Stop-loss payouts won’t be retroactive leaving out 148,000

Stop-loss payouts won’t be retroactive

By Rick Maze - Staff writer
Posted : Monday Sep 29, 2008 7:30:37 EDT

A compromise defense funding bill includes a $500 monthly allowance for service members extended on active duty by stop-loss orders.

But the deal will disappoint more than 160,000 people because it is not retroactive as previously proposed.

Instead, about 12,000 soldiers would qualify for payments under the deal announced Sept. 23.

The stop-loss allowance is included in an omnibus appropriations bill that provides one year of funding for defense, veterans and homeland security programs but temporary funding through March 6 for other federal agencies.

Lawmakers are rushing to pass the omnibus bill before ending the current legislative session. Aides cautioned that while most differences have been resolved, the bill is subject to change if that is what it takes to get it passed.

“Everything is a little fluid at this point,” said a House aide who asked to not be identified.

Limiting the stop-loss allowance to troops whose duty is extended after the appropriations bill becomes law holds the cost to $72 million for fiscal 2009 — a small dent in the $487.7 billion set aside in the defense portion of the bill. Making the benefits retroactive would have cost about $280 million.
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