January 9, 2015

This year promises to be a difficult one for the military community. Congress will face proposals to overhaul military pay and compensation while sequestration threatens to cut billions out of the FY 2016 defense budget.   

Below is an estimated timeline of major events in 2015, including the defense bill process, Military Compensation and Retirement Modernization Commission (MCRMC) report, and the return of sequestration:  

February 1: The congressionally mandated MCRMC will release its report detailing proposals to overhaul military pay, retirement, and other forms of compensation. The details of the report could become available as early as January 30.  

February 2:  The president announced he will submit his budget proposal on time to Congress, despite the fact that the MCRMC report will be released at the same time. It’s unclear whether the president’s budget request will include MCRMC recommendations given the narrow timeframe. However, the proposal is likely to at least include a third consecutive year of military pay raise caps, dramatic TRICARE fee increases, and other controversial measures.  

Mid-March: Six weeks after the president delivers his budget to Congress, congressional committees are required to submit their “views and estimates” of spending and revenues within their respective jurisdictions to the House and Senate Budget Committees.  

May-June: The House and Senate Armed Services Committees will begin work on the FY 2016 defense bill. The committees will need to consider recommendations from the MCRMC and how to deal with the specter of sequestration returning in FY 2016.  

June-July:  Full House and Senate pass their respective versions of the defense bill.   

July-October:  House and Senate negotiators resolve differences between their respective versions.  

October 1: Across-the-board sequestration cuts return, slashing the defense budget by approximately $50 billion in FY 2016. 

October-December:  Final defense bill passed by House and Senate and becomes law.  

In recent years, Congress failed to complete the work on the defense bill until very late in the year. This delay leads to rushed, behind-the-scenes negotiations that undermines debate on the defense bill. MOAA hopes Congress can stick to its proposed schedule and allow time for discussion and debate on controversial proposals.