S.385 - Fairness for Servicemembers and their Families Act of 2025 (119th Congress)
Summary
S.385, the Fairness for Servicemembers and their Families Act of 2025, mandates the Secretary of Veterans Affairs to periodically review the maximum coverage amounts under the Servicemembers' Group Life Insurance (SGLI) and Veterans' Group Life Insurance (VGLI) programs. The review is to occur every five years, starting January 1, 2026. The results of the review must be submitted to the Committees on Veterans' Affairs of both the House and the Senate.
Expected Effects
The bill aims to ensure that life insurance coverage for servicemembers and veterans keeps pace with inflation, as measured by the Consumer Price Index. This will potentially lead to adjustments in the maximum coverage amounts offered under SGLI and VGLI. Ultimately, this could provide greater financial security for servicemembers, veterans, and their families.
Potential Benefits
- Increased Financial Security: Ensures life insurance coverage remains adequate over time.
- Regular Updates: Mandates periodic reviews to keep pace with economic changes.
- Data-Driven Adjustments: Uses the Consumer Price Index to guide coverage adjustments.
- Transparency: Requires reporting review results to Congress.
- Supports Military Families: Provides enhanced financial protection for families of servicemembers and veterans.
Potential Disadvantages
- Potential for Increased Premiums: Adjustments to coverage may lead to higher premium costs for servicemembers and veterans.
- Administrative Burden: Conducting periodic reviews adds to the administrative responsibilities of the Department of Veterans Affairs.
- Dependency on CPI: Sole reliance on the Consumer Price Index may not fully capture the actual cost of living or specific needs of beneficiaries.
- Delayed Implementation: The first review is not scheduled until January 1, 2026, delaying potential benefits.
- No Guaranteed Increase: The review only serves as a guide; there's no guarantee of coverage increases.
Constitutional Alignment
The bill aligns with the constitutional mandate to provide for the common defense and promote the general welfare (Preamble). Congress has the power to raise and support armies (Article I, Section 8), which implicitly includes providing benefits to those who serve. The bill falls under Congress's enumerated powers to legislate for the military and veterans.
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).