OCOLA SCHEDULED TO BE REDUCED ON MAY 15

FOR IMMEDIATE RELEASE – May 04, 2023

(Washington, D.C.) Despite reservations made by military leaders on Guam and within the INDOPACOM region, and despite the request for reconsideration submitted by Delegate James Moylan, the Biden administration has announced that the reduction of the Overseas Cost of Living Allowances (OCOLA) for those qualified service members in Guam will commence on May 15, 2023. However, instead of the overall reduction taking place at once, there shall be a two-tiered reduction process in 2023, with the second taking place on November 15, 2023. The Department of Defense (DoD) has indicated that many service members will experience a pay increase in 2023 along with other benefits, which would help offset the reduction in OCOLA. Although this may provide some relief for service members, DoD refuses to use its authorities to protect OCOLA compensation for military personnel on Guam. Mr. Moylan remains opposed to the OCOLA reduction in keeping with the requests made by INDOPACOM leaders for DoD to reconsider the forthcoming reduction. The OCOLA was first scheduled for a reduction at the start of 2023, however, due to the concerns raised by various parties, DOD Secretary Lloyd Austin placed a temporary moratorium on the increase. This moratorium will be lifted, and the reduction will take place on May 15, 2023, and shall impact service members throughout the region, including members of our Air and Army National Guard.

“Our office is deeply concerned about this decision, and while we recognize that the DOD has their formulas which dictate the OCOLA, and that many service members shall experience salary increments, the reality is that the cost of living for those residing both inside and outside the fence is relatively high in Guam. This decision will also impact our economy”, stated Delegate Moylan. “Our office is finalizing language on an amendment to include in the NDAA which would prevent any OCOLA reductions in FY 24, for those service members residing in Guam, and we hope to secure some support in the process”, added Delegate Moylan.

###