Washington, DC—November 3, 2022….Recognizing the importance of supporting America’s military families, Congressman Steve Womack (AR-3), Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government (FSGG), today introduced legislation to eliminate the tax burden on Basic Needs Allowance (BNA) payments. The bill ensures service members keep the full benefits they have earned as they serve our nation.

Congressman Steve Womack said, “It makes sense to treat the BNA just like other military benefits outside of earned income. It’s simple: taxing a benefit meant to help the most vulnerable defies logic. To me, this allowance is a ‘combat multiplier’ through enhanced performance by reducing financial pressure at home. I intend to ensure our men and women in uniform are provided their full benefits.”

“We have a duty to support our men and women in uniform. Inflation is straining paychecks across the nation, and military families are not immune to its impact on top of the financial stresses of deployments, transfers, and high military spouse unemployment. MOAA Arkansas is proud to support this bipartisan bill, which directly aids food security for our troops by ensuring they can count on the full value of their basic needs allowance,” said Military Officers Association of America (MOAA) Arkansas Council of Chapters President Col (R) Don Berry. “The legislation demonstrates a commitment to America’s service members and their loved ones, and we thank Congressman Womack for his work.”

Womack’s proposal specifically amends the tax code to exclude BNA benefits from taxable income. This rightfully puts BNA in line with the tax status of other military benefits, including Basic Allowance for Housing and Basic Allowance for Subsistence. Exempting BNA funds provided to eligible military families further supports their ability to purchase groceries and be food secure. It’s another step in alleviating financial burdens and ensuring those serving and protecting our nation can better focus on their mission. The Congressional Budget Office estimates that the change would impact an estimated 3,000 military families.

The bipartisan bill is supported by four original cosponsors, including Representatives Don Bacon (NE-2), Matt Gaetz (FL-1), Doug Lamborn (CO-5), and Tim Ryan (OH-13).

Read the text of the bill here or Arkansas Democrat-Gazette article on the legislation here.

Congressman Steve Womack (AR-3) has represented Arkansas’s Third Congressional District since 2011. He is a member of the House Appropriations Committee.

womack.house.gov

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