Newsbytes December 19, 2025 

In this issue:
Take the 2026 FRA Survey 
President Trump Announces Warrior Dividends
Coast Guard ‘Devotion to Duty’ Payments
HVAC Oversight of VA EHRM 
Major Reorganization of VHA 
Navy Improves Barracks
FRA NHQ Holiday Closures

Take the 2026 FRA Survey 
The Fleet Reserve Association (FRA) is dedicated to representing the concerns of military personnel and their families on Capitol Hill. To better understand what benefits matter most to you, we invite active duty and Reserve personnel, retirees, veterans, and their spouses to participate in our brief online survey.  

This is your chance to share your opinions on the programs and benefits that impact your quality of life. Your responses will help the FRA advocate effectively for your priorities during Congressional hearings, meetings with lawmakers, and discussions with leaders in the Departments of Defense, Homeland Security, and Veterans Affairs.  

Why Participate?  

Take a few minutes to share your perspective and help shape the future of military and veteran support programs.  

👉 Access the survey here: https://bit.ly/4pTAXyA

Your input makes a difference. Thank you for your service and for sharing your thoughts! 

President Trump Announces Warrior Dividends
President Donald Trump this week announced a one-time housing payment for service members, branded as a “Warrior Dividend”, which will be funded through already-approved congressional appropriations for the Basic Allowance for Housing (BAH), not tariff revenue as initially suggested. Congress set aside $2.9 billion in the FY26 defense package to offset rising housing costs, with $2.6 billion to be distributed as a one-time payment to approximately 1.45 million active-duty, Guard, and Reserve service members. 

Eligible personnel include active-duty members in pay grades O-6 and below, as well as National Guard and Reserve members on active orders of 31 days or more as of Nov. 30. The payment will be issued outside the regular pay cycle by Dec. 20 and will be tax-free. Service members not currently receiving BAH are also eligible, according to senior administration officials. 

The Fleet Reserve Association (FRA) supports this housing subsidy as a meaningful step to help ease the financial burden on military families facing rising rental and homeownership costs. FRA recognizes the value of immediate relief, particularly during the holiday season, and appreciates congressional action aimed at improving service member quality of life. 

However, FRA reiterates that one-time payments are not a substitute for long-term reform. The Association continues to advocate for restoring BAH coverage to 100% of calculated housing costs, noting that service members are still required to pay out-of-pocket expenses under the current formula. FRA maintains that full BAH coverage is essential to readiness, retention, and the financial stability of the all-volunteer force. 

The housing payment is expected to arrive roughly one week before service members receive a 3.8% pay raise authorized in the FY26 defense policy bill, offering short-term relief while the broader conversation on permanent housing support continues. 

Coast Guard ‘Devotion to Duty’ Payments
The Department of Homeland Security has authorized a one-time “Devotion to Duty” payment for U.S. Coast Guard members in recognition of service during 2025. Homeland Security Secretary Kristi Noem approved the Special Duty Payment to acknowledge what the department described as exceptional performance, dedication, and operational success as the Coast Guard continues modernization efforts and expanded mission demands. Eligibility includes active-duty Coast Guard members in paygrades O-6 and below serving through Dec. 31, 2025, as well as Reserve members on qualifying active-duty orders; cadets and members not entitled to basic pay are excluded.

The announcement follows President Trump’s recent authorization of a one-time $1,776 “Warrior Dividend” payment for service members across the armed forces, though it remains unclear whether Coast Guard personnel will receive both payments. Acting Coast Guard leadership characterized the initiative as recognition of sustained operational tempo across maritime security, law enforcement, and humanitarian missions. Further details on payment amounts and timelines have not yet been released, and the Coast Guard has not confirmed whether the “Devotion to Duty” payment will be administered in coordination with the Department of Defense’s broader bonus distribution.

HVAC Oversight of VA EHRM 
The House Subcommittee on Technology Modernization conducted oversight of the Department of Veterans Affairs’ Electronic Health Record Modernization (EHRM) program as the VA prepares to deploy the system at four Michigan facilities in April 2026. 

VA officials and Oracle representatives reported progress since the program resumed in 2024, citing improved system stability, expanded training efforts, and workflow standardization informed by lessons learned at existing deployment sites. The VA plans additional deployments throughout 2026, with full nationwide implementation targeted for 2031. 

Members of Congress, however, raised ongoing concerns regarding cost transparency, staffing capacity, training readiness, and deployment risk. The Government Accountability Office reiterated the need for updated cost estimates, independent testing, and full implementation of outstanding recommendations before expansion continues. 

The Fleet Reserve Association (FRA) supports an efficient and effective deployment of EHRM, emphasizing that a fully functioning, interoperable health record system is critical not only to clinical care, but also to resolving long-standing challenges across the VA enterprise. FRA has consistently stated that successful EHRM implementation holds the potential to improve coordination between the Department of Defense and VA, reduce administrative delays, and significantly enhance the VA disability claims process by ensuring accurate, accessible medical documentation. 

FRA continues to advocate for a veteran-centered approach to modernization, one that prioritizes patient safety, workforce readiness, and accountability, while recognizing that EHRM remains a foundational tool for improving health care delivery, benefits administration, and long-term outcomes for veterans and their families. 

The subcommittee indicated that oversight will continue as the Michigan deployment approaches, with further evaluation planned following initial go-live operations. 

Major Reorganization of VHA 
The Department of Veterans Affairs has announced plans to reorganize the management structure of the Veterans Health Administration (VHA), an effort VA officials say is intended to improve health care delivery for veterans by reducing bureaucracy, clarifying accountability, and empowering local medical facility leadership. 

VA briefed Congress on the proposal and is expected to provide formal congressional notification this week. The department said detailed organizational and personnel changes will be announced in early 2026, with implementation occurring over an estimated 18–24 months. VA emphasized that the reorganization is not a reduction in force and is not expected to significantly change overall staffing levels. 

Under the proposed framework, VHA Central Office will focus on setting policy, financial management, oversight, and compliance. Operations Centers and Veterans Integrated Service Networks (VISNs) will translate policy direction into operational and performance standards, while local VA health care systems will be granted clearer authority to manage day-to-day care delivery across more than 170 medical centers and nearly 1,200 outpatient clinics nationwide. 

VA Secretary Doug Collins said the reorganization is designed to address longstanding governance concerns identified in multiple reviews by the Government Accountability Office and the VA Office of Inspector General, which have cited overlapping management roles, unclear lines of authority, and inconsistent oversight as barriers to timely decision-making and effective care delivery. 

Veterans Service Organizations and Military Service Organizations, including the Fleet Reserve Association (FRA), recently met with majority staff of the Senate Veterans’ Affairs Committee (SVAC) to discuss the proposed reorganization. During the meeting, SVAC majority staff raised concerns related to implementation, continuity of care, and potential impacts on quality of care during the transition period. 

Although they acknowledged those concerns, the staff also indicated they are cautiously optimistic that the reorganization could address longstanding structural issues if implemented carefully and with strong oversight. 

FRA stated that it supports efforts to improve efficiency and accountability within VHA but stressed that successful implementation will be critical to ensuring veterans do not experience disruptions in care. FRA will continue to closely monitor the development and execution of the VHA reorganization as details emerge and as VA moves toward implementation. 

VA officials said the reorganization is intended to better align leadership roles, streamline decision-making, and allow clinicians to focus more directly on patient care rather than administrative processes. 

Navy Improves Barracks
The U.S. Navy will invest approximately $375 million in barracks improvement projects at 56 installations worldwide, targeting critical living condition issues in unaccompanied housing, Navy officials announced this week.

The funding, provided through the One Big Beautiful Bill Act, includes roughly $300 million for six large-scale renovation projects at installations with the most urgent needs, benefiting about 2,000 sailors and Marines. An additional $75 million will fund 95 smaller projects across 50 installations, including some overseas locations.

Planned upgrades range from major maintenance and modernization efforts, such as HVAC, plumbing, electrical systems, roofing, and bathroom renovations, to smaller projects including kitchen updates, flooring replacement, and new furniture. The initiative is part of Defense Secretary Pete Hegseth’s Barracks Task Force and aligns with the Navy’s “Sailors First” quality-of-life framework.

Vice Adm. Scott Gray, commander of Navy Installations Command, said the effort reflects a sustained commitment to improving unaccompanied housing conditions across the fleet. Navy officials noted that the projects were prioritized following direct inspections of barracks facilities conducted by regional commanders earlier this year.

The six major projects are located at Naval Base Kitsap, Washington; Naval Support Facility Indian Head, Maryland; Naval Air Station Oceana and Oceana Dam Neck, Virginia; Joint Base Pearl Harbor-Hickam, Hawaii; and Joint Expeditionary Base Little Creek–Fort Story, Virginia. Timelines for completion have not yet been finalized due to the contracting process.

The Fleet Reserve Association (FRA) welcomed the announcement, noting that improved barracks conditions are a critical component of service member quality of life, readiness, and retention. FRA is pleased to see concrete investment in Navy housing infrastructure and emphasized that it will continue advocating for sustained housing improvements across all sea services, including the Navy, Marine Corps, and Coast Guard.

The barracks funding follows years of documented concerns raised by service members and oversight bodies, including reports from the Government Accountability Office highlighting deferred maintenance and inconsistent oversight. Navy officials indicated that the current investments are intended to address immediate deficiencies while supporting longer-term housing reform efforts.

FRA NHQ Holiday Closures 
The FRA National Headquarters (NHQ) staff wishes everyone a Merry Christmas, a safe and joyous holiday, and a very happy 2025! Our offices will close on Wednesday, Dec. 24, 2024, and will reopen on Monday, Dec. 29, 2024. There will be no Newsbytes on Dec. 26, 2025.