§402b Basic Needs Allowance for Members on Active Service in the Armed Forces

Summary

Active duty members who meet certain rules must be paid a monthly basic needs allowance. To get it a member must have finished initial entry training, have a gross household income for the most recent calendar year that did not exceed 200 percent of the Federal poverty guidelines for their location and household size, not be barred by other rules, and not choose in writing to decline the payment. The monthly amount is: (200 percent of the Federal poverty guideline for the calendar year for the member’s location and household size minus the member’s gross household income for the preceding calendar year) divided by 12. Members without dependents, cadets or midshipmen at service academies (or serving elsewhere in the armed forces in that status), and members whose pay permanently rises so their annual income would go over the 200 percent limit are not eligible. If a household has more than one eligible member, only one payment may be made and those members must decide who gets it. A member is not eligible just because their prior year income fell due to a fine, forfeiture, or demotion for disciplinary action. A member must apply and give information the Secretary asks for, and must update that application as required but at least once a year to keep getting the allowance. Applying is voluntary. The Secretary of Defense must screen members during initial entry training and later and tell anyone who may qualify how to apply. The Secretary concerned must tell each eligible member in writing and give information on financial help. A member can elect in writing not to receive the allowance. Members overseas use the continental United States poverty guidelines for these tests. The Secretary of Defense must create rules for this program within one year after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2022. The allowance may be paid for months beginning on or after the date that is one year after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2022 and may not be paid for any month beginning after December 31, 2027. Definitions: “gross household income” means all household income from any source (minus any part of basic allowance for housing the Secretary may choose to exclude for high-cost areas or need); “household” means the member and any dependents enrolled in DEERS.