This bill mandates the exclusion of the Basic Allowance for Housing (BAH) from the calculation of gross household income when determining eligibility for the basic needs allowance for eligible Armed Forces members.
Jimmy Panetta
Representative
CA-19
This bill amends current law to mandate the exclusion of the Basic Allowance for Housing (BAH) when calculating the gross household income for eligible members of the Armed Forces. This change specifically impacts the determination of eligibility for benefits tied to the basic needs allowance. By removing the housing stipend from income calculations, the legislation aims to provide a more accurate assessment of a service member's actual financial need.
New Military Pay Rule Ensures Housing Allowance Doesn't Block Access to Basic Needs Assistance
When you’re trying to figure out who qualifies for financial help, the first thing everyone looks at is gross income. But sometimes, what counts as ‘income’ is the problem. This legislation tackles exactly that for service members applying for the military’s basic needs allowance program.
This bill amends Title 37 of the U.S. Code to mandate that the Basic Allowance for Housing (BAH) must be excluded when calculating a service member’s total gross household income for the basic needs allowance. Put simply: the money the military gives service members to cover rent or mortgage payments can no longer count against them when they apply for financial assistance to cover food, utilities, and other essentials.
Why Your Housing Stipend Should Stay Out of the Income Count
Think of the BAH as a reimbursement, not a salary boost. It’s money specifically earmarked for shelter costs—and those costs are non-negotiable. Previously, the Secretary had the option to exclude BAH, which created inconsistency. This bill removes that option and makes the exclusion mandatory. For a junior enlisted service member struggling to make ends meet, counting their BAH as disposable income often pushed them above the eligibility threshold for the basic needs allowance, even though that housing money was already spoken for.
The Real-World Impact: More Help for Military Families
This change is a straight-up win for military families juggling rising costs. By excluding BAH, the calculated household income drops, making more service members eligible for the basic needs allowance. For example, a young family stationed in a high-cost-of-living area might receive a BAH of $2,500 a month. Under the old rules, that $30,000 annual allowance was often added to their income, disqualifying them. Now, that $30,000 is correctly viewed as a necessary housing expenditure, dramatically increasing their chances of qualifying for essential financial support.
This isn't about giving service members more money overall; it's about making sure the assistance programs designed to help them actually work as intended. It ensures that the funds meant to keep a roof over their heads don't become the very reason they can't afford to put food on the table.