US service members are heading into 2026 with long-awaited clarity on military pay after President Donald Trump signed the annual defense policy bill into law. The legislation, which sets funding priorities for the Pentagon, also finalizes salary and allowance increases for troops, retirees and veterans.
According to Military.com, the bill confirms a 3.8% increase in basic military pay beginning in January 2026.
The 3.8% pay raise applies across the force, including active-duty service members, National Guard and reserve personnel, as well as retirees. The publication reported that the increase was part of Trump’s fiscal 2026 budget proposal and remained intact throughout negotiations in both the House and Senate.
With the bill now signed, the raise is locked in and will be reflected in January paychecks. While the percentage increase is uniform, the actual dollar amount varies widely by rank and years of service.
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Raise will vary by rank
- An E-1 enlisted service member with fewer than two years of service is expected to see a monthly increase of about $88, raising base pay to approximately $2,407.
- An O-4 officer with more than six years of service will see an increase of roughly $305 per month, bringing base pay to about $8,332, according to estimates cited by Marca.
- Finalized pay tables will be issued by the Defense Finance and Accounting Service.
Basic Allowance for Subsistence (BAS) will rise by 2.4% in 2026. Officers will receive $328.48 per month, up from $320.78, while enlisted members’ BAS will increase from $465.77 to $476.95.
{{/usCountry}}Basic Allowance for Subsistence (BAS) will rise by 2.4% in 2026. Officers will receive $328.48 per month, up from $320.78, while enlisted members’ BAS will increase from $465.77 to $476.95.
{{/usCountry}}Housing support is also increasing. The Basic Allowance for Housing (BAH) will rise by an average of 4.2%, covering roughly 95% of local housing costs.
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Retirees and veterans included
Military retirees and veterans receiving disability compensation will receive a 2.8% cost-of-living adjustment, separate from the active-duty pay raise. This equates to an additional $28 per month for every $1,000 of retirement pay.
Survivor Benefit Plan payments will increase by the same amount.
One exception remains for retirees under the Career Status Bonus or Redux retirement system, who will see a reduced COLA.
Trump signed the fiscal 2026 National Defense Authorization Act quietly, without a formal ceremony. The bill authorizes $901 billion in military spending, making it one of the largest defense budgets in US history, as per The Guardian.