CBO estimates that the Department of Defense spent $140 billion—or 27 percent of its base budget apart from the costs of operations in Iraq and Afghanistan—paying military personnel in 2012. CBO examines the budgetary implications of different approaches to compensating military personnel, including possible changes in the structure of cash pay, health benefits for military personnel and their family members, and health benefits for retirees. CBO also evaluates federal programs and issues related to
veterans.