Several veterans and their families are getting ready for a Veterans Affairs (VA) disability payment scheduled for December 31, 2025, a timing that is atypical and may lead to confusion among beneficiaries.
Usually, monthly benefit payments are adjusted around federal holidays, and since January 1, 2026, is a federal holiday, the VA is distributing compensation for December and January earlier than is customary.
VA disability payments: All we know about monthly compensation
Disability compensation provided by the VA is a monthly benefit that is exempt from taxation, granted to veterans with disabilities linked to their military service.
The compensation amount is contingent upon the disability rating assigned by the VA, which varies from 0% to 100% in increments of 10. Generally, a higher rating leads to a bigger monthly payment.
In 2025, the VA has adhered to a consistent schedule for disbursing disability benefits: payments are issued on the first calendar day of each month.
However, if the first day of a month coincides with a weekend or a federal holiday, the payment is processed on the preceding business day. Since January 1, 2026, is recognized as a federal holiday, New Year’s Day, the benefits for January 2026 will be disbursed early on December 31, 2025, instead of January 1.
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Who is eligible to receive the payment on December 31?
Veterans entitled to VA disability compensation, who would typically receive their January payment on January 1, will instead find the funds deposited into their bank accounts on December 31.
This adjustment is not an additional benefit; rather, it is a modification of the payment schedule due to the holiday.
All veterans enrolled in disability compensation are qualified, regardless of whether they have a 10% or a 100% disability rating.
Survivors and dependents who receive Dependency and Indemnity Compensation (DIC) or similar benefits may also have their payment issued on December 31 if their usual January payment date is impacted by the holiday.
Veterans who applied for and were granted benefits earlier in 2025 will automatically receive this early payment without needing to take any action.
To clarify, not all types of VA benefits are disbursed on December 31. Certain benefits follow different payment schedules, particularly if they are linked to other eligibility criteria or programs.
Veterans are encouraged to consult the official VA payment calendar or reach out to the VA directly for inquiries regarding their specific benefit timelines.