Military families are currently preparing for the worst, as housing allowances for servicemembers might be on the chopping block if cuts to defense spending continue, the Wall Street Journal reported.
According to the news source, the military is bracing for massive spending reductions that will strip the Defense Department of $20 billion more in the 2014 fiscal year than in 2013. Now, many military families are worried that there might be changes to the military housing allowance policy, which so far has been protected from the sequester.
While no authorized statement has been made regarding military housing allowances for 2014, Defense Department officials told the news outlet that every aspect of the military is being looked at for potential cuts except for active-duty salaries.
Most families of active-duty servicemembers rely on military housing allowance to live. According to the Department of Defense website, the basic allowance for housing can vary greatly depending on geographical location. When calculating the rate of the allowance, the DOD considers the median rent of the current housing market, price of utilities and average renter's insurance, the website states. Rent typically accounts for at least 70 percent of the housing allowance.
"Rate cuts really make these people nervous, because they're banking on rates staying the same…to cover their mortgage," military spouse Amy Bushatz told the news source.