Military Overseas Housing Allowances Should Be More Realistic

In 1970, Congress amended authorizing legislation to permit the station housing allowance to be set at the difference between basic allowance for quarters (BAQ) and overseas housing costs. The following year Congress also set BAQ at amounts that could be reasonably related to housing costs in the United States. Because of the large increased costs since the authorizing legislation was passed, a review of military housing allowances overseas was undertaken. The review focused on: (1) determining how BAQ rates have been affected by adjustments to military compensation since 1971; (2) reviewing the legislative history and regulations pertaining to station housing allowances; (3) identifying and comparing several indicators of housing costs in the United States with BAQ; (4) reviewing the detailed Per Diem, Travel, and Transportation Allowance Committee's calculation of station housing allowances; (5) evaluating a Committee proposal to revise station housing allowances, and (6) discussing these matters with knowledgeable Department officials.