Tax time can be a confusing time. There are many numbers, acronyms (we have so many of those in the military community), and those ever-important dates for filing. After the paperwork is gathered, numbers are entered, and the filing is done, the wait begins for the tax rebate to show up in the mail or bank accounts. What to do with the rebate once it arrives? It is tempting to splurge on something new and exciting. There are wise and useful ways to spend the rebate.

1. Pay off orthodontic bills. While the military’s dental insurance does cover a little of orthodontic care, it does not cover it all. Especially as military families move across the country while a child, or yourself, is under orthodontic care, this leads to bills for care. Then there is a phase I and II of orthodontic treatment, and that can add up quickly. Use your rebate to pay for the remaining amount. If you pay the bill in full, ask if the orthodontist will provide a percentage off to cover this payment in full. It may not seem like a splurge, but using the rebate money is a splurge on a pretty smile!
2. Pay off or put a payment toward a high-interest loan. Have a credit card debt? What about a high-interest car loan? Maybe you are paying off school debt. Use the rebate to pay it down or off. Interest adds up, especially when it is above 10%. Depending on the risk, most investments can earn 7-10%, so any interest rate higher than that is worth paying down faster. This allows your money to be yours at a quicker pace to have available to invest in the future if you desire.
3. Put payment on the principal of your home payment. Putting a payment on the home mortgage will lower the principal amount and save some of that interest added to the larger principal amount. If you want to pay off your house sooner, consider adjusting the paycheck deduction, so you do not get a rebate at the end of tax season and instead receive the higher paycheck monthly and use that extra money to pay off the mortgage with bigger payments monthly.
4. Invest in a Financial Planner. Some fee-for-service financial planners can help determine the best investments for your family. From a Simple IRA to a 529 or education savings accounts, financial advisors can guide types of financial accounts that best suit your family’s financial abilities.
5. Boost Your Emergency Savings. Financial emergencies happen. The car engine stops working, you need to pay for an emergency dental bill, or the HVAC in your home stops working in the dead of winter.  If you don’t already have an emergency fund, put aside your tax rebate for it. Set an attainable goal – be it $500 or $1000 and go up from there as you are able. The age-old saying is to have three months’ expenses as an emergency fund. If funding is less predictable, have a larger emergency fund.
6. Build up your PCS fund. Moving is not cheap. While the government pays for the physical move of the household goods, and there is reimbursement for hotel stays when moving to the new location, there are still extra costs associated with replacing missing and broken items and pantry items. Put the tax rebate aside in an interest-bearing account ready to pay for the upcoming PCS costs.
7. Build a Savings Goal. If you have paid off debt and built up an emergency fund, start saving for a savings goal. If you want to own a home, consider building up savings for payment on the principal of a home, even if you use the VA Loan for the purchase of a home. Are you looking to purchase a car in the future? Consider saving for that. Maybe your goal is to buy new furniture during your twilight tour that you don’t worry have to worry about the weight with. Or perhaps your family wants to buy a Recreational Vehicle in the future to explore after retirement, consider the rebate as a boost to saving towards it. Decide on a savings goal for yourself or your family, and put the tax rebate toward that.
8. Consider purchasing life insurance. While in the military, SGLI provides wonderful life insurance coverage to the active duty member, but life insurance is not available after retirement. Life insurance provides coverage of funeral expenses and any living expenses needed for the family left behind.
9. Invest in education. Whether it is education for yourself or your spouse, using the rebate to pay for college courses can be an investment that pays dividends later. Maybe you wanted to take photography courses or get a certificate in a computer program. These skills can help build business or skill levels to help with future employment. If you have been looking at going back to school, using your rebate may be a smart way to do it.
10.  Save it. While this sounds like the simplest of all of the above, if you already have the debt paid off and an emergency fund in a separate account, maybe all you need to do is save the amount. Let the interest in your savings or checking account grow a little more, and you will be ready for whatever you need when you need it.

The National Defense Authorization Act for Fiscal Year 2021 was passed January 1, 2021, and secured a 3.0% military pay raise for 2021.

Base Pay

Monthly base pay is based on rank and years of service. For instance, if you are an E5 with over 4 years of service, the base pay is $2,798.10. An O3E, a commissioned office with over 4 years of enlisted service, with over 8 years of total service has a base pay of $6,628.20.  A breakdown of active duty pay for Enlisted, Warrant Officers, Commissions Officers with over 4 years of Enlisted Service and Commissioned Officers can be found here.

Basic Allowance for Housing Pay

In addition to monthly pay, depending on rank/pay grade, number of dependents and geographic location, a service member collect Basic Allowance for Housing (BAH).

BAH rates are assessed annually to determine if there is a need for housing allowance to change to better align with current housing costs based on location.  The new BAH rate are effective beginning 1 January 2021 and overall have an average increase of 2.9%. Check your local area by inputting military rank and the zip code of the military base or city associated with your or your family’s military orders to determine the 2021 BAH rates here.

If you are living on base, the military housing agency will take the BAH at the previously agreed to rate.  For instance, if you moved into your home and the BAH rate is decreased, your BAH rate is grandfathered in and will not decrease so they will continue to collect the previously agreed rate.  If you are living off base and your rate goes up, you will keep the difference.  And if it goes down, your rate will not decrease.

Additional Pays

Basic Allowance for Subsistence (BAS): BAS is meant to offset the cost of meals to service members and comes from the historic origins of when pay in the military included room and board. Beginning in 2002, Enlisted service members received a full BAS ration per month. When rations are provided in the field, these meals are then paid for from the BAS paid to the service member. BAS increases annually based on the USDA food cost index. If a service member is on unaccompanied orders and living in government quarts, they receive BAS II. The 2021 BAS rates for Officers and Enlisted Service Members as well as BAS II can be found on the DFAS page here.

Hardship Duty Pay (HDP): HDP is divided into two categories: HDP-Location and HDP-Mission. HDP-Location is compensation provided to service members assigned to locations that have been determined to have living conditions below the conditions provided within the Continental U.S., or CONUS. The amount provided to the service member is dependent on the location area. HDP-Mission is provided to service members that are assigned to designated hardship missions as listed here.

Hostile Fire/Imminent Danger Pay (HFP/IDP): This is also referred to as combat pay. Any service member assigned to a designated IDP area is paid per month, so if you enter a designated IDP for one day, the service member is paid for the entire month. The HFP is pro-rated based on hostile fire. Service members cannot receive both IDP and HFP. Further details can be found on DFAS here. Currently qualified hazardous duty areas are listed on DFAS here. Imminent Danger Pay as of January 2021 is listed here.

Hazardous Duty Incentive Pay (HDIP): HDIP designates special duty pay based on hazardous duty. There many duty options including but not limited to Parachute Duty, Flight Deck Duty and Polar Region Flight Operations Duty.

Family Separation Allowance (FSA): This pay is extended to service members when dependents are unable to accompany the service member. This is often extended to service members when on temporary duty on ship, deployed overseas, or on unaccompanied orders. FSA is pro-rated per day after 30 continuous days away for your permanent duty station.

Assignment Incentive Pay (AIP): AIP is extended to service members that involuntarily extend in unusual assignments.

Depending on occupation, special pays for aviation, submarine, diving and foreign language proficiency pays may also be offered.  

Entitlements are listed in block 10 of the Leave and Earning Statement (LES).

By Marguerite Cleveland

The Department of Defense (DoD) recently announced the 2021 Basic Allowance for Housing (BAH) rates. The new BAH rates go into effect on January 1, 2021 and will increase an average of 2.9 percent. If you are receiving the GI Bill Monthly Housing Allowance (MHA) which is the same as BAH for an E-5 with dependents and based on the school zip code your rate will increase on August 1, 2021, the start of the academic year.

This is part of a robust military compensation package, but service members will incur out-of-pocket expenses at five percent of the national average housing cost by pay grade. For 2021 that amount should range from $70 to $158 a month based on grade and dependency status. The DoD considers the overall military pay and benefits package to be competitive even with out-of-pocket expenses.

Depending on your area your BAH will either go up or down. A question many people have is what happens if my BAH goes down? Basically, nothing due to the individual rate protection provision which is an important part of the BAH program. If you maintain uninterrupted BAH eligibility at a set location, you will not see your rate decrease. If you have a lease or long-term commitment you aren’t penalized if housing costs decrease in your area. If you PCS and then return to the area later, you will receive the BAH in effect at that time.

So how does the DoD determine BAH rates. Each year they collect housing cost data for 300 military housing areas in the United States including Alaska and Hawaii. The branches of the military as well as local housing offices assisted in the data collection effort. In addition, local commands provide information on which neighborhoods provide adequate and safe apartments and houses available for rent.

Then it gets more complex as the median current market rent and averages for electricity, heat, and water/sewer are factored in to make up the total housing cost for an area. Then there are six different housing profiles which are based on the type of home and number of bedrooms for each military housing area. Then the BAH rates are calculated for each pay grade with and without dependents.

What are the highest and lowest BAH rates around the country? Check out this chart from Military Benefits.

2021 BAH Rates by The Numbers

Areas with 10 Highest BAH Rates*

1. San Francisco, CA (MHA: CA019)
2. Santa Clara County, CA (MHA: CA044)
3. Westchester County, NY (MHA: NY349)
4. Long Island, NY (MHA: NY218)
5. Nantucket, MA (MHA: MA119)
6. New York City, NY (MHA: NY219)
7. Marin/Sonoma, CA (MHA: CA027)
8. Boston, MA (MHA: MA120)
9. Oakland, CA (MHA: CA018)
10. Florida Keys, FL (MHA: FL069)

Areas with 10 Lowest BAH Rates*

1. Terre Haute, IN (MHA: IN338)
2. Fort Leonard Wood, MO (MHA: MO163)
3. Youngstown, OH (MHA: OH233)
4. Anniston/Fort McClelland, AL (MHA: AL001)
5. Charleston, WV (MHA: WV323)
6. Sault Ste Marie, MI (MHA: MI145)
7. Saginaw, MI (MHA: MI156)
8. Fort Chaffee/Fort Smith, AR (MHA: AR012)
9. Saint Joseph, MO (MHA: MO344)
10. Fort Still/Lawton, OK (MHA: OK237)

*Average across pay grades. Individual pay grades by area may rank lower or higher.

To determine your BAH rate for 2020 try this BAH Calculator. For more information on BAH.

2021 – a much-anticipated bright new year. Want a new start with this new year…especially after 2020? Start off with a bright financial future by committing to these financial resolutions in 2021.

1. Create a budget
2. Make a savings buffer.
3. Start saving for PCS now.  
4. Make the most of credit cards.
5. Pay bills when you get them.
6. Stick to the planned budget.
7. Get the kids involved!

Create a Budget

This isn’t easy. You need to know what you need to spend on things like groceries versus what you want to spend. There a bounty of budget sheets on Pinterest. Check your base resources to see if there is a financial Military Family Life Counselor (MFLC) as he/she may also have free resources and information, inclusive of a budget book. Don’t have a MFLC on base, check out Military One Source to talk to a financial counselor.  A financial MFLC can even sit down and review personal goals. Living on a Navy or Marine Corps base? If you are having a baby, check out the Navy Marine Corps Relief Society who provide services to complete one-on-one budget counseling through the Budget for Baby classes. There are many free resources including monthly spending sheets, bill trackers and expense lists to help build a budget.  

Make a Savings Buffer

This can be done in small increments, and doesn’t have to be a big chunk all at once. If you can save just $10 a week, that will add up in the long term to $2,600 in 5 years, and that’s not counting interest! An emergency fund of 3-6 months of expenses is recommended as a buffer in case there is a job loss, or any other type of emergency. Thankfully, in the military, there isn’t a usual loss of job immediately, but starting the habit now of having that savings buffer will create lifelong healthy financial habits.

Start Saving for Your PCS Now

PCS – Permanent Change of Stations or Permanent Change of Sanity level – you choose. Moving is not easy emotionally or financially. According to the Military Times, military families lost about $5,000 out of pocket each move. Normal “costs” associated with moving are outlined further by Military.com and that doesn’t include all the wild expenses of loss during a move.

Make the Most of Credit Cards

If you have a card you love, make sure you are using all the benefits. There have been credit card changes over the last year – cards that typically favor travel have been offering credit on TV streaming services or exercise apps. Use these benefits to save money! If your card gives you cash back, consider using the bonus to pay off your bill if you have a big ticket item like a new appliance. Credit cards can be useful if you are paying off your bill monthly and can utilize the benefits.

Pay bills when you get them.

Going off the previous paragraph – in order to use the benefits of credit cards, you often have to not carry a balance. When you get the bill, pay it off if you are able to. APR, the annual percentage rate, that credit card companies charge for any amount not paid off by the due date. There is also a late fee! That $100 amount not paid off may then add up to $149, and that’s only in one-month period. There are some cards that have a 0% APR offering for a year, and these can be helpful in purchasing big items like a new fridge or freezer so you can pay off a little at a time monthly. But make sure to put a calendar alert to know when the APR will begin to avoid those charges.

Stick to the planned budget.

This can be hard. It will require planning and understanding of your budget. If next month you know you need to pay for movers for that PCS and didn’t have time to build up a PCS buffer, consider cutting out a few things so you can stick within the budget for the next month. Maybe stop the $5 daily coffee habit for that month. As most military families know, unexpected things happen, but beginning the habit of sticking to that budget will get easier over time.

Get the kids involved!

It’s never too early to start learning about saving. In as early as second grade, children in U.S. schools are learning about the economy in basic terms of imports and exports and the “costs” and “savings” associated with them. Getting children involved early helps build financial attitudes of understanding. The Mint offers free resources for kids and teens to learn about earning, saving, spending, giving, investing, tracking money and more.

Military One Source is a great resource for anyone – CONUS to OCONUS.  Free online financial resources are available at MilSpouse Money Mission and popular tools from Dave Ramsey can be requested here.

What is your favorite financial tool?

The Service Members Civil Relief Act (SCRA) enacted in 2003 expanded on the 1940 Soldiers’ and Sailor’s Civil Relief Act. At its core, the law was written to alleviate financial stress on active duty military, with some benefits extending the military dependents. The SCRA may be most well-known by military families as providing protection with terminating a residential lease for a permanent change of station (PCS) or deployment. When a military member receives PCS orders, they can tell their landlord and break their lease without financial penalty. If their next rent is due on October 1^st, and the military member tells their landlord and provides military orders on September 20^th, then they pay for September and October’s rent but do not pay a penalty for breaking a lease early.

The SCRA has undergone multiple amendments since its original writing. In May of 2020, an amendment was introduced allowing for the extensions of the “lease protections for servicemembers under stop movement orders in response to a local, national, or global emergency, and for other purposes” (Congress.gov). When the pandemic hit the United States in the spring of 2020, many families across the world were gearing up for a PCS. That came to a stop. Several families had already handed in their notice to terminate their lease, and were left negotiating with landlords who may or may not have been understanding of the situation. Some families had two leases signed, one in the location they lived in, and one in the location they would be moving to as they anticipated the move. The Senate passed the amendment on 8/14/2020.

This amendment to SCRA is retroactive, meaning families can request reimbursement for rental payments that were paid during the stop movement order when they or their family was not living in the home.

The final adopted language of the amendment further states that the bill applies to service members who execute a lease upon receipt of PCS orders “for a period of no less than 90 days and thereafter receives a stop movement order issued by the Secretary of Defense in response to a local, national, or global emergency, effective for an indefinite period or for a period of not less than 30 days, which prevents the servicemember or the service member’s dependents from occupying the lease for a residential, professional, business, agricultural, or similar purpose.” Layman’s terms – if the servicemember already signed a lease but cannot reside in it due to the stop order for at least 30 days, the service member can terminate the lease with a copy of the military orders and providing that termination lease to the landlord.

To Terminate a Lease Due to Stop Move Order:

• A written notice of termination and a copy of the military orders must be provided to the landlord
• The delivery of the notice must be done in one of three ways:
  • Hand delivery
  • By Private Business Carrier
  • Mailing the written notice in an envelope with appropriate postage with return receipt requested and addressed to the landlord or the landlord’s agent

The termination of the lease is effective on the date that all of the above is completed. READ: No 30-day notice needed if the stop movement order was the reason for the move, or lack of move.

If you or a military family you know was affected by the stop-move order, make sure they know about the new changes to SCRA.

Social Security Payroll Tax Deferral Begins

On August 8, 2020, a Presidential Memorandum was issued to provide relief during the COVID-19 pandemic by temporarily deferring the withholding of Social Security taxes from September 1, 2020 through December 31, 2020. The Old Age, Survivors, and Disability Insurance (OASDI) tax (Social Security taxes) rate is 6.2%. So, service members and Department of Defense (DoD) civilians will see a temporary increase in their paychecks of that amount. At this time, based on Internal Revenue Service (IRS) guidance all deferrals will be repaid between January 1, 2021 through April 30, 2021 in addition to the amount normally withheld from their monthly pay.

As an example, if the monthly basic pay is $3,306.30 the service member would see an increase of $204.99 in their monthly net take home pay through December 31, 2020. In January, their monthly net take home pay would decrease $204.99, the deferred tax amount through April 2021 until the full amount is recouped.

A military service member or civilian employee should think about whether they should spend this money or put it aside in savings for when it will be recouped next year. Things you should consider is your household income down due to COVID-19? Will it increase in January due to a military pay raise and is that increase enough to offset the money that will be recouped? Each situation is different so you must decide what makes the most sense for your household.

Application of the tax deferral process will be different for Active Duty, National Guard and Reserves as well as DoD Civilians. Service members and families can contact Financial Readiness staff at their installation Military and Family Support Center, or Military OneSource at 1-800-342-9647, if they need assistance in reviewing their Leave and Earnings Statements (LES) or have questions in planning for changes to their net take home pay.

Service members may view the Defense Finance and Accounting Service page for more information, Https://www.dfas.mil/taxes/Social-Security-Deferral/ and a list of Frequently Asked Questions, here. As more information is determined, updates will be posted on the site.

For more information, civilian employees may view the Defense Finance and Accounting Service page, https://www.dfas.mil/taxes/Social-Security-Deferral/ and a list of Frequently Asked Questions, here. As more information is determined, updates will be posted on the site.  For civilian employees with concerns regarding withholding of the deferred OASDI tax, please consult with an Employee Assistance Program financial counselor.

President Trump has stated that if he is reelected, he will forgive the amounts owed but he only has the authority to defer collection of the tax in a national emergency. Congress has the authority to forgive the deferred amounts. The president has directed the Secretary of the Treasury Steven Mnuchin to work with Congress to pass legislation that would forgive the deferred amounts and pay back the Social Security Trust Fund.

Marguerite Cleveland is a freelance writer who specializes in human interest and travel stories. She is a military brat, a veteran and now a military spouse.  Her military experience is vast as the daughter of a Navy man who served as an enlisted sailor and then Naval Officer. She served as an enlisted soldier in the reserves and on active duty, then as an Army Officer. She currently serves as a military spouse. She lives in the Pacific Northwest with her husband and two sons. Visit her website www.PeggyWhereShouldIGo.com

Should I go back to school?  Homeschool my children? Live off base at our next PCS?   

The Answer:  What’s the real value of all the things you do for your family each year?

Both Investopedia and Mint.com independently calculate the value of basic “Family CEO” services—child care, housekeeping, food shopping, laundry services, playing chauffeur and fulfilling the role of family chef—at around $96,000 per annum.  By the way, that figure doesn’t include pet care, day care, tutoring, and any income you’re contributing to family finances. More than one-third of 524,000 military spouses living in the U.S. who are not in the military themselves, also work outside the home, according to a White House Report from the Council of Economic Advisors. 

It begs the question; how would your service member be able to replace or handle all these responsibilities if something happens to you?

FSGLI—Does It Go Far Enough?

Most military families expect to rely on their FSGLI—Family Servicemembers’ Group Life Insurance. Spouses can easily get affordable and cost-effective coverage up to $100,000, provided their insurance doesn’t exceed the servicemember’s coverage.  It’s a great program to cover the immediate need. 

Did you know, though, FSGLI ends shortly after a servicemember leaves active duty, separates, gets divorced, or discharged? After that, finding life insurance coverage for a spouse, without the protective umbrella of military service, becomes a more expensive proposition.  

Military families can prepare for both the unexpected, and the expected—by that I mean the day when your service member leaves military service. Once you have carefully measured the financial value of your total contribution to your family, you will want that amount of coverage to take with you into the civilian world.

Will You Do What Smart Spouses Do?

I’ll admit it.  Life insurance is not only unexciting, it also feels confusing and a bit overwhelming. But it doesn’t have to be. Answer three questions for yourself, and you will know what to do:

Who should benefit from your insurance policy?

Most military families buy spousal insurance to be sure their children are well-cared for. With FSGLI, the surviving servicemember, who assumes sole responsibility for raising the children, is always the beneficiary. The insurance benefit helps provide the means to purchase helping hands when they’re needed.  

Unlike FSGLI, other military-focused insurance providers don’t limit the payout amount to $100,000 or restrict who you can name as your beneficiary.  Buying a small supplemental policy that covers the first two or three years until the family can get re-adjusted, won’t break the bank.

You might be surprised to learn that for as little as $2.50 per month, Military Benefit Association sells $50,000 of term coverage. For less than the price of one specialty cup of coffee each month, you can be sure your child would inherit the means to travel, take piano lessons or pay some school tuition when the time comes.  What’s more you will never have to worry about losing coverage or your insurance getting cancelled when your spouse is no longer in service.

What kind of insurance should I get?

Whole Life, Universal Life, Variable Life Insurance…put all those terms aside unless you are looking for insurance as part of a long-term, strategic investment.  

Term insurance is the right solution to a relatively short-term need. It gives the most coverage at the least cost for a fixed period of time and is easy to start. Often you can complete the entire transaction online.  Most people, not just military families, want coverage while their children are still dependent on them.  Professionals note that once kids are no longer dependent on their parents, there is little need to pay for life insurance, unless there are already large, on-going financial obligations.[1]  

How much term insurance do I need?

Tally up all the expenses your loved ones will face—some Family CEO services, child care that must be paid for, plus any outstanding personal debts you still may have such as school tuition loans. Now add $10,000 for final expenses. If your family also depends on your income to balance the monthly budget you probably will want to add in an amount covering the rest of the year.

From that total subtract your own personal savings/investments and any FSGLI life insurance benefits. The net amount is a good estimate of what you need in term life coverage. The cost of term life insurance is relatively inexpensive and a decision a family can comfortably make; but if you have any doubts, you always have the option to seek assistance from a financial advisor.

That’s all there is to it.  Why not do what most smart spouses do?  Recognize your family may need insurance, determine how much, make the decision to get covered, then go online and sign up today. 

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^[1]  https://www.thesimpledollar.com/insurance/life/when-should-you-stop-paying-for-life-insurance/

https://www.nerdwallet.com/blog/insurance/how-long-term-life-insurance-policy-should-last/

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Food insecurity has long been a topic of discussion in military communities, with many citing low income levels as pressing issues for families.

Now the House has proposed a bill to help provide additional aid to low income military families.

Bill in US House Calls for More Aid to Low Income Military Families

The proposal was created by the House Armed Services Committee’s subcommittee focusing on personnel. Proposed supports are aimed at assisting junior enlisted families who make less than 130% of the federal threshold, which amounts to $26,200 per year for a family of four.

Right now, an E1 with more than 4 months of service makes $20,796 annually before taxes. This number reflects basic pay and does not include BAH, special duty pay, hazard pay or combat pay.

A 3% pay raise for all troops is included in the amendment. This is backed by the White House and would increase junior enlisted paychecks by about $780 per year. This would increase E1 pay to $21,576 per year; this falls $4,624 below the poverty threshold for a family of four.

The personnel subcommittee has also proposed additional supports for military families meeting the federal poverty threshold. Military families meeting these guidelines generally qualify for SNAP and other support programs.

Under the proposed policy, low income military families would also receive additional monetary supports, amounting to approximately $400 per month. These funds would be earmarked for basic needs like food, clothing and toiletries.

Easier Access to 24/7 Child Care Included in Proposal

Among the other supports included in the personnel subcommittee’s recommendations are policies that aim to make child care easier to access for military families.

For families at installations were 24/7 shifts are required, the bill would require that the DOD make care available at all times. In addition, an on-base housing priority for military spouses who pledge to provide home-based daycare is proposed.

EFMP Practices Standardized in New Bill

Many families have long had issues with the Exceptional Family Member Program (EFMP), a DOD-created organization designed to make moving with dependents requiring additional medical care or education supports easier. As of 2020, this program is not standardized across the DOD. Instead each service operates their own EFMP organization independent of the others.

The new policy proposal would require the EFMP services be standardized across the DOD to ensure equitable access and support for all families, regardless of branch of service or location.

White House Opposes Low Income Support Suggestions

President Donald Trump opposed similar measures in last year’s defense spending authorization bill. The final policy did not include social supports for low income military families.

The White House believes that junior enlisted pay is equal to or greater than compensation received by civilians with similar job experience, education and within the same age range.

While Trump has signaled that he would veto this year’s spending bill over other issues, including renaming bases to remove Confederate connections and banning racist symbols on base, he has yet to make a formal statement regarding these additional proposals. Given past statements opposing similar measures, support from the White House on the 2021 spending bill is uncertain.

Has your family applied for SNAP or other benefits? Sound off in the comments!

***EDIT*** We’d like to address a special thank you to Athena Gonzalez, a military spouse in the UK, for the information and resources she was able to provide in order to support this article and the military spouse community.  Athena had created a similar list back in April and shares it weekly on local and non-local spouse pages. She encourages spouses to email her their business links with a 2 line paragraph description. These businesses are owned and operated by members of our BIPOC community and allies. I have also extended the invitation to members and allies of the LGBTQIA and Disability communities. Here is a link to Athena’s list.

Right now is a crucial time to support small businesses in America, with an extra focus on showing up for Black owned businesses. In our military community, many veterans and military spouses have started amazing businesses through grit and creative thinking.

27 Black Military Entrepreneurs You Need to Know Now

We’ve sourced incredible military-connected businesses that you’re 100% going to love – and that you need to know about right now.

Clothing & Accessories

She Swank

Owner Lakesha Cole, 2014 AFI MSOY and USMC veteran spouse, started She Swank as an online and brick-and-mortar boutique for those in search of a social shopping experience.

Hooked on Micah

Find all the sweetest handmade baby clothes from Hooked on Micah! Founded by Micah, an active duty Air Force service member stationed OCONUS, you’ll find gorgeous baby layettes and clothing. Micah also offers the option to custom order pieces that are just for your little one.

The Unique Bee Boutique

Outfit yourself in stylish level clothes for your busy, modern life with The Unique Bee, an inclusive clothing boutique.

Princess Leah Designs

Add some extra beauty to your look with unique, handcrafted accessories from Princess Leah Designs, located in Richlands, NC. We especially love her creative earrings and stamped text charms!

Honey Bee Hive Shop

For gorgeously unique earrings, shop at Honey Bee Hive! From colorful fabric studs to feathered tassels, this military spouse owned business is ready to add beautiful character to your outfits!

Simplistic Design

UK-based military spouses Crystal Nicole Smith and Jami Floyd are serving their community with custom vinyl designs, available for purchase through the business’s Facebook page and can be shipped to anywhere in the US.

Hush by Tai

Tai Trammel curates a gorgeous online boutique, Hush by Tai, that allows for colorful, chic personal expression. Tai, who is based in the UK, also offers options to support fellow business owners with branding packages at reasonable prices.

Kallie & Co.

Military spouse-owned Kallie & Co. specializes in fair trade-sourced unique footwear. They recently launched a completely vegan line of designer shoes!

The Bautista Project

Marla Bautista, a military spouse, turned her experiences with homelessness as a teen into a business that donates 10% of profits to charity. Shop The Bautista Project for unique home goods, apparel and vinyl items.

Food & Fitness

She Makes Delicious

Save time on meal prepping with this done-for-you service! Chef Nina Bryant, a military veteran, makes delicious meals with locally sourced, whole food ingredients. She Makes Delicious offers incredible meal prep options, all shipped directly to you!

Tatiana Mone

Tatiana is a military spouse offering realistic personal training programs that fit your lifestyle. She’s currently serving as the in-house fitness and nutrition expert for InDependent’s Wellness Lounge and Wellness Summit through 2020.

Mahogany Drinks

Add some yum to your mug with ethically sourced luxury teas, hot chocolates and coffees! Mahogany Drinks also offers beautiful mugs and accessories to make your first sip extra soothing.

Health, Beauty & Self-Care

Ergantos

Military spouse Gem Henry provides gorgeous Black-focused beauty, body and hair products with shipping available.

The Kulture Kabinet

Providing bath, beauty and aromatherapy products, the milspouse owned Kulture Kabinet helps families live better through luxury products. There’s even a line just for kids.

True Urembo

This veteran owned skin care line based on botanical ingredients. True Urembo hand crafts their products and are located in North Carolina.

Phor Mars

Owner Eryka Wakanda is on a mission to empower women to embrace their natural beauty through incredible self-care moments. She’s committed to creating all Phor Mars beauty products without harsh chemicals!

Candle Chronicles

Self-love comes in all forms and Candle Chronicles believes in power of fragrance to improve your mood and mindset!

Business & Financial Services

The Social Crown

Kia Young, an MD-based military spouse, guide small businesses to the ideal social media strategies as the CEO of The Social Crown.

MakeHER

Kia Young, Lakesha Cole and Krystel Spell teamed up to create MakeHER, a unique business-owner conference aimed at female military spouses.

Write to Influence Online

Develda Edington supports business owners with custom copy for their websites and print materials as the owner of Write to Influence Online.

Katrina Carrington, CPA

Military spouse Katrina Carrington, along with her team of financial professionals, provides expert accounting and financial advice to families and businesses

Military Influencer Conference

Veteran Curtez Riggs created a conference where military connected influencers and entrepreneurs could network and build their skills. Since 2016, MIC has hosted exciting conferences for business owners in the military community.

Leadership LINKS

A faith-based leadership institute, Leadership LINKS helps individuals channel their talents and passions for the greater community good.

Ingram Financial Management

Attiyya Ingram, AFC, is a military spouse who specializes in making money work for military families.

Find Black-Owned Businesses Near Your Duty Station

There are so many incredible military-connect, Black-owned businesses that it’s impossible to list each and every one in just one article. Which is why we love resources that help us to do the work individually.

The Black Wallet

Military spouse Jasmine Grant launched The Black Wallet to help you find Black-owned businesses in your community. Grant also offers support and services to help entrepreneurs launch their own business!

FindMe Mobile

Military spouse and lawyer Jennifer Brantley, owner of More Than a Mrs., was looking for ways to connect with BIPOC and support local businesses. FindMe Mobile is an app and website designed to connect, collaborate and communicate!

AMSE MilSpouse Black Owned Business Directory

Military spouse Moni Jefferson has long served as a resource and support for entrepreneurs in the military community. With the recent launch of the Association of Military Spouse Entrepreneurs, a small business network, she and co-founder Flossie Hall are also highlighting Black military spouse business owners with a new directory!

Do you have a favorite Black-owned small business with a military connection? Share more information in the comments!

Military troops could see a 3% pay raise as soon as January 2021, according to Rep. Mac Thornberry, R-TX, the top GOP member of the House Armed Services Committee.

Top Armed Services Republican Promises 3% Raise in 2021

This pay raise was submitted in February 2020 as part of President Donald Trump’s proposed 2021 budget which recommends $741 billion in overall defense spending. Thornberry expects that this portion of the budget proposal will be adopted by Congress.

“People are our number one priority. And that’s a way to show our people we value them,” Thornberry said. “So I would expect the (White House’s) requested pay raise to be included next year.”

If adopted, this would be the second consecutive year that troops would receive a 3% or higher raise. In 2020, troops saw a 3.1% raise.

Should Congress adopt this portion of Trump’s budget, troops could see $800 or more in their annual salaries in 2021, according to projections from Military Times.

Based on these calculations, junior enlisted troops would receive $860 more per year. Senior enlisted and junior officers would receive at least $1500 more in their annual salary. Mid-grade and senior officers would receive $2500 or more. For example, a service member with 12 years of service and a rank of O-4 would receive $2800 more in 2021.

Aim to Retain Troops, Match Civilian Pay

Thornberry is confident that this proposed pay raise will pass. He is committed to retaining troops by making military careers more lucrative.

“We want to continue to attract and retain the very best people we can,” he explained. “Nobody does it for the money, but it is at least a factor in families deciding whether they want to join or stay in the military.”

In the past, defense leaders have strayed from the federal pay calculations, a formula designed to help match military pay to civilian counterparts, to allocate more funds to readiness and modernization efforts. However, Congress has opted to stick to the pay increases in recent years.

This year, Thornberry is concerned that troop raises and other military spending might be targeted for cuts due to the pandemic response spending. Current House Armed Services Committee Chairman Adam Smith, D-WA, has already gone on the record, stating that he does not support additional defense spending if the funds could be better used in public health initiatives or recovery programs.

Troops Slated for Raise, Other Programs Suffer Deep Cuts

Trump’s budget proposal was unveiled in early February, prior the the pandemic crisis and the recent Black Lives Matter protests sweeping the country. Titled “A Budget for America’s Future,” the plan outlines several major areas of change.

The EPA’s budget, under this plan, would call for the elimination of 50 “wasteful” programs and $500 million in research funding. The VA would be 14% higher than 2020 budget, with $105 billion in funding allocated for 2021 and $94.2 billion in immediate allocations for future programs.

Also in this budget, Trump calls for the elimination of the National Endowment for the Arts and the National Endowment for the Humanities, both major funders of PBS and NPR as well as other programs around the country. Trump also calls for an end to the Public Service Loan Forgiveness Program, which allows college loans to be forgiven when an individual has spent a period of time working for a public service agency while also making regular payments toward their loans.

If passed, what would you do with your increase in pay? Sound off in the comments!