In a move that has raised eyebrows, the Pentagon under the Biden administration has announced plans to offer "economic hardship bonuses" to U.S. troops.
However, the proposed payout is predicted to have a negligible impact on their overall salaries, as reported by Military.com.
The bonus scheme targets junior enlisted troops in the E1 through E3 rank, who will receive an additional $20 per month. A senior defense official, who wished to remain anonymous, revealed this information to Military.com. This group of troops has been disproportionately affected by financial difficulties in recent years, with their military pay falling short when compared to private sector salaries, and the rising inflation and cost rates exacerbating the situation. "The monthly bonus amounts, on average, will total approximately $120 [over the six months] and theyre based on the funding Congress has made available, the official disclosed to Military.com.
According to Military.com, Congress allocated these bonuses last year as part of a $43 million package included in the 2024 National Defense Authorization Act (NDAA). This move was prompted by concerns over the sustainability of troop pay. The Pentagon then used these funds to determine the number of troops it could compensate before depleting the allocated resources, which amounted to approximately 266,000 individuals.
However, only E1 through E3 junior troops are eligible for the bonus, while the E6 rank will not receive any, as reported by Military.com. Despite the authorization of these funds in December, they were not appropriated for the Pentagon until late March.
Justine Tripathi, spokesperson for the House Armed Services Committee (HASC), expressed to the Daily Caller News Foundation that while the temporary bonus pay for some junior enlisted service members is a positive step, more action is needed. [This is] why the [2025] NDAA provides junior enlisted service members with a 19.5% pay raise, Tripathi stated.
In June, the House proposed a 15% pay raise for junior enlisted troops, in addition to a proposed 4.5% raise for all troops, which would result in a 19.5% increase for junior troops. However, the Biden administration "strongly [opposed]" this proposal, stating that it needed to wait for its annual compensation review to be completed before making any such decisions.
A comprehensive study conducted by the HASC released in April revealed that "servicemembers, especially junior enlisted servicemembers and servicemembers supporting large families, struggle to afford housing and feed their families." The study also found that junior enlisted troops' salaries have largely failed to keep pace with the civilian job market.
Over the past 40 years, this group of troops has received smaller pay raises or none at all in eight instances. A separate study by the Military Family Advisory Network in June discovered that over half of military families, active servicemembers, and veterans' financial well-being was poor. The same study found a significant drop in the number of respondents who would recommend joining the military, from 74% in 2019 to just 57%.
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