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AT THE FOREFRONT

Defense
Finance and Accounting Service

Basic Needs Allowance – What is it?

The Basic Needs Allowance is a monthly allowance for active-duty service members with dependents who have
completed initial entry training and whose gross household income falls below 200% of federal poverty
guidelines.

FAQS:

Q: What is the Basic Needs Allowance?
A: The BNA is a supplemental monthly payment for qualifying service members on active duty, to include Guard
and reserve component members on active-duty orders, who have completed initial entry training and have at
least one dependent. BNA may help qualifying large military households with low income to better afford basic
needs. Service members’ dependent(s) must be registered in the Defense Enrollment Eligibility Reporting
System. The service member’s gross household income from the preceding calendar year and current year’s
annualized gross income must fall below 200% of Federal Poverty Guidelines for their assigned duty station
location and household size.

Q: How do I know if I qualify for BNA?
A: Service members will be screened for eligibility by their military service. If found potentially eligible, you will
be notified in writing by your military service (this does not mean automatic qualification). You do not need to
receive a screening notification and may submit a BNA application in accordance with your service-specific
procedures.

Q: How is BNA calculated?
A: When determining BNA eligibility, the applicant’s military service will evaluate whether that service member’s
preceding calendar year’s gross household income and current year’s annualized gross household income is
less than 150% of the preceding year’s Federal Poverty Guidelines for the service member’s household size
and geographic location. The monthly BNA payments are calculated as the difference between 200% of the
current year’s federal poverty guidelines minus the preceding year’s gross household income, divided by 12.

Q: How do I apply?
A: Each service will provide instructions regarding the BNA application process. Payments for approved
applicants began in January 2023. Additional information on BNA to include contact information for each military
service is located here.

Q: How soon will I be paid?
A: BNA is paid on a monthly basis. Although BNA began in January 2023, payments do not begin until after your
application is certified for approval by your service and the transaction is transmitted to and processed by your
military service’s supporting finance and accounting office.

Q: Is BNA considered taxable income?
A: BNA is considered taxable income. As a result, a certain amount of the allowance will be withheld from each
paycheck for taxes.

Q: Will BNA affect my eligibility for Family Supplemental Subsistence Allowance or government
assistance programs like the Supplemental Nutrition Assistance Program and the Special Supplemental
Nutrition Program for Women, Infants and Children?
A: BNA may affect your eligibility for those programs. Before applying, service members should consider
meeting with a personal financial manager or counselor to find out which benefits they may qualify for and
determine how BNA may impact eligibility for those programs.

Q: Must I recertify?
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A: Service members receiving BNA must reapply each year or when other factors trigger a recertification, such

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as a change in household size, a PCS to or from Alaska or Hawaii, or an increase in gross household income.