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DoD cuts COLA in 21 counties, reduces allowance in major cities

Some service members stationed within the continental United States will see their take-home pay decrease starting January after the Defense Department updated its cost-of-living allowance rates (COLAs). All 21 non-metropolitan counties in California and New York will lose COLA allowance eligibility under the Defense Department’s 2026 rates released Monday.  Nine military housing areas will lose the allowance entirely, including Boston, Massachu…

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Federal News Network broke the news in on Monday, December 22, 2025.
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