BAH II Fix on Track

A provision in the fiscal 2006 defense authorization bill would allow all members of the Guard and Reserves on active duty for over 30 days to receive the same basic allowance for housing (BAH I) as regular active-duty personnel. Currently, Reserve Component members called to active duty on orders lasting less than 140 days that are not associated with a contingency operation receive a lower housing allowance (BAH II), which does not include locality adjustments. The difference between the full active-duty housing allowance and the reduced housing allowance varies depending on rank, location, and whether or not the member has dependents. Based on an analysis of the Defense Department’s housing allowance tables and the number of reservists with dependents, the Congressional Budget Office estimated this difference to be about $425 per month on average in 2005.