Military retirement pay will rise 2.8% in 2026 as the new COLA takes effect, lifting checks starting December 31, 2025. The increase mirrors Social Security and VA adjustments and adds $28 per $1,000 of monthly retired pay.

The 2026 BAH increase comes at the same time as a likely pay raise for service members. As of Dec. 11, the House of Representatives had approved the 3.8% increase in basic pay. The proposed pay raise now requires the Senate's approval and President Joe Biden's signature.

The proposed NDAA also includes a boost in family separation allowance, among other policy alterations designed to improve troops’ quality of life.