The White House is opposing a congressional proposal to give junior enlisted service members their largest pay raise in decades, citing concerns over cost and timing. The House version of the annual defense policy bill includes a 19.5% pay increase for low-ranking troops, which the White House budget office considers too costly amid the Biden administration’s ongoing review of military compensation.
According to congressional analysts, the proposed pay raise would cost more than $24 billion over the next five years, surpassing the combined cost of two new aircraft carriers. House lawmakers will soon vote on the measure, which aims to ensure nearly every service member earns a base pay of at least $30,000 annually.
The bill outlines policies and spending targets for nearly $885 billion in national security programs. This includes an across-the-board 4.5% pay raise for all troops in 2025 and additional increases of up to 15% for troops in ranks E-4 and below. E-5s with less than 10 years of service would see an average pay bump of 7%. For an E-2 with two years of service, this increase equates to approximately $5,000 more next year, while an E-4 with four years of service would receive nearly $7,500 extra.
The Congressional Budget Office estimates the plan will add $24.4 billion in extra defense spending from fiscal 2025 through fiscal 2029. The White House estimates a slightly lower five-year cost of just under $22 billion, with $3.3 billion required next year alone.
Defense planners have historically opposed similar pay increases due to the significant financial strain on the military budget. Recently, they have lobbied lawmakers to delay action on junior enlisted pay raises until the Pentagon completes its compensation analysis next year. The White House reiterated its opposition on Tuesday, emphasizing the financial burden.
For comparison, the USS John F. Kennedy is expected to be completed next year at a construction cost of about $11.4 billion, while the USS Enterprise is set to be finished in 2028 at around $12.3 billion. The pay raise plan also approaches the total cost of the Space Force budget for fiscal 2025, estimated at $29.6 billion.
House lawmakers argue that the pay raise is necessary to meet recruiting and retention goals and to fairly compensate young troops and their families for their sacrifices. The House plan also includes increased housing stipends and more funding for on-base daycare services. Despite bipartisan support in the House Armed Services Committee, the bill faces potential challenges on the floor due to amendments related to social issues like abortion and transgender medical care.
The Senate Armed Services Committee has not yet committed to the House’s proposed raises. They are expected to reveal their service member quality of life proposals soon, with a committee vote on their draft of the authorization bill later in the week. A compromise between the House and Senate versions of the bills is not expected until fall or winter, potentially leaving the fate of the pay raises unresolved until just before the start of 2025.
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