In a major push to support military families facing financial hardships, Representatives Steve Womack (R-AR) and Seth Moulton (D-MA) have introduced a bipartisan bill known as the BNA Fairness Act. This legislation aims to eliminate federal taxes on the Basic Needs Allowance (BNA), giving military households access to their full benefits without deductions.
What is the Basic Needs Allowance (BNA)?
The BNA is a supplemental financial benefit provided to service members whose household income falls below 130% of federal poverty guidelines. Its purpose is simple—help struggling military families cover essential living expenses, like food, housing, and basic necessities. However, under the current law, the BNA is subject to federal income taxes, reducing its overall effectiveness for recipients.
How the Proposed Law Would Work
The BNA Fairness Act proposes a key change: removing federal taxes on BNA payments. This would align it with other tax-exempt military benefits like the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS), which are already exempt from income tax.
If passed, military families receiving the BNA would be able to keep the full amount of the allowance, giving them more financial breathing room to handle day-to-day expenses.
Lawmakers Speak Out
Congressman Steve Womack, one of the bill’s lead sponsors, explained the importance of the measure. “We can’t give military families financial support with one hand and take part of it back with the other,” he said. “This bill ensures they receive every dollar they’re entitled to.”
His co-sponsor, Congressman Seth Moulton, added, “No family who serves our country should have to struggle to put food on the table. This bill gives them the support they deserve.”
Why It Matters
Military advocacy groups, such as the Military Officers Association of America, have expressed strong support for the legislation. For many service members, financial struggles aren’t just an inconvenience—they’re a roadblock to focusing on their duties.
By exempting the BNA from taxation, the bill aims to prevent financial stress from affecting the lives of military personnel, especially those stationed in high-cost areas. This could have a lasting impact on the financial well-being of thousands of families.
Part of a Broader Effort
This bill is part of a growing movement in Congress to support military personnel. Similar initiatives, like the Tax Cuts for Veterans Act of 2023, seek to exclude all military retirement and related benefits from federal income taxes.
The introduction of the BNA Fairness Act reflects a bipartisan consensus that the financial sacrifices of military families shouldn’t be compounded by unnecessary tax burdens. If passed, this change would offer real relief to those who have dedicated their lives to serving the country.
