The Department of Defense implemented the Basic Needs Allowance in 2023 to supplement income for larger military families, but only 77 service members applied for and received this allowance the first year. What is the Basic Needs Allowance, who is eligible and how do you get it?
What Is the Basic Needs Allowance?
The Department of Defense's Basic Needs Allowance, or BNA, is a monthly payment designed to bring the income of a service member up to 150% of the poverty level for their family size, total household income and location.
Who Is Eligible for the BNA?
Active-duty service members, including activated National Guard members and reservists, who have at least one dependent listed in the Defense Enrollment Eligibility Reporting System (DEERS) may qualify for the allowance. The service member must have completed their initial military training.
Eligibility for the allowance is calculated by comparing the service member's total household income to 150% of the federal poverty level for their assigned duty location. The three locations for the federal poverty level are everywhere in the contiguous 48 states, Alaska and Hawaii.
Household income includes all pays and allowances, spouse income, investment income and government food assistance programs. It does not include allowances and entitlements for travel, such as permanent change of station (PCS) travel. It does not include the income of a dependent who does not have to file a tax return.
Applying for the BNA
Service members must apply for the BNA using the guidelines set out by their branch of service. They will need to provide documentation, typically including tax returns; Leave and Earning Statements; and documentation from other income.
If found eligible, the BNA's amount will be calculated by subtracting the family's household income from the 150%-of-the-federal-poverty-level number for their location. The difference is divided by 12, and the result is paid each month.
For example, if a service member's household income is $6,000 less than 150% of the federal poverty level, they will receive an allowance of $500 per month.
Receiving the BNA
The BNA is paid as a monthly allowance as part of the regular pay calculation. This is laid out on each service member's monthly Leave and Earning Statement. The BNA is taxable income, so service members may incur tax consequences, including higher taxes and changed eligibility for certain tax credits, such as the Saver's Credit and the Earned Income Tax Credit.
Service members are responsible for updating their BNA application in the event of a relevant change, such as to income, family size or location. They must also update their application annually.
They receive the BNA monthly until the service member is no longer eligible.
Notes about the BNA
Some things to keep in mind when applying for the BNA:
- The BNA counts as income when calculating eligibility for federal means-tested food assistance programs. Because of the impact on taxes and food assistance programs, service members may want to meet with installation personal financial counselors or personal financial managers to be sure they understand the impact of applying for the BNA.
- In dual military households, only one member may receive the BNA.
- The House version of the 2025 National Defense Authorization Act, or NDAA, includes a provision to increase the BNA calculation to 200% of the federal poverty level. If this provision remains in the legislation, it would vastly expand access to this valuable benefit.
The BNA can potentially add hundreds of dollars to a military member's paycheck. If you have a larger family, and you're not receiving the BNA, ask your command how to apply. This allowance is here for you -- use it!
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