37 U.S.C. § 1007 — Deductions from pay

(a) The pay^* of an armed-forces officer^* may be withheld under section 5512 of title 5 only for a debt to the United States that the officer admits, that a court judgment establishes, or that the Secretary of Defense specially orders in the Secretary’s discretion. For a Coast Guard officer when the Coast Guard is not operating as a Navy service, the Secretary of Homeland Security may issue that special order. Pay may also be withheld when the officer is denied relief under section 3527 of title 31.

(b) A debt owed to the United States by an enlisted Army, Air Force, or Space Force member^* for an article sold on credit under section 4621(a)(1) or 9621(a)(1) of title 10 must be deducted from the member’s next pay after the sale is reported.

(c)(1) Under regulations issued by the responsible Secretary, an amount administratively determined to be owed to the United States or one of its instrumentalities by a uniformed-services member may be deducted from monthly pay in installments. (2) After any court-martial forfeiture or other legally authorized withholding, these deductions may not leave the member with less than one-third of that month’s pay. (3)(A) If, through no fault of the member, pay or allowances were overpaid, the overpayment must be recovered in monthly installments. The monthly deduction may not exceed 15 percent of that month’s pay unless the member asks for or agrees to faster collection. (B) In every such case, the responsible Secretary must give the member a reasonable chance to ask for a delay. Before collection begins, the Secretary must consider the member’s reasons, including the member’s ability to repay and the hardship immediate collection would cause the member and dependents. (C)(i) If, through no fault of the member, a debt results from overpaid pay or allowances or from settling the member’s accounts, the Secretary may not collect it from a current, retired, or former member by pay deductions, retired or separation-pay deductions, or another collection method unless collection starts within 10 years after the debt arose. (ii) This rule applies to debts arising on or after the enactment date of the National Defense Authorization Act for Fiscal Year 2017. (D)(i) By January 1 in each year from 2017 through 2027, the Director of the Defense Finance and Accounting Service must review cases from the preceding 10 years in which collection began after that 10-year period or the Director did not otherwise notify the member of the debt during that period. (ii) The Director must send each review, including amounts owed, to the congressional defense committees and the House and Senate Veterans’ Affairs Committees. (4)(A) If, through no fault of the member, a member suffers a wound, injury, or illness in the line of duty during a presidentially or Secretary-designated combat operation or zone, an overpayment made while the member recovers may not be deducted until the member is notified and the later of these occurs: (I) 180 days after the member’s tour of duty ends; or (II) 90 days after reassignment from a medical facility or unit outside the theater. (B) This delay does not apply if, after notice, the member asks for or agrees to earlier collection.

(d) Subject to subsection (c), a debt owed to the United States by an enlisted Army, Air Force, or Space Force member may be deducted from final pay or from savings in the member’s clothing allowance.

(e) The cost of damage or repairs to arms or equipment caused by a member’s abuse or negligence must be deducted from the member’s pay if the member was caring for or using the property when it was damaged. This applies to Army, Navy, Air Force, Marine Corps, and Space Force members.

(f) When an Army, Air Force, or Space Force officer responsible for issuing a military-supply article has a shortage at final account settlement, or an article is damaged, the lost article’s value or damage amount must be charged to and deducted from the officer’s monthly pay. This does not apply if the officer satisfies the Secretary of the Army or Air Force, as applicable, through one or more affidavits describing the circumstances that the officer was not at fault.

(g) A debt owed by an Army, Air Force, or Space Force officer for rations or articles bought on credit under section 4621(a)(1) or 9621(a)(1) of title 10 must be deducted from the officer’s next pay after the sale is reported.

(h)(1) At a service relief society’s request, and subject to paragraph (2), a uniformed-services member’s debt to that society may be deducted from final pay and paid to the society. (2) This cannot be done unless the responsible Secretary determines the debt under the regulations issued under subsection (c). The determined debt is treated as an amount the member is administratively determined to owe the United States under subsection (c) and may be collected under that subsection. (3) The responsible Secretaries must issue regulations for this subsection. (4) “Service relief society” means Army Emergency Relief, the Air Force Aid Society, the Navy Relief Society, or Coast Guard Mutual Assistance.

(i)(1) Each month, up to $1.00 determined under paragraph (3) must be deducted from the pay of each active-duty enlisted member^*, warrant officer^*, and limited duty officer of the armed forces^*. (2) The deductions must be deposited in the Armed Forces Retirement Home Trust Fund. (3) The Secretary of Defense, or for the Coast Guard the Commandant, after consulting the Home’s Chief Operating Officer, must periodically set the amount based on the Home’s financial needs. The amount may differ by grade^*, length of service, or both. (4) This subsection does not apply to a reserve-component enlisted member, warrant officer, or limited duty officer.