Hegseth pledges housing fix after $2.6 billion used for warrior bonuses

(The Center Square) – Defense Secretary Pete Hegseth pledged Wednesday to work with Congress to fix a shortfall in military housing allowances, but the Pentagon's own budget documents show no plan to restore $2.6 billion that was redirected from a housing fund to pay Christmas bonuses to service members.

Rep. Don Bacon, R-Neb., had telegraphed the challenge ahead of the hearing. The retiring Air Force brigadier general and longtime advocate for military quality of life pressed Hegseth directly on what happened to the money Congress appropriated to help troops living off base.

"We brought in $2.5 billion to increase housing allowances for people living off base in the reconciliation bill," Bacon said. "The [Department of Defense] took that money and paid the entire force $1,776 in bonuses."

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The Pentagon's fiscal year 2027 budget overview – a $1.5 trillion request, a 42% increase over last year – contains no line item to replenish the Basic Allowance for Housing fund. The $21.5 billion housing investment in the budget is targeted entirely at repairing and constructing physical barracks, not the cash entitlement that helps troops living off base pay their rent.

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