The Pentagon recently outlined its proposed budget for 2015 and quality of life benefits like housing allowances, health services, and commissary subsidies are all targeted.
“Washington is trying to balance the budget on the backs of those who have sacrificed the most,” said Iraq and Afghanistan Veterans of America chief executive Paul Rieckhoff. “We know the Defense Department must make difficult budget decisions, but these cuts would hit service members, making it harder for them and their families to make ends meet.”
The budget proposal includes a five percent cut in housing allowances and a one percent cap on pay raises. With these two cuts, an Army sergeant with a family of four would see an annual loss of $1,400, and an Army captain would lose $2,100, according to the Military Officers Association of America.
“What’s unknown is the overall financial impact to members and their families when you add these pay and housing reductions to the proposals to cut back on the commissary benefit and change military health care,” said Norb Ryan, the association’s president.
Defense Secretary Chuck Hagel said the budget also includes plans for military retirees and some active-duty family members to pay more for Tricare deductibles and co-pays. The rates are said to remain “affordable and generous,” but Hagel failed to specify how much the health care fees will increase.
Then there are the commissary subsidies that could potentially be reduced by 71 percent, going from $1.4 billion to $400 million in the span of three years. Commissaries in rural areas and overseas shouldn’t be affected by the proposed change, so the remaining commissaries will absorb the loss of funds and in turn, increase prices. According to CNNMoney, the people who take advantage of shopping at their local commissary could face up to a $3,000 increase for a year’s worth of groceries.
The Pentagon is clearly trying to make the cuts as small as possible, but a little bit here and there adds up quickly. Let’s take the Army sergeant with a family of four. He’s potentially losing $1,400 a year from a reduced a housing allowance, another $3,000 a year because his groceries are becoming more expensive and an unspecified amount because he’ll pay more for his spouse and two children to receive health benefits. We’re looking at a loss of more than $4,400. And a meager one percent pay raise isn’t going to cover the additional expenses.
As for the service members who are already living right at the poverty line, there were about 5,000 active-duty service members using food stamps to make ends meet in 2011. Then there are the families who qualify for the Women, Infants, and Children, or WIC, supplemental nutrition program. As of 2013, the DoD reported 16,000 beneficiaries just overseas. With a decrease in pay, no doubt more service members will start to rely on these supplemental programs to keep food on the table.
Spending reductions somewhere are necessary to balance the budget. Unfortunately, this year the Pentagon is asking service members to absorb more of the shortfall.
