Starting Jan. 1, US troops stationed in 15 metropolitan areas and 21 continental non-metropolitan counties will be cut off from a cost-of-living allowance, the Department of Defense (DoD) announced last week.
In line with the 2022 budget for Continental United States Cost-of-Living Allowance (CONUS COLA), approximately 6,000 service members stationed within CONUS will share $8.5 million.
The changes in CONUS COLA, the stipend given to troops stationed at excessively expensive locations in the lower 48, will lead to approximately 48,000 troops living in those areas – which, among others, include Long Island, Staten Island, Washington, Boston, Nantucket, Boulder, and San Francisco- missing out on the allowance.
According to the DoD, a location becomes eligible for COLA when non-housing costs exceed 8% above the national average and the rate is based on cost of transportation, goods and services, federal income taxes, sales taxes, and miscellaneous expenses analyzed by a contractor.
Depending upon the non-housing prices in a duty location as compared to non-housing prices in average CONUS, rates can increase, decrease, or remain the same.
CONUS COLA monthly payments vary from $33 to $59 per month for troops with dependents, and from $22 to $45 per month for those without dependents, Pentagon explains, but the amount of COLA a service member earns depends on geographic duty location, pay grade, years of service, and dependency status.
For example, NYC-located troops will receive the highest stipend at 6%, down from 7% in 2021.
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