The Department of War announced Thursday that approximately 127,000 service members stationed within the continental United States will receive a total of $99 million in supplemental cost-of-living allowances in 2026, aimed at offsetting expenses in the nation’s most expensive duty locations.
The Continental United States Cost-of-Living Allowance (CONUS COLA) adjustments, taking effect January 1, 2026, represent significant changes to the program, which provides financial relief to military personnel assigned to areas where non-housing costs substantially exceed national averages.
Who Gets What — And Where
“As a result of the 2026 adjustment, $99 million will be paid to approximately 127,000 uniformed service members stationed within Continental United States next year,” the Department announced in its official release.
The supplemental allowance is designed for service members in locations where the cost of living is at least 7% above the national average. “Continental United States Cost-of-Living Allowance is a supplemental allowance provided to service members and designed to help offset higher living expenses in the highest-cost locations in Continental United States,” the Department stated.
But what determines these high-cost areas? According to officials, “An area is considered high-cost if the non-housing cost of living for that area, inclusive of categories such as transportation and goods and services, exceeds a threshold of 107% of the national average.” The calculations take into account the Basic Allowance for Subsistence and potential savings from commissaries and exchanges.
Winners and Losers in the 2026 Adjustment
The 2026 adjustments bring significant changes across military housing areas nationwide. Six locations will begin receiving CONUS COLA for the first time, while eight will see increases. Two areas will maintain their current rates, and two others face decreases. Perhaps most notably, nine military housing areas and 21 counties in non-metropolitan regions will lose the allowance entirely.
San Francisco leads the nation with the highest rate at 8%, followed by Oakland at 6%. Santa Clara County, Staten Island, and Seattle each qualify for a 5% adjustment.
The most dramatic shifts? Humboldt County, California experienced the steepest decline, plummeting from 5% to zero. On the flip side, Seattle saw the largest gain, jumping from no allowance to a 5% rate.
How the Allowance Works
Service members don’t receive a flat rate. Instead, “The total amount of Continental United States Cost-of-Living Allowance a service member receives varies based on geographic duty location, pay grade, years of service, and dependency status,” the Department explained.
Unlike housing allowances, CONUS COLA is a taxable benefit. The Defense Travel Management Office describes it as “a taxable, supplemental allowance designed to help offset expenses for Service members assigned to expensive CONUS areas.”
Curious about your own potential allowance? The Defense Travel Management Office maintains a tool for service members to calculate their specific benefit based on their particular circumstances.
For the thousands of service members stationed in high-cost areas, these adjustments represent more than just numbers on a spreadsheet — they’re a tangible acknowledgment of the financial challenges faced by military families in America’s most expensive regions. While some will see welcome increases in 2026, others may need to tighten their belts when their allowances disappear.
