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Educational gratuity payouts rise as children of wartime veterans enter school

Veterans Affairs & Emergency Preparedness · July 30, 2026
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Summary

DMVA reported a 235% increase in educational gratuity recipients over five years and said FY 2025–26 disbursements were about $479,000 supporting roughly 479 children; agency attributed growth to federal law changes and demographic shifts.

Jeff King told the committee the educational gratuity program has seen substantial growth as the children of early 2000s-era wartime service members reach college and vocational ages. "We've experienced a 235% beneficiary increase in the educational gratuity program over the last 5 years," King said, and DMVA reported disbursing almost $479,000 in FY 2025–26 to support approximately 479 children.

King attributed much of the demand to federal changes in disability adjudication and to Act 27 of 2024, which excluded certain disability-related payments from needs assessments. He said DMVA worked with the Department of Education to create a new process for approving educational institutions for the gratuity and focused regulatory edits on simplifying the need test to maintain program access.