The Short Version
The NDAA is the National Defense Authorization Act. It is the annual defense policy bill that sets military pay, family programs, and a lot of daily-life rules. For fiscal year 2027, the chambers are far apart, and the Senate has not started floor debate.
- House (H.R. 8800, passed July 22, 2026): Tiered basic-pay raise of 7% for E-5 and below, 6% for E-6 through O-3, and 5% for O-4 and above. Child care funding and easier temporary BAH authority are also in the bill.
- Senate committee (S. 4784): Flat 3.6% raise for every rank, plus housing health standards drawn from the MOLD Act.
- Why it is stuck: Cloture failed 50 to 46 on July 14. No Senate floor debate means no conference yet.
- Floor if Congress does nothing: 3.6% on January 1, 2027. That is the legal minimum, not a cancelled raise.
The Pay Raise Fight, in Dollars
Both chambers agree pay goes up. They disagree on the shape. An E-3 with more than two years at about $3,015 basic pay would see roughly $211 more per month under 7%, versus about $109 under 3.6%.
That gap is grocery money and child care copays, which is why nobody is treating it as a rounding error.
| Who | House (H.R. 8800) | Senate committee (S. 4784) |
|---|---|---|
| E-5 and below | 7% | 3.6% |
| E-6 through O-3 | 6% | 3.6% |
| O-4 and above | 5% | 3.6% |
Build a 2027 household budget against 3.6% and treat anything above that as a bonus until a final bill is signed. Use the BAH calculator for the housing side. BAH will not automatically move with whichever pay percentage wins.
Family Provisions Worth Watching
The House bill authorizes major child development center funding, extends the Child Care in Your Home pilot (already extended through 2029 under the FY2026 NDAA; see our child care pilots guide), and starts a high-cost-area child care assistance pilot. It also expands leave and casualty supports that rarely make headlines until a family needs them.
On housing, the House would make temporary BAH increases easier. It does not restore BAH to 100% of local costs. Today BAH sits at about 95%. Details in How Much House Can Your BAH Actually Buy?.
Senate Section 2825 would require department-wide humidity and water-intrusion standards plus independent inspections after habitability complaints or remediation. That is a cut of the MOLD Act. The House bill does not carry those protections. Conference is the vote that matters if you live in privatized housing.
Two Other Bills People Mix Up
The Take Care of America's Veterans Act is a 62-bill veterans package, not part of the NDAA. The House pulled it from the floor on July 16.
The standalone MOLD Act (H.R. 7188 / S. 3654) is still circulating alongside the NDAA housing language.
What to Do Next
- If you are PCSing, BAH at the gaining station matters more than a pending raise. Run the calculator and build a PCS timeline.
- If you are buying or selling, VA loan rules have not changed in this fight. Get matched with a VA-savvy agent.
- If you have mold or moisture problems on base housing, document everything and use the installation housing office.
- Budget 2027 pay against the 3.6% floor until a final bill is signed.
Congress has passed an NDAA for 62 consecutive years. This one will almost certainly become law. The open questions are the junior enlisted raise, independent housing inspections, and which child care dollars survive.
