2025 budget: 4.5% pay raise, shift of troops from active to reserve (2024)

The Defense Department is looking to balance some of its personnel numbers next year, downsizing the active duty Army and Navy by several thousand, while adding some of those spots back in the Reserve and National Guard.

The fiscal year 2025 request asks for a drop of 7,800 authorized billets in the active component and an increase of 2,100 positions in the reserve component. That’s a 0.6% drop in overall end strength, Pentagon comptroller Mike McCord told reporters during a briefing Monday.

“Many of you who cover this know that we have had some recruiting challenges, but strong retention, so a bit of a mixed picture on the manning side over the last couple of years,” he said.

Here is the rundown:

  • The Army is hoping to shed 1,700 active duty billets, down from 445,000 to 442,300 soldiers, and shift 1,000 of them to the Army Reserve, for a total of 175,800 soldiers. This move follows last year’s request to cut 2,200 Army Reserve billets.
  • The Navy is also requesting to downsize its active force, by 5,500 sailors, but put 500 of those spots in the Navy Reserve, for a total of 390,000 sailors.
  • The active Marine Corps stay flat under the budget request, but grow their Reserve forces by 500, for 204,800 overall.
  • The active Air Force would also stay at 320,000 troops, but add 400 to the Reserve and 2,700 to the Air National Guard, for 494,700 airmen total.
  • The Space Force, which doesn’t have a reserve component, would see the only active duty increase, growing from 9,400 to 9,800 guardians as the new service continues to fill its ranks.

The request drops the active force from 1,284,500 to 1,276,700, while growing the reserve component from 763,600 to 765,700.

This amounts to $182 billion in requested spending to cover pay and benefits for military personnel, with a 4.5 pay raise, down from last year’s historically high 5.2% bump.

The Pentagon is also requesting to increase the threshold for troops to receive the basic needs allowance, a special pay introduced in 2022 specifically for junior enlisted troops with families at more expensive duty stations. The proposal would raise income eligibility from 150% of the poverty level to 200%. For reference, the poverty threshold for a four-person household in the contiguous United States is $31,200.

Other personnel initiatives include $1.2 billion for the department’s sexual assault prevention and response office, $651 million of that for implementing recommendations from a 2021 independent review commission into the military’s sexual assault problem. Much of that money will go to hiring professional educators to craft training programs.

Another $547 million would go to suicide prevention programs, including $261 million to to implement recommendations from another independent review commission. Chief of among those efforts is hiring more mental health professionals to tackle long wait times troops face when seeking counseling.

Undeterred by attacks from Republican lawmakers, the Pentagon is requesting $162 million for its diversity, equity, inclusion and accessibility programs.

“Leaders at all levels are responsible for fostering a climate of dignity and respect that supports diversity, is free from problematic behaviors, and does not tolerate retaliation or reprisal against those filing complaints,” according to department’s budget request summary.

And though the Pentagon’s top spokesman has said in recent weeks that leaders are not especially worried about the spate of service members leaking classified information in the past year, the budget specifically addresses insider threats, requesting $130 million.

That money will go to developing a better case management system to track reports, tools for analyzing data to pinpoint risks and a new hotline for troops and DOD civilians to report suspected “espionage, terrorism, workplace violence, suicide, and domestic violence,” according to the budget request summary.

The Pentagon’s wish list depends on Congress passing a budget. The Defense Department is operating under a continuing resolution currently, with funding levels capped to what Congress authorized for 2023.

“So I cannot emphasize this enough: we need predictable, adequate, sustained and timely funding goals,” Deputy Defense Secretary Kathleen Hicks said Monday during a briefing. “We cannot afford any more lost time time that we cannot buy back.”

About MeghannMyers

Meghann Myers is the Pentagon bureau chief at Military Times. She covers operations, policy, personnel, leadership and other issues affecting service members.

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2025 budget: 4.5% pay raise, shift of troops from active to reserve (2024)

FAQs

2025 budget: 4.5% pay raise, shift of troops from active to reserve? ›

2025 budget: 4.5% pay raise, shift of troops from active to reserve. The Defense Department is looking to balance some of its personnel numbers next year, downsizing the active duty Army and Navy by several thousand, while adding some of those spots back in the Reserve and National Guard.

What will the 2025 military pay raise be? ›

Service members would get a 4.5-percent raise in basic pay on Jan. 1, under the version of the $8.57 billion 2025 defense-spending bill that cleared the House June 28 by a 217-198 vote. The measure also calls for an additional $2.5 billion, to be used to provide a 15-percent pay hike for junior enlisteds.

What is the budget for the military in 2025? ›

Washington, D.C. – The Fiscal Year 2025 Defense Appropriations Act provides $852.2 billion in total funding—a $27.2 billion, or 3.3% increase over fiscal year 2024.

What is the budget for 2025? ›

For the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at Rs 32.07 lakh crore and Rs 48.21 lakh crore respectively. The net tax receipts are estimated at Rs 25.83 lakh crore and the fiscal deficit is estimated at 4.9% of GDP.

Is the military pay increase in 2024? ›

The 2024 pay increase (which took effect Jan. 1) was 5.2% — the largest bump since 2002 and the second-biggest boost in 40 years.

What is the proposed federal pay raise for 2025? ›

The legislation, if enacted, would appropriate about $27.9 billion to the covered agencies for 2025, a roughly 4.4% increase over enacted 2024 spending levels. With the committee's advancement of the bill, federal employees are another step closer to seeing a 2% federal pay raise in 2025.

Will VA disability pay increase in 2025? ›

The latest projection for the 2025 Cost of Living Adjustment (COLA) increase is 2.7%.

What is the Army 2025 plan? ›

The 2025 Defense Department budget request prioritizes maintaining operational readiness, taking care of people and continuing to build a joint force that is lethal, resilient, survivable, agile and responsive, said Army Gen.

What is the cola for the military in 2025? ›

What is the Cost of Living Increase for 2025? The latest 2025 COLA estimate is 2.7%, but with inflation slowing faster than expected, the final adjustment could be even lower. In mid-October 2024, the Social Security Administration (SSA) will announce the 2025 Cost of Living Adjustment.

What is the new defense bill 2025? ›

Washington, D.C. – The Senate Committee on Appropriations today approved the Fiscal Year (FY) 2025 Defense Appropriations Act, providing the U.S. military services with the funding needed to deter China and Russia, support service members and their families, and strengthen the defense industrial base.

What is the budget for FY 2025? ›

HHS proposes $130.7 billion in discretionary and $1.7 trillion in mandatory proposed budget authority for FY 2025.

What is the NSF FY 2025 budget request to Congress? ›

Fiscal Year 2025 Budget Request to Congress

The President's FY 2025 budget request to Congress includes $10.183 billion for NSF, an increase of 3.1% over the FY 2023 total budget.

What is the medical cost trend in 2025? ›

Commercial healthcare costs will increase by a projected 8% in 2025, driven by inflationary pressure, prescription drug spending and behavioral health utilization, according to a report from the PwC Health Research Institute.

What is the military pay raise for 2025? ›

On Thursday morning, the Senate Appropriations Committee unanimously advanced a version of the fiscal 2025 Pentagon spending bill that includes funding to cover a 5.5% pay bump for E-1s through E-3s and a 4.5% raise for all other troops next year, according to a summary of the bill released by the committee.

How much is E7 retirement pay with 20 years? ›

What is the retirement pay for an E7 with 20 years? As of 2022 the pay calculation projection an E7 retiring with exactly 20 years of service would receive $27,827 per year. It's important to note the present value of almost $800,000 for a 40 year old receiving this pension indefinitely.

Which branch pays the most? ›

When it comes to your basic pay, the military branches are all the same. A look at military pay charts shows that military pay is based on a pay grade, or rank, and years of service. In terms of your base pay, there is no fundamental advantage to opting for one branch of service over another.

What is the BAS rate for 2025? ›

2025 BAS Raise Charts
OfficersEnlisted
2024 Rates (Current)$316.98$460.25
2025 Rates (Proposed)$331.24$480.96
Jul 24, 2024

What is the military retirement COLA for 2025? ›

Our latest 2025 COLA prediction has slightly decreased following a lower-than-expected June 2024 CPI report, indicating further cooling of inflationary pressures. If inflation continues to slow, the Cost of Living Adjustment (COLA) for 2025 could be lower than the current projection of 2.7%.

What is the proposed NDAA 2025? ›

The 64th annual NDAA supports a total of $923.3 billion in FY 2025 funding for national defense. Within this topline, the legislation authorizes $878.4 billion for the Department of Defense and $33.4 billion for national security programs within the Department of Energy (DOE).

Do military retirees get the same pay raise as active duty? ›

Note that the COLA for retired pay is calculated differently than the increase to active duty pay. Thus, retirement pay COLAs and annual active duty pay raises will differ as active duty pay raises will differ.

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