---
kind: "section"
citation: "37 U.S.C. § 402b"
title: "37"
title_heading: "Pay and Allowances of the Uniformed Services"
number: "402b"
heading: "Basic needs allowance for members on active service in the Armed Forces"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/37/402b"
units:
  - "Chapter 7 — Allowances Other Than Travel and Transportation Allowances"
---

# §402b. Basic needs allowance for members on active service in the Armed Forces

- (a) **Allowance Required.—** The [Secretary concerned](/usc/37/101.md?p=5) shall [pay](/usc/37/101.md?p=21) to each [member](/usc/37/101.md?p=23) who is eligible under [subsection (b)](#b) a basic needs allowance in the amount determined for such [member](/usc/37/101.md?p=23) under [subsection (c)](#c).
- (b) **Eligible Members.—** A [member](/usc/37/101.md?p=23) on [active service](/usc/37/101.md?p=20) in the [armed forces](/usc/37/101.md?p=4) is eligible for the allowance under [subsection (a)](#a) if—
  - (1) the [member](/usc/37/101.md?p=23) has completed initial entry training;
  - (2) the gross household income of the [member](/usc/37/101.md?p=23) during the most recent calendar year did not exceed an amount equal to 200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the location of the [member](/usc/37/101.md?p=23) and the number of individuals in the household of the [member](/usc/37/101.md?p=23) for such year; and
  - (3) the [member](/usc/37/101.md?p=23)—
    - (A) is not ineligible for the allowance under [subsection (d)](#d); and
    - (B) does not elect under [subsection (g)](#g) not to receive the allowance.
- (c) **Amount of Allowance.—** The amount of the monthly allowance payable to a [member](/usc/37/101.md?p=23) under [subsection (a)](#a) shall be the amount equal to—
  - (1)
    - (A) 200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the calendar year during which the allowance is paid based on the location of the [member](/usc/37/101.md?p=23) and the number of individuals in the household of the [member](/usc/37/101.md?p=23) during the month for which the allowance is paid; minus
    - (B) the gross household income of the [member](/usc/37/101.md?p=23) during the preceding calendar year; divided by
  - (2) 12.
- (d) **Bases of Ineligibility.—**
  - (1) **In general.—** The following [members](/usc/37/101.md?p=23) are ineligible for the allowance under [subsection (a)](#a):
    - (A) A [member](/usc/37/101.md?p=23) who does not have any [dependents](/usc/37/401.md?p=a).
    - (B) A cadet at the [United States](/usc/37/101.md?p=1-A) Military Academy, the [United States](/usc/37/101.md?p=1-A) Air Force Academy, or the Coast Guard Academy, a midshipman at the [United States](/usc/37/101.md?p=1-A) Naval Academy, or a cadet or midshipman serving elsewhere in the [armed forces](/usc/37/101.md?p=4).
  - (2) **Household with more than one eligible member.—** In the event a household contains two or more [members](/usc/37/101.md?p=23) determined under [subsection (f)](#f) to be eligible to receive the allowance under [subsection (a)](#a), only one allowance may be paid to a [member](/usc/37/101.md?p=23) among such [members](/usc/37/101.md?p=23) as such [members](/usc/37/101.md?p=23) shall jointly elect.
  - (3) **Automatic ineligibility of members receiving certain pay increases.—** A [member](/usc/37/101.md?p=23) determined to be eligible under [subsection (f)](#f) for the allowance under [subsection (a)](#a) whose monthly gross household income increases as a result of a promotion or other permanent increase to [pay](/usc/37/101.md?p=21) or allowances under this title to an amount that, on an annualized basis, would exceed the amount described in [subsection (b)(2)](#b-2) is ineligible for the allowance. If such [member](/usc/37/101.md?p=23) is receiving the allowance, payment of the allowance shall automatically terminate within a reasonable time, as determined by the Secretary of Defense in regulations prescribed under [subsection (j)](#j).
  - (4) **Ineligibility of certain changes in income.—** A [member](/usc/37/101.md?p=23) whose gross household income for the preceding year decreases because of a fine, forfeiture, or reduction in [rank](/usc/37/101.md?p=16) imposed as a part of disciplinary action or an action under [chapter 47](/usc/10/chstA/ptII/ch47.md) of title 10 (the Uniform Code of Military Justice) is not eligible for the allowance under [subsection (a)](#a) solely as a result of the fine, forfeiture, or reduction in [rank](/usc/37/101.md?p=16).
- (e) **Application by Members Seeking Allowance.—**
  - (1) **In general.—** A [member](/usc/37/101.md?p=23) who seeks to receive the allowance under [subsection (a)](#a) shall submit to the [Secretary concerned](/usc/37/101.md?p=5) an application for the allowance that includes such information as the Secretary may require in order to determine whether or not the [member](/usc/37/101.md?p=23) is eligible to receive the allowance.
  - (2) **Timing of submission.—** A [member](/usc/37/101.md?p=23) who receives the allowance under [subsection (a)](#a) and seeks to continue to receive the allowance shall submit to the [Secretary concerned](/usc/37/101.md?p=5) an updated application under [paragraph (1)](#e-1) at such times as the Secretary may require, but not less frequently than annually.
  - (3) **Voluntary submission.—** The submission of an application under [paragraph (1)](#e-1) is voluntary.
  - (4) **Screening of members for eligibility.—** The Secretary of Defense shall—
    - (A) ensure that all [members](/usc/37/101.md?p=23) of the [armed forces](/usc/37/101.md?p=4) are screened during initial entry training and regularly thereafter for eligibility for the allowance under [subsection (a)](#a); and
    - (B) notify any [member](/usc/37/101.md?p=23) so screened who may be eligible that the [member](/usc/37/101.md?p=23) may apply for the allowance by submitting an application under [paragraph (1)](#e-1).
- (f) **Determinations of Eligibility.—**
  - (1) **In general.—** The [Secretary concerned](/usc/37/101.md?p=5) shall—
    - (A) determine which [members](/usc/37/101.md?p=23) of the [armed forces](/usc/37/101.md?p=4) are eligible under [subsection (b)](#b); and
    - (B) notify each such [member](/usc/37/101.md?p=23), in writing, of that determination.
  - (2) **Information included in notice.—** The notice under [paragraph (1)](#f-1) shall include information regarding financial management and assistance programs for which the [member](/usc/37/101.md?p=23) may be eligible.
- (g) **Election Not to Receive Allowance.—**
  - (1) **In general.—** A [member](/usc/37/101.md?p=23) determined under [subsection (f)](#f) to be eligible for the allowance under [subsection (a)](#a) may elect, in writing, not to receive the allowance.
  - (2) **Deemed ineligible.—** A [member](/usc/37/101.md?p=23) who does not submit an application under [subsection (e)](#e) within a reasonable time (as determined by the [Secretary concerned](/usc/37/101.md?p=5)) shall be deemed ineligible for the allowance under [subsection (a)](#a).
- (h) **Special Rule for Members Stationed Outside United States.—** In the case of a [member](/usc/37/101.md?p=23) assigned to a duty location outside the [United States](/usc/37/101.md?p=1-A), the [Secretary concerned](/usc/37/101.md?p=5) shall make the calculations described in subsections [(b)(2)](#b-2) and [(c)(1)](#c-1) using the Federal poverty guidelines of the Department of Health and Human Services for the [continental United States](/usc/37/101.md?p=1-B).
- (i) **Regulations.—** Not later than one year after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2022, the Secretary of Defense shall prescribe regulations for the administration of this section.
- (j) **Effective Period.—**
  - (1) **Implementation period.—** The allowance under [subsection (a)](#a) is payable for months beginning on or after the date that is one year after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2022.
  - (2) **Termination.—** The allowance under [subsection (a)](#a) may not be paid for any month beginning after December 31, 2027.
- (k) **Definitions.—** In this section:
  - (1) **Gross household income.—** The term “gross household income”, with respect to a [member](/usc/37/101.md?p=23) of the [armed forces](/usc/37/101.md?p=4), includes—
    - (A) all household income, derived from any source; minus
    - (B) in the case of a [member](/usc/37/101.md?p=23) whom the [Secretary concerned](/usc/37/101.md?p=5) determines resides in an area with a high cost of living or that otherwise has a demonstrated need, any portion of the basic allowance for housing under [section 403 of this title](/usc/37/403.md) that the [Secretary concerned](/usc/37/101.md?p=5) elects to exclude.
  - (2) **Household.—** The term “household” means a [member](/usc/37/101.md?p=23) of the [armed forces](/usc/37/101.md?p=4) and any [dependents](/usc/37/401.md?p=a) of the [member](/usc/37/101.md?p=23) enrolled in the Defense Enrollment Eligibility Reporting System, regardless of the location of those [dependents](/usc/37/401.md?p=a).

## Source credit

(Added Pub. L. 117–81, div. A, title VI, § 601(a), Dec. 27, 2021, 135 Stat. 1761; amended Pub. L. 117–263, div. A, title VI, § 611(a), Dec. 23, 2022, 136 Stat. 2622; Pub. L. 117–328, div. O, title II, § 201(a), Dec. 29, 2022, 136 Stat. 5226; Pub. L. 118–31, div. A, title VI, § 621(a), Dec. 22, 2023, 137 Stat. 293; Pub. L. 118–159, div. A, title VI, § 621, Dec. 23, 2024, 138 Stat. 1933.)

## Notes

### Editorial Notes

### References in Text

The date of the enactment of the National Defense Authorization Act for Fiscal Year 2022, referred to in subsecs. (i) and (j)(1), is the date of enactment of Pub. L. 117–81, which was approved Dec. 27, 2021.

### Amendments

2024—Subsec. (b)(2). Pub. L. 118–159, § 621(a), struck out subpar. (A) designation before “the gross household income”, substituted “200 percent” for “150 percent” and “; and” for “; or”, and struck out subpar. (B) which read as follows: “if the Secretary concerned determines it appropriate (based on location, household need, or special circumstance), the gross household income of the member during the most recent calendar year did not exceed an amount equal to 200 percent of the Federal poverty guidelines of the Department of Health and Human Services for the location of the member and the number of individuals in the household of the member for such year; and”.

Subsec. (c)(1)(A). Pub. L. 118–159, § 621(b), substituted “200 percent” for “150 percent (or, in the case of a member described in subsection (b)(2)(B), 200 percent)”.

2023—Subsec. (k)(1)(B). Pub. L. 118–31 inserted “or that otherwise has a demonstrated need” after “high cost of living”.

2022—Pub. L. 117–328, § 201(a)(1), made technical amendment to directory language of Pub. L. 117–263, § 611(a). See Amendment notes below.

Subsec. (b)(2). Pub. L. 117–263, § 611(a)(1), as amended by Pub. L. 117–328, § 201(a)(2), designated existing provisions as subpar. (A), substituted “150 percent” for “130 percent” and “; or” for “; and”, and added subpar. (B).

Subsec. (c)(1)(A). Pub. L. 117–263, § 611(a)(2), as amended by Pub. L. 117–328, § 201(a)(3), substituted “150 percent (or, in the case of a member described in subsection (b)(2)(B), 200 percent)” for “130 percent”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2022 Amendment

Pub. L. 117–328, div. O, title II, § 201(b), Dec. 29, 2022, 136 Stat. 5227, provided that: “The amendments made by this section [amending section 611(a) of Pub. L. 117–263, which amended this section] shall take effect as if included in the enactment of such Act [meaning Pub. L. 117–263, approved Dec. 23, 2022].”

### Implementation

Pub. L. 118–31, div. A, title VI, § 621(b), Dec. 22, 2023, 137 Stat. 293, provided that: “The Secretary of Defense shall revise the guidance issued with respect to implementation of the basic needs allowance under section 402b of title 37, United States Code, to reflect the amendment made by subsection (a) [amending this section].”

Pub. L. 117–263, div. A, title VI, § 611(b), Dec. 23, 2022, 136 Stat. 2622, provided that: “Not later than January 1, 2024, the Secretary concerned (as defined in section 101 of title 37, United States Code) shall modify the calculation of the basic needs allowance under section 402b of title 37, United States Code, to implement the amendments made by subsection (a) [amending this section].”