Navy Adm. Christopher W. Grady Vice Chairman of the Joint Chiefs of Staff | Official Website
The Department of Defense has announced the 2025 Continental United States Cost-of-Living Allowance (CONUS COLA) rates, which will be effective from January 1, 2025. The new rates will see $51 million distributed to around 61,000 service members stationed within the continental U.S.
CONUS COLA is a supplementary allowance intended to help service members manage higher living costs in certain areas where expenses exceed the average within CONUS. The allowance may increase, decrease, or remain unchanged based on non-housing price comparisons between specific duty locations and the average across CONUS.
According to legal requirements, a contractor provides civilian cost data for each military housing area (MHA) and non-MHA. This data covers transportation, goods and services, federal income taxes, sales taxes, and miscellaneous expenses. Adjustments are made for Basic Allowance for Subsistence and other factors like daycare subsidies and savings from commissaries. These figures are compared against average CONUS costs to create an index.
Kathleen H. Hicks, Deputy Secretary of Defense
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A CONUS COLA rate is set when this index surpasses a legally defined threshold above the CONUS average. For 2025, non-housing costs must be at least 7% higher than average CONUS costs to qualify for a payment. An index exceeding 107% qualifies an area for COLA.
In the upcoming year, ten MHAs will start receiving CONUS COLA; six MHAs will see an increase; three MHAs will experience a decrease; and four MHAs will no longer receive it.
For non-MHA regions or non-metropolitan counties, twenty-five counties will gain eligibility for CONUS COLA; one county's rate will decrease; fifty-one counties will lose eligibility.
Notably high rates include New York City at 8%, Humboldt County at 5%, and San Francisco also at 5%. New York City saw the largest decrease from 13% to 8%, while Humboldt County experienced the largest increase from zero to five percent.
The total amount received by service members varies depending on their location, pay grade, years of service, and dependency status. Payments range from $35 to $60 per month for those with dependents and $27 to $46 without dependents per percentage point of COLA.
Service members can calculate their specific rates using tools available online at https://www.travel.dod.mil/Allowances/CONUS-Cost-of-Living-Allowance/CONUS-COLA-Rate-Lookup/. Further details are accessible through the Defense Travel Management Office website.
