The compromise National Defense Authorization Act that both chambers plan to vote on soon would give America’s lowest-ranking military personnel one of the largest raises in U.S. history targeted at a particular category of servicemembers, experts said.
The compromise version of the fiscal 2025 NDAA, released Saturday, would authorize a 14.5 percent raise for the lowest-ranking enlisted personnel. It is one of many enhancements the bill would make to servicemembers’ lives, from improving the quantity and quality of housing to augmenting childcare for military families.
But it could also create a problem for the Pentagon if Congress does not intervene this month.
The Defense Department will almost certainly be operating for the first few months of the fiscal year on another stopgap spending law. Unless that measure contains additional billions for military pay increases, the armed services will have to cover the raises by moving funds from other programs with “potentially damaging” consequences for U.S. military strength, Defense Secretary Lloyd J. Austin III warned lawmakers in September.
High inflation has made life harder in recent years for junior enlisted personnel in the U.S. military, thousands of whom have reported trouble adequately feeding themselves and their families. The armed forces have also faced recruiting challenges that are made more difficult if military pay is not considered competitive.
“Servicemember quality of life concerns are a major cause of low morale and family stress, which are undermining recruitment, retention and military readiness,” said a House Armed Services Committee fact sheet summarizing the NDAA’s newly unveiled “quality of life” provisions.
The newly released compromise NDAA would not only give enlisted personnel in ranks E-1 through E-4 the 14.5 percent raise in the coming year, it would give the rest of the force a 4.5 percent raise, which is also higher than usual.
Retired Air Force Lt. Gen. Brian T. Kelly, the president and CEO of the Military Officers Association of America, said via email that the boost in junior enlisted pay is the largest targeted military pay raise in a quarter-century.
“Congress’ proposed pay raise for junior enlisted personnel is a life-changing amount at a critical time,” Kelly said. “As we face unprecedented threats abroad, ensuring we recruit those willing to answer the call and join the uniformed services is vital to our national defense.”
The final NDAA was a compromise that gave the House more than two-thirds of what it wanted for a junior enlisted pay raise.
The House-passed NDAA had recommended a 19.5 percent raise for junior enlisted personnel, including the 4.5 percent pay increase that all service members would get, and the Senate Armed Services Committee’s companion measure responded with a 5.5 percent pay raise for low-ranking troops (and it covered fewer people: E-1 through E-3 instead of E-1 through E-4.)
The legislation includes the large pay increase despite the fact that the White House, in a June statement of administration policy on the House bill, had “strongly opposed” its junior enlisted raise as too costly.
The House Armed Services Committee’s Quality of Life Panel first proposed the substantial junior enlisted raise.
Rep. Don Bacon, R-Neb., chairs that panel, and Rep. Chrissy Houlahan, D-Pa., is its ranking member.
Houlahan said in an interview that she is pleased with the final NDAA outcome on military personnel matters.
Investing in servicemembers is not just a matter of providing housing, health care or spousal employment opportunities, Houlahan said.
“It also comes with making sure that people have competitive pay with the outside community and the outside environment,” said Houlahan, a former Air Force captain who comes from a military family. “So I’m very glad that we came to an agreement on significantly raising the salaries of the E1 through E4.”
The House of Representatives recently passed the National Defense Authorization Act (NDAA) for fiscal year 2025, which includes significant pay raises for members of the military. The legislation aims to address concerns about declining morale and recruitment challenges facing the armed forces by dramatically boosting compensation for junior enlisted service members.
Background on the NDAA
The NDAA is an annual bill that sets defense policy and authorizes funding for the Department of Defense. It has passed Congress for 64 consecutive years on a bipartisan basis. For fiscal year 2025, the House NDAA authorizes over $850 billion in defense spending.
A key focus of this year’s NDAA is improving “quality of life” for service members and their families. A bipartisan House panel identified military compensation as a top concern impacting morale, retention and recruitment. The bill contains numerous provisions to enhance pay, housing, health care, childcare and other support for military families.
Historic Pay Raise for Junior Enlisted
The most notable provision is a historic pay raise for the military’s most junior enlisted ranks E-1 through E-4. The House bill includes
- A 4.5% across-the-board pay raise for all service members
- An additional 15% raise targeted specifically for junior enlisted, for a total increase of 19.5%
This would be the largest military pay raise authorized by Congress in nearly 50 years. For example an E-2 would see their base salary jump from $25292 to $30,225 per year under the House plan.
Advocates say the substantial boost is urgently needed to help young troops keep pace with skyrocketing inflation and private sector wages. Surveys have shown financial strains lead many to leave service after just one enlistment.
Bipartisan Support, But Obstacles Remain
The junior pay raise received strong bipartisan backing in the House. However, the effort faced some initial resistance in the Senate and White House.
The Senate Armed Services Committee’s version of the NDAA provided a smaller 5.5% targeted raise for E-1 through E-3 only. The White House said it “strongly opposed” the House plan based on budget concerns.
After negotiations between the chambers, the final compromise NDAA settled on a 14.5% increase for E-1 through E-4. While not as high as the House’s 19.5%, advocates still hailed it as a major victory.
The pay raises will take effect in 2025 if funded by a separate appropriations bill. With another stopgap funding bill likely this month, the Pentagon may need billions more to avoid cuts to other programs.
Other Quality of Life Improvements
In addition to compensation, the House NDAA contains other noteworthy initiatives to support military families:
- Over $2 billion to improve on-base housing and barracks
- Expanding eligibility for the Basic Needs Allowance to help with food costs
- Easing professional license transfers for military spouses between states
- Mandating competitive pay for on-base child care workers
Lawmakers are hopeful these changes will demonstrate Congress’ commitment to addressing quality of life challenges for those who serve. Supporting military families is viewed as vital to ensuring a ready force capable of defending the nation.
Outlook for Final Passage
Despite some partisan disputes, most expect the compromise NDAA will ultimately gain final passage in the House and Senate by year’s end.
However, Congress will still need to provide funding through the appropriations process to deliver the pay raises in 2025. Failing to do so could significantly undermine morale and retention efforts.
The historic military pay raise authorized by the House NDAA reflects bipartisan determination to uphold the all-volunteer force. If implemented next year, it will deliver meaningful financial relief to hundreds of thousands of young service members and their families.
‘Quality of Life’ enhancements
The bicameral compromise version of the fiscal 2025 NDAA was released on Saturday. The House plans to vote on it this week, and the Senate intends to follow suit before the holidays.
A version of the bill has become law annually for more than six decades.
The junior enlisted pay raise was the most dramatic of several NDAA changes aimed at improving servicemembers’ lives.
The measure would also authorize more than $2 billion for construction of military housing and barracks and for ensuring the quality of those residences.
The compromise legislation would also authorize construction of more Defense Department schools and child care centers and increased medical staffing.
Congress will need to appropriate those additional funds, as well as the money for higher pay, in a fiscal 2025 Defense spending measure, which will probably not be enacted until March at the earliest.
The NDAA also makes it easier for military spouses to keep their professional licenses as they move from state to state — an effort to address the estimated 20 percent spousal unemployment that is hurting the pocketbooks of military families.
“I’m gratified that Congress has recognized the importance of military family quality of life and included vital provisions to support families’ well-being in this year’s NDAA,” said Eileen Huck, acting director of government relations at the National Military Family Association. “Increasing junior enlisted compensation, supporting spouse employment and making child care more accessible and affordable will help ease the challenges of military life and provide much-needed support to military members tasked with the job of defending our country.”
$768 billion defense bill passed by House includes pay increase for military members
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Related: Must-Pass Defense Bill Includes 4.5% Military Pay Raise on Top of 15% Increase for Junior Enlisted Troops Rebecca Kheel specializes in covering Congress for Military.com, holding lawmakers accountable for how their decisions affect military personnel and veterans.
What is a military pay raise?
The sweeping legislation authorizes a 5.2% pay raise for members of the military – the largest raise for service members in more than two decades – as part of a wide range of provisions related to service member pay and benefits, housing and childcare.
Will junior enlisted service members get a pay hike next year?
(AP Photo/J. Scott Applewhite) A 19.5% pay hike for junior enlisted service members next year is one step closer to reality after the House Armed Services Committee advanced its must-pass defense policy bill Wednesday night.
Will NDAA raise pay for junior troops?
House Armed Services Committee Chairman Mike Rogers, R-Ala., touted the significant pay raise for junior troops. He also said the NDAA “puts our service members first by boosting compensation, improving housing, supporting the spouses of service members, increasing access to child care and ensuring access to medical care.”
How much would a military raise if a barracks reopens?
Under the bill, E-1s through E-3s would get a 5.5% raise, while every other service member would get a 4.5% raise. Also included in the amendment is about $2.5 billion for facilities maintenance, some of which is intended for fixing dilapidated barracks, staffers said.
Can enlisted soldiers get a pay raise if they have gender dysphoria?
It includes a 14.5% pay raise for junior enlisted troops, according to the Republican leader’s office. Another provision says “medical interventions for the treatment of gender dysphoria that could result in sterilization may not be provided to a child under the age of 18,” referring to the transgender children of U.S. service members.