Overview
The Basic Needs Allowance (BNA) is a supplemental financial allowance for military members with dependents and a gross household income below certain federal threshold. This allowance is intended to raise the gross household income of Service member families to 150% of the Federal Poverty Guidelines. The BNA is for active duty (including National Guard and Reserves) who have at least one dependent and a gross household income below 150% the Federal Poverty Guidelines for that year and the assigned duty station location. The poverty guidelines are derived from the Census Bureau’s current official poverty threshold. The table below depicts the annual income for poverty guidelines.
Who qualifies
The monthly allowance is unique to each service member and is calculated as the difference between 150% of the current year’s Federal Poverty Guidelines (applicable to the member’s location and household size) minus the member’s previous year gross household income, divided by 12.
To receive the allowance, Service members must apply and will not be automatically enrolled. Eligibility is based on gross household income from the preceding calendar year. For 2024, if your 2023 gross household income is less than the 2023 poverty guidelines (as annotated above, in blue) a Service member may be eligible for BNA. Gross household income includes all forms of income including, but not limited to wages, allowances, investments, government assistance, and child/spousal support. There are certain exclusions, including military travel and transportation allowances and income from dependents who are not required t file a tax return. Full eligibility will be determined through the application process.
Application
Service members must apply through their Service-specific guidance and application instructions. Applications will include information on current and preceding calendar year household income, tax returns, applicable civilian pay subs, W-2s, 1099 forms, and additional income information to prove eligibility. Additional information and specific application process can be obtained through the local financial readiness organizations, an installation personal financial manager or counselor. Additional service-specific resources can be found below:
Additional Considerations
It is important to note BNA is taxable income and recipients must take the tax implications into consideration. Receiving BNA is entirely optional and there are no obligations to take BNA, even after being accepted. Perspective recipients would need to reapply each year to qualify for the allowance.
