Fairness for Servicemembers and their Families Act of 2025
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This law requires the Department of Veterans Affairs to review, every five years starting January 1, 2026, whether the maximum automatic life insurance coverage for servicemembers and veterans keeps pace with inflation, and to report its findings to Congress.
What this law does
What it does
The law adds a new section to title 38 of the U.S. Code directing the Secretary of Veterans Affairs to review, on January 1, 2026 and every five years afterward, how the current automatic maximum coverage amount under the Servicemembers' Group Life Insurance and Veterans' Group Life Insurance programs compares to $500,000 adjusted by the average percentage change in the Consumer Price Index for All Urban Consumers over the preceding five fiscal years. The Secretary must submit the review results to the House and Senate Veterans' Affairs Committees, which may serve as a guide for future coverage increases within the existing administrative structure. The law does not itself increase coverage amounts or require the VA to raise them; it only establishes a recurring review and reporting requirement to inform whether the automatic maximum should be adjusted for inflation.
Key provisions
- 1Requires the VA Secretary to review the automatic maximum coverage under Servicemembers' and Veterans' Group Life Insurance on January 1, 2026 and every five years thereafter.
- 2Defines the comparison benchmark as $500,000 multiplied by the average percentage change in the Consumer Price Index over the preceding five fiscal years.
- 3Requires the Secretary to submit review results to the House and Senate Veterans' Affairs Committees, which may guide future coverage increases.
Who is affected
Servicemembers and veterans enrolled in the Servicemembers' Group Life Insurance and Veterans' Group Life Insurance programs, the Department of Veterans Affairs, and the House and Senate Veterans' Affairs Committees, which receive the periodic review reports.
Why it matters
Without periodic review, the automatic maximum life insurance coverage could lag behind inflation over time, effectively shrinking its real value for military families. The recurring review creates a formal, inflation-linked benchmark that lawmakers can use to decide whether to raise coverage limits.
What changed
Changes to existing law
Creates Title 38, United States Code (Servicemembers' Group Life Insurance / Veterans' Group Life Insurance programs) (Sec. 2)
Adds new section 1980B requiring periodic five-year reviews of the automatic maximum coverage amount, benchmarked to inflation.
Agencies directed to act
Effective dates
- First periodic review of automatic maximum coverage
How it works
The VA Secretary must conduct the first review by January 1, 2026, comparing the existing automatic maximum coverage amount to a benchmark of $500,000 adjusted for average Consumer Price Index changes over the prior five fiscal years, using Bureau of Labor Statistics data. The Secretary then repeats this review every five years and submits results to the House and Senate Veterans' Affairs Committees, which may use the findings to inform administrative decisions on incremental coverage increases, though the law does not mandate any specific increase.
Legislative status & sources
Latest action
Became Public Law No: 119-54.
Official CRS summary
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This act requires the Department of Veterans Affairs (VA) to periodically review and report on the maximum coverage available under the Servicemembers' Group Life Insurance and Veterans' Group Life Insurance programs. Specifically, the VA must review such coverage amount every five years, taking into account the average percentage by which the Consumer Price Index for All Urban Consumers (CPI-U) increased in the five fiscal years preceding the review.
Legislative subjects
Armed Forces and National Security; Government studies and investigations; Life, casualty, property insurance; Veterans' pensions and compensation