Rep. Panetta Introduces Bill to Raise Cost of Living Adjustment for Local Military Personnel and Families

April 30, 2025 Press Release Monterey, CA – United States Representative Jimmy Panetta (CA-19) authored and introduced legislation that would address the absence of Cost-of-Living Adjustments (COLA) for military service members and Department of Defense (DoD) civilian employees stationed in California’s 19th Congressional District.  California’s 19 th Congressional District is home to seventeen military installations and more than 15,000 military and defense personnel, and is among the most expensive areas to live in the nation Cost of Living Adjustments are additional compensation for servicemembers and DoD civilians assigned to high-cost areas, intended to offset regional price disparities.  While San Francisco receives one of the highest COLA rates at 5%, neighboring areas within California’s 19 th Congressional District, despite similar economic pressures, do not.  A recent report by the Bureau of Economic Analysis found that $100 worth of goods nationwide only buys $87 and $88 in the Salinas-Monterey and Santa Cruz-Watsonville metro areas.  That makes California's 19 th Congressional District one of the ten most expensive regions in the country. “Many servicemembers and DoD civilians stationed in California’s 19 th Congressional District are struggling to keep up with the high cost of living in one of the most expensive regions in the country,” said Rep. Panetta. “My legislation would push the Department of Defense to reassess how COLA is calculated and ensure that our region, and military families who call it home, get a fair evaluation.  Our national security professionals serve us day-in and day-out, the least we can do is ensure that they have the compensation they deserve to continue that steadfast service.” The bill would direct the Pentagon to submit a detailed report to Congress assessing how COLA rates are determined, whether current methods accurately reflect economic realities, and if the district should qualify for COLA based on modern cost factors.  It would specifically require the Department of Defense to evaluate housing, groceries, transportation, and healthcare costs in California’s 19 th Congressional District, and to compare the treatment of Monterey with nearby Santa Clara County, where COLA is currently granted.  The legislation would also ensure that housing benefits like Basic Allowance for Housing (BAH) are not factored into COLA eligibility, as they serve different purposes. The legislation would not only provide Congress with transparency of how COLA decisions are made, but it could also prompt the Pentagon to reassess outdated formulas that fail to reflect the real cost of living on California’s Central Coast. Installations in California’s 19 th Congressional District include: Naval Postgraduate School Defense Language Institute Foreign Language Center Naval Support Activity Monterey Fleet Numerical Meteorology and Oceanography Center Naval Research Lab Coast Guard Station Monterey Camp Roberts Defense Manpower Data Center Presidio of Monterey Defense Personnel Security Research Center Operations 514th Signal Company Gourley VA-DOD Outpatient Clinic California Medical Detachment Army Analytics Group Fort Hunter Liggett Governor’s Military Council Monterey Bay Defense Alliance ### Issues : Economy and Business Housing and Homelessness National Security Veterans