MIL News Weekly

Edward: Welcome to the MIL News Weekly
for 21-27 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 "Warrior Dividend": Financial
Morale in the Holiday Season

Perhaps the most tangible development
for individual service members during

this period was the distribution
of the "Warrior Dividend."

Announced by President Trump in a
televised address on December 18,

2025, the payments began hitting bank
accounts during the week of December

21, providing a significant financial
boost just before the Christmas holiday.

The dividend consisted of a
one-time, tax-free payment of $1,776.

This specific amount was chosen for
its symbolic resonance, commemorating

the year of the nation’s founding and
intended to honor the revolutionary

spirit of the American military.

The payment was distributed
to approximately 1.45

million service members, a massive
logistical undertaking executed by the

Defense Finance and Accounting Service
(DFAS) on an accelerated timeline.

Eligibility for the dividend was strictly
defined to target the operational force.

Active duty service members in pay
grades O-6 (Colonel/Navy Captain) and

below were the primary recipients.

Importantly, the administration extended
eligibility to members of the Reserve

Component—the National Guard and
Reserves—but with a specific caveat:

reservists must have been serving
on active duty orders for a period

of at least thirty-one consecutive
days as of November 30, 2025.

This criteria excluded traditional
drilling reservists who were not mobilized

during that specific window, a distinction
that has led to some confusion and

inquiries within the reserve community.

The funding mechanism for this
multi-billion dollar payout has been

a subject of significant scrutiny
and legislative maneuvering.

While political rhetoric initially
linked the dividend to revenue

generated from increased tariffs,
Pentagon officials clarified the actual

budgetary source during this week.

The funds were derived from
a reallocation of a $2.9

billion military housing supplement
that had been included in the broader

budget reconciliation package known
as the "One Big Beautiful Bill Act."

Approximately $2.6

billion of this housing-specific
appropriation was reprogrammed

to finance the direct payments.

To execute this legally, the Department
of War classified the dividend within

the pay system as a "housing allowance
supplement," despite it being a flat-rate

cash payment unrelated to a member's
location or actual housing costs.

This classification was crucial for two
reasons: it allowed the administration

to utilize the housing-designated funds
without new legislation, and it ensured

the payments remained non-taxable,
maximizing the net benefit to the troops.

Critics in the housing advocacy sector
have raised concerns that diverting $2.6

billion from housing sustainment could
delay critical maintenance on aging

barracks and family housing units.

However, the administration has countered
that immediate financial relief to

military families struggling with
inflation is a form of housing support,

enabling them to better meet their living
expenses during the holiday season.

Operation Hawkeye and
Escalation in the Middle East

While financial and administrative
changes dominated the domestic news

cycle, US forces abroad were engaged
in high-intensity combat operations.

The most significant of these
was "Operation Hawkeye," a major

offensive campaign launched in Syria.

Following a deadly ambush earlier
in the month that resulted in US

casualties, US Central Command (CENTCOM)
initiated a widespread retaliatory

and clearance operation commencing on
December 20, 2025, and continuing with

high intensity through December 27.

The operation targeted the resurgent
networks of the Islamic State (ISIS),

specifically focusing on their
infrastructure, command nodes, and

logistics hubs in the Syrian desert.

Operation Hawkeye represents a
significant escalation in the

counter-ISIS mission, involving
coordinated air strikes from advanced

platforms and heavy artillery barrages.

Unlike previous precision strikes
that targeted individual leaders,

this operation aimed to degrade the
systemic capability of ISIS to project

power or threaten American personnel.

Reports from the theater indicate
that the operation successfully

neutralized significant enemy combatant
numbers and destroyed key tunnel

complexes used for caching weapons.

The necessity of Operation Hawkeye
underscores the fragile security

environment in the Middle East.

Despite the strategic desire to pivot
resources toward the Indo-Pacific theater,

the Department of War finds itself
drawn back into kinetic engagement in

Syria to protect its deployed forces
and prevent a terrorist reconstitution.

For active duty personnel deployed to
the CENTCOM area of responsibility,

this has meant a cancellation of holiday
leave, increased force protection

postures, and a heightened operational
tempo not seen in several years.

Operation Southern Spear:
The Venezuelan "Quarantine"

Simultaneously, the US military has
opened a new front of quasi-conflict

in the Western Hemisphere.

Under the banner of a "War on Drug
Cartels," the Trump administration has

directed a massive surge of naval and
air assets to the Caribbean Sea and the

Eastern Pacific, focusing specifically
on the coastline of Venezuela.

During the week of December 21 to
December 27, 2025, these operations,

collectively referred to as "Operation
Southern Spear," intensified into what

the administration calls a "quarantine"
and what the Venezuelan government

has decried as a naval blockade.

The stated objective is to interdict
vessels suspected of smuggling

narcotics or exporting Venezuelan
oil in violation of US sanctions.

The rules of engagement for this
operation have been notably aggressive.

Since September, US forces have carried
out dozens of strikes on maritime

vessels, resulting in over one hundred
fatalities among suspected smugglers.

During this reporting period, the White
House ordered the military to focus

almost exclusively on enforcing this
quarantine for the next two months,

effectively redirecting Coast Guard
and Navy assets from other missions.

This aggressive posture has
precipitated a diplomatic crisis at

the United Nations, where Venezuela’s
ambassador condemned the US actions

as illegal aggression and piracy.

Furthermore, it has triggered legislative
pushback within the United States.

The Fiscal Year 2026 National Defense
Authorization Act (NDAA), which became

law just prior to this week, contains
a specific provision mandating that

the Pentagon release unedited footage
of these boat strikes to Congress.

This demand reflects bipartisan
concern regarding the legality of

using lethal military force against
civilian vessels in international waters

without a formal declaration of war.

To force compliance, Congress has frozen
twenty-five percent of the Secretary of

War’s travel budget until the footage
is provided—a standoff that escalated

during the week as Secretary Hegseth
initially rejected calls to release

the video, citing operational security.

Fiscal Year 2026 National Defense
Authorization Act (NDAA) Implementation

The statutory landscape for the
military was solidified this week

with the immediate implementation
of the Fiscal Year 2026 National

Defense Authorization Act.

Signed into law on December 18,
2025, the effects of this $900.6

billion legislation began to
take concrete shape for the force

during the week of December 21.

Pay and Allowances

The NDAA codified a 3.8

percent increase in basic pay for
all active duty, Guard, and Reserve

personnel, which is set to appear in
the first paychecks of January 2026.

This raise is designed to match the
Employment Cost Index, ensuring that

military compensation keeps pace
with private-sector wage growth.

In addition to the basic pay hike, the
Basic Allowance for Subsistence (BAS)

was adjusted upward by approximately 2.4

percent.

Enlisted members will now
receive roughly $476.95

per month, while officers
will receive $328.48.

Furthermore, the Family Separation
Allowance (FSA), paid to service

members who are deployed or stationed
away from their dependents for more

than thirty days, was increased
from $250 to $300 per month.

This is the first significant
increase in FSA in years, recognizing

the financial and emotional strain
placed on families during extended

deployments like those currently
underway in Syria and the Caribbean.

Basic Allowance for
Housing (BAH) Adjustments

Complementing the NDAA's pay
provisions, the Department of War

released the finalized 2026 Basic
Allowance for Housing rates, which

go into effect on January 01, 2026.

The new rates reflect an average
nationwide increase of 4.2

percent.

This adjustment is based on rental
cost data collected from nearly

three hundred military housing
areas across the United States.

It is crucial for active duty
personnel to understand the mechanism

of "rate protection" emphasized
in this week's announcements.

If a service member is already residing
in a location where the BAH rate is

scheduled to decrease in 2026 due
to falling local rental markets,

their allowance will not be reduced.

They will continue to receive
the higher, previous rate.

Conversely, members in areas where
rates have risen will see the full 4.2

percent (or higher, depending on
locality) increase in their January pay.

This dual-protection mechanism ensures
financial stability for families who

have signed leases based on 2025 rates.

Strategic Force Posture Limitations

The NDAA also introduced significant
constraints on the executive branch's

ability to alter the global force posture.

Specifically, Congress has prohibited
the use of any funds to reduce the

number of United States troops stationed
in Europe below a baseline of 76,000.

This provision serves as a
legislative guardrail against the

administration's stated skepticism
regarding NATO commitments.

It requires the Secretary of War to
submit a detailed impact report and

certify that any proposed reduction
would not harm national security

or alliance cohesion before such
a move could be legally funded.

Additionally, the Act authorized
$175 million for the Baltic Security

Initiative, restoring funding that the
Pentagon had initially proposed cutting.

This ensures continued military
cooperation with Estonia, Latvia,

and Lithuania, maintaining a
robust deterrent presence on NATO’s

eastern flank despite the shifting
rhetoric from the White House.

Issues That Affect
Retired Military Personnel

For the community of retired military
personnel, the week of December

21 through 27, 2025, was defined
by the finalization of economic

adjustments that will dictate their
financial reality in the coming year.

The news is a mixed ledger: a modest
cost-of-living increase stands in contrast

to rising healthcare fees, while new
legislative protections offer a safety

net for those facing housing instability.

2026 Cost-of-Living
Adjustment (COLA) Finalized

Effective December 01, 2025,
and reflected in the payments

distributed on December 31, 2025,
military retirees will receive a 2.8

percent Cost-of-Living Adjustment.

This adjustment is legally tied to
the Consumer Price Index for Urban

Wage Earners and Clerical Workers
(CPI-W), measuring inflation over the

third quarter of the previous year.

It is important to distinguish
this retiree COLA from

the active duty pay raise.

While active duty troops received a 3.8

percent raise based on wage
growth (the Employment Cost

Index), retirees receive a 2.8

percent increase based on price inflation.

This 1.0

percent divergence highlights a growing
gap between the compensation growth

of current and past service members.

For a military retiree receiving
a standard pension check of

$3,000 per month, this 2.8

percent increase translates
to an additional $84.00

monthly.

While this adjustment is intended to
maintain purchasing power, many veteran

advocacy groups have noted throughout
the week that it may not fully offset

the rising costs of specific goods
and services that disproportionately

affect older populations,
particularly healthcare and housing.

TRICARE 2026: Fee Structures
and Cost Increases

As retirees prepare for the new calendar
year, they face a revised fee structure

for TRICARE coverage that will absorb
a portion of their COLA increase.

The Department of War released the
final fee schedules for 2026, detailing

increases across enrollment fees,
deductibles, and catastrophic caps.

Enrollment Fee Hikes

For retirees classified as "Group A"
(those whose initial enlistment or

appointment occurred before January
01, 2018), the annual enrollment

fee for TRICARE Prime has increased.

An individual retiree will now pay $381.96

annually, up from $372.00.

For a retiree and their family, the annual
Prime enrollment fee has risen to $765.00,

an increase from $744.00.

Retirees in "Group B" (those who
joined on or after January 01,

2018) continue to face higher costs.

A Group B family enrolled in TRICARE
Prime will see their annual fee

rise to approximately $927.00.

For those utilizing TRICARE Select,
the increases are also notable.

The Group A family enrollment
fee has climbed to $1,191.00

for the year 2026.

These incremental increases, while
seemingly small in isolation, represent

a continuing trend of shifting a
higher percentage of healthcare

costs onto the retiree population.

Copayments and Deductibles

The cost of care at the point
of service is also rising.

For a Group A retiree on TRICARE
Select, the copayment for a primary

care visit has increased to $38.00

per visit.

For those on TRICARE Prime,
the copay is now $26.00.

Perhaps most significant is the
adjustment to the catastrophic cap—the

maximum out-of-pocket amount a retiree
family is liable for in a single year.

For Group A retirees on TRICARE
Select, this safety net has been

raised from $4,261 to $4,381.

For Group B retirees, the
cap has risen to $4,635.

This means that families with
serious or chronic medical conditions

will be responsible for a larger
share of their medical bills

before full coverage kicks in.

One area of relief amidst these
increases is pharmacy costs.

The administration confirmed this week
that pharmacy copayments for medically

retired service members and their
families will remain unchanged for 2026.

This freeze provides a degree of
financial predictability for those with

service-connected disabilities who rely
on regular prescription medications.

Housing Security: The VA
Home Loan Program Reform Act

In a major legislative victory
for retirees, particularly those

struggling with mortgage payments,
President Trump signed the VA

Home Loan Program Reform Act (H.R.

1815) into law.

This bill addresses a critical gap
in the safety net for veterans that

opened following the expiration
of pandemic-era protections.

The legislation formally establishes
and codifies the Veterans Affairs

Servicing Purchase (VASP) program.

Under this new authority, the Department
of Veterans Affairs is empowered to

purchase defaulted VA-guaranteed loans
directly from commercial servicers.

Once the VA holds the loan, it
can modify the terms to offer

a fixed interest rate of 2.5

percent.

This is a game-changer for retirees
living on fixed incomes who may have

purchased homes during periods of
high interest rates or who have faced

financial shocks leading to default.

By locking in a 2.5

percent rate—significantly below
the current market average—the VASP

program can reduce monthly mortgage
payments by hundreds of dollars,

allowing retirees to remain in their
homes rather than facing foreclosure.

The Act also reinstates a moratorium
on foreclosures for certain vulnerable

categories of veterans, ensuring
that no veteran loses their home

due to a temporary bureaucratic
gap in assistance programs.

Issues That Affect Veterans Affairs

The final week of 2025 was a period
of intense legislative productivity

regarding veterans' affairs,
culminating in the passage of a

comprehensive package of fourteen bills.

These measures, passed swiftly by both
chambers of Congress, aim to modernize

the Department of Veterans Affairs
(VA) by integrating 21st-century

technology into its benefits delivery
systems and expanding access to care.

Simultaneously, the VA continued
its physical expansion with the

opening of major new facilities.

The "14 Bills" Package:
A Legislative Overhaul

Between December 21 and December 27,
Congress finalized a suite of legislation

designed to streamline VA operations.

The following bills were central to
this package, each addressing a specific

bottleneck in the current system.

H.R.

3481: Delivering Digitally
to Our Veterans Act

This legislation fundamentally
modernizes how the VA communicates

with student veterans.

Under the previous system, the VA was
legally required to send sensitive and

time-critical information regarding
GI Bill benefits via physical mail.

This antiquated requirement resulted
in delays and a lack of responsiveness,

particularly among younger veterans who
rely primarily on digital communication.

H.R.

3481 directs the Secretary of
Veterans Affairs to establish a

secure mechanism allowing veterans to
"opt-in" to receive all educational

benefit correspondence electronically.

This change is expected to drastically
reduce the number of missed deadlines

and "drop-offs" in the system, ensuring
that veterans receive notifications

about their enrollment verification
and housing allowance status instantly

on their mobile devices or computers.

H.R.

1107: Protecting Veteran Access
to Telemedicine Services Act

Passed to secure the gains made
during the COVID-19 pandemic, this Act

addresses the legal hurdles surrounding
telemedicine and controlled substances.

The Ryan Haight Act of 2008 generally
prohibited the prescription of controlled

substances via the internet without
a prior in-person medical evaluation.

Temporary waivers had allowed the VA
to bypass this during the pandemic,

but those waivers were set to expire.

H.R.

1107 permanently authorizes VA
healthcare professionals to prescribe

necessary controlled medications—such
as those used for mental health

treatment or pain management—via
telemedicine platforms without

requiring an initial in-person visit.

This is particularly vital for disabled
veterans in rural or remote areas who

may have mobility challenges or lack
easy access to a VA medical center.

It ensures they can continue their
treatment regimens without interruption.

H.R.

3579: Veterans Readiness and
Employment Program Integrity Act

This bill introduces reforms to the
Chapter 31 Veteran Readiness and

Employment (VR&E) program, which
aids veterans with service-connected

disabilities in preparing for,
finding, and keeping suitable jobs.

The legislation implements stricter
accountability measures, including a

requirement for veterans to apply for
an initial evaluation to formalize

their entry into the program.

It also sets certain time limitations,
capping specific employment assistance

phases at 365 days to encourage
efficient progression toward employment.

Furthermore, it mandates that the VA
report to Congress on actual employment

outcomes and wage data, ensuring that
the program is effectively placing

veterans in sustainable careers rather
than just providing indefinite training.

H.R.

3854: Modernizing All Veterans and
Survivors Claims Processing Act

This bill focuses on the internal
mechanics of the Veterans

Benefits Administration (VBA).

It directs the VA to develop a
comprehensive plan to increase

the use of automation and data
sharing in claims processing.

By reducing the reliance on manual
data entry and paper file transfers,

the bill aims to significantly cut
the backlog of disability claims and

speed up the delivery of decisions
to veterans and their survivors.

Additional Legislation in the Package

The package also included
several other key measures:

H.R.

3400 (TRAVEL Act): Enhances
reimbursement processes for veterans'

travel to medical appointments.

H.R.

3494 (VA Hospital Inventory Management
System Authorization Act): Mandates

a modernized inventory system
to prevent shortages of critical

medical supplies at VA hospitals.

H.R.

2334 (Servicemember Residence Protection
Act): While primarily affecting

active duty, this bill prevents
states from allowing squatters to

claim rights to a service member's
home while they are deployed.

H.R.

3951 (Rural Veteran Improved Access
to Benefits Act): specifically

targets outreach to veterans
living in non-urban areas.

VA Healthcare Infrastructure Expansion

Beyond legislation, the physical
footprint of the VA healthcare

system grew significantly this week.

On December 22, 2025, the Wilmington VA
Medical Center completed a major strategic

relocation of its services in New Jersey.

The Atlantic County VA Clinic
moved from its previous location in

Northfield to a new, state-of-the-art
facility in Linwood, New Jersey.

The new Linwood clinic represents a
doubling of capacity, boasting over

20,000 square feet of clinical space.

It has been designed to offer a wider
array of services under one roof,

including expanded primary care,
dedicated mental and behavioral health

wings, nutrition services, and podiatry.

Crucially, the facility was built
with the infrastructure to support

future additions of advanced imaging
capabilities like CT scans and X-ray

units, reducing the need for veterans
to travel to the main hospital in

Delaware for diagnostic testing.

A formal ribbon-cutting ceremony is
scheduled for January 05, 2026, but

the facility began accepting patients
during this reporting week, immediately

alleviating wait times in the region.

2026 Disability Compensation
Rates and Community Care Debate

As with military retirees, disabled
veterans saw their 2026 compensation

rates finalized during this period.

The 2.8

percent Cost-of-Living Adjustment applies
to all VA disability compensation, Special

Monthly Compensation (SMC), and Dependency
and Indemnity Compensation (DIC) payments.

Effective December 01, 2025, a
veteran with a 100 percent disability

rating (and no dependents) will
see their monthly payment increase

to approximately $3,877.00.

A veteran with a 60 percent rating
will receive approximately $1,435.00.

These increases are automatic and
require no action from the veteran.

However, the week also saw
intensified debate regarding

the future of VA care delivery.

Reports from federal employee unions
have highlighted concerns over a

"dangerous new bill" supported by the
Trump administration that would further

empower community care providers.

This proposed legislation builds
on the MISSION Act to remove almost

all administrative barriers for
veterans seeking private sector care.

While the administration frames this as
"maximum choice" for the veteran, unions

and some veteran advocacy groups argue
it is a stealth privatization of the

system that will drain resources from VA
medical centers, potentially degrading

the quality of specialized care that the
VA is uniquely best at providing, such

as spinal cord injury and TBI treatment.

This tension between direct care and
community choice remains the central

policy conflict heading into 2026.

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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