In October 2015, President Obama vetoed the 2016 National Defense Authorization Act, which included a military pay raise. His veto surprised many and left service members wondering what would happen to their scheduled raises and benefits.
As a military family myself, I wanted to provide some background on Obama’s controversial veto, what exactly was in the bill, and the potential impacts on troops’ wallets.
Why Obama Vetoed the Defense Bill
The main point of contention was that the 2016 defense bill allowed the Pentagon to get around mandated budget caps using an emergency war fund. Obama wanted sequestration fully repealed for both defense and non-defense spending, not just maneuvered around.
In his veto statement, Obama said:
“This bill resorts to gimmicks that do not allow the Pentagon to do what it needs to do I have repeatedly called on Congress to eliminate the sequester and make sure we’re providing certainty to our military so they can do long-term planning.”
Essentially Obama felt the bill didn’t go far enough to provide stable long-term funding that the military needed. However, many felt he should have still signed it to at least provide a pay raise for the troops.
What the Bill Included for Military Pay
The vetoed 2016 defense bill contained several military pay and benefits provisions:
- A 1.3% raise in basic pay for all members starting January 1, 2016
- An overhaul of the retirement system for new recruits
- Continued dual BAH payments for married couples
- Phased reductions in BAH over 4 years
- Modest increases in pharmacy co-pays
- Pay freeze for general/admirals and certain civilians
The bill aimed to modernize compensation while still providing a basic pay boost. But without Obama’s signature, these changes were put in limbo.
The Impact of the Veto on Troops’ Pay
Since the House lacked votes to override Obama’s veto, it meant that plans for the 2016 pay raise were stalled. Troops were still promised to be paid on time, but future pay was uncertain.
In the short-term, pay was protected by a continuing resolution funding the military until December 11, 2015. However, if a full-year budget wasn’t passed by then, paychecks could have been delayed.
Luckily, after much debate, Congress passed a new bill with revised terms that Obama signed in November 2015. This secured a 1.3% basic pay raise for 2016 and allowed the other provisions to take effect as planned without further issue.
Lessons Learned from the Controversial Veto
While Obama’s motives were questioned, the biggest takeaway was the need for bipartisan cooperation to provide stable funding and pay for the military. Short-term continuing resolutions and rejected proposals create unnecessary uncertainty for troops and their families.

Obama Vetoes $612 Billion Defense Bill
FAQ
How many vetoes did Obama use?
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#
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President
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Total vetoes
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42
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Bill Clinton
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37
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43
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George W. Bush
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12
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44
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Barack Obama
|
12
|
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45
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Donald Trump
|
10
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Did Congress pass military budget?
House Passes FY25 Defense Appropriations Act, Bolstering Military Capabilities and Supporting Our Servicemembers. Washington, D. C. – Today, the House of Representatives met to consider the Defense Appropriations Act, 2025 . The measure was approved by a vote of 217 to 198.
What is the Obama National Defense Authorization Act?
It was signed into law on December 31, 2011 by President Barack Obama. In his signing statement, President Obama said that the Act would help with national security programs, the cost of health care for the Department of Defense, fighting terrorism in the US and around the world, and modernizing the military.
Did the military bill passed?
The 2024 National Defense Authorization Act has been passed by both the House and the Senate. It will soon be signed by the president. Among other things, the bill authorizes a pay raise for both service members and civilian defense employees.