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, 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, to be conducted every five years starting January 1, 2026, will compare the current coverage amount to an amount adjusted for changes in the Consumer Price Index. The results of these reviews will be submitted to the Committees on Veterans' Affairs of the House and Senate, potentially guiding future coverage increases.
Expected Effects
The bill aims to ensure that life insurance coverage for servicemembers and veterans keeps pace with inflation and the rising cost of living. This could lead to adjustments in the maximum coverage amounts offered under SGLI and VGLI. Ultimately, this would provide greater financial security for servicemembers, veterans, and their families.
Potential Benefits
- Ensures life insurance coverage for servicemembers and veterans remains adequate over time.
- Provides a mechanism for adjusting coverage amounts based on inflation.
- Offers greater financial security to families in the event of a servicemember or veteran's death.
- Increases transparency through required reporting to Congress.
- May lead to improved recruitment and retention in the armed forces.
Potential Disadvantages
- The bill itself does not guarantee any increase in coverage, only a review.
- The administrative process of conducting reviews and potentially adjusting coverage may incur costs.
- The formula for calculating the adjusted amount may not fully reflect the actual financial needs of beneficiaries.
- There is a five-year gap between reviews, which may not be frequent enough to keep pace with rapid inflation.
- Potential for political influence in the review process.
Constitutional Alignment
The bill appears to align with the constitutional mandate to provide for the common defense and promote the general welfare, as outlined in the Preamble of the US Constitution. Congress has the power to legislate for the armed forces under Article I, Section 8, which includes providing benefits to servicemembers and veterans. The bill does not appear to infringe on any specific constitutional rights or limitations.
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).