Army is flouting order to repay reservists their housing benefits, court filing says | Stars and Stripes
A federal lawsuit filed in 2021 accuses the U.S. Army of refusing to repay housing allowances to seven reservists, despite a ruling by the Army Board of Corrections ordering it. The soldiers had been denied dual housing benefits while stationed in Europe without access to base housing. The Army allegedly misled lawmakers, including Sen. Lisa Murkowski, and failed to meet a repayment deadline. Lawyers say hundreds more may be affected. The Army claims audits and corrections are underway, but no payments had been made by early November, prompting legal action for noncompliance with federal regulations. Army is flouting order to repay reservists their housing benefits, court filing says | Stars and Stripes.
Army’s denial of housing allowances draws potential class-action lawsuit
A 2021 lawsuit alleges the U.S. Army wrongfully denied dual housing allowances to reservists stationed in Europe without access to base housing. Plaintiffs argue the Army misapplied regulations, forcing soldiers to choose between U.S. and overseas housing support. The Army Board for Correction of Military Records ruled the policy unjust and ordered reimbursements and personnel record corrections. Despite this, many reservists faced debt and investigations. The lawsuit seeks class-action status, claiming gross negligence by Army finance officials. The Army has not confirmed whether it will follow the board’s ruling or ensure future compliance with housing allowance regulations. Read the full article here.
‘Unjust actions’: Army illegally denied housing allowance to reservists and wrongly investigated them, board finds
The Army Board for Correction of Military Records determined the U.S. Army illegally denied “dual housing allowances” to mobilized reservists deployed to Europe without base housing. The board ruled this policy change—implemented around 2016 by European finance officials—violated federal law and ordered repayment of roughly $500,000 to seven soldiers, plus record corrections and promotion review boards. In response, Patriots Law Group is preparing a class-action lawsuit, claiming thousands of reservists were similarly affected. The Army has yet to comment fully on implementing the board’s orders or addressing ongoing dual-allowance eligibility. Read the full article here.
Army extends more benefits to reservists on overseas tours as lawsuit over housing allowances continues
A federal lawsuit over dual housing allowances has prompted the U.S. Army to extend additional benefits to reserve soldiers on overseas tours. While the broader class action continues, the Army began addressing housing allowance disparities identified by the Army Board for Correction of Military Records—including reimbursement of roughly $500,000 to seven reservists, record expungement, and promotion consideration boards. The Board found that a 2016 policy change in Europe wrongfully denied dual allowances, resulting in financial hardship and improper disciplinary actions. Though implementation is ongoing, the Army says housing-and-benefits improvements are underway as legal proceedings advance. Read the full article here.
These reservists say the Army denied them BAH on deployment. Now they’re suing to get it back.
In May 2018, eight Army Reserve officers filed a class-action lawsuit, alleging the Army wrongly halted their Basic Allowance for Housing (BAH) during deployments to Germany and later garnished their pay—sometimes over $100,000—to recoup funds. The suit claims the Army ignored Joint Federal Travel Regulation entitlements, launched fraud investigations under Army CID, and imposed adverse personnel actions. Plaintiffs include Col. Bradley Wolfing—who faced a fraud probe and wage garnishment—and Maj. James Copas, who lost $26,000 and faced career setbacks. More than 300 reservists may have been affected. Army officials, including Secretary Mark Esper, acknowledged the issue and pledged to “do the right thing.” Read the full article here.
Reservists score ‘huge victory’ in case stemming from Army dual housing allowance change
The Army has reversed its 2016 policy that had wrongly denied mobilized reservists both U.S.-based and overseas housing allowances, a practice that led to six-figure debts, garnished wages, disciplinary action and fraud probes. This “huge victory” follows prior rulings: in 2021, the Army Board for Correction of Military Records found the policy illegal and ordered repayments and record expungement; in 2022, DFAS blocked payouts citing conflicting family separation rules. The 2024 decision grants a second housing allowance for reservists with dependents, and replaces it with a per diem—higher than the allowance—for single reservists. The ruling could benefit thousands more soldiers. Read the full article here.
Reservist seeks to clear name in battle over Army housing benefits
In 2019, Army Reserve Col. Richard Gulley sought to clear his name after being accused of fraud for receiving housing allowances during his deployment to Europe. The Army had changed its policy in 2016, denying dual housing allowances to reservists with homes in the U.S. and no access to base housing overseas. Gulley, along with others, faced investigations, wage garnishments, and career setbacks. He maintained he followed all regulations and challenged the Army’s actions through legal and administrative channels. His case became part of a broader fight, later leading to legal victories affirming the Army’s denial of benefits was unlawful. Read the full article here.