The Administration strongly supports H.R. 2367, which provides a cost-of-living
adjustment (COLA) for the beneficiaries of veterans' disability compensation
and Dependency and Indemnity Compensation.
H.R. 2367 would affect direct spending; therefore, it is subject to the
pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990
(OBRA). Because OBRA requires that the full compensation COLA be assumed in
the baseline, the pay-as-you-go effect of the COLA in H.R. 2367 is zero. In
addition, the bill's provision to "round down" monthly benefit payments was
previously enacted in the Balanced Budget Act of 1997; therefore, its
pay-as-you-go effect is also zero.