NewsBytes December 2, 2022
In this issue:
SecDef Urges Congress to Pass Budget Now!
SVAC Oversight Hearing on PACT Act Implementation
FRA Supports Tax Credits for Employers to Hire Military Spouses
Veteran’s Fraud Is Increasing
Change in Leadership in House in 2023
SecDef Urges Congress to Pass Defense Budget Now!
Congress returned from their Thanksgiving Day break with a full list of legislative goals to achieve before the end of the year that include passing the National Defense Authorization Act (NDAA) and the 12 annual spending bills. Secretary of Defense Lloyd Austin urged lawmakers to pass a full year budget for his department as soon as possible, warning that another short-term spending extension (Continuing Resolution) could imperil military readiness and family support efforts.
“If the CR (Concurrent Resolution) extends beyond December 16, we may be forced to reduce accessions or permanent change of station moves, impairing our ability to meet our missions and causing unnecessary disruption to our families and our ability to recruit personnel,” Austin wrote in a letter to House and Senate leaders.
The last fiscal year appropriations package (FY2022) was signed into law March 15, 2022. FY2022 started on Oct. 1, 2021. This nearly 6-month delay resulted in flat-line funding for many current government programs.
When the spending bills do not pass, Congress must pass a Continuing Resolution (CR) to keep the government open. CRs are an awful way to fund the federal government because they generally continue funding at prior year levels, with no regard to the value of the individual programs. They continue to fund those programs that have outlived their usefulness or badly need reform, and they fail to expand successful programs that need a boost. Too frequently Congress fails to pass spending bills on time. The federal government has partially closed 18 times since 1976 because one or more appropriations bills were not signed into law on time. In 2018-19, the shutdown lasted 35 days.
SVAC Holds Oversight Hearing on PACT Act Implementation
The Senate Veterans Affairs Committee (SVAC) held an oversight hearing on the implementation of the recently enacted comprehensive veteran’s toxic exposure bill (PACT Act). Last August, President Biden signed the PACT Act into law. According to the Department of Veterans Affairs (VA), more than 145,000 veterans have filed claims for benefits and care related to toxic exposure under the new legislation. The VA also says it is ready to start adjudicating those claims immediately after the start of the new year.
Senate Veterans Affairs Committee members met to quiz VA officials on implementation of the bill, for which regulations have yet to be published. SVAC Chairman Jon Tester (Mont.) said the PACT Act is historic in the number of veterans newly eligible for benefits and health care due to toxic exposures. “We all know there will be hiccups” in the bill’s implementation, said Tester. However, the VA must work with Congress to overcome those challenges and must ensure that veterans get what they were promised.
Ranking Member Jerry Moran (Kan.) said he will work with his colleagues to ensure the VA is following the law in implementing the PACT Act. He is concerned about the operational impact upon the VA, and its ability to fully implement it. Moran noted that the authorization of 31 new leases should help the VA ensure they have sufficient capacity. Both Senators agreed that the committee’s next priority should be ensuring the full implementation of all the legislation passed in the past year, rather than simply turning to new legislation.
FRA Supports Tax Credits for Employers to Hire Military Spouses
The FRA signed onto a Military Coalition (TMC) letter to key lawmakers asking for support of the “Military Spouse Hiring Act” (H.R.2974, S.3909) and to ensure it is included in an end-of-year tax extenders bill. This legislation will create a target group within the Work Opportunity Tax Credit (WOTC) program for employers who hire military spouses, to help combat the high military spouse unemployment rate and provide a proven economic boost for their communities.
The active-duty military spouse unemployment rate is 22 percent compared to the current national average of less than 4 percent. This is primarily due to military-mandated moves interrupting spouses’ careers. Further, employers have expressed concern that hiring and training military spouses who may move within a few years is not cost effective for their companies. This is especially challenging for small business owners. Expanding the WOTC to include a military spouse target group will incentivize employers to tap into a talented pool of potential employees, while also tackling the extreme unemployment rate of military spouses. Additionally, the tax credit will help offset the cost of hiring and onboarding new employees, making it more cost-effective for companies to hire military spouses.
Military spouse employment is linked to family wellbeing as well as service member retention. Prioritizing employment opportunities for military spouses through the creation of a WOTC target group will increase the overall financial stability of military families and aid in the retention of experienced service members at a time when the services are struggling to meet recruitment goals.
Veteran’s Fraud is Increasing
According to a recent Federal Trade Commission (FTC) report, fraud cost veterans, service members and their families $267 million in 2021, an amazing 162 percent increase from the previous year. The average loss for military scam victims was $600, 20 percent higher than for the public.
The November 2021 AARP study found that veterans and service members are targeted by con artists at a considerably higher rate than civilians (35 percent vice 25 percent) and are more likely to lose money to scams. Often, the goal is to gain access to benefits the government provides to those who served. For example:
• Veterans are told they qualify for money from “secret” government programs but must first pay a fee or provide personal information;
• Scammers exploit veterans in financial stress by offering cash upfront in exchange for (much higher) future disability or pension payments;
• Con artists attempt to charge veterans for access to their service records or for government forms. Veterans can get this material for free from the Department of Veterans Affairs (VA) or the National Archives;
• Bogus military charities hit up former service members for donations;
• Fake VA officials ask for personnel information such as Social Security numbers, claiming they need to update the veteran’s records;
• Callers pretending to be from TRICARE offering active duty, retirees and their families COVID-19 related services. It’s just another ploy to steal personal and financial information;
• Phony classified ads for rental properties offer discounts for veterans and active-duty military. Targets are instructed to wire money for a security deposit for what turns out to be a nonexistent property; and
• Scammers sometimes posing as soon-to-be-deployed service members, offer special deals for veterans on cars, electronics and other products, again asking for payment by wire. Once paid, the seller disappears and the goods never arrive.
If you suspect you have been victimized by a scammer you can file a complaint with the FTC, at 877-382-4357. If the scam originated online, also report it to the FBI’s Internet Crime Complaint Center .
Change in Leadership in House in 2023
As a result of the 2022 election, the House Republicans will become the majority party. The current House Republican leader Kevin McCarthy (Calif.) is still working to get enough votes (218) to be elected Speaker of the House in January. House Democrats selected Rep. Hakeem Jefferies (N.Y.) the first African American to lead a major political party in Congress. He will replace Speaker Nancy Pelosi. These leaders will appoint Chairpersons and Ranking Members of Congressional Committees in the 118th Congress.
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