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              Congressional                                                    ____
          ~   Research Service






Armed Forces Compensation During a Lapse

in   Appropriations



Updated September 27, 2023

Compensation for members of the Armed Forces (i.e., Army, Navy, Marine Corps, Air Force, Space
Force, and Coast Guard) is funded through annual appropriations to personnel-related line items in
accounts of the U.S. Department of Defense (DOD) and the U.S. Department of Homeland Security
(DHS). These accounts include funding for pay and allowances of active and reserve component
members, along with travel-related expenses.
In anticipation of or during previous lapses in appropriations, Congress has considered actions to ensure
that certain members of the Armed Forces continue to receive pay and benefits. In the past decade, two
lapses in appropriations affecting DOD and DHS generated particular congressional interest in Armed
Forces compensation. In FY2014, a lapse in appropriations resulted in a shutdown of numerous
government operations for 16 days, affecting both DOD and DHS. In FY2019, while DOD was not
affected by a partial government shutdown, DHS-and thus the Coast Guard-was among the entities
affected by a 35-day lapse in appropriations.
Although military retirement is funded through annual appropriations, retired pay and survivor benefits
are distributed from the Military Retirement Fund. As such, retirees and survivor benefit plan
beneficiaries generally continue to receive disbursements during a lapse in appropriations.


Selected Lapses in Appropriations


FY2014

Immediately preceding the FY2014 shutdown that affected DOD, on September 30, 2013, then-President
Barack Obama signed the Pay Our Military Act (POMA; P.L. 113-39). This legislation provided an
automatic continuing resolution (ACR) to cover FY2014 pay and allowances for members of the Armed
Forces on active duty, including reservists on federal active duty, as well as certain DOD and DHS
civilian personnel and contractors supporting military personnel. Section 3 of the POMA contained a
termination provision, and the law is no longer in effect. In subsequent years, some Members have
introduced similar legislation, such as the Pay Our Military Act of 2018 (H.R. 4871; S. 2328).

                                                              Congressional Research Service
                                                                https://crsreports.congress.gov
                                                                                   IN12244

CRS INSIGHT
Prepared for Members and
Committees of Congress

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