Plain Language Summary
# BNA Fairness Act Summary **What It Does:** The BNA Fairness Act would make the Basic Needs Allowance (BNA)—a monthly payment given to low-income military members—tax-free. Currently, this allowance counts as taxable income for federal income tax purposes, even though other military benefits are tax-exempt. The bill would change this by adding the BNA to the list of "qualified military benefits" that don't count toward a service member's taxable income. **Who It Affects:** This bill would benefit active-duty military members who qualify for the BNA, which goes to those who have completed initial training, have at least one dependent, and earn less than 200% of the federal poverty level (adjusted for location and family size).
These are typically lower-ranking enlisted service members and their families struggling to meet basic expenses like food and housing. **Current Status:** The bill (HR 715) was introduced by Rep. Steve Womack (R-Arkansas) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House. No action has been taken on the measure to date.
CRS Official Summary
BNA Fairness ActThis bill excludes from gross income (for federal income tax purposes) the basic needs allowance received by eligible members of the Armed Forces.Under current law, members of the Armed Forces may be eligible to receive the basic needs allowance (additional monthly payment) if (1) they have completed initial training, (2) they have at least one dependent, and (3) their total household income does not exceed 200% of the federal poverty level (based on the location and number of individuals in the household). Further, under current law, certain qualified military benefits may be excluded from gross income. However, the basic needs allowance is not included within the definition of qualified military benefits and must be included in gross income for federal tax purposes.Under the bill, the definition of qualified military benefits that may be excluded from gross income is expanded to include the basic needs allowance.
Latest Action
Referred to the House Committee on Ways and Means.