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.
While the unemployment rate for veterans is lower than that of the overall population, certain states are faring better than others when it comes to hiring former servicemembers. Data from the U.S. Bureau of Labor Statistics reveals some staggering variations in veterans unemployment rates, USA Today reported.
Numerous states have a veterans unemployment rate that's higher than the state average. For instance, 10 percent of former servicemembers in New Jersey are unemployed, compared to the state's 8.5 percent nonveterans unemployment number, according to BLS. New Jersey currently has the highest veterans unemployment rate in the nation, followed closely by Massachusetts at 9.9 percent and Arizona at 9.3 percent.
The news source reported that the states with the highest veterans unemployment rates had lower numbers of unemployment for nonveterans, with the exception of California, which has an 8.9 percent unemployment rate for both veterans and nonveterans.
Conversely, Virginia and Oklahoma have the lowest unemployment numbers for veterans, at 4.1 percent. According to the news outlet, Virginia veterans most likely benefit from the state's many military installations and facilities, including the Pentagon, which is located in Arlington County.
Several of the Pentagon's top military chiefs addressed members of Congress this week to outline the ways defense spending cuts enacted by the sequester will harm the military in the long run, The Washington Post reported. Representing the Army, Navy, Air Force and Marine Corps, the chiefs addressed the Senate Armed Services Committee, which is helmed by chairman Sen. Carl Levin, D-Mich.
According to the news source, the weakening of the military's manpower, weapons and overall readiness were among the major concerns of the defense officials. Commandant of the Marine Corps Gen. James Amos called the budget cuts "unsustainable," while Admiral Jonathan Greenert, who oversees Naval operations, told the committee the Navy was "tapped out" in its number of deployed ships.
While the sequester, which is set to reduce defense spending by $480 billion by 2011, has already taken effect, several members of the committee were sympathetic to the chiefs, including Sen. Mark Udall, D-Colo.
"We in Congress created this monster, and we keep dragging you up to the Hill to tell us how much damage it has done," Udall said during the hearing.
Within the next eight years, the sequester is expected to impact nearly every facet of the military, save for the Department of Veterans Affairs and pay and allowances for active-duty troops, Military.com stated.
Military families are sticking to a budget this Thanksgiving, according to a new survey conducted by First Command Financial Behaviors Index. After canvassing middle-class military families with household incomes of $50,000 or above, the investment adviser company found that 62 percent of respondents were planning to reduce their Thanksgiving dinners and travel this November.
"Middle-class Americans are changing the way they celebrate Thanksgiving," First Command CEO Scott Spiker said in a statement. "Affected by the economic issues of the past several years, they are making frugal spending a year-around habit. Notably, these changes are turning Thanksgiving into a more intimate holiday."
Spiker added that, overall, four out of 10 Americans are celebrating the national holiday with only immediate family members, a trend that has been spreading in recent years.
According to the survey, 29 percent of military respondents are reducing their travel expenses, while 22 percent plan to spend less on dinner preparations. Another 23 percent have created a budget.
Given the recent setbacks impacting defense spending, it's likely that military families are making some financial changes. Most recently, the Nov. 1 termination of the Supplemental Nutrition Assistance Program cut the food stamps program by $4 million, ultimately affecting nearly 900,000 veterans, according to the Center on Budget and Policy Priorities. Military.com reported that an estimated 5,000 active-duty servicemembers will also be impacted by the food stamps reduction.
Starbucks announced a new plan this week that will help servicemembers returning from active duty, as well as their spouses, find steady employment.
According to the Los Angeles Times, the coffeehouse franchise plans to hire 10,000 veterans and military spouses in the next five years, thanks in part to an initiative developed by current Starbucks board member and former Secretary of Defense Robert Gates. Through the directive, special recruiting events and processes will be held specifically for veterans, while the company will continue to track veterans hiring at their stores throughout the U.S.
Starbucks Chief Community Officer Blair Taylor told the news source that the new hiring plan is not a "charity initiative," but a way to ease the high unemployment rates of veterans who have just returned from service.
"This is an endeavor predicated on us genuinely needing the skills veterans offer," Taylor said.
The coffee giant is also preparing to open five community stores at U.S. military installations within the next five years. Community stores are special establishments that partner with nonprofits, and the ones at the military bases will share their profits with local organizations that service veterans.
New data from the Department of Veterans Affairs reveals that former servicemembers in need of treatment for mental illness continue to face delays in receiving counseling and medication.
USA Today reported that the VA did not help about 34 percent of veterans seeking mental health treatment within two weeks of their application in 2013. The mental health appointments include treatment for substance abuse and post-traumatic stress disorder, as well as psychiatry and psychology counseling.
According to a statement from the House Committee on Veterans Affairs, the federal agency mandates that appointments must be scheduled within a 14-day timeframe.
The news source reported that the waiting period varies depending on the type of illness and treatment. For first-time psychiatric therapy appointments, around half of the 47,700 applicants had a wait longer than two weeks, with the average wait lasting 15 days. Location also impacts the length of the wait. According to the source, veterans at Houston area medical centers were not treated until 28 days later. Los Angeles and Orlando were also among the cities with the worst delays.
A report released by the VA earlier this year stated that the agency is also focused on improving its post-discharge follow up of patients.
Security clearance at the Pentagon and other defense agencies is currently under review due to the September shooting at the Naval Yard in Washington, D.C., the American Forces Press Services stated.
Stephen Lewis, deputy director for personnel, industrial and physical security policy in the office of undersecretary of defense for intelligence, addressed a Senate committee this week, emphasizing the need for stronger clearance policies that will impact Defense Department civilians, contract employees and active-duty servicemembers.
"Under the National Industrial Security Program, cleared contractors are required to report adverse information coming to their attention regarding their cleared employees," Lewis said.
He added that the DOD is in charge of vetting companies that work on classified contracts for the Defense Department and other federal agencies.
Lewis proposed a concept demonstration of an improved security system with "real-time updates" of pertinent information, the news source reported. The DOD will also evaluate 100,000 contractors, including both civilians and servicemembers.
According to the National Archives, the military's current security system, the National Industrial Security Program, is a partnership between the federal government and the private sector. It was established by an executive order meant to protect classified defense information.
As the unemployment rate for veterans who recently returned from service lingers at 10 percent, the federal government has been searching for ways to help former servicemembers succeed in the workforce. A new partnership between the State Department and private businesses seeks to not only bolster veterans, but also strengthen the relationship between the public and private sectors.
During a speech at the State Department, Secretary of State John Kerry announced the Veterans Innovation Partnership, or VIP, a program that will grant returning servicemembers fellowships at the State Department, as well as private companies such as the Overseas Private Investment Corp. According to a statement released by the Department of Defense, the program places an emphasis on international employment.
"The Veterans Innovation Partnership, VIP as we are calling it, is not about just what the State Department can do for veterans, it's really based on the notion that veterans can do a lot for the State Department and that we would be foolish not to try to reach out and harness the talent that exists," Kerry said.
Several other companies and institutions have signed up for the initiative, such as the University of Massachusetts, Boston and robot design company iRobot. According to the DOD, Kerry is encouraging other private sector businesses to join the program.
For veterans currently looking for work, it looks like the Lone Star State might be their best bet.
A recent report ranking the top metropolitan areas for former servicemembers found that Houston was the leader in veteran employment, with neighboring cities Dallas and Austin close behind, Stars and Stripes reported. According to the news source, Houston claimed the No. 1 spot because of its high rate of job creation and its low unemployment numbers.
For mid-sized metropolitan regions, Ann Arbor, Mich. came out as No. 1, while Columbia, Mo., claimed the top spot for small urban areas.
Eric Engquist, whose company compiled the rankings, told the news outlet that he hopes the latest information will help both military and hiring organizations improve their employment resources and support for veterans.
"What we're really telling servicemembers is to do their homework before they leave the military," Engquist said. "You need to be well informed about the opportunities available, and think about where you'll live along with what you want to do."
The unemployment rate for veterans is worst among recent servicemembers. According to the U.S. Bureau of Labor Statistics, 10 percent of veterans who returned from active duty after 2001 are currently unemployed.
Nearly one million veterans will be affected by cuts to the Supplemental Nutrition Assistance Program (SNAP) once the benefits automatically expire Nov. 1 along with the 2009 stimulus bill, Forbes reported.
According to a recently released report by the Center on Budget and Policy Priorities, roughly 900,000 veterans lived in households that are dependent, either whole or part, on SNAP benefits in 2011. In Florida alone, more than 109,000 households include former servicemembers receiving food stamps, while Texas comes in at a close second with roughly 105,000 households.
SNAP benefits were increased for low-income families across the nation due to the 2009 Recovery Act, passed at the height of the recession. According to the Center, the benefits will drop to less than $1.40 per person per meal once the legislation expires.
Thousands of servicemembers returning from active duty depend on food stamps while they look for employment. Even though the overall unemployment rate for veterans is currently lower than the national average of 7.2 percent, 10 percent of veterans who returned from service after 2001 are unemployed.
In addition to veterans, The Associated Press reported that 47 million U.S. citizens – half of which are children and teenagers – receive food stamps each month.