215
(3) in paragraph (4), as so redesignated, by 
striking ‘‘less than 140 days’’ and inserting ‘‘30 
days or less’’. 
(b) CONFORMING AMENDMENT REGARDING MEM-
BERS WITHOUT DEPENDENTS.—Paragraph (1) of such 
subsection is amended by inserting ‘‘or for a period of 
more than 30 days’’ after ‘‘in support of a contingency 
operation’’ both places it appears. 
SEC. 607. OVERSEAS COST OF LIVING ALLOWANCE. 
(a) PAYMENT OF ALLOWANCE BASED ON OVERSEAS 
LOCATION OF DEPENDENTS.—Section 405 of title 37, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(e) PAYMENT OF ALLOWANCE BASED ON OVERSEAS 
LOCATION OF DEPENDENTS.—In the case of a member 
assigned to duty inside the continental United States 
whose dependents continue to reside outside of the conti-
nental United States, the Secretary concerned may pay 
the member a per diem under this section based on the 
location of the dependents and provide reimbursement 
under subsection (d) for an unusual or extraordinary ex-
pense incurred by the dependents if the Secretary deter-
mines that such payment or reimbursement is in the best 
interest of the member or the member’s dependents and 
in the best interest of the United States.’’.
216
(b) CLARIFICATION
OF EXPENSES ELIGIBLE
FOR 
LUMP-SUM REIMBURSEMENT.—Subsection (d) of such 
section, as added by section 605 of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005 
(Public Law 108–375; 118 Stat. 1945), is further amend-
ed—
(1) in the subsection heading, by striking 
‘‘NONRECURRING’’ and inserting ‘‘UNUSUAL OR EX-
TRAORDINARY’’; 
(2) by inserting ‘‘or (e)’’ after ‘‘subsection (a)’’ 
each place it appears; and 
(3) in paragraph (1)—
(A) by striking ‘‘a nonrecurring’’ and in-
serting ‘‘an unusual or extraordinary’’ in the 
matter preceding subparagraph (A); and 
(B) in subparagraph (A), by inserting ‘‘or 
the location of the member’s dependents’’ be-
fore the semicolon. 
SEC. 608. INCOME REPLACEMENT PAYMENTS FOR RE-
SERVES EXPERIENCING EXTENDED AND FRE-
QUENT MOBILIZATION FOR ACTIVE DUTY 
SERVICE. 
(a) IN GENERAL.—Chapter 19 of title 37, United 
States Code, is amended by adding at the end the fol-
lowing new section:
217
‘‘§ 910. Replacement of lost income: involuntarily mo-
bilized reserve component members sub-
ject to extended and frequent active duty 
service 
‘‘(a) PAYMENT
REQUIRED.—The Secretary con-
cerned shall pay to an eligible member of a reserve compo-
nent of the armed forces an amount equal to the monthly 
active-duty income differential of the member, as deter-
mined by the Secretary. The payments shall be made on 
a monthly basis. 
‘‘(b) ELIGIBILITY.—Subject to subsection (c), a re-
serve component member is entitled to a payment under 
this section for any full month of active duty of the mem-
ber, while on active duty under an involuntary mobiliza-
tion order, following the date on which the member—
‘‘(1) completes 18 continuous months of service 
on active duty under such an order; 
‘‘(2) completes 24 months on active duty during 
the previous 60 months under such an order; or 
‘‘(3) is involuntarily mobilized for service on ac-
tive duty six months or less following the member’s 
separation from the member’s previous period of ac-
tive duty. 
‘‘(c) 
MINIMUM
AND
MAXIMUM
PAYMENT 
AMOUNTS.—(1) A payment under this section shall be 
made to a member for a month only if the amount of the
218
monthly active-duty income differential for the month is 
greater than $50. 
‘‘(2) Notwithstanding the amount determined under 
subsection (d) for a member for a month, the monthly pay-
ment to a member under this section may not exceed 
$3,000. 
‘‘(d) MONTHLY ACTIVE-DUTY INCOME DIFFEREN-
TIAL.—For purposes of this section, the monthly active-
duty income differential of a member is the difference be-
tween—
‘‘(1) the average monthly civilian income of the 
member; and 
‘‘(2) the member’s total monthly military com-
pensation. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘average monthly civilian in-
come’, with respect to a member of a reserve compo-
nent, means the amount, determined by the Sec-
retary concerned, of the earned income of the mem-
ber for either the 12 months preceding the member’s 
mobilization or the 12 months covered by the mem-
ber’s most recent Federal income tax filing, divided 
by 12.