The fiscal 2007 defense authorization act requires the government to pay service members “full replacement value” (FRV) for damaged and lost household goods (HHG), but the new system may not kick in until March of 2008, the date set by the legislation. The Defense Department has been implementing “Families First,” a program that will include a goal of FRV, but Families First has fallen behind schedule. Implementation of FRV could occur earlier but must begin by 2008. Under current law, when a household item is lost or destroyed, the service member receives a depreciated value of 5 percent to 10 percent per year since it was new, depending upon the item. The new FRV formula also will cover the full cost of repairs. Exceptions to FRV payments will be cars, motorcycles and boats.