Washington, D.C.; December 23rd, 2025

A routine but closely watched update moved into the public record this week as the U.S. Department of War released the 2026 Cost-of-Living Allowance rates for service members stationed within the continental United States, setting compensation adjustments tied to geographic living costs for the coming calendar year.

The Department’s release outlined updated CONUS COLA rates, which are designed to offset higher living expenses faced by service members assigned to specific locations where costs exceed the national average. Unlike base pay, which applies uniformly by rank and years of service, COLA rates vary by duty station and are adjusted periodically based on measured changes in local prices.

According to the Department, the 2026 rates were calculated using established methodology that examines housing, food, transportation, and other essential costs across designated areas. These calculations are intended to ensure that service members maintain comparable purchasing power regardless of assignment location, recognizing that the cost of everyday necessities can differ substantially from one region to another.

The Department emphasized that CONUS COLA is not a bonus or incentive, but a compensatory mechanism tied directly to local economic conditions. Rates may increase, decrease, or remain unchanged depending on shifts in regional cost data, and adjustments reflect updated measurements rather than policy preference.

The release stated that updated rates will take effect in accordance with the Department’s annual compensation schedule. Service members assigned to affected locations will see adjustments automatically applied through existing pay systems, with no action required on the part of individual personnel.

Department officials noted that COLA updates are part of broader efforts to maintain fairness and stability within military compensation structures. While overseas COLA often draws greater attention due to currency fluctuations and foreign price indexes, CONUS COLA plays a quieter but important role for those stationed in high-cost domestic areas.

The announcement did not single out individual locations in narrative form, instead directing service members and administrators to official tables listing applicable rates by area. These tables serve as the authoritative reference for determining eligibility and payment amounts.

Issued directly by the Department of War, the release documents an administrative update that will shape pay calculations for thousands of service members in the year ahead. Though technical in nature, the adjustment reflects ongoing attention to the lived realities of military service, where assignments shift but household expenses remain constant.

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Sources

Primary First-Hand Sources

  • U.S. DEPARTMENT OF WAR, official release announcing the 2026 Continental United States Cost-of-Living Allowance rates, December 2025

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