Bill Overview
Title: BAH Calculation Improvement Act
Description: This bill requires the Department of Defense to submit to Congress a report on the basic allowance for housing for members of the uniformed services that includes elements related to the calculation of such allowance.
Sponsors: Rep. Strickland, Marilyn [D-WA-10]
Target Audience
Population: People in the uniformed services affected by changes to Basic Allowance for Housing calculations
Estimated Size: 2500000
- Members of the uniformed services receive a basic allowance for housing (BAH) to cover housing costs.
- The bill focuses on improvements to the calculation of the BAH, suggesting changes in how this allowance is calculated.
- Uniformed services include the Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, and others.
- This could impact all active-duty service members as well as reserve members who qualify for full BAH benefits globally.
Reasoning
- The policy targets members of the uniformed services, which is a large population but with specific characteristics as they are primarily based in the U.S.
- Active-duty service members and reserve personnel who qualify for BAH will be directly impacted by changes in BAH calculation.
- The budget constraint limits how significantly the policy can impact individual BAH adjustments, meaning the changes may be more subtle and cumulative over the years.
- We should include a variety of roles within the uniformed services to understand how different segments might be impacted.
- The policy does not provide additional funds directly to service members, rather it adjusts calculation methods. Thus, its effect on wellbeing might be indirect, though potentially long-term.
- Considering the cost and the evaluation of such policies, many service members might see no immediate or clear change, whereas some might see gradual improvements if calculations are fairer or reflect cost of living accurately.
Simulated Interviews
Navy Officer (San Diego, CA)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- The current BAH helps but doesn't cover all housing costs in San Diego.
- If the calculation becomes more accurate, I hope it reflects the true cost of living here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 5 |
Air Force Pilot (Norfolk, VA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- Living on base, the BAH adjustment may not affect me much immediately, but it is crucial for my financial planning when I decide to move out.
- Any improvement in calculation would be helpful for future budgeting.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Space Force Technician (Colorado Springs, CO)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Current BAH doesn't align well with my mortgage costs due to local market changes.
- The policy might bring needed adjustments, making budgeting less stressful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 4 |
Army Private First Class (Fort Hood, TX)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- The BAH calculator might not assume my choice of shared housing, but it's beneficial to know calculations are being improved.
- Any changes might support decisions if I choose to live independently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Marine Corps Logistics Specialist (Washington D.C.)
Age: 37 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- The yearly increase in rent is not proportionately matched by BAH changes, so any more precise calculations would be timely.
- It might allow us to consider better options for living if it reflects true costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Navy Nurse (Jacksonville, FL)
Age: 31 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- My BAH covers most of my mortgage, but not repair costs or increased property taxes.
- I appreciate the attention toward balancing BAH with true living expenses, though I'm unsure how direct the benefit will be for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Coast Guard Communications Specialist (El Paso, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- Rent is my main financial concern, and BAH often falls short of the increase.
- An improved calculation might provide relief and make starting a family more comfortable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
Retired Army Colonel (Honolulu, HI)
Age: 54 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 3/20
Statement of Opinion:
- BAH affects my pension's allowance formula; improvements might have trickle-down effects.
- I'm curious but skeptical about how active this will affect my current finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Air National Guard Reserve Member (Columbus, OH)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- As a reservist, the full BAH component impacts me less regularly, but any improvements would be welcome especially now with a newborn.
- We need these policies to respond to current economic contexts better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 7 | 8 |
Coast Guard Ensign (Boston, MA)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 14/20
Statement of Opinion:
- The BAH rate often lags behind living cost increases, especially in cities like Boston.
- I support any improvement to help match real-world housing expenses when I move.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $8000000)
Year 2: $2000000 (Low: $1000000, High: $4000000)
Year 3: $2000000 (Low: $1000000, High: $4000000)
Year 5: $2000000 (Low: $1000000, High: $4000000)
Year 10: $2000000 (Low: $1000000, High: $4000000)
Year 100: $2000000 (Low: $1000000, High: $4000000)
Key Considerations
- Impact on active-duty service members' living conditions depending on changes to BAH calculations.
- The need for accurate data collection and analysis to justify changes to BAH.
- Potential administrative costs involved in the creation of a detailed report for Congress.