Service workers report significant pay disparity as shutdown continues

As the government shutdown enters its fourth week and the government looks for ways to pay troops at the end of the month, hundreds of service members have reported receiving incorrect pay or no pay at all during the mid-month pay cycle — and so far, none of the discrepancies have been corrected.

369 military families reached out to us The National Military Family Association, which represents service members and their families across the country, reported that 164 people were underpaid, ranging from $148 to $2,000.

Raleigh Smith Duttweiler, a military spouse and chief impact officer for the National Military Families Association, said most affected families are about $600 to $800 short in wages.

“One in four military families don't have more than $500 in their savings account. We're not a population that can absorb missed paychecks and keep working.” Smith Dutweiler told Federal News Network. “I don't know about you, but I can't accept a $600 mistake in my paycheck and still put food on the table for three kids. It's not going to happen.”

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About 55 families said they had not been paid at all.

“There was no [leave and earning statement]nothing. Pay will be due on October 1st. They still went to work on October 15th and 16th, but their wages were zero. ” Smith Dutweiler said.

Meanwhile, 50 families said they were being paid too much, some by $400 more, while one family said they were being paid three times the normal wage.

Twelve families were not paid despite leave and earnings statements showing pay dates as Oct. 23, Oct. 24 or Oct. 25.

Most families reporting wage discrepancies said their leave and income statements did not match the amounts shown in their bank accounts.

“It's a real concern for people because when you try to go back and get the money that you're entitled to, your payslip says you've got it but your bank says you didn't. It doesn't help that all these things don't match up.” Smith Dutweiler said.

“I haven't heard anyone tell me their wages have been adjusted. No one has seen an adjustment, no one has seen money magically appear. They have nowhere to go other than aid societies,” she added.

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The Department of Defense did not respond to questions about the number of troops affected, the reasons for these disparities, what steps the Department of Defense is taking to address these issues and what guidance is being provided to service members in the meantime.

Smith-Dutweiler said the Defense Department has instructed service members to contact the finance office or notify their commander if there is a problem with pay.

“I wouldn't talk to my boss about my finances. And I certainly don't think most Americans do either. I hear from families all the time that they're trying to get in touch with their finances and no one responds. I think that's the biggest concern, is that people feel like they don't have an outlet,” Smith-Dutweiler said.

Mounting debt from PCS initiatives

Households with low wages or no wages at all are particularly worried about automatic bills, such as rent, water or car payments, that will be canceled regardless of whether their wages arrive.

But in addition to monthly expenses, the shutdown has exacerbated other financial issues for military families.

Households saddled with significant debt due to this summer's permanent relocation cycle had expected to receive reimbursements on Oct. 1, Oct. 15 or Nov. 1. Instead, they now have to pay another month of credit card interest on moving expenses ranging from $200 to $400.

“The government won't pay you back the annual interest rate” Smith Dutweiler said.

The advocacy group also heard from families who were in the process of PCS relocation when the stop eviction order was issued. The families have already had moving expenses charged to their credit cards and now fear their wages may be disrupted before they can pay those costs.

A family moving to PCS stayed in a hotel Because housing inspectors have been furloughed, the family will not be able to obtain on-base housing until the government reopens.

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“If you've ever done PCS, and a lot of people I talked to on the Hill have never done PCS, you don't know how much money is in credit card debt in the first place. You're already absorbing the move. No one is going to look at you and say, 'I see you had $18,000 unpaid in the last three months. We're definitely going to give you more credit,'” Smith Dutweiler said.

“Of course, maybe federal credit unions or USAA could step in even though they have people who are being turned away and have bad credit — those service members who most desperately need a paycheck, those who are relying on that paycheck to get by. But it's not up to our banks to pay us. Aid societies can step in, food pantries can help them with whatever they want, but ultimately it's your employer that's going to pay the bill,” she added.

Finance Minister Scott Bessant last week advised service members will receive month-end pay but said the government would not be able to pay troops before Nov. 15 if the shutdown continues.

“I think starting in November we will be able to pay them, but come November 15, our troops and service members who are willing to put their lives on the line will not be able to get paid,” besant explain Facing the country.

senate republicans Trying to prepay a bill Last week, it would have ensured troops were paid during the shutdown, but Democrats blocked the measure in favor of broader legislation that would guarantee pay for all federal workers.

Legal experts say the administration could ask Congress to fund military pay in future budget requests — a mechanism already used for some accounts the administration doesn't want disrupted. Funding could be provided on a calendar year basis rather than providing military pay funding year by year.

David Superel, the Carmack Waterhouse Professor of Law and Economics at Georgetown University Law Center, told Federal News Network, “There are still funds available over the next three months to pay for it. It's a completely sensible thing to do. To my knowledge, neither this administration nor its predecessor has proposed this.”

Smith Duttweiler said she has heard time and again over the past two weeks from families who question whether services are right for their families.

“For the first time, someone said, 'We've always loved this life, but I don't know that I would recommend this to my kids because I don't know that this is a stable way for them to make ends meet.'” Smith Dutweiler said.

“It's a hard life, but it's a good life, and you feel you have an obligation to do that. But if you can't provide for your children, you don't feel you have an obligation to do that. Families are now caught in the middle and become the last kind of political bargaining chip. That's not how we care about our military. That's not how we should care about our own safety,” she added.

If you would like to contact this reporter about recent changes in the federal government, please email [email protected] or call Signal at (301) 830-2747.