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SEC. 624. IMPROVEMENTS TO BASIC ALLOWANCE FOR HOUSING.
(a) Increasing Awareness.--The Secretary of Defense shall seek to
improve transparency of the calculation of BAH by--
(1) developing a clear, accessible document that explains how
rates of BAH are determined, including methodology and types of
data sources used, which shall be--
(A) reviewed and updated not less frequently than annually
and as rates and calculation methods change; and
(B) made available on a publicly accessible internet
website and distributed across all relevant components of the
Department of Defense; and
(2) providing to members of the Armed Forces when such members
experience a permanent change of station, permanent change of
assignment, change in dependency status, change in grade, or any
other event that may impact the eligibility of such members for or
rate of BAH--
(A) the information included in the document developed
under paragraph (1); and
(B) an explanation of the type of rental housing the rate
of BAH received by such members is intended to support in each
locality.
(b) Study to Evaluate Alternative Rate Calculation.--
(1) Study.--
(A) In general.--Not later than September 30, 2026, the
Secretary of Defense shall seek to enter into an agreement with
a covered entity to conduct a study in which the covered
entity--
(i) assesses the adequacy of the current BAH for MHAs
selected under paragraph (3), including a review of the
commuting times and distances of members of the Armed
Forces and the overall affordability of housing in such
MHAs;
(ii) reviews existing methods of calculating BAH and
proposes methods of calculating BAH described in paragraph
(2) for MHAs selected under paragraph (3) that are more
efficient and accurate than such existing methods, as
appropriate; and
(iii) evaluates the feasibility and advisability of
using machine learning and artificial intelligence in the
calculation of BAH and, if feasible and advisable,
incorporates machine learning and artificial intelligence
into the proposed methods described in clause (i).
(B) Rule of construction.--During the study conducted in
accordance with subparagraph (A), the Secretary shall pay BAH
in MHAs selected under paragraph (3) at rates prescribed under
section 403 of title 37, United States Code.
(2) Proposed monthly rates.--A proposed monthly rate of BAH
described in this paragraph--
(A) accurately reflects housing prices in the MHA subject
to such rate; and
(B) is sufficient for military families who reside in such
MHA to procure adequate and affordable housing.
(3) Mhas.--The Secretary shall select not fewer than 15 MHAs
for the covered entity to evaluate in the study conducted in
accordance with paragraph (1). In selecting MHAs for evaluation
under such study, the Secretary shall consider factors including
the following:
(A) Variety of geographic location.
(B) The ranks of members who reside in an MHA.
(C) Whether members who reside in an MHA have dependents.
(D) Economic factors including inflation, cost of living,
and the cost of private mortgage insurance.
(4) Completion.--An agreement entered into under paragraph
(1)(A) shall require the study conducted under such agreement to be
completed not later than the date that is three years after the
date on which the Secretary and the covered entity enter into such
agreement.
(5) Annual briefings.--Not later than 180 days after the date
of the enactment of this Act, and on an annual basis thereafter
until the completion of the study conducted in accordance with
paragraph (1), the Secretary shall provide to the Committees on
Armed Services of the Senate and the House of Representatives a
briefing on the status of the study under this section.
(6) Report.--Not later than 120 days after the date of the
completion of the study conducted in accordance with paragraph (1),
the Secretary shall submit to the Committees on Armed Services of
the Senate and House of Representatives a report containing the
results of such study. Such report shall include--
(A) an evaluation by the Secretary of the proposed methods
of calculating BAH by a covered entity pursuant to an agreement
under paragraph (1); and
(B) any recommendations of the Secretary for legislation to
improve the methods of calculating BAH based on the study.
(c) Definitions.--In this section:
(1) The term ``BAH'' means the basic allowance for housing for
members of the uniformed services under section 403 of title 37,
United States Code.
(2) The term ``covered entity'' means an entity or combination
of entities--
(A) with combined expertise in data analysis and machine
learning and access to relevant data on local rental rates in
real estate markets in the MHAs selected under subsection
(b)(3); and
(B) that has not participated in anticompetitive price-
fixing in a real estate market.
(3) The term ``MHA'' means military housing area.