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For the second year, the Department of Defense’s budget request included a proposal to cut back the Basic Allowance for Housing (BAH), a core military benefit that compensates service members for their housing costs. The Pentagon argues that to combat budget challenges it must confront rising personnel costs. However, the proposed cut would increase the out-of-pocket expenses for one million troops and impact apartment communities that serve the military.
Specifically, the proposed FY 2016 budget calls for an expansion of modest BAH changes made last year and would result in a five percent reduction in housing benefits. Congress largely rejected similar changes proposed last year. Instead, lawmakers delayed broader compensation reform pending the completion of a comprehensive military pay and benefits review. The report was released on January 29 and did not recommend any changes to the BAH or military housing programs.
NMHC/NAA was successful in helping pass the FY 2015 budget legislation last year that eliminated this same proposed five percent cut to BAH. We have raised concerns once again about the impact of the reduction on service members’ housing options and the privatized military housing program.
