Congress passed an $895 billion Defense authorization bill that includes a 14.5% pay raise for junior enlisted troops and a 4.5% increase for all other service members.
The bipartisan National Defense Authorization Act will boost military service members’ pay. The pay raise comes along with the Pentagon’s higher tax-free housing allowance. Basic Allowance for Housing rates will increase an average of 5.4% when the new rates take effect on Jan. 1, 2025.
With the 14.5% raise, junior troops will earn about $3,000 to $6,000 more yearly, depending on rank. For example, an E-1 will make $27,828 per year, compared to $24,206 now, while an E-4 with at least six years of experience will make $44,107, compared to $38,368 now.
The Basic Housing Allowance, or BAH, does not cover all housing costs. An estimated $29.2 billion will be paid to about one million service members.
The National Military Family Association, a nonprofit dedicated to strengthening military families, praised the pay raise and other measures included in the National Defense Authorization Act.
The group noted the bill provides full funding for child care fee assistance programs and increases in Department of Defense child care center staff pay. It also extends the Pentagon’s authority to fill open civilian positions with qualified military spouses and expands access to Department of Defense child care for military spouses seeking employment.
Furthermore, it expanded eligibility for the Basic Needs Allowance with an eligibility increase from 150% to 200% of federal poverty guidelines.
“Service shouldn’t cost more. Military families come to us every day looking for help solving problems they shouldn’t have in the first place,” NMFA CEO Besa Pinchotti said. “We are pleased that Congress is taking much-needed action to show our service members that America has their back – just as they have ours.”
