WEBVTT NOTE This file was generated by Descript 00:00:00.050 --> 00:00:05.559 Edward: Welcome to the MIL News Weekly for 20-26 July 2025, your essential 00:00:05.559 --> 00:00:09.090 guide to the latest news impacting the military and veteran community. 00:00:09.550 --> 00:00:13.359 Whether you're currently serving in uniform, a military retiree, a veteran, 00:00:13.439 --> 00:00:17.709 or a family member, this is your source for the critical updates you need to know. 00:00:17.975 --> 00:00:21.675 Each week, we cut through the noise to bring you the most important developments 00:00:21.675 --> 00:00:25.195 from the Pentagon, Capitol Hill, and the Department of Veterans Affairs. 00:00:25.585 --> 00:00:28.855 We’ll cover everything from new policies and pay raises affecting 00:00:28.915 --> 00:00:32.945 active and reserve forces, to changes in healthcare and benefits for 00:00:32.945 --> 00:00:37.325 retirees, and the latest on VA services and legislation for our veterans. 00:00:37.735 --> 00:00:38.695 Let's get you informed. 00:00:38.905 --> 00:00:40.495 Here’s what’s happened this past week. 00:00:40.774 --> 00:00:43.594 Issues That Affect Active and Reserve Military Personnel 00:00:43.879 --> 00:00:47.609 In a move designed to directly address quality-of-life and retention concerns, 00:00:47.849 --> 00:00:52.549 the Department of Defense has finalized a complex, two-part pay raise for 2025. 00:00:53.069 --> 00:00:57.649 The first component, effective January 1, 2025, is a 4.5% 00:00:57.739 --> 00:01:01.609 general pay increase for all service members across all ranks and branches. 00:01:02.099 --> 00:01:04.899 The second, more targeted component is an additional raise for 00:01:04.899 --> 00:01:09.279 junior enlisted personnel that takes effect on April 1, 2025. 00:01:09.949 --> 00:01:14.139 This second increase, when combined with the first, brings the total pay raise for 00:01:14.139 --> 00:01:19.109 service members in pay grades E-1 through E-4, as well as E-5s with fewer than two 00:01:19.109 --> 00:01:22.479 years of service, to approximately 14.5% 00:01:22.519 --> 00:01:24.299 over their 2024 pay levels. 00:01:24.789 --> 00:01:28.559 The Defense Finance and Accounting Service (DFAS) has published the 00:01:28.559 --> 00:01:33.199 updated 2025 military pay tables reflecting these changes, with the 00:01:33.199 --> 00:01:37.129 April-December charts showing the fully implemented rates for junior personnel. 00:01:37.460 --> 00:01:40.570 This significant pay reform was enacted through the Servicemember 00:01:40.570 --> 00:01:43.650 Quality of Life Improvement and National Defense Authorization 00:01:43.650 --> 00:01:46.080 Act for Fiscal Year 2025 (H.R. 00:01:46.080 --> 00:01:46.920 5009). 00:01:47.490 --> 00:01:50.340 The structure of this raise marks a profound shift in 00:01:50.340 --> 00:01:52.270 military compensation philosophy. 00:01:52.830 --> 00:01:56.720 For decades, annual pay raises were typically uniform across-the-board 00:01:56.720 --> 00:02:01.060 percentage increases, often tied to the national Employment Cost Index, which 00:02:01.060 --> 00:02:02.930 measures private-sector wage growth. 00:02:03.450 --> 00:02:07.770 This traditional approach, while ensuring pay kept pace with the broader economy, 00:02:07.880 --> 00:02:11.640 did little to address the specific and acute financial pressures faced by 00:02:11.640 --> 00:02:15.180 the most junior service members, whose starting salaries have increasingly 00:02:15.180 --> 00:02:17.080 lagged behind civilian equivalents. 00:02:17.402 --> 00:02:21.852 The FY2025 National Defense Authorization Act: A Deep Dive into H.R. 00:02:21.852 --> 00:02:23.022 5009 and S. 00:02:23.022 --> 00:02:23.842 4638 00:02:24.312 --> 00:02:27.272 The House and Senate have each passed their versions of the National Defense 00:02:27.272 --> 00:02:31.902 Authorization Act for Fiscal Year 2025, setting the stage for conference committee 00:02:31.902 --> 00:02:34.242 negotiations to reconcile the two bills. 00:02:34.702 --> 00:02:36.112 The House version, H.R. 00:02:36.112 --> 00:02:40.142 5009, is titled the Servicemember Quality of Life Improvement and 00:02:40.142 --> 00:02:44.932 National Defense Authorization Act for Fiscal Year 2025, explicitly signaling 00:02:44.932 --> 00:02:46.702 its focus on personnel welfare. 00:02:47.202 --> 00:02:48.312 The Senate version is S. 00:02:48.312 --> 00:02:53.382 4638, the National Defense Authorization Act for Fiscal Year 2025. 00:02:53.932 --> 00:02:57.812 Both bills authorize appropriations for military activities, prescribe 00:02:57.812 --> 00:03:01.052 personnel strengths, and contain hundreds of provisions affecting 00:03:01.052 --> 00:03:02.602 service members and their families. 00:03:02.976 --> 00:03:05.656 Key provisions for active and reserve personnel include: 00:03:05.902 --> 00:03:07.332 Quality of Life: H.R. 00:03:07.332 --> 00:03:11.782 5009 contains numerous provisions aimed at improving daily life, including an 00:03:11.782 --> 00:03:16.022 expansion of the Basic Needs Allowance for low-income service members, new authority 00:03:16.022 --> 00:03:20.012 to pay a Basic Allowance for Housing to junior enlisted members on sea duty, 00:03:20.152 --> 00:03:24.692 measures to ensure competitive pay for DoD childcare personnel, and improvements 00:03:24.692 --> 00:03:28.012 to the portability of professional licenses for military spouses. 00:03:28.379 --> 00:03:32.189 Healthcare: Both bills address healthcare access and services. 00:03:32.529 --> 00:03:32.819 S. 00:03:32.819 --> 00:03:37.569 4638 includes provisions to expand eligibility for fertility treatments and 00:03:37.569 --> 00:03:41.289 improve access to specialty behavioral healthcare under TRICARE Prime. 00:03:41.669 --> 00:03:42.019 H.R. 00:03:42.019 --> 00:03:47.249 5009 also addresses TRICARE access and establishes a new program to prevent and 00:03:47.249 --> 00:03:49.189 treat perinatal mental health conditions. 00:03:49.729 --> 00:03:53.899 Both bills contain extensive sections dedicated to brain health, mandating new 00:03:53.899 --> 00:03:58.879 requirements and oversight related to blast overpressure exposure, a key concern 00:03:58.879 --> 00:04:00.669 for service members in combat roles. 00:04:01.046 --> 00:04:02.966 Force Management and Training: H.R. 00:04:02.966 --> 00:04:07.826 5009 includes authorities to modernize Army recruitment processes, improve 00:04:07.826 --> 00:04:11.946 financial literacy training for all service members, and establish a pilot 00:04:11.946 --> 00:04:15.946 program for enlisted members to pursue graduate education opportunities. 00:04:16.416 --> 00:04:20.616 The Senate bill focuses more on high-tech workforce development, with provisions 00:04:20.616 --> 00:04:24.446 for planning the DoD's artificial intelligence workforce and enhancing 00:04:24.446 --> 00:04:26.306 the quality of defense laboratories. 00:04:26.717 --> 00:04:29.397 The full text of these bills can be found at the links below. 00:04:29.587 --> 00:04:31.067 See the transcript for the links. 00:04:31.394 --> 00:04:33.844 Issues That Affect Retired Military Personnel 00:04:34.134 --> 00:04:39.254 Military retirees and recipients of the Survivor Benefit Plan will receive a 2.5% 00:04:39.354 --> 00:04:42.584 Cost-of-Living Adjustment in their monthly payments for 2025. 00:04:43.174 --> 00:04:45.994 This adjustment, which is based on the year-over-year increase 00:04:45.994 --> 00:04:49.494 in the Consumer Price Index, is notably lower than the COLAs of the 00:04:49.494 --> 00:04:53.294 past three years, which were 3.2% 00:04:53.534 --> 00:04:54.594 in 2023, 8.7% 00:04:54.594 --> 00:04:57.434 in 2022, and 5.9% 00:04:57.434 --> 00:05:00.884 in 2021, reflecting a period of moderating inflation. 00:05:01.644 --> 00:05:04.464 The Defense Finance and Accounting Service has published the official 00:05:04.464 --> 00:05:08.734 2025 payment schedule, which confirms that payments will be made on the first 00:05:08.734 --> 00:05:12.224 business day of the month, unless the first falls on a weekend or holiday, in 00:05:12.224 --> 00:05:15.414 which case the payment is made on the last business day of the preceding month. 00:05:15.861 --> 00:05:19.901 The 2025 pay adjustments highlight a growing structural divergence 00:05:19.901 --> 00:05:23.231 in how active duty and retired personnel are compensated. 00:05:23.691 --> 00:05:24.931 The 2.5% 00:05:24.931 --> 00:05:29.261 COLA for retirees is a standard, legally mandated inflation adjustment 00:05:29.521 --> 00:05:32.461 designed to protect the purchasing power of their fixed income. 00:05:33.031 --> 00:05:35.191 In contrast, the 4.5% 00:05:35.191 --> 00:05:39.251 general pay raise for the active force is designed to keep military wages 00:05:39.251 --> 00:05:43.531 competitive with private-sector wage growth, which often outpaces inflation. 00:05:44.081 --> 00:05:47.381 This has created a 2-percentage-point gap between the retiree 00:05:47.381 --> 00:05:50.631 adjustment and the general active duty raise in a single year. 00:05:51.181 --> 00:05:54.671 This is not an anomaly but a feature of two different systems. 00:05:55.151 --> 00:05:58.991 Over time, this dynamic means the value of military retired 00:05:58.991 --> 00:06:02.631 pay will likely erode relative to the pay of those still serving. 00:06:03.101 --> 00:06:06.991 While retirees are protected from losing ground to inflation, they 00:06:06.991 --> 00:06:10.901 do not share in the "real" wage growth awarded to the active force. 00:06:11.221 --> 00:06:15.161 This widening gap could become a significant point of contention for 00:06:15.161 --> 00:06:19.191 retiree advocacy groups in the future, potentially leading to calls for a 00:06:19.191 --> 00:06:23.781 new COLA formula that more closely aligns with active duty pay increases. 00:06:24.164 --> 00:06:28.224 Proposed Legislation: The "Tax Cuts for Veterans Act of 2025" (S. 00:06:28.224 --> 00:06:28.814 1108) 00:06:29.119 --> 00:06:33.749 On March 25, 2025, a bipartisan bill was introduced in the Senate that could 00:06:33.749 --> 00:06:37.449 have a profound impact on the financial well-being of military retirees. 00:06:38.069 --> 00:06:38.279 S. 00:06:38.279 --> 00:06:42.369 1108, the Tax Cuts for Veterans Act of 2025, seeks to amend the 00:06:42.369 --> 00:06:46.179 Internal Revenue Code of 1986 to make all military retirement pay 00:06:46.179 --> 00:06:47.989 exempt from federal income tax. 00:06:48.549 --> 00:06:52.499 Currently, military retirement pay is fully taxable at the federal level, 00:06:52.709 --> 00:06:56.099 although many states offer their own partial or full tax exemptions. 00:06:56.619 --> 00:07:00.849 This legislation would amend Section 122 of the Internal Revenue Code to state 00:07:00.849 --> 00:07:05.770 that a former member's gross income does not include any retired or retainer pay. 00:07:06.039 --> 00:07:09.569 If passed, this would represent a significant financial benefit for 00:07:09.569 --> 00:07:13.090 all military retirees, creating a uniform federal standard 00:07:13.299 --> 00:07:16.759 and fulfilling a long-standing legislative goal of many veteran 00:07:16.799 --> 00:07:18.739 and military service organizations. 00:07:19.092 --> 00:07:22.072 The full text of the bill can be found at the link below in the script: 00:07:22.340 --> 00:07:24.090 Issues That Affect Veterans Affairs 00:07:24.367 --> 00:07:28.287 On January 2, 2025, President Biden signed into law S. 00:07:28.287 --> 00:07:33.537 141, the Senator Elizabeth Dole 21st Century Veterans Healthcare 00:07:33.567 --> 00:07:35.127 and Benefits Improvement Act. 00:07:35.687 --> 00:07:40.387 This landmark, bipartisan omnibus package, which incorporates provisions from more 00:07:40.387 --> 00:07:44.977 than 90 separate bills, represents one of the most significant reforms of veterans' 00:07:44.977 --> 00:07:47.127 benefits and services in a generation. 00:07:47.707 --> 00:07:52.197 The Dole Act is more than an incremental improvement; it codifies a fundamental 00:07:52.197 --> 00:07:56.647 philosophical shift in how the Department of Veterans Affairs approaches long-term 00:07:56.647 --> 00:07:58.667 care and holistic veteran support. 00:07:59.207 --> 00:08:03.257 It decisively moves the VA's focus away from a model centered on 00:08:03.347 --> 00:08:08.007 institutional care, such as nursing homes, and toward a more comprehensive, 00:08:08.007 --> 00:08:12.577 community- and home-based system that prioritizes veteran choice, caregiver 00:08:12.577 --> 00:08:14.637 well-being, and preventative services. 00:08:14.923 --> 00:08:17.303 Key provisions of this sweeping legislation include: 00:08:17.580 --> 00:08:19.820 The centerpiece of the act is the incorporation of the 00:08:19.820 --> 00:08:21.400 Elizabeth Dole Home Care Act. 00:08:21.900 --> 00:08:25.630 This provision raises the statutory cap on what the VA can spend on 00:08:25.630 --> 00:08:30.790 non-institutional care from 65% to 100% of the cost of a VA nursing home. 00:08:31.310 --> 00:08:34.470 This single change removes the financial incentive for the VA to place a 00:08:34.470 --> 00:08:38.020 veteran in an institution rather than providing robust support at home. 00:08:38.470 --> 00:08:42.520 The act also expands the Veteran Directed Care program and establishes a new pilot 00:08:42.520 --> 00:08:44.410 program for assisted living services. 00:08:44.754 --> 00:08:48.184 Recognizing that family caregivers are a critical component of a veteran's 00:08:48.184 --> 00:08:51.814 healthcare team, the act provides new grants for caregiver mental health 00:08:51.814 --> 00:08:56.224 services, streamlines convoluted application processes, and expands 00:08:56.224 --> 00:08:59.844 support programs to caregivers who were not previously eligible 00:08:59.844 --> 00:09:02.874 for the Program of Comprehensive Assistance for Family Caregivers. 00:09:03.287 --> 00:09:06.707 By incorporating provisions of the HOME Act, the legislation increases 00:09:06.707 --> 00:09:10.307 the Grant and Per-Diem reimbursement rate for community organizations that 00:09:10.307 --> 00:09:12.277 provide transitional housing to veterans. 00:09:12.777 --> 00:09:16.497 It also gives the VA new authority to supply unhoused veterans with basic 00:09:16.497 --> 00:09:20.927 necessities like food, bedding, hygiene products, and transportation to critical 00:09:20.927 --> 00:09:24.447 appointments, strengthening preventative measures against chronic homelessness. 00:09:24.835 --> 00:09:28.265 The act modernizes the GI Bill by allowing student veterans in their 00:09:28.265 --> 00:09:32.315 final semester to receive their full monthly housing allowance even if they 00:09:32.315 --> 00:09:35.725 are enrolled less than full-time to complete their degree requirements. 00:09:36.145 --> 00:09:40.335 It also temporarily expands eligibility for the Marine Gunnery Sergeant John 00:09:40.335 --> 00:09:43.865 David Fry Scholarship for the surviving children and spouses of service 00:09:43.865 --> 00:09:45.535 members who die in the line of duty. 00:09:45.909 --> 00:09:48.939 To improve the efficiency of the disability claims process, the law 00:09:48.939 --> 00:09:52.519 mandates that medical reports from contracted disability examiners be 00:09:52.519 --> 00:09:54.179 standardized and machine-readable. 00:09:54.649 --> 00:09:58.759 It also requires that all new VA employees receive training on how to report 00:09:58.789 --> 00:10:02.969 wrongdoing to the VA Office of Inspector General, enhancing accountability. 00:10:03.350 --> 00:10:06.980 This legislation redefines the continuum of care, empowering the 00:10:06.980 --> 00:10:10.530 VA to build a robust ecosystem of support around the veteran in their 00:10:10.530 --> 00:10:14.380 own home and community, making it a strategic investment in a new, more 00:10:14.380 --> 00:10:16.520 dignified future for veteran services. 00:10:16.901 --> 00:10:21.041 A New Trajectory for the VA: Workforce Reductions and Infrastructure Investment 00:10:21.445 --> 00:10:24.885 The Department of Veterans Affairs has embarked on a bold and potentially 00:10:24.885 --> 00:10:29.755 risky new strategy, simultaneously announcing a major workforce reduction 00:10:29.975 --> 00:10:33.125 and a significant new investment in its physical infrastructure. 00:10:33.615 --> 00:10:38.105 The VA is on pace to reduce its total staff by nearly 30,000 employees 00:10:38.105 --> 00:10:40.105 by the end of Fiscal Year 2025. 00:10:40.955 --> 00:10:44.685 This reduction is being achieved primarily through voluntary measures, including a 00:10:44.685 --> 00:10:49.335 federal hiring freeze, normal attrition, and the use of Voluntary Early Retirement 00:10:49.335 --> 00:10:52.755 Authority and Deferred Resignation Program incentives, which has allowed 00:10:52.755 --> 00:10:56.345 the department to avoid a large-scale, involuntary Reduction in Force. 00:10:56.643 --> 00:11:00.553 At the same time, the VA announced it will spend an additional $800 00:11:00.553 --> 00:11:04.323 million on infrastructure improvements in the current fiscal year, 00:11:04.643 --> 00:11:08.563 bringing the total Non-Recurring Maintenance program spending to $2.8 00:11:08.623 --> 00:11:09.013 billion. 00:11:09.933 --> 00:11:13.833 This funding, which the VA states was generated from savings achieved 00:11:13.833 --> 00:11:17.733 through various "reform efforts," will be targeted at repairing and updating 00:11:17.733 --> 00:11:22.383 aging VA facilities, including critical utility systems, elevators, clinical 00:11:22.383 --> 00:11:24.423 spaces, and medical technology. 00:11:24.983 --> 00:11:29.083 These actions are part of a broader policy shift under VA Secretary Doug 00:11:29.083 --> 00:11:33.023 Collins, which has also included phasing out treatment for gender dysphoria, 00:11:33.253 --> 00:11:38.233 ending Diversity, Equity, and Inclusion (DEI) programs, and requiring more 00:11:38.233 --> 00:11:40.263 employees to return to in-person work. 00:11:40.539 --> 00:11:43.919 This represents a clear "shrink to grow" strategy. 00:11:44.429 --> 00:11:48.939 The VA is deliberately reducing its human capital—its personnel—to generate 00:11:48.939 --> 00:11:53.149 savings that can be reinvested into its physical and technological capital. 00:11:53.689 --> 00:11:57.799 The causal link is direct: reducing the federal payroll is a primary 00:11:57.829 --> 00:12:01.279 "reform effort" that is funding the infrastructure upgrades. 00:12:01.699 --> 00:12:06.029 The administration is making a calculated bet that a smaller, more centralized 00:12:06.029 --> 00:12:09.799 workforce operating in modern, technologically advanced facilities 00:12:09.799 --> 00:12:13.629 will provide better and more efficient care than a larger workforce struggling 00:12:13.629 --> 00:12:15.589 within aging, inefficient buildings. 00:12:16.099 --> 00:12:17.199 The risk is substantial. 00:12:17.479 --> 00:12:21.829 The loss of nearly 30,000 personnel, even through attrition, could create knowledge 00:12:21.869 --> 00:12:26.299 and experience gaps that outpace any efficiency gains from new infrastructure. 00:12:26.769 --> 00:12:31.229 If not managed perfectly, this strategy could lead to new service backlogs, 00:12:31.509 --> 00:12:35.569 increased wait times for care, and burnout among the remaining staff. 00:12:36.099 --> 00:12:40.309 The success or failure of this high-stakes pivot will be a defining story for 00:12:40.309 --> 00:12:42.179 the VA over the next several years. 00:12:42.826 --> 00:12:47.636 2025 VA Disability Compensation: COLA Increase and New Rates 00:12:47.933 --> 00:12:51.333 Veterans who receive disability compensation from the VA, as well as 00:12:51.333 --> 00:12:55.703 survivors receiving Dependency and Indemnity Compensation, will see a 2.5% 00:12:55.803 --> 00:12:59.423 Cost-of-Living Adjustment in their monthly payments for 2025. 00:12:59.933 --> 00:13:03.833 This annual adjustment is mandated by law and mirrors the COLA provided to 00:13:03.833 --> 00:13:07.683 Social Security recipients, ensuring that the value of these tax-free 00:13:07.683 --> 00:13:09.813 benefits is not eroded by inflation. 00:13:10.208 --> 00:13:13.698 The new payment rates became effective on December 1, 2024, 00:13:14.028 --> 00:13:17.788 and were reflected in payments delivered starting in January 2025. 00:13:18.608 --> 00:13:19.998 Based on the 2.5% 00:13:19.998 --> 00:13:22.938 increase, the monthly payment for a veteran with a 10% 00:13:22.938 --> 00:13:26.658 disability rating is now $175.51. 00:13:26.978 --> 00:13:30.988 For a veteran with a 100% disability rating and no dependents, the monthly 00:13:30.988 --> 00:13:34.878 payment has increased to $3,831.30. 00:13:35.498 --> 00:13:39.988 The VA has also published its official payment schedule for 2025, confirming that 00:13:39.988 --> 00:13:43.798 benefits for a given month are paid on the first business day of the following month. 00:13:44.219 --> 00:13:45.979 Key VA Updates and Resources 00:13:46.262 --> 00:13:51.872 On July 22, 2025, the VA's National Cemetery Administration awarded over $2.1 00:13:51.872 --> 00:13:56.022 million in grants to seven educational and research institutions through 00:13:56.022 --> 00:13:57.412 its Veterans Legacy Program. 00:13:58.002 --> 00:14:01.832 These grants will fund projects to research and create educational materials 00:14:01.832 --> 00:14:05.582 that tell the stories of veterans interred in VA national cemeteries, 00:14:05.852 --> 00:14:10.252 ensuring their legacies are preserved and shared with future generations. 00:14:10.616 --> 00:14:14.736 The VA has released its "2025 VA Federal Benefits Guide for Veterans, 00:14:14.736 --> 00:14:17.066 Dependents, Survivors, and Caregivers." 00:14:17.666 --> 00:14:20.496 This comprehensive handbook provides a detailed listing of all 00:14:20.496 --> 00:14:25.226 VA programs, benefits, eligibility requirements, and contact information. 00:14:25.816 --> 00:14:29.866 It is a critical resource for navigating the VA system and is available in digital 00:14:29.866 --> 00:14:34.506 format on the VA website, with limited print copies available at VA facilities. 00:14:34.905 --> 00:14:37.875 The VA continues to pioneer new approaches to veteran care. 00:14:38.285 --> 00:14:42.565 Recent reports highlighted the successful use of virtual reality (VR) guided 00:14:42.565 --> 00:14:46.745 meditation to help veterans manage PTSD and the deployment of "caption 00:14:46.745 --> 00:14:50.825 glasses" that use real-time transcription to enable hearing-impaired veterans 00:14:50.825 --> 00:14:52.435 to participate in conversations. 00:14:52.830 --> 00:14:56.870 The VA continues its extensive outreach and claims processing efforts for the PACT 00:14:56.870 --> 00:15:01.690 Act, which expanded benefits for veterans exposed to toxins during their service. 00:15:02.180 --> 00:15:05.450 As of July 2024, the VA had approved over 1.1 00:15:05.450 --> 00:15:07.420 million PACT Act-related claims. 00:15:07.774 --> 00:15:09.064 And that's your Weekly Briefing. 00:15:09.514 --> 00:15:13.064 Staying on top of these changes is key to navigating your career, 00:15:13.314 --> 00:15:15.184 your retirement, and your benefits. 00:15:15.493 --> 00:15:16.463 Thank you for tuning in. 00:15:16.793 --> 00:15:20.443 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:15:20.793 --> 00:15:23.903 We’ll be back next week with another roundup of the news that matters most 00:15:23.903 --> 00:15:25.793 to the military and veteran community.