. 

The shutdown has disrupted not just pay schedules but also key financial supports. Reimbursements for permanent change-of-station moves have been delayed, while thousands of reservists have lost weekend drill pay, an important income stream for many households. Nonprofits like the Military Family Advisory Network have scrambled to fill the gap, launching emergency grocery programs that have drawn tens of thousands of signups within days. 

Amid this strain, the FRA has renewed its call for Congress to swiftly pass the Pay Our Troops Act, which would guarantee continued pay for active-duty, reserve, and National Guard personnel during a government shutdown.

With the Treasury Department warning that funds to cover military pay could run out by mid-November, advocates fear the pressure on troops and their families will only worsen. FRA and other military organizations are urging lawmakers to act immediately to protect military pay and stability. Support The Pay Our Troops Act: bit.ly/4pLwBtD

Medicare-Eligible Patients Back to MTFs 
The Defense Health Agency (DHA) has announced a new initiative aimed at bringing Medicare-eligible Tricare for Life (TFL) beneficiaries back to military treatment facilities (MTFs), according to Dr. Stephen Ferrara, acting Assistant Secretary of Defense for Health Affairs. Speaking at a Military Officers Association of America conference on October 28, Dr. Ferrara emphasized that 21 MTFs have been selected for this pilot effort based on their specialist availability and overall capacity. The move seeks to strengthen continuity of care for retirees and their dependents while enhancing medical readiness across the force. 

Dr. Ferrara, a retired Navy surgeon with more than 30 years of experience, acknowledged the challenges TFL patients have faced as access to MTFs has fluctuated over time. “It’s frustrating for the patients,” he said, noting that older patients often present complex conditions that also help providers maintain and improve their clinical expertise. By treating a broader spectrum of cases, MTFs can offer robust training environments for military physicians and staff, an essential element of operational readiness. 

The FRA welcomed the announcement, noting that expanded access to MTFs benefits both retirees and the military health system. The association emphasized that allowing TFL members to once again receive care at MTFs not only provides a trusted setting for high-quality services but also ensures military doctors continue to gain valuable hands-on experience treating diverse patient populations. 

FRA National Convention
The Fleet Reserve Association (FRA) will hold its 97th National Convention alongside the 92nd Auxiliary Convention at the Oasis Hotel in Springfield, Missouri, from November 4 through 7, 2025. Members and guests will gather for four days of meetings, workshops, and events celebrating the accomplishments of the past year while planning initiatives to support active-duty service members, veterans, and their families. The convention will feature updates from FRA leadership, recognition of outstanding contributions, and opportunities for networking and engagement across the Association and Auxiliary communities. See you there!