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Title 37 — Pay and Allowances of the Uniformed Services

Chapter 7 — Allowances Other Than Travel and Transportation Allowances

§ 402b. Basic needs allowance for members on active service in the Armed Forces

Statutory text

(a)

Allowance Required.—

The Secretary concerned shall pay to each member who is eligible under subsection (b) a basic needs allowance in the amount determined for such member under subsection (c).

(b)

Eligible Members.—

A member on active service in the armed forces is eligible for the allowance under subsection (a) if—

(1)

the member has completed initial entry training;

(2)

the gross household income of the member during the most recent calendar year did not exceed an amount equal to 200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the location of the member and the number of individuals in the household of the member for such year; and

(3)

the member—

(A)

is not ineligible for the allowance under subsection (d); and

(B)

does not elect under subsection (g) not to receive the allowance.

(c)

Amount of Allowance.—

The amount of the monthly allowance payable to a member under subsection (a) shall be the amount equal to—

(1)
(A)

200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the calendar year during which the allowance is paid based on the location of the member and the number of individuals in the household of the member during the month for which the allowance is paid; minus

(B)

the gross household income of the member during the preceding calendar year; divided by

(2)

12.

(d)

Bases of Ineligibility.—

(1)

In general.—

The following members are ineligible for the allowance under subsection (a):

(A)

A member who does not have any dependents.

(B)

A cadet at the United States Military Academy, the United States Air Force Academy, or the Coast Guard Academy, a midshipman at the United States Naval Academy, or a cadet or midshipman serving elsewhere in the armed forces.

(2)

Household with more than one eligible member.—

In the event a household contains two or more members determined under subsection (f) to be eligible to receive the allowance under subsection (a), only one allowance may be paid to a member among such members as such members shall jointly elect.

(3)

Automatic ineligibility of members receiving certain pay increases.—

A member determined to be eligible under subsection (f) for the allowance under subsection (a) whose monthly gross household income increases as a result of a promotion or other permanent increase to pay or allowances under this title to an amount that, on an annualized basis, would exceed the amount described in subsection (b)(2) is ineligible for the allowance. If such member is receiving the allowance, payment of the allowance shall automatically terminate within a reasonable time, as determined by the Secretary of Defense in regulations prescribed under subsection (j).

(4)

Ineligibility of certain changes in income.—

A member whose gross household income for the preceding year decreases because of a fine, forfeiture, or reduction in rank imposed as a part of disciplinary action or an action under chapter 47 of title 10 (the Uniform Code of Military Justice) is not eligible for the allowance under subsection (a) solely as a result of the fine, forfeiture, or reduction in rank.

(e)

Application by Members Seeking Allowance.—

(1)

In general.—

A member who seeks to receive the allowance under subsection (a) shall submit to the Secretary concerned an application for the allowance that includes such information as the Secretary may require in order to determine whether or not the member is eligible to receive the allowance.

(2)

Timing of submission.—

A member who receives the allowance under subsection (a) and seeks to continue to receive the allowance shall submit to the Secretary concerned an updated application under paragraph (1) at such times as the Secretary may require, but not less frequently than annually.

(3)

Voluntary submission.—

The submission of an application under paragraph (1) is voluntary.

(4)

Screening of members for eligibility.—

The Secretary of Defense shall—

(A)

ensure that all members of the armed forces are screened during initial entry training and regularly thereafter for eligibility for the allowance under subsection (a); and

(B)

notify any member so screened who may be eligible that the member may apply for the allowance by submitting an application under paragraph (1).

(f)

Determinations of Eligibility.—

(1)

In general.—

The Secretary concerned shall—

(A)

determine which members of the armed forces are eligible under subsection (b); and

(B)

notify each such member, in writing, of that determination.

(2)

Information included in notice.—

The notice under paragraph (1) shall include information regarding financial management and assistance programs for which the member may be eligible.

(g)

Election Not to Receive Allowance.—

(1)

In general.—

A member determined under subsection (f) to be eligible for the allowance under subsection (a) may elect, in writing, not to receive the allowance.

(2)

Deemed ineligible.—

A member who does not submit an application under subsection (e) within a reasonable time (as determined by the Secretary concerned) shall be deemed ineligible for the allowance under subsection (a).

(h)

Special Rule for Members Stationed Outside United States.—

In the case of a member assigned to a duty location outside the United States, the Secretary concerned shall make the calculations described in subsections (b)(2) and (c)(1) using the Federal poverty guidelines of the Department of Health and Human Services for the continental United States.

(i)

Regulations.—

Not later than one year after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2022, the Secretary of Defense shall prescribe regulations for the administration of this section.

(j)

Effective Period.—

(1)

Implementation period.—

The allowance under subsection (a) is payable 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.

(2)

Termination.—

The allowance under subsection (a) may not be paid for any month beginning after .

(k)

Definitions.—

In this section:

(1)

Gross household income.—

The term “gross household income”, with respect to a member of the armed forces, includes—

(A)

all household income, derived from any source; minus

(B)

in the case of a member whom the Secretary concerned determines resides in an area with a high cost of living or that otherwise has a demonstrated need, any portion of the basic allowance for housing under section 403 of this title that the Secretary concerned elects to exclude.

(2)

Household.—

The term “household” means a member of the armed forces and any dependents of the member enrolled in the Defense Enrollment Eligibility Reporting System, regardless of the location of those dependents.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. National Defense Authorization Act for Fiscal Year 2022

    Pub. L. 117–81 div. A title VI § 601(a) · 135 Stat. 1541

    Enacted · 37 U.S.C. § 402b

    Added Pub. L. 117–81, div. A, title VI, § 601(a), Dec. 27, 2021, 135 Stat. 1761

    Source evidence

    Code source credit
    Added Pub. L. 117–81, div. A, title VI, § 601(a), Dec. 27, 2021, 135 Stat. 1761

    Enacted provision · exact public law section
    (a) In General.— Chapter 7 of title 37, United States Code, is amended by inserting after section 402a the following new section: “§ 402b. Basic needs allowance for members on active service in the Armed Forces “(a) Allowance Required.— The Secretary concerned shall pay to each member who is eligible under subsection (b) a basic needs allowance in the amount determined for such member under subsection (c). “(b) Eligible Members.— A member on active service in the armed forces is eligible for the allowance under subsection (a) if— “(1) the member has completed initial entry training; “(2) the gross household income of the member during the most recent calendar year did not exceed an amount equal to 130 percent of the Federal poverty guidelines of the Department of Health and Human Services for the location of the member and the number of individuals in the household of the member for such year; and “(3) the member— “(A) is not ineligible for the allowance under subsection (d); and “(B) does not elect under subsection (g) not to receive the allowance. “(c) Amount of Allowance.— The amount of the monthly allowance payable to a member under subsection (a) shall be the amount equal to— “(1) (A) 130 percent of the Federal poverty guidelines of the Department of Health and Human Services for the calendar year during which the allowance is paid based on the location of the member and the number of individuals in the household of the member during the month for which the allowance is paid; minus “(B) the gross household income of the member during the preceding calendar year; divided by “(2) 12. “(d) Bases of Ineligibility.— “(1) In general.— The following members are ineligible for the allowance under subsection (a): “(A) A member who does not have any dependents. “(B) A cadet at the United States Military Academy, the United States Air Force Academy, or the Coast Guard Academy, a midshipman at the United States Naval Academy, or a cadet or midshipman serving elsewhere in the armed forces. “(2) Household with more than one eligible member.— In the event a household contains two or more members determined under subsection (f) to be eligible to receive the allowance under subsection (a), only one allowance may be paid to a member among such members as such members shall jointly elect. “(3) Automatic ineligibility of members receiving certain pay increases.— A member determined to be eligible under subsection (f) for the allowance under subsection (a) whose monthly gross household income increases as a result of a promotion or other permanent increase to pay or allowances under this title to an amount that, on an annualized basis, would exceed the amount described in subsection (b)(2) is ineligible for the allowance. If such member is receiving the allowance, payment of the allowance shall automatically terminate within a reasonable time, as determined by the Secretary of Defense in regulations prescribed under subsection (j). “(4) Ineligibility of certain changes in income.— A member whose gross household income for the preceding year decreases because of a fine, forfeiture, or reduction in rank imposed as a part of disciplinary action or an action under chapter 47 of title 10 (the Uniform Code of Military Justice) is not eligible for the allowance under subsection (a) solely as a result of the fine, forfeiture, or reduction in rank. “(e) Application by Members Seeking Allowance.— “(1) In general.— A member who seeks to receive the allowance under subsection (a) shall submit to the Secretary concerned an application for the allowance that includes such information as the Secretary may require in order to determine whether or not the member is eligible to receive the allowance. “(2) Timing of submission.— A member who receives the allowance under subsection (a) and seeks to continue to receive the allowance shall submit to the Secretary concerned an updated application under paragraph (1) at such times as the Secretary may require, but not less frequently than annually. “(3) Voluntary submission.— The submission of an application under paragraph (1) is voluntary. “(4) Screening of members for eligibility.— The Secretary of Defense shall— “(A) ensure that all members of the armed forces are screened during initial entry training and regularly thereafter for eligibility for the allowance under subsection (a); and “(B) notify any member so screened who may be eligible that the member may apply for the allowance by submitting an application under paragraph (1). “(f) Determinations of Eligibility.— “(1) In general.— The Secretary concerned shall— “(A) determine which members of the armed forces are eligible under subsection (b); and “(B) notify each such member, in writing, of that determination. “(2) Information included in notice.— The notice under paragraph (1) shall include information regarding financial management and assistance programs for which the member may be eligible. “(g) Election Not to Receive Allowance.— “(1) In general.— A member determined under subsection (f) to be eligible for the allowance under subsection (a) may elect, in writing, not to receive the allowance. “(2) Deemed ineligible.— A member who does not submit an application under subsection (e) within a reasonable time (as determined by the Secretary concerned) shall be deemed ineligible for the allowance under subsection (a). “(h) Special Rule for Members Stationed Outside United States.— In the case of a member assigned to a duty location outside the United States, the Secretary concerned shall make the calculations described in subsections (b)(2) and (c)(1) using the Federal poverty guidelines of the Department of Health and Human Services for the continental United States. “(i) Regulations.— Not later than one year after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2022, the Secretary of Defense shall prescribe regulations for the administration of this section. “(j) Effective Period.— “(1) Implementation period.— The allowance under subsection (a) is payable 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. “(2) Termination.— The allowance under subsection (a) may not be paid for any month beginning after December 31, 2027. “(k) Definitions.— In this section: “(1) Gross household income.— The term ‘gross household income’, with respect to a member of the armed forces, includes— “(A) all household income, derived from any source; minus “(B) in the case of a member whom the Secretary concerned determines resides in an area with a high cost of living, any portion of the basic allowance for housing under section 403 of this title that the Secretary concerned elects to exclude. “(2) Household.— The term ‘household’ means a member of the armed forces and any dependents of the member enrolled in the Defense Enrollment Eligibility Reporting System, regardless of the location of those dependents.” .

  2. James M. Inhofe National Defense Authorization Act for Fiscal Year 2023

    Pub. L. 117–263 § 611(a)(1) · 136 Stat. 2395

    1. Amended · 37 U.S.C. § 402b(b)(2)

      Pub. L. 117–263, § 611(a)(1), as amended by Pub. L. 117–328, § 201(a)(2)

    2. Amended · 37 U.S.C. § 402b(b)(2)

      Pub. L. 117–263, § 611(a)(1), as designated existing provisions as subpar. (A)

    3. Substituted · 37 U.S.C. § 402b(b)(2)

      Pub. L. 117–263, § 611(a)(1), as substituted “150 percent” for “130 percent”

    4. Substituted · 37 U.S.C. § 402b(b)(2)

      Pub. L. 117–263, § 611(a)(1), as substituted “; or” for “; and”

    5. Added · 37 U.S.C. § 402b(b)(2)

      Pub. L. 117–263, § 611(a)(1), as added subpar. (B)

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 117–263, § 611(a)(1), as amended by Pub. L. 117–328, § 201(a)(2), designated existing provisions as subpar. (A), substituted “150 percent” for “130 percent” and “; or” for “; and”, and added subpar. (B).

    Enacted provision · exact public law section
    (1) by striking “130 percent” both places it appears and inserting “150 percent”; and

    Effective date note
    Pub. L. 117–328, div. O, title II, § 201(b), Dec. 29, 2022, 136 Stat. 5227, provided that: “The amendments made by this section [amending section 611(a) of Pub. L. 117–263, which amended this section] shall take effect as if included in the enactment of such Act [meaning Pub. L. 117–263, approved Dec. 23, 2022].”

  3. James M. Inhofe National Defense Authorization Act for Fiscal Year 2023

    Pub. L. 117–263 § 611(a)(2) · 136 Stat. 2395

    1. Amended · 37 U.S.C. § 402b(c)(1)(A)

      Pub. L. 117–263, § 611(a)(2), as amended by Pub. L. 117–328, § 201(a)(3)

    2. Substituted · 37 U.S.C. § 402b(c)(1)(A)

      Pub. L. 117–263, § 611(a)(2), as substituted “150 percent (or, in the case of a member described in subsection (b)(2)(B), 200 percent)” for “130 percent”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(A). Pub. L. 117–263, § 611(a)(2), as amended by Pub. L. 117–328, § 201(a)(3), substituted “150 percent (or, in the case of a member described in subsection (b)(2)(B), 200 percent)” for “130 percent”.

    Enacted provision · exact public law section
    (2) in paragraph (2)— (A) by inserting “(A)” before “the gross”; (B) by striking “; and” and inserting “; or”; and (C) by inserting at the end the following: “(B) if the Secretary concerned determines it appropriate (based on location, household need, or special circumstance), the gross household income of the member during the most recent calendar year did not exceed an amount equal to 200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the location of the member and the number of individuals in the household of the member for such year; and” .

    Effective date note
    Pub. L. 117–328, div. O, title II, § 201(b), Dec. 29, 2022, 136 Stat. 5227, provided that: “The amendments made by this section [amending section 611(a) of Pub. L. 117–263, which amended this section] shall take effect as if included in the enactment of such Act [meaning Pub. L. 117–263, approved Dec. 23, 2022].”

  4. Department of Justice Appropriations Act, 2023

    Pub. L. 117–328 § 201(a)(1) · 136 Stat. 4459

    Changed · 37 U.S.C. § 402b

    Pub. L. 117–328, § 201(a)(1), made technical amendment to directory language of Pub. L. 117–263, § 611(a). See Amendment notes below

    Source evidence

    Code amendment note
    Pub. L. 117–328, § 201(a)(1), made technical amendment to directory language of Pub. L. 117–263, § 611(a). See Amendment notes below.

    Enacted provision · exact public law section
    Sec. 201. In addition to amounts otherwise made available in this title for official reception and representation expenses, a total of not to exceed $50,000 from funds appropriated to the Department of Justice in this title shall be available to the Attorney General for official reception and representation expenses.

    Effective date note
    Pub. L. 117–328, div. O, title II, § 201(b), Dec. 29, 2022, 136 Stat. 5227, provided that: “The amendments made by this section [amending section 611(a) of Pub. L. 117–263, which amended this section] shall take effect as if included in the enactment of such Act [meaning Pub. L. 117–263, approved Dec. 23, 2022].”

  5. National Defense Authorization Act for Fiscal Year 2024

    Pub. L. 118–31 div. A title VI § 621(a) · 137 Stat. 136

    Inserted · 37 U.S.C. § 402b(k)(1)(B)

    Pub. L. 118–31 inserted “or that otherwise has a demonstrated need” after “high cost of living”

    Source evidence

    Code amendment note
    Subsec. (k)(1)(B). Pub. L. 118–31 inserted “or that otherwise has a demonstrated need” after “high cost of living”.

    Enacted provision · exact public law section
    (a) In General.— Section 402b(k)(1)(B) of title 37, United States Code, is amended by inserting “or that otherwise has a demonstrated need” after “high cost of living”.

  6. Pub. L. 118–159 § 621(a) · 138 Stat. 1933

    1. Struck · 37 U.S.C. § 402b(b)(2)

      Pub. L. 118–159, § 621(a), struck out subpar. (A) designation before “the gross household income”

    2. Substituted · 37 U.S.C. § 402b(b)(2)

      Pub. L. 118–159, § 621(a), substituted “200 percent” for “150 percent”

    3. Substituted · 37 U.S.C. § 402b(b)(2)

      Pub. L. 118–159, § 621(a), substituted “; and” for “; or”

    4. Struck · 37 U.S.C. § 402b(b)(2)

      Pub. L. 118–159, § 621(a), struck out subpar. (B) which read as follows: “if the Secretary concerned determines it appropriate (based on location, household need, or special circumstance), the gross household income of the member during the most recent calendar year did not exceed an amount equal to 200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the location of the member and the number of individuals in the household of the member for such year; and”

    Unresolved: Pub. L. 118–159 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 118–159, § 621(a), struck out subpar. (A) designation before “the gross household income”, substituted “200 percent” for “150 percent” and “; and” for “; or”, and struck out subpar. (B) which read as follows: “if the Secretary concerned determines it appropriate (based on location, household need, or special circumstance), the gross household income of the member during the most recent calendar year did not exceed an amount equal to 200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the location of the member and the number of individuals in the household of the member for such year; and”.

  7. Pub. L. 118–159 § 621(b) · 138 Stat. 1933

    Substituted · 37 U.S.C. § 402b(c)(1)(A)

    Pub. L. 118–159, § 621(b), substituted “200 percent” for “150 percent (or, in the case of a member described in subsection (b)(2)(B), 200 percent)”

    Unresolved: Pub. L. 118–159 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (c)(1)(A). Pub. L. 118–159, § 621(b), substituted “200 percent” for “150 percent (or, in the case of a member described in subsection (b)(2)(B), 200 percent)”.

10 of 15 references resolved to an enrolled provision · 5 unresolved

Editorial Notes

References in Text

The date of the enactment of the National Defense Authorization Act for Fiscal Year 2022, referred to in subsecs. (i) and (j)(1), is the date of enactment of Pub. L. 117–81, which was approved .

Amendments2022–2024 · 3 rounds

2024

Subsec. (b)(2). Pub. L. 118–159, § 621(a), struck out subpar. (A) designation before “the gross household income”, substituted “200 percent” for “150 percent” and “; and” for “; or”, and struck out subpar. (B) which read as follows: “if the Secretary concerned determines it appropriate (based on location, household need, or special circumstance), the gross household income of the member during the most recent calendar year did not exceed an amount equal to 200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the location of the member and the number of individuals in the household of the member for such year; and”.

Subsec. (c)(1)(A). Pub. L. 118–159, § 621(b), substituted “200 percent” for “150 percent (or, in the case of a member described in subsection (b)(2)(B), 200 percent)”.

2023

Subsec. (k)(1)(B). Pub. L. 118–31 inserted “or that otherwise has a demonstrated need” after “high cost of living”.

2022

Pub. L. 117–328, § 201(a)(1), made technical amendment to directory language of Pub. L. 117–263, § 611(a). See Amendment notes below.

Subsec. (b)(2). Pub. L. 117–263, § 611(a)(1), as amended by Pub. L. 117–328, § 201(a)(2), designated existing provisions as subpar. (A), substituted “150 percent” for “130 percent” and “; or” for “; and”, and added subpar. (B).

Subsec. (c)(1)(A). Pub. L. 117–263, § 611(a)(2), as amended by Pub. L. 117–328, § 201(a)(3), substituted “150 percent (or, in the case of a member described in subsection (b)(2)(B), 200 percent)” for “130 percent”.

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Pub. L. 117–328, div. O, title II, § 201(b), , 136 Stat. 5227, provided that: “The amendments made by this section [amending section 611(a) of Pub. L. 117–263, which amended this section] shall take effect as if included in the enactment of such Act [meaning Pub. L. 117–263, approved ].”

Implementation

Pub. L. 118–31, div. A, title VI, § 621(b), , 137 Stat. 293, provided that: “The Secretary of Defense shall revise the guidance issued with respect to implementation of the basic needs allowance under section 402b of title 37, United States Code, to reflect the amendment made by subsection (a) [amending this section].”

Pub. L. 117–263, div. A, title VI, § 611(b), , 136 Stat. 2622, provided that: “Not later than , the Secretary concerned (as defined in section 101 of title 37, United States Code) shall modify the calculation of the basic needs allowance under section 402b of title 37, United States Code, to implement the amendments made by subsection (a) [amending this section].”

Credits

2021–2024 · 5 acts
  1. 2021Added Pub. L. 117–81, div. A, title VI, § 601(a), , 135 Stat. 1761
  2. 2022amended Pub. L. 117–263, div. A, title VI, § 611(a), , 136 Stat. 2622
  3. 2022Pub. L. 117–328, div. O, title II, § 201(a), , 136 Stat. 5226
  4. 2023Pub. L. 118–31, div. A, title VI, § 621(a), , 137 Stat. 293
  5. 2024Pub. L. 118–159, div. A, title VI, § 621, , 138 Stat. 1933.
Show as published

(Added Pub. L. 117–81, div. A, title VI, § 601(a), , 135 Stat. 1761; amended Pub. L. 117–263, div. A, title VI, § 611(a), , 136 Stat. 2622; Pub. L. 117–328, div. O, title II, § 201(a), , 136 Stat. 5226; Pub. L. 118–31, div. A, title VI, § 621(a), , 137 Stat. 293; Pub. L. 118–159, div. A, title VI, § 621, , 138 Stat. 1933.)

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