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FY2023 NDAA: Military Housing
October 18, 2022
Congress may debate several military housing issues during consideration of the FY2023 National
Defense Authorization Act (NDAA). Military housing involves a range of policies and appropriations that
support on-base housing infrastructure and provide tax-free housing allowances for some servicemembers
to rent or buy homes outside military installations. The House-passed bill, H.R. 7900, and the Senate
Armed Services Committee (SASC)-reported bill, S. 4543, include various military housing related
provisions that would, among other items, privatize some transient lodging facilities, expand oversight of
privatized family housing, and extend authorities to revise Basic Allowance for Housing (BAH) for
servicemembers. The committee reports from the House Armed Services Committee (HASC) and SASC
also seek information from the Department of Defense (DOD) about policies related to future BAH
levels, accessible housing for individuals with disabilities, and housing shortages.
Privatized Housing Expansion
Section 2814 of the House bill would require the Navy and the Air Force to privatize transient lodging
facilities within the United States over a four-year transition period to begin 11 years after enactment and
to be completed within 15 years after enactment. Transient housing is used by servicemembers who are
working temporarily at locations other than their home duty station. The Army initiated a similar
privatization effort in 2009. This measure in the FY2023 House-passed NDAA would require the Navy
and Air Force to consult with the Army to identify best practices and efficiencies in the privatization
process and to submit annual reports to Congress on the progress of the privatization effort. The bill
would also prohibit the Navy and Air Force from extending any Government direct loans, Government
guarantees or Government equity in carrying out a future privatization plan. The Congressional Budget
Office estimates that the privatization requirement, if enacted, would increase direct spending by more
than $5 billion in at least one of the four consecutive 10-year periods beginning in 2033.
The HASC report (H.Rept. 117-397) accompanying the House bill directs the Secretary of Defense to
provide a report on the feasibility of privatizing unaccompanied housing to include barracks and
dormitories within the United States. Unaccompanied housing is for servicemembers who are living
without dependents.
Congressional Research Service
https://crsreports.congress.gov
IN12033
CRS INSIGHT
Prepared for Members and
Committees of Congress

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