Newsbytes December 12, 2025 
 

In this issue:
FY26 NDAA PASSES HOUSE
Veteran Provisions in FY26 NDAA 
HVAC: CHAMPVA Reforms 
VA Expands Access to ABO
FRA Attends Coast Guard Holiday Reception 

FY26 NDAA PASSES HOUSE
The U.S. House of Representatives has passed the Fiscal Year 2026 National Defense Authorization Act (FY26 NDAA), extending Congress’s decades-long tradition of approving the annual defense policy bill. Authorizing roughly $900 billion in spending, the legislation outlines national security priorities while placing clear emphasis on improving quality of life for service members, veterans, and their families. Lawmakers from both parties highlighted that strengthening the force requires sustained investment not only in capabilities, but in the people who serve. 

A major component of the FY26 NDAA is a suite of quality-of-life reforms that address long-standing concerns around pay, housing, and family support. These provisions reflect feedback from service members and their advocates, including the Fleet Reserve Association (FRA).  

Key Quality-of-Life Provisions in the FY26 NDAA: 

3.8% across-the-board military pay raise for all service members. 

Increased Family Separation Allowance, boosting monthly support for families during deployments. 

Expanded parental leave flexibility, allowing service members to use birth and adoption leave with greater control. 

Investments in military housing, focused on safety, habitability, and improving oversight of privatized housing. 

Enhancements to Military OneSource, including expanded maternal health and family support resources. 

Review and improvements to licensure portability for Guard and Reserve medical professionals to strengthen access to care. 

These reforms are designed to address growing concerns about the cost of living, unpredictable operational tempos, and gaps in family care and support. By modernizing parental leave, upgrading housing conditions, and improving access to healthcare resources, the FY26 NDAA aims to reduce stressors that directly affect readiness, retention, and overall morale. FRA believes these provisions as meaningful steps toward restoring confidence for those who serve. 

Veteran Provisions in FY26 NDAA 
The House of Representatives has passed S. 1071, the National Defense Authorization Act for Fiscal Year 2026, advancing a sweeping defense policy package that includes major reforms to the Transition Assistance Program (TAP) and improvements to toxic exposure documentation, two priorities long championed by House Veterans’ Affairs Committee Chairman Mike Bost (R-Ill.). Chairman Bost celebrated the inclusion of these provisions, emphasizing the importance of ensuring smoother transitions for servicemembers and reducing bureaucratic burdens for veterans filing for disability compensation. 

Under current law, servicemembers are supposed to begin TAP no later than 365 days before separating from the military. However, recent oversight has revealed that only about half of all transitioning servicemembers start TAP on time, a gap that lawmakers say leaves too many veterans unprepared for civilian life. Chairman Bost noted that after meeting with servicemembers and families across the force, it became clear that TAP must be updated to better meet individual needs and ensure that spouses, often essential partners in the transition process, are not overlooked. 

The FY26 NDAA includes the following TAP-related reforms: 

• Waiver for Certain Reserve Component Members: Allows eligible Reserve members to attend TAP every three years unless new, relevant information becomes available. 
• Pilot Program for Military Spouses: Establishes a spouse-specific TAP program acknowledging that transition affects the entire family. 
• Enhanced Financial Planning Counseling: Expands TAP’s financial guidance to include personalized counseling on loans, debt management, and long-term financial readiness. 
• Strengthened Requirement for Separation Counseling: Prioritizes in-person delivery of pre-separation counseling to enhance quality and engagement. 
• TAP Timeliness and Participation Tracking: Requires DoD to monitor when servicemembers begin TAP to improve accountability and ensure timely access to support. 
• Improved Access to Veteran Resources: Directs VA to maintain a ZIP-code-searchable online hub of resources for veterans and families. 
• Annual Reporting on TAP Outcomes: Mandates detailed yearly reporting on participation, completion rates, and counseling timelines. 

In addition to TAP modernization, the NDAA includes critical provisions that build on the PACT Act by addressing toxic exposure challenges. The bill codifies and expands the Individual Longitudinal Exposure Record (ILER), ensuring servicemember exposure data is documented upfront, eliminating the need for veterans to prove exposures decades later. These provisions will: 

Automatically Include Exposure Data in Service Records to streamline future VA claims. 

Improve DoD–VA Information Sharing by granting VA clinicians and benefits staff complete access to exposure information. 

Support Faster, Fairer VA Claims Processing by providing VA with a veteran’s full exposure history at the start of the process. 

FRA believes these reforms represent a major step forward in improving both the transition experience and the disability claims process. By strengthening TAP, documenting exposures early, and reducing administrative burdens, the FY26 NDAA helps ensure servicemembers and veterans receive the support and benefits they have earned. 

HVAC: CHAMPVA Reforms 
The House Veterans’ Affairs Subcommittee on Health recently held a major hearing on needed improvements to the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA). This program provides healthcare coverage for more than one million spouses, children, survivors, and caregivers of veterans who are permanently disabled or have passed away. 

Subcommittee Chairwoman Mariannette Miller-Meeks (R-IA) praised VA leadership for eliminating a backlog of 60,000 CHAMPVA applications. Ranking Member Julia Brownley (D-CA), however, criticized the lack of regular updates from the VA on this $40 billion program. VA officials and veteran advocates agreed that although CHAMPVA helps fill gaps between TRICARE and VA care, families still face serious challenges getting timely and reliable access to services. 

The VA shared several improvements already underway. Thanks to overtime work, new automation, and faster electronic processing, they cleared a 70,000-application backlog and now process 90% of claims in just a few days. Appeals have also dropped dramatically, from more than 20,000 cases to roughly 1,000. Beginning in December 2025, the VA plans to fully automate CHAMPVA claims to reduce paperwork and help families access inpatient care, mental health services, and medications more quickly. 

But many families are still struggling. Advocates described long delays, confusing bills, and difficulty finding providers who accept CHAMPVA. One caregiver faced a $110,000 bill and waited over two years for resolution. Others reported paying out-of-pocket for children’s mental health care after being unable to find CHAMPVA-approved providers. Additional concerns include outdated paper ID cards, coverage interruptions for students during school verification checks, and complicated appeals that rely on Medicare billing codes. 

Lawmakers also raised concerns about geographic inequities. For example, CHAMPVA usage in the Northern Mariana Islands is only 33%, far below the national rate of 67%. Members of Congress called for stronger outreach, clearer wait-time data, and potential expansions tied to toxic exposure issues. 

Several bipartisan solutions gained momentum. These include: 

• A provider directory bill from Rep. Jennifer Kiggans (R-VA) to help families find CHAMPVA-accepting doctors. 
• A push to extend coverage for dependent children up to age 26, similar to private insurance. 
• A plan to launch an online CHAMPVA status portal in 2026. 
• Calls to replace paper ID cards with more durable, modern options. 

Members of both parties agreed that CHAMPVA must move from a patchwork system to a dependable, accessible program that truly supports veteran families. The FRA believes strong oversight and continued modernization are essential to protecting the families of those who served. 

VA Expands Access to ABO
The Department of Veterans Affairs has announced a significant update to the Accelerated Benefit Option (ABO) under Servicemembers’ Group Life Insurance (SGLI), Family SGLI (FSGLI), and Veterans’ Group Life Insurance (VGLI). For the first time since the ABO was established in 1998, the VA is expanding eligibility and modernizing the rules to better support terminally ill servicemembers, insured spouses, and their families during critical times. 

The ABO allows eligible individuals to receive up to 50 percent of their life insurance benefit, paid in increments of $5,000, before death if they are diagnosed with a terminal illness. Previously, only the insured member could apply for this advance payout, which created barriers for families when a member was medically unable to initiate the request. 

Under the newly amended regulation, the VA now permits an alternate applicant to apply for ABO benefits on behalf of a terminally ill insured member who is medically incapacitated. This ensures that families can access much-needed financial support even when the servicemember or veteran is unable to complete the paperwork themselves. The update also authorizes insured members to apply for an ABO payout when their covered spouse is terminally ill, expanding flexibility for families navigating overwhelming circumstances. 

The amendment further clarifies dependent coverage under FSGLI by ensuring that stepchildren and full-time students aged 18 to 22 are included in the program’s definition of eligible dependent children. This adjustment aims to remove ambiguity and guarantee consistent protection for families with blended households or older dependents pursuing education. 

VA officials note that these changes reflect ongoing efforts to strengthen support for military families and modernize benefits to match the realities servicemembers face today. By allowing alternate applicants and broadening dependent coverage, the updated ABO regulation provides families with greater financial stability and easier access to benefits during life-altering moments. 

FRA Attends Coast Guard Holiday Reception 
FRA NED PNP Donna Jansky and PNED Phillip Reid attended the U.S. Coast Guard’s 2025 Holiday Reception in Washington, D.C., joining service members, families, and supporters for an evening themed “A Hawaiian Holiday: Bringing the Aloha to D.C.” The event highlighted Coast Guard traditions, camaraderie, and the spirit of aloha during the festive season. 

Also in attendance was shipmate MCPOCG Vince Patton, whose presence emphasizes the FRA’s long-standing bond with Coast Guard leadership and its commitment to supporting enlisted personnel across the sea services. 

The reception provided FRA leaders with an opportunity to strengthen relationships, celebrate the service of Coast Guard men and women, and reaffirm the Association’s dedication to advocating for the Coast Guard community.