Exclude Housing and Subsistence Allowances from Child Development Center (CDC) Fee Determinations

To the United States Congress, the Secretary of Defense, and Military Service Leadership:

We, the undersigned military members, spouses, veterans, and supporters, respectfully request reform of the Department of Defense Child Development Program fee structure.

Currently, Child Development Center (CDC) fees are calculated using Total Family Income (TFI), which includes military allowances such as Basic Allowance for Housing (BAH), Overseas Housing Allowance (OHA), Basic Allowance for Subsistence (BAS), and Cost of Living Allowance (COLA).

These allowances are intended to offset the cost of housing, food, and local living expenses. They are not discretionary income and should not be treated as such when determining childcare costs.

Why Change Is Needed

Housing and subsistence allowances are not spendable income.BAH, OHA, BAS, and COLA exist to cover specific living expenses. Including them in TFI artificially inflates a family's perceived ability to pay.

Military families in high-cost areas are disproportionately affected. Families stationed in locations with higher housing costs often receive larger allowances and are subsequently placed into higher childcare fee categories, despite facing greater living expenses.

Dual-military families bear a significant burden. Military families with both parents serving often have limited childcare alternatives due to duty requirements, deployments, field training, and irregular work schedules.

The current system reduces the benefit of earned promotions and pay increases.As military members advance in rank, childcare costs can increase significantly, diminishing the financial gains associated with increased responsibility and service.

Fee categories should remain fair and transparent. Any reform to CDC fee calculations should maintain the existing fee category structure or ensure that any revised categories do not shift costs unfairly onto military families. Families deserve confidence that changes intended to provide relief are not offset by adjustments that effectively increase childcare costs through revised income scales.

Requested Action

We respectfully request that Congress and the Department of Defense:

Exclude BAH, OHA, BAS, and COLA from Total Family Income calculations used to determine CDC childcare fees.

Base childcare fee categories on taxable income and special pays only.

Maintain the current fee category structure or implement safeguards to prevent revised income scales from negating the intended financial relief for military families.

Conduct a comprehensive review of the current CDC fee structure to ensure fairness for military families.

Supporting Military Readiness

Reliable and affordable childcare directly impacts military readiness, retention, recruitment, and family stability. Reforming the CDC fee calculation process would provide meaningful relief to military families while maintaining access to high-quality childcare services.

We ask Congress and Department of Defense leadership to take action to ensure military childcare policies fairly reflect the realities faced by service members and their families.

Respectfully,

The Undersigned Military Families, Service Members, Veterans, and Support