U.S. Coast Guard Secures Payment in Latest Agreement
The U.S. Coast Guard is set to receive payment during the government shutdown due to an agreement spearheaded by the Trump administration. This initiative will also extend to other military branches, ensuring that personnel are compensated despite the shutdown.
Details of the Agreement
President Donald Trump plans to utilize funds from the One Big Beautiful Act (OBBA), enacted earlier this year, to secure active-duty payments for Coast Guard members. The Coast Guard operates under the Department of Homeland Security, which has not commented on this decision.
Background and Funding Sources
The White House has referred inquiries to the Office of Management and Budget (OMB). However, the OMB has also remained silent regarding the proposed payment plan. This announcement follows Trump’s recent social media statement, where he instructed the Department of Defense (DOD) to ensure military payments. Notably, his post did not mention the Coast Guard or the Department of Homeland Security specifically.
Military Budget and Funding Allocation
- The DOD confirmed a plan to allocate approximately $8 billion from Fiscal Year 2025 research and development funds for military personnel salaries.
- This funding can be utilized over a two-year period.
- Pentagon officials chose to divert these funds rather than tapping into the $150 billion budget allocated by Congress under the OBBA.
This strategy illustrates that military leaders are more comfortable with accessing unobligated prior-year funds for military pay, rather than risking legal uncertainties with the OBBA funds.
Importance of Timely Payments
Congress has until Monday to pass a standalone bill. This step is crucial to prevent 1.3 million active-duty troops, National Guard members, reservists, and Coast Guard personnel from missing their paychecks. The upcoming decisions will be vital in determining financial stability for service members amid the federal shutdown.
