Edward: Welcome to the MIL News Weekly for 21-27 December 2025, your essential
guide to the latest news impacting the military and veteran community.
Whether you're currently serving in uniform, a military retiree, a veteran,
or a family member, this is your source for the critical updates you need to know.
Each week, we cut through the noise to bring you the most important developments
from the Pentagon, Capitol Hill, and the Department of Veterans Affairs.
Weâll cover everything from new policies and pay raises affecting
active and reserve forces, to changes in healthcare and benefits for
retirees, and the latest on VA services and legislation for our veterans.
Let's get you informed.
Hereâs whatâs happened this past week.
Issues That Affect Active and Reserve Military Personnel
The "Warrior Dividend": Financial Morale in the Holiday Season
Perhaps the most tangible development for individual service members during
this period was the distribution of the "Warrior Dividend."
Announced by President Trump in a televised address on December 18,
2025, the payments began hitting bank accounts during the week of December
21, providing a significant financial boost just before the Christmas holiday.
The dividend consisted of a one-time, tax-free payment of $1,776.
This specific amount was chosen for its symbolic resonance, commemorating
the year of the nationâs founding and intended to honor the revolutionary
spirit of the American military.
The payment was distributed to approximately 1.45
million service members, a massive logistical undertaking executed by the
Defense Finance and Accounting Service (DFAS) on an accelerated timeline.
Eligibility for the dividend was strictly defined to target the operational force.
Active duty service members in pay grades O-6 (Colonel/Navy Captain) and
below were the primary recipients.
Importantly, the administration extended eligibility to members of the Reserve
Componentâthe National Guard and Reservesâbut with a specific caveat:
reservists must have been serving on active duty orders for a period
of at least thirty-one consecutive days as of November 30, 2025.
This criteria excluded traditional drilling reservists who were not mobilized
during that specific window, a distinction that has led to some confusion and
inquiries within the reserve community.
The funding mechanism for this multi-billion dollar payout has been
a subject of significant scrutiny and legislative maneuvering.
While political rhetoric initially linked the dividend to revenue
generated from increased tariffs, Pentagon officials clarified the actual
budgetary source during this week.
The funds were derived from a reallocation of a $2.9
billion military housing supplement that had been included in the broader
budget reconciliation package known as the "One Big Beautiful Bill Act."
Approximately $2.6
billion of this housing-specific appropriation was reprogrammed
to finance the direct payments.
To execute this legally, the Department of War classified the dividend within
the pay system as a "housing allowance supplement," despite it being a flat-rate
cash payment unrelated to a member's location or actual housing costs.
This classification was crucial for two reasons: it allowed the administration
to utilize the housing-designated funds without new legislation, and it ensured
the payments remained non-taxable, maximizing the net benefit to the troops.
Critics in the housing advocacy sector have raised concerns that diverting $2.6
billion from housing sustainment could delay critical maintenance on aging
barracks and family housing units.
However, the administration has countered that immediate financial relief to
military families struggling with inflation is a form of housing support,
enabling them to better meet their living expenses during the holiday season.
Operation Hawkeye and Escalation in the Middle East
While financial and administrative changes dominated the domestic news
cycle, US forces abroad were engaged in high-intensity combat operations.
The most significant of these was "Operation Hawkeye," a major
offensive campaign launched in Syria.
Following a deadly ambush earlier in the month that resulted in US
casualties, US Central Command (CENTCOM) initiated a widespread retaliatory
and clearance operation commencing on December 20, 2025, and continuing with
high intensity through December 27.
The operation targeted the resurgent networks of the Islamic State (ISIS),
specifically focusing on their infrastructure, command nodes, and
logistics hubs in the Syrian desert.
Operation Hawkeye represents a significant escalation in the
counter-ISIS mission, involving coordinated air strikes from advanced
platforms and heavy artillery barrages.
Unlike previous precision strikes that targeted individual leaders,
this operation aimed to degrade the systemic capability of ISIS to project
power or threaten American personnel.
Reports from the theater indicate that the operation successfully
neutralized significant enemy combatant numbers and destroyed key tunnel
complexes used for caching weapons.
The necessity of Operation Hawkeye underscores the fragile security
environment in the Middle East.
Despite the strategic desire to pivot resources toward the Indo-Pacific theater,
the Department of War finds itself drawn back into kinetic engagement in
Syria to protect its deployed forces and prevent a terrorist reconstitution.
For active duty personnel deployed to the CENTCOM area of responsibility,
this has meant a cancellation of holiday leave, increased force protection
postures, and a heightened operational tempo not seen in several years.
Operation Southern Spear: The Venezuelan "Quarantine"
Simultaneously, the US military has opened a new front of quasi-conflict
in the Western Hemisphere.
Under the banner of a "War on Drug Cartels," the Trump administration has
directed a massive surge of naval and air assets to the Caribbean Sea and the
Eastern Pacific, focusing specifically on the coastline of Venezuela.
During the week of December 21 to December 27, 2025, these operations,
collectively referred to as "Operation Southern Spear," intensified into what
the administration calls a "quarantine" and what the Venezuelan government
has decried as a naval blockade.
The stated objective is to interdict vessels suspected of smuggling
narcotics or exporting Venezuelan oil in violation of US sanctions.
The rules of engagement for this operation have been notably aggressive.
Since September, US forces have carried out dozens of strikes on maritime
vessels, resulting in over one hundred fatalities among suspected smugglers.
During this reporting period, the White House ordered the military to focus
almost exclusively on enforcing this quarantine for the next two months,
effectively redirecting Coast Guard and Navy assets from other missions.
This aggressive posture has precipitated a diplomatic crisis at
the United Nations, where Venezuelaâs ambassador condemned the US actions
as illegal aggression and piracy.
Furthermore, it has triggered legislative pushback within the United States.
The Fiscal Year 2026 National Defense Authorization Act (NDAA), which became
law just prior to this week, contains a specific provision mandating that
the Pentagon release unedited footage of these boat strikes to Congress.
This demand reflects bipartisan concern regarding the legality of
using lethal military force against civilian vessels in international waters
without a formal declaration of war.
To force compliance, Congress has frozen twenty-five percent of the Secretary of
Warâs travel budget until the footage is providedâa standoff that escalated
during the week as Secretary Hegseth initially rejected calls to release
the video, citing operational security.
Fiscal Year 2026 National Defense Authorization Act (NDAA) Implementation
The statutory landscape for the military was solidified this week
with the immediate implementation of the Fiscal Year 2026 National
Defense Authorization Act.
Signed into law on December 18, 2025, the effects of this $900.6
billion legislation began to take concrete shape for the force
during the week of December 21.
Pay and Allowances
The NDAA codified a 3.8
percent increase in basic pay for all active duty, Guard, and Reserve
personnel, which is set to appear in the first paychecks of January 2026.
This raise is designed to match the Employment Cost Index, ensuring that
military compensation keeps pace with private-sector wage growth.
In addition to the basic pay hike, the Basic Allowance for Subsistence (BAS)
was adjusted upward by approximately 2.4
percent.
Enlisted members will now receive roughly $476.95
per month, while officers will receive $328.48.
Furthermore, the Family Separation Allowance (FSA), paid to service
members who are deployed or stationed away from their dependents for more
than thirty days, was increased from $250 to $300 per month.
This is the first significant increase in FSA in years, recognizing
the financial and emotional strain placed on families during extended
deployments like those currently underway in Syria and the Caribbean.
Basic Allowance for Housing (BAH) Adjustments
Complementing the NDAA's pay provisions, the Department of War
released the finalized 2026 Basic Allowance for Housing rates, which
go into effect on January 01, 2026.
The new rates reflect an average nationwide increase of 4.2
percent.
This adjustment is based on rental cost data collected from nearly
three hundred military housing areas across the United States.
It is crucial for active duty personnel to understand the mechanism
of "rate protection" emphasized in this week's announcements.
If a service member is already residing in a location where the BAH rate is
scheduled to decrease in 2026 due to falling local rental markets,
their allowance will not be reduced.
They will continue to receive the higher, previous rate.
Conversely, members in areas where rates have risen will see the full 4.2
percent (or higher, depending on locality) increase in their January pay.
This dual-protection mechanism ensures financial stability for families who
have signed leases based on 2025 rates.
Strategic Force Posture Limitations
The NDAA also introduced significant constraints on the executive branch's
ability to alter the global force posture.
Specifically, Congress has prohibited the use of any funds to reduce the
number of United States troops stationed in Europe below a baseline of 76,000.
This provision serves as a legislative guardrail against the
administration's stated skepticism regarding NATO commitments.
It requires the Secretary of War to submit a detailed impact report and
certify that any proposed reduction would not harm national security
or alliance cohesion before such a move could be legally funded.
Additionally, the Act authorized $175 million for the Baltic Security
Initiative, restoring funding that the Pentagon had initially proposed cutting.
This ensures continued military cooperation with Estonia, Latvia,
and Lithuania, maintaining a robust deterrent presence on NATOâs
eastern flank despite the shifting rhetoric from the White House.
Issues That Affect Retired Military Personnel
For the community of retired military personnel, the week of December
21 through 27, 2025, was defined by the finalization of economic
adjustments that will dictate their financial reality in the coming year.
The news is a mixed ledger: a modest cost-of-living increase stands in contrast
to rising healthcare fees, while new legislative protections offer a safety
net for those facing housing instability.
2026 Cost-of-Living Adjustment (COLA) Finalized
Effective December 01, 2025, and reflected in the payments
distributed on December 31, 2025, military retirees will receive a 2.8
percent Cost-of-Living Adjustment.
This adjustment is legally tied to the Consumer Price Index for Urban
Wage Earners and Clerical Workers (CPI-W), measuring inflation over the
third quarter of the previous year.
It is important to distinguish this retiree COLA from
the active duty pay raise.
While active duty troops received a 3.8
percent raise based on wage growth (the Employment Cost
Index), retirees receive a 2.8
percent increase based on price inflation.
This 1.0
percent divergence highlights a growing gap between the compensation growth
of current and past service members.
For a military retiree receiving a standard pension check of
$3,000 per month, this 2.8
percent increase translates to an additional $84.00
monthly.
While this adjustment is intended to maintain purchasing power, many veteran
advocacy groups have noted throughout the week that it may not fully offset
the rising costs of specific goods and services that disproportionately
affect older populations, particularly healthcare and housing.
TRICARE 2026: Fee Structures and Cost Increases
As retirees prepare for the new calendar year, they face a revised fee structure
for TRICARE coverage that will absorb a portion of their COLA increase.
The Department of War released the final fee schedules for 2026, detailing
increases across enrollment fees, deductibles, and catastrophic caps.
Enrollment Fee Hikes
For retirees classified as "Group A" (those whose initial enlistment or
appointment occurred before January 01, 2018), the annual enrollment
fee for TRICARE Prime has increased.
An individual retiree will now pay $381.96
annually, up from $372.00.
For a retiree and their family, the annual Prime enrollment fee has risen to $765.00,
an increase from $744.00.
Retirees in "Group B" (those who joined on or after January 01,
2018) continue to face higher costs.
A Group B family enrolled in TRICARE Prime will see their annual fee
rise to approximately $927.00.
For those utilizing TRICARE Select, the increases are also notable.
The Group A family enrollment fee has climbed to $1,191.00
for the year 2026.
These incremental increases, while seemingly small in isolation, represent
a continuing trend of shifting a higher percentage of healthcare
costs onto the retiree population.
Copayments and Deductibles
The cost of care at the point of service is also rising.
For a Group A retiree on TRICARE Select, the copayment for a primary
care visit has increased to $38.00
per visit.
For those on TRICARE Prime, the copay is now $26.00.
Perhaps most significant is the adjustment to the catastrophic capâthe
maximum out-of-pocket amount a retiree family is liable for in a single year.
For Group A retirees on TRICARE Select, this safety net has been
raised from $4,261 to $4,381.
For Group B retirees, the cap has risen to $4,635.
This means that families with serious or chronic medical conditions
will be responsible for a larger share of their medical bills
before full coverage kicks in.
One area of relief amidst these increases is pharmacy costs.
The administration confirmed this week that pharmacy copayments for medically
retired service members and their families will remain unchanged for 2026.
This freeze provides a degree of financial predictability for those with
service-connected disabilities who rely on regular prescription medications.
Housing Security: The VA Home Loan Program Reform Act
In a major legislative victory for retirees, particularly those
struggling with mortgage payments, President Trump signed the VA
Home Loan Program Reform Act (H.R.
1815) into law.
This bill addresses a critical gap in the safety net for veterans that
opened following the expiration of pandemic-era protections.
The legislation formally establishes and codifies the Veterans Affairs
Servicing Purchase (VASP) program.
Under this new authority, the Department of Veterans Affairs is empowered to
purchase defaulted VA-guaranteed loans directly from commercial servicers.
Once the VA holds the loan, it can modify the terms to offer
a fixed interest rate of 2.5
percent.
This is a game-changer for retirees living on fixed incomes who may have
purchased homes during periods of high interest rates or who have faced
financial shocks leading to default.
By locking in a 2.5
percent rateâsignificantly below the current market averageâthe VASP
program can reduce monthly mortgage payments by hundreds of dollars,
allowing retirees to remain in their homes rather than facing foreclosure.
The Act also reinstates a moratorium on foreclosures for certain vulnerable
categories of veterans, ensuring that no veteran loses their home
due to a temporary bureaucratic gap in assistance programs.
Issues That Affect Veterans Affairs
The final week of 2025 was a period of intense legislative productivity
regarding veterans' affairs, culminating in the passage of a
comprehensive package of fourteen bills.
These measures, passed swiftly by both chambers of Congress, aim to modernize
the Department of Veterans Affairs (VA) by integrating 21st-century
technology into its benefits delivery systems and expanding access to care.
Simultaneously, the VA continued its physical expansion with the
opening of major new facilities.
The "14 Bills" Package: A Legislative Overhaul
Between December 21 and December 27, Congress finalized a suite of legislation
designed to streamline VA operations.
The following bills were central to this package, each addressing a specific
bottleneck in the current system.
H.R.
3481: Delivering Digitally to Our Veterans Act
This legislation fundamentally modernizes how the VA communicates
with student veterans.
Under the previous system, the VA was legally required to send sensitive and
time-critical information regarding GI Bill benefits via physical mail.
This antiquated requirement resulted in delays and a lack of responsiveness,
particularly among younger veterans who rely primarily on digital communication.
H.R.
3481 directs the Secretary of Veterans Affairs to establish a
secure mechanism allowing veterans to "opt-in" to receive all educational
benefit correspondence electronically.
This change is expected to drastically reduce the number of missed deadlines
and "drop-offs" in the system, ensuring that veterans receive notifications
about their enrollment verification and housing allowance status instantly
on their mobile devices or computers.
H.R.
1107: Protecting Veteran Access to Telemedicine Services Act
Passed to secure the gains made during the COVID-19 pandemic, this Act
addresses the legal hurdles surrounding telemedicine and controlled substances.
The Ryan Haight Act of 2008 generally prohibited the prescription of controlled
substances via the internet without a prior in-person medical evaluation.
Temporary waivers had allowed the VA to bypass this during the pandemic,
but those waivers were set to expire.
H.R.
1107 permanently authorizes VA healthcare professionals to prescribe
necessary controlled medicationsâsuch as those used for mental health
treatment or pain managementâvia telemedicine platforms without
requiring an initial in-person visit.
This is particularly vital for disabled veterans in rural or remote areas who
may have mobility challenges or lack easy access to a VA medical center.
It ensures they can continue their treatment regimens without interruption.
H.R.
3579: Veterans Readiness and Employment Program Integrity Act
This bill introduces reforms to the Chapter 31 Veteran Readiness and
Employment (VR&E) program, which aids veterans with service-connected
disabilities in preparing for, finding, and keeping suitable jobs.
The legislation implements stricter accountability measures, including a
requirement for veterans to apply for an initial evaluation to formalize
their entry into the program.
It also sets certain time limitations, capping specific employment assistance
phases at 365 days to encourage efficient progression toward employment.
Furthermore, it mandates that the VA report to Congress on actual employment
outcomes and wage data, ensuring that the program is effectively placing
veterans in sustainable careers rather than just providing indefinite training.
H.R.
3854: Modernizing All Veterans and Survivors Claims Processing Act
This bill focuses on the internal mechanics of the Veterans
Benefits Administration (VBA).
It directs the VA to develop a comprehensive plan to increase
the use of automation and data sharing in claims processing.
By reducing the reliance on manual data entry and paper file transfers,
the bill aims to significantly cut the backlog of disability claims and
speed up the delivery of decisions to veterans and their survivors.
Additional Legislation in the Package
The package also included several other key measures:
H.R.
3400 (TRAVEL Act): Enhances reimbursement processes for veterans'
travel to medical appointments.
H.R.
3494 (VA Hospital Inventory Management System Authorization Act): Mandates
a modernized inventory system to prevent shortages of critical
medical supplies at VA hospitals.
H.R.
2334 (Servicemember Residence Protection Act): While primarily affecting
active duty, this bill prevents states from allowing squatters to
claim rights to a service member's home while they are deployed.
H.R.
3951 (Rural Veteran Improved Access to Benefits Act): specifically
targets outreach to veterans living in non-urban areas.
VA Healthcare Infrastructure Expansion
Beyond legislation, the physical footprint of the VA healthcare
system grew significantly this week.
On December 22, 2025, the Wilmington VA Medical Center completed a major strategic
relocation of its services in New Jersey.
The Atlantic County VA Clinic moved from its previous location in
Northfield to a new, state-of-the-art facility in Linwood, New Jersey.
The new Linwood clinic represents a doubling of capacity, boasting over
20,000 square feet of clinical space.
It has been designed to offer a wider array of services under one roof,
including expanded primary care, dedicated mental and behavioral health
wings, nutrition services, and podiatry.
Crucially, the facility was built with the infrastructure to support
future additions of advanced imaging capabilities like CT scans and X-ray
units, reducing the need for veterans to travel to the main hospital in
Delaware for diagnostic testing.
A formal ribbon-cutting ceremony is scheduled for January 05, 2026, but
the facility began accepting patients during this reporting week, immediately
alleviating wait times in the region.
2026 Disability Compensation Rates and Community Care Debate
As with military retirees, disabled veterans saw their 2026 compensation
rates finalized during this period.
The 2.8
percent Cost-of-Living Adjustment applies to all VA disability compensation, Special
Monthly Compensation (SMC), and Dependency and Indemnity Compensation (DIC) payments.
Effective December 01, 2025, a veteran with a 100 percent disability
rating (and no dependents) will see their monthly payment increase
to approximately $3,877.00.
A veteran with a 60 percent rating will receive approximately $1,435.00.
These increases are automatic and require no action from the veteran.
However, the week also saw intensified debate regarding
the future of VA care delivery.
Reports from federal employee unions have highlighted concerns over a
"dangerous new bill" supported by the Trump administration that would further
empower community care providers.
This proposed legislation builds on the MISSION Act to remove almost
all administrative barriers for veterans seeking private sector care.
While the administration frames this as "maximum choice" for the veteran, unions
and some veteran advocacy groups argue it is a stealth privatization of the
system that will drain resources from VA medical centers, potentially degrading
the quality of specialized care that the VA is uniquely best at providing, such
as spinal cord injury and TBI treatment.
This tension between direct care and community choice remains the central
policy conflict heading into 2026.
And that's your Weekly Briefing.
Staying on top of these changes is key to navigating your career,
your retirement, and your benefits.
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Weâll be back next week with another roundup of the news that matters most
to the military and veteran community.