Newsbytes January 9, 2026

In this issue:
Veterans Cemetery Grants 
Defense Spending Proposal 
Combat Roles Review
VA Apportionment Changes 

Veterans Cemetery Grants 
The Department of Veterans Affairs awarded more than $77 million in fiscal year 2025 grants to support the expansion, improvement, and establishment of state Veterans cemeteries across the country. The funding includes support for 20 existing state Veterans cemeteries and one establishment grant for Alaska’s first state Veterans cemetery, located in Fairbanks. These grants are administered through VA’s National Cemetery Administration and reimburse states for costs associated with construction, expansion, and operational improvements. 

State Veterans cemeteries play a critical role in honoring Veterans and supporting their families. Grant funding is typically used to construct pre-placed crypts, columbariums, and other infrastructure needed to continue interments and maintain cemetery operations. In fiscal year 2025 alone, VA grant-funded cemeteries interred more than 43,700 Veterans and eligible family members, accounting for roughly one quarter of all interments nationwide when combined with VA national cemeteries. 

Since the program’s inception in 1980, the VA has awarded more than $1.1 billion in cemetery grants to 124 Veterans cemeteries in 47 states, 14 tribal nations, and three U.S. territories. Working in partnership with VA’s 157 national cemeteries, these state, territorial, and tribal cemeteries ensure that more than 94 percent of Veterans living in the United States have access to a Veterans cemetery within 75 miles of their home. Recent awards include major expansions in Texas, Virginia, Tennessee, North Carolina, and Wisconsin, along with the establishment of Alaska’s first state Veterans cemetery. 

The Fleet Reserve Association welcomes VA’s continued investment in state Veterans cemeteries and supports efforts that expand access to dignified burial options for Veterans and their families. Ensuring that Veterans are honored in perpetuity is a core component of earned benefits, and FRA strongly supports sustained federal funding for cemetery infrastructure that preserves the legacy and service of those who wore the uniform. 

Veterans interred in most VA grant funded cemeteries are also memorialized through VA’s Veterans Legacy Memorial website, which allows families and friends to share tributes, photographs, and personal histories. Additional information on VA burial benefits and memorial services is available through the Department of Veterans Affairs.  

Defense Spending Proposal 
President Trump has proposed increasing U.S. defense spending to $1.5 trillion in fiscal year 2027, citing heightened global security concerns and what he described as increasingly dangerous times. The proposal would represent a significant increase over the current fiscal year 2026 defense budget of $901 billion and would require congressional approval as lawmakers begin deliberations on future budget priorities. 

The President argued that the funding surge would strengthen military readiness and expand weapons production, pointing to recent military operations and rising geopolitical tensions. He also emphasized that tariff revenue generated by his administration could help offset increased defense spending, though budget analysts note that tariff revenues alone would not fully cover the proposal alongside other fiscal commitments. 

In addition to calling for higher spending levels, the President criticized major defense contractors for prioritizing stock buybacks over manufacturing capacity and threatened to restrict Pentagon contracts for companies that fail to reinvest profits into production facilities and equipment. Administration officials and members of Congress are expected to closely scrutinize both the size of the proposal and how additional funds would be allocated between modernization, procurement, and force readiness. 

The Fleet Reserve Association recognizes the importance of maintaining a strong national defense and urges that any increase in defense spending prioritize servicemembers and their families. FRA hopes that new funding considers the strengthening of personnel programs, including meaningful pay raises, full funding for 100 percent Basic Allowance for Housing, and improvements to other quality of life and retention initiatives. Ensuring competitive compensation and stable living conditions remains essential to sustaining an all volunteer force and military readiness. 

Combat Roles Review 
The Department of War has launched a six-month review examining the effectiveness of women serving in ground combat roles, nearly ten years after the military opened infantry, armor, and artillery positions to women. The review will require the Army and Marine Corps to submit data on readiness, training outcomes, performance, casualties, and command climate within ground combat units. 

According to a December memorandum issued by the Undersecretary of Defense for Personnel, the assessment is intended to evaluate the operational effectiveness of ground combat forces and how integration has affected combat units over the past decade. Pentagon officials stated that the review is being conducted by the Institute for Defense Analyses, a federally funded nonprofit organization that provides research and analysis to the Department of Defense. 

Defense Department leadership has emphasized that combat standards will remain uniform, elite, and sex neutral. Pentagon officials noted that the review is not intended to impose quotas or adjust requirements, but to ensure that physical and operational standards remain consistent and that combat units maintain maximum lethality and readiness. Defense Secretary Pete Hegseth has publicly stated that combat standards should reflect the highest physical requirements associated with those roles. 

The Fleet Reserve Association supports policies that prioritize military readiness, unit cohesion, and clear, enforceable standards across all occupational specialties. FRA maintains that any review of personnel policies should be grounded in objective data, applied consistently, and focused on strengthening the force while ensuring fairness and transparency for all servicemembers who meet established requirements. 

VA Apportionment Changes 
Effective February 9, 2026, the Department of Veterans Affairs will discontinue need-based apportionments for compensation, pension, and dependency and indemnity compensation awards. VA will continue to make apportionments in cases involving incarcerated Veterans or surviving spouses, as well as cases involving incompetent Veterans who are institutionalized at government expense and do not have a fiduciary, regardless of financial need. 

Under the previous policy, VA evaluated apportionment requests by reviewing relative financial hardship and individual circumstances. Determinations considered factors such as demonstrated financial need, the amount of VA benefits received, and other sources of income or resources available to the beneficiary and dependents. 

VA stated that state family courts are better positioned to handle most apportionment matters due to their proximity, expertise, and legal authority in family law. According to VA, federal apportionment decisions may conflict with court ordered awards issued by state courts that are able to fully evaluate financial circumstances and issue economically appropriate rulings. The new policy will apply only to new apportionment claims and requests to adjust existing apportionments. Apportionments currently being paid will continue without interruption. 

The Fleet Reserve Association supports efforts to clarify and streamline VA benefit administration while ensuring that Veterans and their families are treated fairly and consistently. FRA encourages VA to closely monitor the implementation of this change to ensure that dependents are not adversely impacted and that Veterans receive clear guidance on available options through state courts and existing VA processes. 

Eligible Veterans and surviving spouses may request apportionments using VA Form 21 0788, Information Regarding Apportionment of Beneficiary’s Award. The final rule is published in the Federal Register under document number 2026 00237.