2020 Rates for Basic Allowance for Housing and more

Big news to hit the military community today as two articles out for immediate release reflect the newest 2020 DOD rates for Basic Allowance for Housing, and the newly released $738 Billion Defense Budget by Congress.

The Department of Defense released the 2020 Rates for Basic Allowance for Housing, Basic Allowance for Subsistence, and Basic Pay. Taking effect on January 1, 2020, these rates will reflect an increase of 0.9%. This equates to a $3.32 pay increase per month for enlisted members and $2.29 increase per month for officers for Basic Allowance Subsistence. Overall, Basic Allowance and Housing will increase 2.8%.

Basic Allowance for Housing, aka BAH, is based on the median current market rate in the area the service member is stationed. This includes the median current market rent and average utilities (including electricity, heat and water/sewer) that all go into determining the BAH compensation. Other factors taken into account are pay grade and number of dependents.

As for the other piece of good news, House and Senate negotiators have reached a deal on a defense policy bill aimed at avoiding future government shutdown, creating a Space Force, and getting rid of the dreaded “widow’s tax” that has been a heated touch point for many gold star families. The budget released earlier this week not only ensures a 3.1% pay raise for the military, but also includes an additional $5.3 billion specifically for emergency disaster recovery.

In short, this National Defense Authorization Act (NDAA) approves military parental leave and takes care of the widows of the fallen. I’d say it was a great day in our military community.

For more information on the 2020 rates for Basic Allowance for Housing, visit https://www.defense.gov/Newsroom/Releases/Release/Article/2039093/dod-releases-2020-rates-for-basic-allowance-for-housing-basic-allowance-for-sub/#:~:targetText=The%20Department%20of%20Defense%20has,on%20Jan.%201%2C%202020 and https://www.defensetravel.dod.mil/site/bah.cfm for a breakdown. Service members can calculate their BAH payment by using the Basic Allowance for Housing calculator at: http://www.defensetravel.dod.mil/site/bahCalc.cfm.

For more information on the newly released $738 Billion Defense Budget, visit https://www.military.com/daily-news/2019/12/09/congress-has-released-its-738-billion-defense-budget-heres-whats-inside.html.