Every year Congress passes legislation called the National Defense Authorization Act (NDAA). In late 2021, the NDAA for 2022 included a special pay called a Basic Needs Allowance, which was due to start on 1 Jan 2023. This allowance was designed to provide additional support to those who may be struggling financially, including the 1 in 4 military families struggling to put adequate food on the table, an economic status known as food insecurity. As 2023 drew closer, military members and their families continued to wait for guidance from the DoD and each branch to see how this special allowance will be dispersed, who will qualify, and how to sign up. In late 2022, the NDAA further expanded the Basic Needs Allowance and here is everything you need to know:
- BNA is designed to help the most junior families afford basic needs like food, housing, and clothing. In 2022 NDAA, the legislation was set for households with dependents that have a gross household income below 130% of the federal poverty level. In the 2023 NDAA, the gross household income qualification was increased to 150% of the federal poverty level, as determined by the Department of Health and Human Services.
- The 2023 NDAA includes language to allow the DoD to increase the BNA to be up to 200% of the federal poverty level, in order to better support more families in need.
- Currently, all military pay, including housing allowance, will be included as income to determine eligibility, meaning a servicemember’s qualification may change with PCS. Many non-profit organizations and concerned experts have called for housing allowance to be excluded when determining BNA eligibility to increase access to this supplemental allowance.
- Servicemembers should be automatically screened by their military branch and will be notified if they might qualify. **Of note, in late 2022, the Department of the Air Force reported that in its initial screen of all members of the Air Force, Space Force, Air Guard, and Reserves, only 36 members actually qualified at the 130% poverty level when all pay and allowances (including housing) were used for eligibility.
- BNA is not automatic and therefore requires voluntary, opt-in enrollment.
- BNA is considered taxable income and it is unknown whether or not federal nutrition support, like the Supplemental Nutrition Assistance Program (SNAP) or SNAP for Women, Infants, and Children (WIC), will use BNA as part of their income-based eligibility. Servicemembers should research their income eligibility and consider potential loss of SNAP benefits before opting to receive the BNA.
- Servicemembers should contact their payroll office to inquire about eligibility. Anyone may inquire about eligibility, not just those who were pre-screened.
This guidance for the BNA is new and Military Spouse will continue to report the most up to date information, as it becomes available.