In this issue:

• Defense Authorization Bill Passes Senate
• Military Family Summit Held on Capitol Hill
• Senate Passes Service Members Bankruptcy 

DEFENSE AUTHORIZATION BILL PASSES SENATE

After nearly two weeks of debate dominated by a dispute over military detainees, the Senate finally passed the fiscal 2012 defense authorization bill.  The bill authorizes $527 billion for the base Defense budget, and $117 billion for overseas contingency operations.

In addition to a 1.6 percent pay raise for military personnel, the Senate agreed to amendments that would:

* End the deduction of VA survivor benefits from Survivor Benefit Plan annuities (SPB/DIC).
* Make the National Guard Bureau chief a member of the Joint Chiefs of Staff.
* Direct a review of all current DoD military spouse employment programs.
* Authorize space-available travel on military aircraft for members of the reserve components, a member or former member of a reserve component who is eligible for retired pay but for age, widows and widowers of retired members, and dependents.
* Provide for the participation of military technicians (dual status) in the study on the termination of military technician as a distinct personnel management category.
* Authorize a death gratuity and related benefits for Reservist who die during an authorized stay at their residence during or between successive days of inactive duty training.
* Provide for employment and reemployment rights for certain individuals ordered to full-time National Guard duty.
* Provide that the basic allowance for housing in effect for a member of the National Guard is not reduced when the member transitions between active duty and full-time National Guard duty without a break in active service.
* Provide for the freedom of conscience of military chaplains with respect to the performance of marriages.
* Modify the Financial Improvement and Audit Readiness Plan to provide that a complete and validated full statement of budget resources is ready by not later than September 30, 2014.
* Extend the time limit for submittal of claims under TRICARE for care provided outside the United States.

The argument over detainees centered on a provision requiring that members of al Qaeda and its affiliates, including those captured in the United States, be held in military rather than civilian custody, although it would allow a waiver.  The Senate finally reached a compromise stating that the bill would not affect existing law relating to the detention of U.S. citizens and lawful residents, effectively leaving the contested issue to the Supreme Court to decide.  However, the compromise sets up a fight with the Obama Administration who has threatened to veto the bill.  

The White House believes the provision would restrict the Obama administration’s handling of suspected terrorists.  A spokesman from the National Security Council accused the Senate of “political micromanagement at the expense of sensible national security policy” and said lawmakers had ignored the advice of counterterrorism experts from Republican and Democratic administrations.

The House-passed version of the bill includes even stronger language that would require military commission trials for all accused terrorists. It would bar transfers of any terrorist suspects held anywhere in the world to the United States while also toughening the review process for those held and restricting the transfer of suspects to other nations.

Next:  Negotiators from the House and Senate will meet in conference to iron any differences between the two versions of the bill.


MILITARY FAMILY SUMMIT HELD ON CAPITOL HILL

AUSA Director of Government Affairs, Bill Loper, represented AUSA at the 2nd Annual Military Family Summit sponsored by the Congressional Military Family Caucus under the direction of co-chairs Reps. Cathy McMorris Rodgers, R-Wash., and Sanford Bishop, D-Ga. 

The all-day event brought together members of Congress; leading Administration officials, active, guard and reserve service members; veterans; and their families in a common purpose to draw attention to the needs of military families and advocate legislative solutions on their behalf.  There were nearly 200 attendees.

The summit broke into groups to address issues such as those affecting children, service members, spouses and veterans.  Among the issues discussed were the interstate school compact to which 39 states now adhere covering 90 percent of military children and how to get the other 11 states on board, mental health continuum of care for service members, transferability of professional licenses and educational credits for spouses, and standardization of VA and DoD disability rating systems.

Feedback from the summit will be sent to other members of Congress and DoD stakeholders who will use it to develop legislative solutions.


SENATE PASSES SERVICE MEMBERS BANKRUPTCY BILL

Legislation (HR 2192) that would extend preferences for members of the National Guard and Reserve under current bankruptcy law was passed by the Senate and is now headed to the President for signature.

Members of the National Guard and Reserve were granted exemptions from income tests that restrict eligibility to claim Chapter 7 bankruptcy protection under the Bankruptcy Abuse Prevention and Consumer Protection Act passed by Congress in 2005.  The law ensured that people would not be able file Chapter 7 bankruptcy when they were able to pay off their debts.  The most important element in the legislation was a measurement known as the means test.  The means test shows whether a debtor is in sufficient debt to file for liquidation under Chapter 7 by comparing their income to the average income of the state.  If it is found that the debtor's average income exceeds the median state income, they must apply the means test.  Depending on the amount of money leftover, if any, the debt will either qualify for Chapter 7 bankruptcy, or else they must file for Chapter 13 bankruptcy, which consolidates their debts instead of wiping them out completely.