It's no secret the Department of Defense has some difficult financial decisions to make. In addition to determining whether to reduce pay raises, slash benefits and drop troop sizes, Pentagon officials are also grappling with whether they should make cutbacks to Basic Allowance for Housing. Known as BAH, the allowance helps military families cover off-base expenses, but any changes could dramatically change how they address financial planning, Military Times reports.
Reducing BAH would help the Pentagon address across-the-board budget cuts from sequestration. It would also be a considerable change to a policy implemented in the middle of the 2000s that provided nearly 100 percent of the costs for things like off-base rentals. The cuts may not have to be that substantial to make a significant difference. Analysts estimate that even if troops covered between 5 and 10 percent of such expenses it could result in as much as $20 billion in savings over the next 10 years.
"There can be reductions in rates," Deputy Defense Secretary Ash Carter told the publication.. "We can look at the rates of growth and try to find ways of slowing growth. We can look at inequalities in the system depending on where you live."
The potential for BAH cuts is just one of the latest concerns military officials have voiced surrounding sequestration. Late last month, Secretary of Defense said it will have an impact on readiness, The Huffington Post notes.