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September 2014
 
 

WHERE WE STAND - The Military's Basic Allowance for Housing (BAH) - Will your resident's see a reduction?

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BAH Legislative Summary – July 2014

Administration Action:
Beginning in 2013, DoD voiced consideration of military pay and benefits as a means to address sequestration and other budget challenges.

In March 2014, the Administration proposed a package of military compensation changes in the DoD’s Fiscal Year 2015 budget request. That proposal slowed annual BAH increases until rates cover 95 percent of housing rental and utility costs on average, and eliminated renter’s insurance from the housing rates. Overall, the result would be an out-of-pocket cost increase of 6 percent on average.

House Action:

May 22, 2014 - House passes the National Defense Authorization Act (NDAA) for 2015. The House largely rejected the Administration’s plans to roll back military pay and benefits, instead insisting that changes to military compensation be addressed comprehensively using the recommendations of the Military Compensation and Retirement Modernization Commission (expected February 2015).

The House NDAA rejected a BAH modification and incorporated NAA/NMHC-driven language specifically highlighting concerns about a BAH reduction and calling attention to the impacts on the privatization program in the Commission’s work.

June 20, 2014 – House passes Fiscal Year 2015 Defense Appropriations bill, which includes full funding for housing allowances.

Senate Action:
 
On May 22, 2014 – the Senate Armed Services approved their NDAA 2015 bill. The bill moves forward with changes to the BAH, which would limit housing allowance increases to below the rate of inflation. Overall, it reduces the growth of housing allowances by requiring service members to pay 5 percent out-of-pocket for housing costs.

As such, the DoD proposed BAH increase for FY15 equals just 1.5 percent, compared to a 5 percent increase in 2014 and 3.8 percent in 2013.

On July 17, 2015 – the Senate Committee on Appropriations approved the Department of Defense (DoD) Appropriations Act, 2015. The bill concurs with the Senate Armed Services plan to reduce BAH overtime.

The Senate has not yet identified time for floor consideration / passage of with the NDAA or the Appropriations bill.
 

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