A lot has changed since the Defense Department first announced the planned “pivot to the Pacific” last year. For example, North Korea has become more volatile, forcing the Defense Department to protect its assets in Guam, Hawaii, and South Korea, Defense Secretary Chuck Hagel told members of the Senate Appropriations Committee’s defense panel on June 11. Over the last few months, the department has “repositioned resources and capabilities” in the region, said Hagel. “A good deal of my time has been devoted to that part of the world.” But, such changes come at a cost and the US’ fiscal future also has changed with the implementation of sequestration. “There have been additional costs. There may be [more] additional costs,” said Hagel. Army Gen. Martin Dempsey, Joint Chiefs Chairman, told legislators during the same hearing that sequestration “absolutely” will affect DOD’s ability “to produce capability and capacity.” Dempsey said the Strategic Choices Management Review, which assessed the impact of further sequestration-related reductions on the department, will determine at what point the defense strategic guidance announced last year “will potentially be rendered unfeasible.” He added, “That work should become clear in the weeks ahead.” (Hagel prepared testimony) (Dempsey prepared testimony)
Pentagon Releases Cost of Living, BAH Rates for 2026
Dec. 30, 2025
The Pentagon will pay cost of living allowances to 127,000 service members in the continental U.S. in 2026, an increase of 66,000 members in 2025. Airmen and Guardians across the U.S. will also receive an average increase of 4.2 percent for their Basic Housing Allowance, compared to the 5.4 percent…

