House Bill Seeks to Use AI to Calculate DOD Housing Allowance Rates

A new House bill is seeking to establish a pilot program that would test using machine learning and artificial intelligence algorithms in computing monthly basic allowance for housing given by the Department of Defense to military members. 

The Basic Allowance for Housing Calculation Improvement Act of 2023, introduced by Rep. Don Bacon, would require the defense secretary to launch the program in partnership with a nationally recognized single-family housing entity that has data on rental rates in U.S. real estate markets, DefenseScoop reported.

According to the bill, the entity should use industry-standard ML and AI algorithms to calculate BAH monthly rates for at least 15 military housing areas.

BAH rates, published on the Defense Travel Management Office website, currently depend on pay grades, the number of dependents and the cost of rental properties in each geographic location. 

If the bill is signed into law, the DOD will have to submit a program evaluation report to the House and Senate Armed Services Committees within two years following its passage.