BAH Rate Cuts: 99% BAH – The New Reality & The Future of BAH

BAH Rate CutsThe DoD recently announced the there would be BAH Rate cuts in the 2015 budget. Instead of the 100% BAH rate which has been the norm since 2005, the Department of Defense announced they would reduce BAH to 99% of expected costs. This is part of a larger, long-term goal of implementing BAH Rate cuts to cover only 95% of expected costs.

Don’t fret about this change yet. BAH Rate Protection protects your BAH Rates, so you shouldn’t see an immediate decrease in your BAH check each month, except under a few circumstances, which will will cover in a bit. Let’s take a look at the new 99% policy, why it has come to be, and discuss BAH Rate Protection.

Why Move to 99% BAH?

The DoD, along with the rest of the government, is hurting for money. They are looking for places to cut back spending. And since BAH affects majority of the military population, it is a prime target for cuts. This 1% cut is expected to save the government approximately $200 million per year.

The 2015 defense budget called for plans to cut BAH to 95% of expected costs over the next several years. So this is only the first step. While many servicemembers and their families will start seeing more money out of pocket in the coming years, this is still a much better situation than the 1990’s, when BAH only covered 80% of expected housing costs.

BAH Rate Protection

We have a full-length article covering BAH Rate Protection, but here are the basics. Your BAH Rate is protected from the time you arrive on your installation, until you leave, with the exception of three circumstances:

  • Permanent Change of Station (PCS)
  • Reduction in paygrade
  • Change in dependent status

In other words, your BAH rates can only increase, not decrease, unless you move to another base via a PCS, you receive a reduction in paygrade, or your dependent status changes from with dependents to without, or vice-versa. For the rest of your assignment, your BAH will be the higher of the published BAH Rate on January 1, or the BAH Rate you held on December 31 of the previous year.

I will say it again: Your BAH Rate will not drop during the middle of your assignment, even if the rates for your location decrease in any given year.

Note about a PCS moves: If you live in an area with two bases close to each other and you receive a permanent change of station assignment to the other base, you could possibly remain in the same home, but still face a decreased BAH because it would officially be a PCS move.

How Much Will This Cost Me When I Move?

At the time of this publication, the DoD hasn’t announced exactly how the cuts will take place. They could do one of several actions, including decreasing BAH 1% across the board, calculating the total cuts across the entire DoD and applying an average cut to everyone who receives BAH, or some other calculation.

Andrew Tilghman of the MilitaryTimes reported,

“Military officials do not want to create a new incentive for troops to prefer rural areas over costly urban ones, so it is likely that the Pentagon will calculate some sort of single across-the-board cut for all BAH checks.

For example, they might take the average of all 1 percent reductions nationwide and use that to determine a single dollar amount to shave from every BAH check. For example, regardless of the location and actual BAH rates, each service member may face a reduction of about $200 a year.”

Let’s look at an example: We’ll look at two different BAH rates for an E-5 with dependents. The first is the rate used for the Post-9/11 GI Bill when you take classes exclusively offered online (in-residence classes are based on the ZIP code for your school). The other BAH Rate is an E-5 in Chicago, chosen to illustrate the difference in a high-cost of living location:

  • E-5 with Dependents Rate (non-location, used for Post-9/11 GI Bill): $714.50, *99% = New Rate of $707.36, a difference of $7.14/month, or $85.68/year
  • E-5 with Dependents Rate (Chicago): Current Rate: $1,977.00, * 99%, New Rate = $1,957.23. Difference of: $19.77/month, or $237.24/year.

When put in the context of a monthly cut, $7 – $20 is noticeable, but not a massive cut. Especially if you don’t see it due to BAH Rate Protection. When you PCS to your next base, you should have a good idea of the BAH in your new area and can use that BAH when setting your budget for your new location.

BAH Rates Can and Do Change for Other Reasons

It’s also important to note that BAH Rates change when cost of living in a local area changes. In general, the BAH should increase as the cost of living increases, and the BAH may decrease when the cost of living in an area decreases. Falling BAH Rates were common after the real estate markets crashed in 2007-2009. This is when BAH Rate Protection was helpful for many servicemembers. It’s also possible that you may see increased BAH payments, even with BAH paid out at 99% of the calculated rate. The important thing to remember is that your BAH Rates should not decrease, regardless of what happens to the published rates. Your rates should only increase throughout the duration of your tour.

What is the Future of BAH?

Right now, we can only go from the information we have at hand, which is from the recent budget talks. The DoD wants to decrease BAH to 95% of the actual cost of housing, but Congress limited to cut to 1%. This 1% decrease could just be the first step. Right now we don’t even have the full picture on the implementation. But going forward I would expect the decreases to continue on an annual basis for the near future. The DoD won’t implement the full 5% overnight, and the BAH Rate Protection should protect a large portion of servicemembers over the next few years. The largest impact to most servicemembers probably won’t be felt for the next couple years.

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Date published: December 17, 2014.

This position is with the U. S. Department of Agriculture marketed by the Department of Veterans Affairs under the FEDS for VETS program.
If you meet one of the following special hiring authorities you may be considered. However, you must also meet the basic qualifications for the position.
Veteran Recruitment Appointment (VRA) – This authority allows consideration of any Veteran who is service-connected disabled OR separated within the last three (3) years *OR in receipt of a Campaign Badge or Expeditionary Medal OR in receipt of the Armed Forces Service Medal for participation in a military operation AND separated under honorable conditions (honorable or general discharge). *Service members who are currently on Active Duty and expect to be discharged or released from active duty service in the armed forces under honorable conditions within 120 days are eligible for consideration. *VRA authority only applies up to the GS-11 level.
30 Percent or More Disabled Veteran – This authority allows consideration of any Veteran with a 30% or more service-connected disability.

BACKGROUND: The position is located in the Marketing Order and Agreement Division, Fruit and Vegetable Program. The Branch carries out a variety of programs relating to the development and administration of marketing agreement and order programs and import quality regulations of fresh, dried, and processed fruits, vegetables and specialty crops under the authority of the Agricultural Marketing Agreement Act of 1937 (AMAA). The Northwest Marketing Field Office (NWMFO) has primary responsibility for the oversight of marketing agreement and order programs and the corresponding import regulations assigned to the office. The NWMFO works with numerous agricultural commodity industries, principally in Oregon, Washington, Idaho, and Colorado, in administering and developing marketing agreement and order programs, and other programs for assigned commodities under the jurisdiction of the Fruit and Vegetable Programs. The NWMFO accomplishes this through a variety of activities, including: consulting with industry members and representatives, attending industry meetings, providing guidance on program authorities, handling informal rulemaking activities, supporting program compliance and investigations, reviewing marketing communications, and overseeing committee financial activities.
• 2 – 4 days per month
• No
• You must be a US citizen to apply for this job
• You must have direct deposit
• Relocation expenses will not be paid
• Must be able to obtain and maintain a security clearance.
PLEASE VISIT: MORE INFORMATION: Contact Gary Olson, Regional Director, Marketing Order and Agreement Division, USDA

  • Picture display at the main staircase (marble steps) at the MU showing some of our student veterans while in service and today, up all week!
  • November 12th Wounded Warriors Veteran’s lounge 9-4pm  (will be available for veterans to come and talk to throughout the day)
  • November 13th Veteran Outreach Veteran’s Lounge 9-3pm
  • - Veteran Outreach Salem
    - Transition Patient Advocate Southern Oregon Rehab
    - County Veteran Officer, Corvallis
    - Patient Advocate Portland VA Medical Center


Here is the latest update our office has in regards to the Choice Act of 2014 Section 702.  At this time we do not know how this will be implemented but as soon as we have information regarding this program we will be sure to let our community know.

Colleagues and Fellow Veterans,


This is a note providing you an update on Veterans Access, Choice, and Accountability Act of 2014 (“Choice Act”) as it pertains to the in-state tuition provision – Section 702.


The in-state tuition provision requires VA to disapprove programs of education under the Post-9/11 and Montgomery GI Bill programs at public institutions of higher learning if the schools charge qualifying Veterans, spouses, and dependents tuition and fees in excess of the rate for resident students for terms that begin after July 1, 2015.  As such, any schools that do not meet the requirements will be disapproved for Post-9/11 GI Bill and Montgomery GI Bill benefits.

Students Eligible for In-State Tuition under Section 702 are:

  • A Veteran who lives in the state in which the institution of higher learning is located (regardless of his/her formal state of residence) and enrolls in the school  within three years of discharge from a period of active duty service of 90 days or more.
  • A spouse or child using transferred benefits who lives in the state in which the institution of higher learning is located (regardless of his/her formal state of residence) and enrolls in the school within 3 years of the transferor’s discharge from a period of active duty service of 90 days or more.
  • A spouse or child using benefits under the Marine Gunnery Sergeant John David Fry Scholarship who lives in the state in which the institution of higher learning is located (regardless of his/her formal state of residence) and enrolls in the school within three years of the Servicemember’s death in the line of duty following a period of active duty service of 90 days or more.
  • The following is a link providing additional information;


The law affecting in-state tuition charges is effective for terms starting after July 1, 2015. Our initial review of all states and territories indicate that none are fully compliant with the law – some are more compliant than others.  We are making every effort to ensure all states understand the requirements to comply.  We have reached out to all state Governors, our State Approving Agencies and a wide variety of others to ensure they know the ramifications of not complying with the Choice Act.


Public institutions must offer in-state tuition and fees to all eligible individuals identified above by July 1, 2015, to be eligible to receive payments for training on or after that date.  It is anticipated that VA will not issue payments for any students eligible for VA benefit payments until the school complies. Much can/could happen between now and July 1, 2015 but we like to provide what we know for the moment.

Veterans Day: Discounts and Appreciation offers to Veterans and families:
The following is a list of Veterans Day discounts on restaurants, goods, services and events for 2014. Please check back frequently as the list is updated
2014 Veterans Day Restaurant Offerings
2014 Veterans Day Travel & Recreation Discounts
2014 Veterans Day Retailer Offerings
2014 Veterans Day Events

Alumni Connect: Veterans Career Panel and Networking Event

Join us at Widmer Brewery for this career networking event among UO, OSU, and PSU alumni, all of whom have served (or continue to serve) our country.

Learn how to leverage your military service and higher education experience to effectively transition into or advance your civilian career from a panel of successful veterans. And if you have success tips of your own, here’s your chance to help a fellow vet and expand your professional network!

Alumni Connect: Veterans Career Panel and Networking Event
Wednesday, November 12, 2014
5:30pm – 8:30pm
Widmer Brewery
929 N. Russell St.
Portland, OR 97227

$10 in advance
$15 at the door

Online registration closes November 9, 2014

Admission includes appetizers and two beverages. Presentations start at 6:00 pm.

This event can also help you prepare for the November 14th “Hiring Our Heroes” career fair for veterans at Veteran’s Memorial Coliseum 1401 N. Wheeler, Portland, Oregon 97227.

Contact Information

OSU Alumni Association
204 CH2M HILL Alumni Center
Corvallis, OR 97331
(541) 737-2351
Toll free: (877) OSTATER

Date & Location

Date: 11/12/2014
Time: 5:30 PM to 8:30 PM
Location: Widmer Brewery

929 N. Russell St.
Portland, OR 97227