FY26 NDAA Would Give Troops a 3.8% Pay Raise and Expand Family Support

The final text of the fiscal 2026 National Defense Authorization Act (FY26 NDAA), unveiled by congressional leaders Sunday night, would provide U.S. service members with a 3.8% across-the-board pay increase effective Jan. 1 and enact several personnel-policy changes aimed at improving service members' quality of life.

Key Provisions

Pay Raise and Authorization: The bill authorizes a 3.8% military pay raise, matching the figure in the administration's budget request. The FY26 NDAA also authorizes $900.6 billion for the Department of Defense — roughly $8 billion above the president's request — though final spending levels will be set by appropriators.

Family Separation Allowance: The legislation raises the guaranteed minimum family separation allowance from $250 to $300 per month for service members separated from their families for 30 days or more, while preserving statutory authority for a top rate of up to $400 per month. This change follows congressional frustration after the Defense Department declined to increase the allowance despite prior authorization to do so.

Parental Leave Flexibility: Active-duty service members and activated Guard and Reserve members could use parental leave any time within two years after a child's birth or adoption. Current policy requires leave to be taken within 12 months; the bill extends that window, but the two-year extension must be approved by the first general or flag officer in a member's chain of command to prevent arbitrary denials.

Quality-of-Life and Family Support Measures: The bill seeks improvements to military and family housing and restores service-level "women's initiative teams" to study recruitment, retention and advancement barriers for women. It also creates 10 new positions across the services, including blast safety officers tasked with managing overpressure risks tied to weapons handling and live-fire training.

Contested and Excluded Items

IVF Coverage Removed: A proposal to expand Department of Defense coverage for in vitro fertilization (IVF) for troops and their spouses was removed from the final text. Currently, the DOD covers IVF only when infertility is linked to a service-connected injury or illness. Sen. Tammy Duckworth (D-Ill.), a co-sponsor of the IVF expansion, criticized House Speaker Mike Johnson for pushing to strip the provision during late negotiations.

Transgender Policy and Women’s Teams: The bill bars transgender persons from competing on women's athletic teams at U.S. service academies, aligning with a Jan. 20 executive order that recognizes two sexes in federal policy. At the same time, it directs the services to reestablish women's initiative teams — a response to Defense Secretary Pete Hegseth's earlier disbanding of groups focused on gender equity.

Process and Next Steps

House leaders are expected to vote on the bill this week, with the Senate scheduled to consider it the week of Dec. 15. If both chambers pass the measure, it would go to the president to be signed into law. Congressional appropriators will still determine final funding levels and could alter the bill's spending top-line.

"We’re pleased to announce that the House and Senate Armed Services Committees have reached a bipartisan, bicameral agreement on the FY26 NDAA that supports service members and strengthens our national defense," committee leaders said in a joint statement.

This version preserves the 3.8% pay raise that defense appropriators have indicated they will protect. For example, an E-4 with four years' service would see base pay increase by roughly $134 per month under the raise.