Pentagon Slashed Cost Of Living Allowance For 48,000 Troops In Continental US

The Department of Defense (DoD) announced last week that troops in 15 metropolitan areas and 21 non-metropolitan counties in the continental United States will no longer be eligible for a cost of living allowance starting Jan. 1.

The change will mean approximately 48,000 troops missing out on the Continental United States Cost-of-Living Allowance (CONUS COLA), according to Stars and Stripes.

Approximately 6,000 service members will continue to be recipients of the $8.5 million that the Pentagon allocated for the stipend, which is given to troops stationed at excessively expensive locations in the lower 48.

The 2022 list is made up of 20 non-metropolitan counties and six metropolitan areas including New York City, Long Island, and Staten Island in New York; Nantucket, Mass.; Boulder, Colo.; and San Francisco, Calif.

The COLA rate is based on information gathered by a contractor, which analyzes the cost of transportation, goods and services, federal income taxes, sales taxes, and miscellaneous expenses, according to the DoD.

A location is deemed eligible for COLA when non-housing costs exceed 8% above the national average.

Among the locations that were cut in 2022 is the Washington, D.C., area, where troops had received a 1% supplement in 2021. Stipends for troops in Boston and Worcester, Mass., were also cut off.

Troops located in New York City will receive the highest stipend at 6%, which is down from 7% in 2021.

How much COLA a service member earns depends on geographic duty location, pay grade, years of service, and dependency status. The Pentagon explained that monthly payments for each CONUS COLA percentage point vary from $33 to $59 per month for troops with dependents, and from $22 to $45 per month for those without dependents.