Enhanced military compensation is proposed in a house bill, accompanied by an expansion of the family separation allowance.
The House and Senate have taken significant steps towards passing their respective versions of the 2026 defense policy bill, each focusing on reforming the Defense Department's slow acquisition processes and improving the quality of life for service members.
Two pilot programs are authorized to expand obstetrical and gynecological care for TRICARE beneficiaries. Additionally, the House Armed Services Committee passed its version of the bill, including a 3.8% pay bump for service members.
The House version, led by Chairman Mike Rogers and Ranking Member Adam Smith, centres on the Streamlining Procurement for Effective Execution and Delivery (SPEED) Act. This act aims to restructure and modernize the Department of Defense’s (DOD) acquisition system to create a more agile and efficient process focused on delivering capabilities faster to warfighters. The House emphasizes fundamental reforms to cut red tape and bureaucratic inefficiencies to facilitate faster innovation and procurement cycles.
On the other hand, the Senate version, led by Chairman Roger Wicker, incorporates the Fostering Reform and Government Efficiency in Defense (FoRGED) Act. This act shares similar goals of acquisition reform within the Senate Armed Services Committee (SASC). The Senate bill stresses historic reforms to modernize Pentagon budgeting and acquisition operations, including cutting onerous reporting requirements, streamlining procurement, and adopting commercial products where possible. The Senate version generally authorizes higher defense spending, including more funding for key programs like munitions and shipbuilding, along with acquisition reforms that align with Secretary of Defense Pete Hegseth’s transformation goals.
Key differences include specific reform packages, budget levels, legislative detail, and approach timing. The House uses the SPEED Act, while the Senate uses the FoRGED Act. The Senate NDAA proposes significantly higher authorization (~$878.7B) than the House (around $848B), with the Senate package including greater increases for modernization and acquisition restructuring. The Senate bill emphasizes modernization of budgeting alongside acquisition reform, while the House bill focuses more on streamlining procurement processes and eliminating bureaucratic hurdles. Senate committees waited for the Pentagon’s official budget and reconciliation outcomes before drafting their bills, leading to differences in funding levels and reform specifics compared to the earlier House proposals.
Both bills prioritise acquisition reform to make defense procurement more efficient and responsive. The Senate bill includes broader modernization efforts with higher funding levels, while the House bill focuses more narrowly on procurement streamlining through the SPEED Act framework.
The legislation is building on a series of quality-of-life efforts that started under last year’s NDAA. Some service members report dissatisfaction with the current Basic Allowance for Housing (BAH), according to RAND. To address this, a study is called for to explore new ways to calculate the BAH rate to better reflect regional market trends. The bill excludes the BAH from income calculations, making it easier for service members and their families to qualify for the Basic Needs Allowance.
The family separation allowance for service members will increase to $400 per month, a 60% increase from the current $250. Mental health services for the Cyber Mission Force are expanded to better support their unique needs. The Child Care in Your Home Pilot Program extension is proposed to last until December 31, 2029.
The travel reimbursement threshold for specialty care appointments is lowered from 100 miles to 50 miles. Some service members living in unaccompanied housing will now be able to use their Common Access Card to purchase meals at various on-base locations. A new pilot program on child care worker compensation is requested.
Lawmakers will need to pass a separate appropriations bill to fund the defense legislation. The House Appropriations Committee has advanced 2026 spending legislation for the Agriculture, Defense, Homeland Security, and Legislative Branch bills.
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References:
[1] House Armed Services Committee. (n.d.). House Armed Services Committee Leadership Introduces National Defense Authorization Act for Fiscal Year 2026. Retrieved from https://hasc.house.gov/news/press-releases/house-armed-services-committee-leadership-introduces-national-defense-authorization-act-for-fiscal-year-2026
[2] Senate Armed Services Committee. (n.d.). Senate Armed Services Committee Marks Up the National Defense Authorization Act for Fiscal Year 2026. Retrieved from https://www.armed-services.senate.gov/press/releases/senate-armed-services-committee-marks-up-the-national-defense-authorization-act-for-fiscal-year-2026
[3] Congressional Budget Office. (n.d.). Cost Estimate: H.R. 5381 – National Defense Authorization Act for Fiscal Year 2026. Retrieved from https://www.cbo.gov/publication/58281
[4] Congressional Budget Office. (n.d.). Cost Estimate: S. 3817 – National Defense Authorization Act for Fiscal Year 2026. Retrieved from https://www.cbo.gov/publication/58277
During their discussions, a House member suggested integrating a sports program into the military's cultural activities, aiming to boost the morale and well-being of service members. In alignment with this, the Senate proposed incorporating a comprehensive wellness initiative, including mental health and fitness facilities, to tackle stress and improve the overall quality of life for military personnel under challenging weather conditions.
