H.R.970 - Fairness for Servicemembers and their Families Act of 2025 (119th Congress)
Summary
H.R. 970, the Fairness for Servicemembers and their Families Act of 2025, aims to amend Title 38 of the United States Code. The bill mandates the Secretary of Veterans Affairs to conduct periodic reviews of the automatic maximum coverage amounts under the Servicemembers' Group Life Insurance (SGLI) and Veterans' Group Life Insurance (VGLI) programs. These reviews are to occur every five years, starting January 1, 2026.
The bill requires the Secretary to compare the existing coverage amount to an amount adjusted for inflation using the Consumer Price Index. The results of these reviews are to be submitted to the Committees on Veterans' Affairs of the House and Senate.
The intent is to ensure that life insurance coverage for servicemembers and veterans keeps pace with inflation, providing adequate financial protection for their families.
Expected Effects
The primary effect of this bill would be to ensure that the maximum coverage amounts under SGLI and VGLI are regularly evaluated and potentially adjusted to reflect changes in the cost of living.
This could lead to increased coverage amounts for servicemembers and veterans, providing greater financial security for their beneficiaries. The periodic reviews would also provide Congress with updated information to inform future decisions regarding these insurance programs.
Potential Benefits
- Increased Financial Security: Ensures life insurance coverage keeps pace with inflation, providing greater financial protection for families.
- Regular Evaluation: Mandates periodic reviews, ensuring coverage amounts are not static and can be adjusted as needed.
- Informed Decision-Making: Provides Congress with data to make informed decisions about SGLI and VGLI programs.
- Supports Servicemembers and Veterans: Demonstrates a commitment to the well-being of those who serve and have served in the military.
- Addresses Inflation: Directly addresses the impact of inflation on the real value of life insurance benefits.
Potential Disadvantages
- Potential Cost Increases: Adjusting coverage amounts to account for inflation could lead to increased premiums for servicemembers and veterans, or increased costs to the government.
- Administrative Burden: Conducting periodic reviews adds to the administrative workload of the Department of Veterans Affairs.
- No Guarantee of Increased Coverage: The review may not always result in increased coverage amounts, depending on the rate of inflation.
- Complexity: The calculation based on the Consumer Price Index adds a layer of complexity to the process.
- Limited Scope: The bill only addresses the maximum coverage amount and does not address other aspects of the SGLI and VGLI programs.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to provide financial security for servicemembers, veterans, and their families. While the Constitution does not explicitly address veterans' benefits or life insurance programs, Congress has broad authority to legislate in areas that promote the general welfare.
Specifically, the bill falls under the powers granted to Congress in Article I, Section 8, which includes the power to provide for the common defense and general welfare of the United States. Providing for veterans and their families can be seen as supporting those who have served in the nation's defense.
There are no apparent constitutional conflicts, as the bill does not infringe upon individual liberties or rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).