NORFOLK, Va. (Feb. 15, 2014) The aircraft carrier USS George H.W. Bush (CVN 77) departs Naval Station Norfolk for its scheduled deployment. Bush is deploying as the flagship for Carrier Strike Group (CSG) 2 in support of maritime security operations, theater security cooperation efforts and missions in support of Operation Enduring Freedom in the U.S. 5th and 6th Fleet areas of responsibility. U.S. Navy photo by Mass Communication Specialist 3rd Class Andrew Schneider (Released)
Just when we thought we had survived sequestration, government shut downs and Tricare benefit reductions, the Pentagon announces the largest military budget cuts in 40 years. The budget proposes the following:
1. Rollback in Basic Allowance for Housing (BAH) and make troops pay 5 percent of their housing costs out-of-pocket
2. 1 percent military pay raise (the lowest in the volunteer era
3. Massive cuts to commissary subsidies (slashing subsidy for commissaries yearly by $1 billion, resulting in about 20 percent price increase
4. Increased health care fees for both active-duty families and retirees (family members and military retirees under age 65 will see their co-pays rise(
5. Significant reductions to the size of the whole force (these reductions would create the smallest US Army since World War II)
The Pentagon is suggesting the deepest cuts to military benefits since the military became an all-volunteer force 40 years ago. These cuts are deemed necessary in order to pay for modern gear and high-tech weaponry. These changes require approval in Congress, which may prove difficult as many lawmakers are suggesting a wait and see approach until next year.
NERA will keep you informed on these budget cuts.