Disability Spending Rose as Population Dropped

While the total veterans’ population declined, the number of veterans receiving disability compensation rose to 3.5 million from 2.5 million between 2000 and 2013 – a 55-percent increase. Sixteen percent of all veterans received disability payments from the Department of Veterans Affairs in 2013, according to a report released Aug. 7 by the Congressional Budget Office (CBO), which compiled the statistics. By comparison, 9 percent of all veterans received VA disability compensation in 2000. Average real annualized disability payments rose to $12,900 in 2013, compared to $8,100 in 2000, according to the CBO report. Spending on disability compensation nearly has tripled as well, reaching $54 billion in 2013 as compared to $20 billion in 2000. The increase is “consistent with increases in the average number and average severity of compensable disabilities per veteran,” the report stated. The CBO attributes the increases to policy changes that make it easier for veterans to seek disability compensation, the wars in Iraq and Afghanistan, and the tough labor market in the civilian sector.