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         *    Congressional                                                   ____
            *Research Service






Armed Forces Compensation During a Lapse

in   Appropriations



Updated September 30, 2025

Compensation for members of the Armed Forces (i.e., Army, Navy, Marine Corps, Air Force, Space
Force, and Coast Guard) is funded through annual appropriations to personnel-related line items in
accounts of the U.S. Department of Homeland Security (DHS) and U.S. Department of Defense (DOD),
which is using a secondary Department of War designation under Executive Order 14347 dated
September 5, 2025. These accounts include funding for pay and allowances of active and reserve
component members, along with travel-related expenses.
At this date, no appropriations are in place to fund pay and allowances of active and reserve component
members into FY2026.
In anticipation of, or during, previous lapses in appropriations, Congress has considered actions to ensure
that members of the Armed Forces continue to receive pay and benefits. Since 2013, two lapses in
appropriations affecting DOD and DHS generated particular congressional interest in Armed Forces
compensation. In FY2014, a lapse in appropriations resulted in a shutdown of numerous government
operations for 16 days, affecting both DOD and DHS. In FY2019, while DOD was not affected by a
partial government shutdown, DHS-and thus the U.S. Coast Guard (USCG)-was among the entities
affected by a 35-day lapse in appropriations.
Although military retirement is partially funded through annual appropriations, retired pay and survivor
benefits are distributed from the Military Retirement Fund. As such, retirees and survivor benefit plan
beneficiaries generally continue to receive disbursements during a lapse in appropriations.


Selected Lapses in Appropriations


FY2014

Immediately preceding the FY2014 shutdown that affected DOD, on September 30, 2013, then-President
Barack Obama signed the Pay Our Military Act (POMA; P.L. 113-39). This legislation provided an
automatic continuing resolution to cover FY2014 pay and allowances for members of the Armed Forces
on active duty, including reservists on federal active duty, as well as certain DOD and DHS civilian

                                                             Congressional Research Service
                                                               https://crsreports.congress.gov
                                                                                  IN12244

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