March 28, 2024
California National Guard members won't have to pay back bonuses
Defense Secretary Ash Carter ordered the Pentagon on Wednesday to stop clawing back excessive recruiting bonuses paid to California National Guardsmen.

The move came after news broke over the weekend that the Pentagon had been seeking repayment of enlistment bonuses paid to California Guardsmen. Some of the payments were made by mistake, others were taken fraudulently.

"While some soldiers knew or should have known they were ineligible for benefits they were claiming, many others did not," Carter said in a statement. "About 2,000 have been asked, in keeping with the law, to repay erroneous payments."

As first reported by the Los Angeles Times, the Pentagon sought repayment of the excess bonuses from almost 10,000 California Guard soldiers. The paper reported that many of the soldiers affected had served multiple combat deployments and had been ordered to repay bonuses plus interest. Some had had their wages garnished and tax liens slapped on them when they refused to pay. The bonus scandal was revealed after audits showed widespread overpayments.

Several soldiers and veterans told the Times that the forced repayments were causing them severe financial hardships.

Carter ordered a review of the program and charged his staff with developing a process to resolve the cases by July 1, 2017.

"Hundreds of affected guard members in California have sought and been granted relief," Carter said. "But that process has simply moved too slowly and in some cases imposed unreasonable burdens on service members."

White House Press Secretary Josh Earnest said President Obama was pleased with the Department of Defense response.

“We certainly welcome this response from the Department of Defense, and it will be important for them to follow through on these steps so that the men and women of the California National Guard know that the commander-in-chief has their backs,” he said.

Earnest said the president wanted to “avoid a situation where service members are punished because of nefarious or fraudulent behavior by someone else.”

But he said the Pentagon would have to work out how to deal with those who thought they were entitled to the bonuses but decided to pay them back anyway out of a sense of duty.

“The president is mindful that there may be some national guardsmen who find themselves in that situation, and the president believes they need to be treated fairly too,” Earnest said.

The National Guard struggled to fill its ranks during the height of the wars in Iraq and Afghanistan, relying on bonuses to sign recruits and for re-enlistment.

National Guard recruiting has been rocked by scandal in recent years. In 2014, more than 800 of its soldiers were under criminal investigation for gaming a program that paid hundreds of millions in bonuses to guardsmen who signed up friends.

In one of the worst cases, a soldier allegedly pocketed $275,000 in illegal kickbacks. The program was suspended after audits found several instances of fraud. Federal prosecutors have won several convictions across the country against soldiers who committed fraud under the program. (Source: USA Today)
Story Date: October 27, 2016
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