What's Happening?
President Donald Trump has signed the 2026 National Defense Authorization Act (NDAA), which includes a 3.8% pay raise for active-duty service members and reservists. This increase, part of Trump's fiscal
2026 budget request, was approved by Congress and is set to take effect in January. The raise will increase the monthly basic pay for an enlisted E-1 with less than two years of service by approximately $88, bringing it to $2,407. An officer with the paygrade of O-4 with more than six years of service will see an increase of about $305, totaling approximately $8,332 monthly. Additionally, the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS) are also set to rise in 2026, with BAH increasing by an average of 4.2% and BAS by 2.4%.
Why It's Important?
The approval of the 2026 NDAA and the associated pay raise is significant for U.S. military personnel, as it directly impacts their financial well-being. The increase in basic pay and allowances helps to address the cost of living adjustments necessary for servicemembers and their families. This move also reflects the government's commitment to supporting military personnel, which can enhance morale and retention rates within the armed forces. Furthermore, the adjustments in BAH and BAS ensure that housing and subsistence costs are more adequately covered, reducing the financial burden on military families.
What's Next?
As the pay raise takes effect in January, the Defense Finance and Accounting Service will release the exact amounts for the new pay rates. Military personnel and their families will need to adjust their budgets to accommodate the changes in their income. Additionally, the increase in allowances may prompt further discussions on military compensation and benefits, potentially influencing future legislative actions. Stakeholders, including military advocacy groups, may continue to monitor and advocate for further improvements in military pay and benefits.
