Deal Promises Help For Soldiers Ordered To Repay Enlistment Bonuses

Congress has reached a compromise on the Pentagon's effort to claw back millions of dollars in bonuses paid by the California National Guard, agreeing to forgive the debt in cases where soldiers "knew or reasonably should have known" they were ineligible to receive the money.

The compromise is part of a mammoth new defense spending authorization bill that's slated for a vote by the end of next week. It comes one month after news emerged about soldiers who'd fulfilled their enlistment commitments — but were facing wage garnishments and repayment demands, after the Pentagon said they weren't entitled to the sign-up bonuses.

Led by The Los Angeles Times, that coverage generated public outrage and prompted Defense Secretary Ash Carter to order the Pentagon to suspend its effort to reclaim improperly awarded bonuses until the process is both efficient and fair.

The new compromise deal is part of legislation that provides more than $600 billion in discretionary defense spending. In addition to setting terms for forgiving bonuses and student loan benefits, it would require the Defense Department to refund money repaid by soldiers who didn't engage in fraud — and to inform credit agencies about the forgiven debt.

"This is an important fix that ultimately does the right thing," said Rep. Darrell Issa, R-Calif. "It moves the burden of proof off the soldiers and onto the Department of Defense to prove that those who received bonuses knew they shouldn't have, and also helps make sure those who already wrongly repaid their portion are made whole at once."

In October, it emerged that thousands of soldiers were being compelled to repay money they'd received a decade ago, at the height of the U.S. military's fight in both Afghanistan and Iraq. The Los Angeles Times reported that nearly 10,000 soldiers were scrambling to repay the bonuses and other benefits — and that others were locked in legal disputes with the Pentagon.

As the Two-Way reported: