VA ordered to review $500,000 life insurance cap every five years starting 2026
In committeeS. 385Latest action
Sponsor: John Cornyn · Senator · TX
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Official title: Fairness for Servicemembers and their Families Act of 2025
119th Congress
Topics: Security & foreign affairs
Introduced:
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S 385 requires the VA to review the $500,000 SGLI/VGLI coverage cap every 5 years against inflation, starting Jan. 1, 2026.
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What does this do?
Senate Bill 385 requires the VA Secretary to review the $500,000 maximum coverage limit for Servicemembers' Group Life Insurance and Veterans' Group Life Insurance every five years, beginning January 1, 2026. The review compares the current cap to what $500,000 would be worth after adjusting for inflation using the Consumer Price Index. The review does not automatically raise the limit; the Secretary must instead report findings to the Veterans' Affairs committees in both the House and Senate.
Who does it affect?
The bill affects active-duty service members enrolled in SGLI, veterans enrolled in VGLI, and their families who would receive insurance payouts. It also places a new reporting responsibility on the Department of Veterans Affairs.
Why does it matter?
The $500,000 maximum has not been regularly updated to keep pace with inflation, which is the stated basis for requiring periodic reviews. Congressional committees could use the reports to decide whether to raise the coverage cap to better reflect current cost of living.
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Where does it stand?
- IntroducedFeb 4, 2025
- Senate committeeYou are here · Feb 4, 2025
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Veterans' Affairs.