2026 CONUS COLA RATES: ELIGIBILITY, HOW MUCH PAY IS CUT, AND WHAT TO EXPECT

The Department of Defense released the 2026 CONUS Cost-of-Living Allowance (COLA) rates on December 22. The changes start immediately on January 1, 2026. Many active-duty households will see their pay cut, even at expensive duty stations.

CONUS COLA is a taxable allowance for higher non-housing costs like groceries and transportation. Housing costs are covered by BAH. When CONUS COLA is reduced or eliminated, there is no replacement, grace period, or phase-out. Impacted servicemembers and their families are expected to maintain their quality of life with less. Literally.

For many servicemembers, the impact is immediate, showing up on the January Leave and Earnings Statement, forcing military families to adjust their finances without warning.

What Changed in the 2026 CONUS COLA Rates

Under the 2026 update:

• 9 Military Housing Areas lost CONUS COLA entirely, dropping to a zero-percent rate.
• 21 non-metropolitan counties, primarily in California and New York, also lost eligibility.
• Several remaining high-cost metropolitan areas experienced rate reductions, not complete eliminations.

While CONUS COLA still exists in parts of the country, the program’s overall footprint shrank, particularly in regions where everyday costs remain high but no longer meet the eligibility threshold used by the Department of Defense.

High-Cost Areas Included in the Cuts

Some of the most notable and expensive locations affected include:

• Boston, Massachusetts
• San Luis Obispo, California
• San Bernardino, California
• Riverside, California
• Humboldt County, California
• Bridgeport area, California
• New York City

For servicemembers stationed in these locations, CONUS COLA either dropped to zero or was significantly reduced despite continued high prices for food, transportation, childcare, and basic services.

Why Expensive Places Can Still Lose CONUS COLA

CONUS COLA is not based on rent or home prices. Those costs are addressed through BAH.

CONUS COLA uses non-housing cost comparisons against a national average. If a location’s costs do not exceed the DoD threshold, the area loses eligibility, even if it still feels expensive.

This methodology explains why some well-known high-cost areas lost eligibility in 2026 while others retained reduced rates. Even if it doesn’t quite make sense.

In addition to this sudden loss of income, servicemembers and families aren’t made aware of this change until they notice the disparity on their paychecks, or LES.

Heads up: Review your January LES for any changes in pay.

What a CONUS COLA Cut Looks Like in Real Dollars

The easiest way to understand the impact is to translate it into household cash flow.

The following example is representative, based on typical CONUS COLA payouts for similar servicemember profiles over the past few years. Actual amounts vary by ZIP code, rank, years of service, and dependent status, and are determined using the official DoD lookup.

Representative mid-career enlisted profile:

• Rank: E-6
• Years of service: Around 10
• Dependents: Yes
• Duty location: High-cost CONUS area that lost COLA eligibility

In 2025, servicemembers in this profile commonly received roughly $150 to $200 per month in CONUS COLA.

That equals approximately $1,800 to $2,400 in taxable income per year.

In 2026, for locations that lost eligibility, the monthly CONUS COLA drops to $0, there is no offset through BAH, and there is no transition period. The loss of income is immediate.

Check Your CONUS COLA Loss

These ranges estimate the size of pay cuts for budgeting. Actual losses depend on your ZIP code and pay factors.

Junior Enlisted (E-1 to E-4)

• Monthly loss is approximately $60 to $140
• Annual loss is approximately $700 to $1,700

Mid-Grade Enlisted (E-5 to E-6)

• Monthly loss is approximately $120 to $220
• Annual loss is approximately $1,400 to $2,600

Senior Enlisted (E-7 to E-9)

• Monthly loss is approximately $180 to $300 or more
• Annual loss is approximately $2,100 to $3,600 or more

Company-Grade Officers (O-1 to O-3)

• Monthly loss is approximately $150 to $280
• Annual loss is approximately $1,800 to $3,300

Field-Grade Officers (O-4 to O-6)

• Monthly loss is approximately $250 to $400 or more
• Annual loss is approximately $3,000 to $4,800 or more

Dual-military households can reasonably see combined annual losses exceeding several thousand dollars, depending on rank and location.

Why Two People at the Same Base Lose Different Amounts

• When COLA changes take effect, servicemembers often see very different paychecks, even within the same unit. These differences are expected.
• Rank and years of service matter because COLA is calculated as a percentage of spendable income. Higher earners lose more dollars when rates drop.
• Dependent status matters because members with dependents generally receive higher COLA amounts, so reductions hit family households harder.
• ZIP code boundaries matter because eligibility is tied to ZIP codes, not just the base name. Two people assigned to the same installation can fall into different cost groups.
• Reduction versus elimination matters because some locations lost COLA entirely, while others saw only reduced rates.
• PCS timing matters because service members arriving before and after January 1 may experience different impacts during the transition.

Nationwide Impact: How Many Service Members Are Affected

According to the Department of Defense, approximately 127,000 uniformed service members are expected to receive some level of CONUS COLA in 2026.

That figure reflects eligibility, not financial benefit.

Within that total, some service members lost CONUS COLA entirely, others experienced significantly reduced rates, and many remain eligible at lower percentages than in 2025.

Federal reporting confirms that eliminations and reductions span multiple states and large population centers, meaning thousands of military households will see less money on their monthly LES.

Why the Total Number Went Up While Pay Went Down

Each year, CONUS COLA eligibility is recalculated.

In 2026, some new ZIP codes met the eligibility threshold and were added, while rates were reduced or eliminated in other areas.

As a result, more people may technically be included in the program even as individual rates dropped, entire locations lost eligibility, and many households received less money than the year before. The headline number reflects participation, not impact.

CONUS COLA 2026: Quick-Glance Check

If you are stationed in the continental United States:

• Check your 2026 CONUS COLA rate and compare it to 2025
• Expect changes to appear on your January LES
• Do not assume BAH will offset COLA losses
• Rework your monthly budget now, not later
• Contact your finance office if your rate does not align with your duty ZIP code

There is no transition period, only the expectation that once again, military families will adapt and overcome, continuing to do more with less.

Why This Matters

CONUS COLA changes rarely make headlines, but they directly affect household cash flow. When allowances change quietly and take effect immediately, families are often left adjusting after the fact.

For servicemembers already navigating high housing costs, childcare shortages, and rising everyday expenses, the 2026 COLA changes remove one more financial buffer, making awareness and early planning essential.

Suggested reads:

• Warrior Dividend Explained: Where the $1,776 Payment Really Comes From and Who Qualifies
• DoD Confirms 2026 BAH Rates After Brief Leak: Here's What's Changing
• Why PCS Season Strains Military Family Finances, Even With BAH and Reimbursements