NewsBytes October 1, 2021
In this issue:
Must Pass CR Still Pending
Debt Suspension Pending in Senate
House Approves Annual COLA for Veterans Programs
DoD Temporarily Increases BAH in Certain Areas
Must Pass CR Still Pending
As NewsBytes goes to press, the Senate and House are expected to approve a stopgap funding measure, known as a Continuing Resolution (CR-H.R.5305) to prevent the U.S. government from partially shutting down on Oct. 1, 2021, the start of the new fiscal year. This CR will keep the government open at current spending levels until Dec. 3, 2021. This will give Congress time to approve appropriations (spending) bills and to be signed into law by the president.
In the event of a government shutdown, active-duty military personnel will be paid because they are considered “essential workers.” Retirees will continue to be paid because funding for their benefits are not required to be appropriated by Congress (mandatory funding). TRICARE benefits also will continue if there is a shutdown. Those receiving veterans’ benefits will continue to get benefits because the Department of Veterans Affairs (VA) has two-year funding (an FRA supported initiative) and already has funding for FY2022.
Debt Suspension Pending in Senate
A bill (H.R.5304) that combined the debt limit suspension and a Continuing Resolution (CR) passed the House but failed in the Senate this week. Subsequently, another debt limit suspension bill (S.1301) passed the House on a mostly partisan roll call vote (219-211). This bill is also not expected to pass the Senate. The bill suspends the debt limit through Dec. 16, 2022 and would enable the U.S. government to continue to borrow money to pay its bills. The debt limit came back into effect at $28.4 trillion on Aug. 1, 2021, following a two-year suspension. The Treasury Department is using “extraordinary measures” such as delaying certain payments to allow the government to finance operations. Treasury Secretary Janet Yellen claims these measures will run out on Oct. 18, 2021.
House Approves Annual COLA for Veterans Programs
The House passed the “Veterans’ Compensation Cost-of-Living Adjustment Act” (S.189), sponsored by Sen. John Thune (S.D.) that authorizes cost-of-living increases based on the Consumer Price Index (CPI), for veterans’ disability compensation, additional compensation for dependents of veterans, clothing allowance for certain disabled veterans, and dependency and indemnity compensation (DIC) for surviving spouses and their children. This legislation, which was passed by the Senate in July, now will be sent to the president to be signed into law.
The COLA increase for retirees is automatic and does not require legislative action. The amount of the COLA increase for 2022 has not yet been announced.
DoD Temporarily Increases BAH in Certain Areas
The Department of Defense (DoD) has temporarily increased 2021 Basic Allowance for Housing (BAH) rates for 56 housing markets (commonly referred to as Military Housing Areas, MHAs) across the U.S. Uniformed service members who have incurred increased housing costs above their current BAH may be eligible to apply and receive BAH at the temporarily higher rate. The increased BAH rates for affected active duty in these MHAs will take effect Oct. 1, 2021 and expire on Dec. 31, 2021.
Assuming there is no government shutdown, active-duty service members who may be eligible for the higher BAH rates will receive an email in the coming days with additional information on how to apply for the higher rates with their service. Additionally, each service will publish information related to how to apply in administrative messages and other media channels. These higher BAH rates will be replaced by 2022 BAH rates on Jan. 1, 2022. A list of locations with temporary increases can be found online.
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