President Trump Signs Legislation Granting First Pension Increase in 25 Years to Medal of Honor Recipients
President Donald Trump signed a major piece of bipartisan legislation on Monday, December 1, 2025, that guarantees the first pension increase in a quarter century for the nation’s living Medal of Honor recipients. The bill, titled the Medal of Honor Recipient Compensation Increase Act, immediately raises the monthly tax-exempt special pension paid to the military’s most decorated servicemembers, recognizing their extraordinary bravery and selfless service to the country.
The last time the monthly special compensation was adjusted was in 2000. Prior to the President’s signing of the new act, the payment stood at an established rate that had not kept pace with inflation or the rising cost of living over the past twenty-five years. The new law not only authorizes an immediate, significant increase in the monthly benefit—reportedly raising the payment by several hundred dollars—but also links future adjustments directly to the annual cost-of-living adjustments (COLA) for Social Security recipients. This linkage is intended to ensure that the compensation never again falls drastically behind inflation.
In a signing statement released by the White House, the President emphasized the nation’s profound debt to its heroes, stating that the new law “finally provides our Medal of Honor recipients with the recognition and financial stability they deserve.” The legislation passed both houses of Congress with near-unanimous bipartisan support, reflecting the unified desire to provide adequate compensation to those who have earned the highest military decoration. The U.S. Department of Veterans Affairs will now take immediate steps to process the new rates, with the increased payments scheduled to begin appearing in recipients’ checks starting in January 2026.
