Every servicemember carries a cost that doesn’t appear in the Pentagon’s budget – funds that will cover their VA disability payments and health care coverage long after they leave uniform.

The Congressional Budget Office (CBO) estimates that cost at $86,000 per year per member, according to a recently released report analyzing the total cost of military compensation.

[READ THE REPORT]

Highlights include:

• The Bottom Line. The total compensation cost for FY 2026 was $718 billion, with $277 billion through the Pentagon (including $25 billion in concurrent receipt of both VA disability and retired pay paid by the Treasury) and $441 billion in the VA’s budget.
  
  
• VA Costs Outpacing the Pentagon. Compensation spending in the defense budget has leveled off in recent years, but VA’s FY 2026 request is 5.4 times its 1999 funding after adjusting for inflation. The Veterans Benefits Administration alone grew from $54 billion in 2005 to $227 billion requested for 2026.
  
  
• Concurrent Receipt on the Rise. As more retirees qualify to receive both military retired pay and VA disability compensation, and as average disability ratings rise, the government must set aside more money for future concurrent receipt payments. The Treasury funds these obligations, which account for almost half of the deferred compensation costs CBO attributes to military personnel, including retirement and retiree health benefits.
  
  
• Overall Pay Remains Competitive. Enlisted pay exceeds the 90th percentile of comparable civilians, above the Pentagon’s 70th-percentile target.

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MOAA appreciates the CBO’s objective review of the full expenses of service and affirms that manpower decisions should be made with sound force planning and clear foresight of the costs incurred from servicemember injury. When the nation sends servicemembers into harm’s way, it takes on obligations that last for decades. That includes costs stemming from combat injuries, training accidents, and toxic exposures that may not surface until years after service.

Compensation and the Future Force

While financial compensation may be competitive, it is not the only consideration a potential recruit makes when deciding whether to choose a career of service.

Military families have long been the primary source of new recruits. A 2013 Pentagon report found that 77% to 86% of recruits had a family member who served. Today, only 37% of active duty family members say they would recommend service to a young family member, according to Blue Star Families’ 2025 Military Family Lifestyle Survey. In 2016, that figure was 55%. Families who watch a parent, spouse, or sibling come home disabled form a clear view of whether the nation keeps its promises.

MOAA appreciates the CBO’s analytical rigor in assessing the total cost of military personnel. We will remain engaged with the CBO, Congress, and other relevant agencies – along with fellow military and veterans service organizations – to keep faith with those disabled in service and to sustain the all-volunteer force.