The move could add up to $10,000 in base pay for the lowest paid enlisted troops.
The budget plan would avoid a partial government shutdown set for Friday night.
The federal formula calls for a 2.7 percent pay raise in 2022.
Changes to the Service-Disabled Veterans Insurance program and Traumatic Injury Protection Servicemembers’ Group Life Insurance program could benefit thousands of veterans.
The president has threatened to veto the $740.5 billion defense authorization bill, which could jeopardize hundreds of planned military reforms.
Service members will see a pay raise of 3 percent in 2021 regardless of what Trump does with the defense bill.
Federal officials still have not decided if they will appeal the ruling.
After a extra year of waiting, thousands of caregivers of veterans are eligible for the monthly payouts.
Social Security officials will announce their plans for a COLA boost in coming weeks.
In a tweet, the president vowed to fix the problem in 2021, but only if he is re-elected.
Veterans who missed out on the money in the spring have until Sept. 30 to apply.
The measure would allow disabled vets to get additional grants for home improvements every 10 years.
A new proposal would mandate military provide casualty assistance officers to dependents lose both of their parents.
Lawmakers want to extend more VA home loans and waive some medical fees in an effort to recognize their service.
House appropriators will vote on the measure on Tuesday morning.
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