MIL News Weekly

Edward: Welcome to the MIL News Weekly
for 14-20 December 2025, your essential

guide to the latest news impacting
the military and veteran community.

Whether you're currently serving in
uniform, a military retiree, a veteran,

or a family member, this is your source
for the critical updates you need to know.

Each week, we cut through the noise to
bring you the most important developments

from the Pentagon, Capitol Hill, and
the Department of Veterans Affairs.

We’ll cover everything from new
policies and pay raises affecting

active and reserve forces, to changes
in healthcare and benefits for

retirees, and the latest on VA services
and legislation for our veterans.

Let's get you informed.

Here’s what’s happened this past week.

Issues That Affect Active and
Reserve Military Personnel

The focal point for active and reserve
military personnel during the week of

14 December 2025 was the intersection
of morale-boosting financial initiatives

and the formalization of long-term
defense policy through the National

Defense Authorization Act (NDAA).

On 18 December 2025, the U.S.

Department of War announced the
distribution of the "Warrior

Dividend," a one-time, tax-free
bonus of $1,776 awarded to nearly 1.5

million service members.

Announced by President Donald
Trump and championed by Secretary

of War Pete Hegseth, the payment
was designed to commemorate the

250th anniversary of the U.S.

military and serves as a tangible
expression of the administration's

commitment to rebuilding the
force and improving the quality

of life for military families.

The eligibility for this dividend
was specifically tailored to

junior and mid-level personnel,
encompassing approximately 1.28

million active-duty members and
174,000 reserve component members.

To qualify, active-duty service
members had to be in pay grades O-6

or below as of 30 November 2025.

Reserve component members were required
to be on active-duty orders of 31

days or more as of that same date.

The payment, billed as a supplement to
the regular monthly housing allowance,

began reaching bank accounts via
direct transfer with an expected

completion date of 25 December 2025.

This dividend was funded through
the broader fiscal framework of the

"One Big Beautiful Bill Act" (H.R.

1), demonstrating a strategic use
of supplemental appropriations to

address personnel retention and morale.

In tandem with this immediate
financial stimulus, the House of

Representatives finalized its version
of the fiscal year 2026 National Defense

Authorization Act (NDAA), a $900 billion
policy bill that authorizes a 3.8%

pay raise for all service members.

This raise is a critical component of
the legislative branch's effort to ensure

military compensation remains competitive
and reflects the increasing costs of

living faced by military families.

The NDAA also allocates $1.5

billion for the improvement and
construction of barracks, dormitories,

and childcare centers, addressing
critical infrastructure needs that have

long impacted readiness and retention.

Furthermore, the bill includes $400
million in military assistance for

Ukraine for both fiscal years 2026
and 2027, though it also asserts

significant congressional oversight
by placing limitations on the

administration's ability to reduce
troop levels in Europe and South Korea.

Specifically, the legislation mandates
that the Pentagon maintain at least

76,000 troops in Europe and 28,500
in South Korea unless the Secretary

of War certifies that reductions are
in the national security interest and

have been discussed with NATO allies.

Readiness and physical standards also saw
significant updates during this period.

On 18 December 2025, the U.S.

Marine Corps released MARADMIN 613/25,
which outlines rigorous new physical

fitness and body composition requirements
set to take effect on 1 January 2026.

These updates are the direct result
of a September 2025 memorandum

from the Secretary of War aimed at
establishing gender-neutral standards for

combat-related positions and ensuring that
all service members maintain peak physical

readiness for high-intensity conflict.

In addition to these fitness mandates, the
Marine Corps issued promotion authority

for active-duty corporals and sergeants,
with a command cutoff date of 1 December

2025 for subsequent advancements,
emphasizing a performance-based approach

to junior enlisted leadership development.

Operationally, the Department of
War remained engaged in high-level

defense policy coordination talks
with international counterparts.

On 16 December 2025, the department
released a readout of the U.S.-China

Defense Policy Coordination Talks,
highlighting ongoing efforts to

manage strategic competition and
maintain communication channels.

Meanwhile, on the domestic front,
the administration moved to restore

the honor of service members who were
separated under previous coronavirus

disease 2019 vaccine mandates, with
Chief Pentagon Spokesman Sean Parnell

issuing a statement on 15 December
2025 regarding the memorandum to

facilitate their return to service
or the correction of their records.

For federal employees working within
the Department of War, the week

provided clarity on recruitment
and retention flexibilities.

On 17 December 2025, the Office of
Personnel Management (OPM) issued CPM

2025-16, a memorandum detailing human
resources flexibilities for recruiting

and retaining technical talent in
information technology, cybersecurity,

and artificial intelligence.

This guidance allows agencies
to use enhanced compensation

tools, such as special rates and
critical pay, to safeguard federal

systems and modernize operations.

This is particularly relevant given
the administration's "Building the AI

Workforce of the Future" initiative,
announced on 15 December 2025, which

plans to recruit 1,000 technical
fellows annually to fill critical

skills gaps across the executive branch.

Relevant Legislation for
Active and Reserve Personnel

S.

2296 - National Defense Authorization
Act for Fiscal Year 2026

Authorizes $901 billion for national
security programs, including a 3.8%

pay raise for troops, $1.5

billion for barracks improvements,
and $400 million in Ukraine aid.

It prohibits diversity, equity, and
inclusion programs and restricts troop

withdrawals from Europe and South Korea.

Provides a significant pay
increase for military personnel and

authorizes funding for civilian-led
procurement and research projects.

Impacts future retirement pay
calculations based on the 3.8%

base pay increase for active
members nearing retirement.

H.R.

983 - Montgomery GI Bill Selected
Reserves Tuition Fairness Act of 2025

Signed into law on 12 December 2025, this
act requires public institutions of higher

learning to charge in-state tuition rates
to veterans and reserve members using

Chapter 1606 educational assistance.

Directly lowers the cost of education for
reserve component members who are also

federal employees, facilitating career
development without increased debt.

Does not directly affect retirees
but improves the educational

transition for future retirees
from the reserve components.

Military CARE Act

Bipartisan legislation introduced to
modernize how TRICARE beneficiaries report

and resolve health care access challenges
at military treatment facilities.

It creates a digital platform
for monitoring care issues and

requires real-time notifications
to patient advocates.

Provides active-duty families and
military-civilian employees a direct

line to resolve administrative
roadblocks in health care.

Enhances transparency and accountability
for retirees utilizing the TRICARE system.

Issues That Affect
Retired Military Personnel

Military retirees and retired
federal employees faced a complex

landscape of financial adjustments
and administrative changes during

the week of 14 December 2025.

The most significant development was the
finalization of the 2026 Cost-of-Living

Adjustment (COLA), set at 2.8%.

This adjustment is based on the increase
in the Consumer Price Index for Urban

Wage Earners and Clerical Workers (CPI-W)
and is designed to ensure that retirement

benefits keep pace with inflation.

While the 2.8%

increase is slightly lower than the 3.2%

seen in 2024, it remains a vital
protection for the purchasing

power of over 75 million Americans,
including military retirees

and Social Security recipients.

Retirees will see the first effects
of the 2026 COLA in their 31 December

2025 payments, while Survivor Benefit
Plan (SBP) annuitants will see the

change in their 2 January 2026 payments.

It is important to note that the COLA
for military retirees is calculated

differently than active-duty pay raises;
while retirees are tied to CPI-W,

active-duty raises are generally linked
to the Employment Cost Index (ECI).

For those in their first year of
retirement, a partial COLA may apply

depending on their retirement date
to prevent double-dipping from both

a new pay raise and a full COLA.

Additionally, retirees under the
Career Status Bonus/REDUX plan will

receive a COLA that is one percentage
point lower than the standard rate,

as per established federal law.

The broader federal workforce,
which includes many retired military

members working as civil servants,
also received definitive guidance

on pay for the upcoming year.

On 18 December 2025, President
Trump issued an executive order

implementing a 1% across-the-board
pay raise for most civilian federal

workers, effective in January 2026.

This marks a decrease from the 2%
raise issued the previous year and

includes a freeze on locality pay rates.

However, certain federal law enforcement
categories may receive a higher 3.8%

raise, aligning their compensation
with military standards as the

administration seeks to surge hiring
in immigration and security roles.

Health care remained a primary concern as
the TRICARE Open Season drew to a close.

While the open season ended on 9 December
2025, the week of 14 December 2025

was a critical period for retirees to
finalize their understanding of the

changes taking effect on 1 January 2026.

Retirees were reminded that they must
take action to enroll in a civilian

TRICARE plan to maintain civilian care
coverage, and that they would begin

paying retiree-level costs for services.

For those eligible for Medicare Part
A, the requirement to have Part B to

maintain TRICARE For Life (TFL) remains
a cornerstone of the benefit structure.

Furthermore, retirees in the Atlanta
and Tampa areas were briefed on the

TRICARE Prime Demo by CareSource
Military & Veterans, which offers waived

enrollment fees for the first year for
those who switch to the new network.

Administrative backlogs continued
to plague the transition

process for new retirees.

As of December 2025, the Office of
Personnel Management (OPM) reported

a retirement application backlog
of nearly 50,000 cases, a situation

described by policy analysts as a
source of "holiday heartache" for

those awaiting their full benefits.

This backlog underscores the
administrative challenges facing

the federal human capital system,
even as the administration

moves toward "Federal HR 2.0,"

a consolidation effort aimed
at streamlining human capital

management across the government.

In the legislative arena, the House
of Representatives took a significant

step by passing the Protect America’s
Workforce Act (PAWA) on 11 December

2025, with the bill being received
in the Senate on 15 December 2025.

This bipartisan legislation seeks
to nullify an executive order from

March 2025 that stripped union
rights from approximately one million

federal workers across 40 agencies,
including the Department of War and

the Department of Veterans Affairs.

For retirees who continue to serve
in the federal workforce, PAWA

represents a critical effort to
restore collective bargaining rights

and ensure workplace stability.

Supporters of the bill, including
Representatives Jared Golden and Brian

Fitzpatrick, argue that unions provide
essential protections against unfair

treatment and political interference,
while critics point to the costs of

"official time" used for union business.

Relevant Legislation for Retired Personnel

H.R.

2550 - Protect America’s Workforce Act

Passed the House on 11 December 2025,
this bill nullifies the executive

order titled "Exclusions from Federal
Labor-Management Relations Programs."

it restores collective bargaining rights
for federal employees and ensures that

existing union contracts remain in effect.

Restores the ability of federal workers
to organize and bargain collectively

over conditions of employment.

Protects the labor rights of retirees
who are currently employed in the

federal sector and ensures a stable,
nonpartisan civil service for

the delivery of retiree benefits.

H.R.

2138 - Veterans' Compensation
Cost-of-Living Adjustment Act of 2025

Introduced in March 2025, this bill
requires the VA to increase disability

compensation and dependent benefits by
the same percentage as the Social Security

COLA, ensuring parity in inflation
adjustments across benefit programs.

Does not directly affect current
civilian employees unless they are

disabled veterans or survivors.

Ensures that retired military members
receiving disability pay see their

benefits adjusted in line with inflation,
maintaining their standard of living.

S.

423 - PRO Veterans Act of 2025

Became law on 14 August 2025, this act
requires the VA to provide quarterly

budget briefings to Congress and
prohibits the payment of critical

skill incentives to Senior Executive
Service (SES) employees at the VA.

Eliminates high-level pay incentives
for senior VA executives, potentially

impacting recruitment at the
highest levels of the department.

Increases congressional oversight
of the VA budget, which can lead

to more stable funding for retiree
health care and benefit programs.

Issues That Affect Veterans Affairs

The week of 14 December 2025 was a
landmark period for the Department of

Veterans Affairs (VA), characterized by
the launch of the most significant health

care reorganization in three decades.

On 15 December 2025, Secretary of Veterans
Affairs Doug Collins announced a massive

restructuring of the Veterans Health
Administration (VHA) management system.

The plan involves slashing the number
of Veterans Integrated Service Networks

(VISNs) from 18 down to five, with these
consolidated networks reporting directly

to the VA Under Secretary for Health.

This overhaul, the largest since
1995, is designed to eliminate

duplicative layers of middle
management, empower local hospital

directors, and ensure a more consistent
application of VA policies nationwide.

This reorganization is a response
to both internal and external

reviews that identified governing
weaknesses and a management structure

"riddled with redundancies".

By reducing these layers, the VA
intends to accelerate decision-making

and allow clinical leaders to
focus more on patient care rather

than administrative bureaucracy.

While the department emphasized that the
plan is not an attempt to reduce frontline

staff, it did announce the elimination
of 25,000 vacant positions within

the VHA, many of which were temporary
roles created during the pandemic.

This move has been met with mixed
reactions, as some lawmakers and veterans

service organizations (VSOs) expressed
concern about the potential impact on

appointment wait times and the lack of
consultation during the planning stages.

Simultaneously, the VA released a
Request for Proposals (RFP) on 15

December 2025 for new community care
contracts that could be worth up to

$1 trillion over the next ten years.

This initiative aims to expand the
private-sector options available

to veterans, moving toward a
model where multiple national

and regional health plans compete
to provide high-quality care.

The new indefinite delivery/indefinite
quantity (IDIQ) contract structure

is intended to give the VA more
flexibility to manage care in real-time

and hold contractors accountable for
meeting strict quality standards.

The number of community care regions will
also be consolidated from five down to

two, a change that department leaders say
will improve oversight and consistency.

Disabled veterans also saw
the enactment of critical

legislation during this period.

On 12 December 2025, the
President signed H.R.

1912, the "Veteran Fraud
Reimbursement Act of 2025," into law.

This act significantly improves
the process for reimbursing

veterans whose benefits have been
misused by appointed fiduciaries.

Under the new law, the VA is required to
directly reimburse the veteran or their

new fiduciary the full amount of misused
funds, regardless of whether the misuse

was the result of departmental negligence.

The bill also requires the VA to make
a good faith effort to recoup the funds

from the original fraudulent fiduciary,
ensuring that veterans are protected

from financial exploitation and benefit
from a more accountable fiduciary system.

Furthermore, on 12 December 2025,
the "Fairness for Servicemembers and

Their Families Act of 2025" (H.R.

970) became public law.

This legislation mandates that the
VA periodically review the maximum

coverage amounts for the Servicemembers'
Group Life Insurance (SGLI) and

Veterans' Group Life Insurance
(VGLI) programs every five years.

The reviews will take into account
the average percentage by which the

Consumer Price Index (CPI-U) has
increased, ensuring that these life

insurance benefits retain their
value for veterans and their families

in an inflationary environment.

In addition to structural and legislative
changes, the VA continued to advance

technological and healthcare initiatives.

The department reported early success
with "ambient AI scribe" technology,

an AI-powered tool that assists
healthcare providers in recording

patient conversations, thereby improving
record accuracy and allowing more

time for direct patient interaction.

The VA also launched a reorganized
Veterans Health Administration

website and implemented the Oracle
Health Community Care app to support

home-based primary care teams in
remote areas without internet access.

On the benefits side, the
2025 VA disability pay

rates, which reflected a 3.3%

COLA increase, remain in
effect, with the confirmed 2.8%

increase for 2026 set to begin with
the December 2025 payment cycle.

The week also saw the introduction of
the Veterans Pensions Protection Act of

2025 by Representative Jared Moskowitz.

This legislation aims to close a loophole
that currently counts one-time medical

or injury-related payments, such as
insurance settlements, as income when

determining eligibility for VA pensions.

By excluding these payments from
income calculations, the bill seeks

to prevent veterans from losing their
pensions during times of medical

emergency or recovery, providing
greater financial stability for the

most vulnerable survivors and veterans.

Relevant Legislation for Veterans Affairs

H.R.

1912 - Veteran Fraud
Reimbursement Act of 2025

Signed into law on 12 December 2025,
this act requires the VA to reissue

misused benefits to veterans or
their successor fiduciaries without

requiring a finding of VA negligence.

it also mandates oversight of the
fiduciary system to prevent future misuse.

Requires VA claims processors and
fiduciary managers to implement new

reimbursement and recoupment procedures.

Provides critical financial
protection for retirees who may

require a fiduciary to manage their
benefits due to age or disability.

H.R.

970 - Fairness for Servicemembers
and Their Families Act of 2025

Signed into law on 12 December 2025,
this act requires the VA to review

the maximum coverage under SGLI and
VGLI every five years and report

to Congress on how these amounts
compare to inflation-adjusted figures.

Does not directly impact civilian
employees unless they are service members.

Ensures that the life insurance
options available to them through

the VGLI program remain relevant
and provide sufficient financial

security for their beneficiaries.

H.R.

2138 - Veterans' Compensation
Cost-of-Living Adjustment Act of 2025

Requires the VA to increase disability
compensation, dependency and indemnity

compensation, and clothing allowances
by the same percentage as the Social

Security COLA, effective 1 December 2025.

Benefits employees who are also
disabled veterans or who have

dependents receiving VA compensation.

Provides an essential inflation
adjustment for retirees receiving

service-connected disability pay.

Veterans Pensions Protection Act of 2025

Introduced in December 2025, this
bill excludes reimbursements for

medical expenses and compensation
for pain and suffering from income

calculations for VA pensions.

Does not directly affect
current civilian employees.

Protects the pensions of low-income
military retirees and their

survivors from being reduced
or eliminated due to temporary,

emergency-related financial settlements.

And that's your Weekly Briefing.

Staying on top of these changes
is key to navigating your career,

your retirement, and your benefits.

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We’ll be back next week with another
roundup of the news that matters most

to the military and veteran community.