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.