Each year, the House and Senate armed services committees take up national defense authorization bills. The House of Representatives passed the National Defense Authorization Act for Fiscal Year 2018 ( H.R. 2810 ) on July 14, 2017. The Senate Armed Services Committee reported its version of the NDAA ( S. 1519 ) on September 18, 2017. These bills contain numerous provisions that affect military personnel, retirees, and their family members. Provisions in one version are sometimes not included in the other, are treated differently, or are identical in both versions. Following passage of each chamber's bill, a conference committee typically convenes to resolve the differences between the respective chambers' versions of the bill. The FY2018 NDAA conference report was passed by the House on November 14, 2017, and the Senate on November 16, 2017. On December 12, President Donald J. Trump signed the bill into law ( P.L. 115-91 ). This report highlights selected personnel-related issues that may generate high levels of congressional and constituent interest. CRS will update this report to reflect enacted legislation. Related CRS products are identified in each section to provide more detailed background information and analysis of the issues. For each issue, a CRS analyst is identified and contact information is provided. Some issues discussed in this report were previously addressed in the National Defense Authorization Act for Fiscal Year 2017 ( P.L. 114-328 ) and discussed in CRS Report R44577, FY2017 National Defense Authorization Act: Selected Military Personnel Issues , by [author name scrubbed] et al., or other reports. Those issues that were considered previously are designated with an asterisk in the relevant section titles of this report. Background: The authorized active duty end-strengths for FY2001, enacted in the year prior to the September 11 terrorist attacks, were as follows: Army (480,000), Navy (372,642), Marine Corps (172,600), and Air Force (357,000). Over the next decade, in response to the demands of wars in Iraq and Afghanistan, Congress substantially increased the authorized personnel strength of the Army and Marine Corps. Congress began reversing those increases in light of the withdrawal of U.S. forces from Iraq in 2011, the drawdown of U.S. forces in Afghanistan beginning in 2012, and budgetary constraints. In FY2017, Congress halted further reductions in Army and Marine Corps end-strength and provided a slight end-strength increase. End-strength for the Air Force generally declined from 2004-2015, but increased in 2016 and 2017. End-strength for the Navy declined from 2002-2012, increased in 2013, and has remained essentially stable since then. Authorized end-strengths for FY2017 and proposed end-strengths for FY2018 are in Figure 1 . Discussion: In comparison to FY2017 authorized end-strengths, the Administration's FY2018 budget proposed no change for the Army and Marine Corps, slightly higher end-strength for the Navy (+1,400) and a more substantial increase for the Air Force (+4,000). The final bill approved end-strengths higher than the Administration request by 7,500 for the Army and 1,000 for the Marine Corps. Approved end-strengths for the Navy and Air Force were identical to the Administration's request. Section 402 of the House bill would adjust the minimum end-strengths required by 10 U.S.C. Section 619 to a level equal to the authorized end-strengths set in Section 401. References: Previously discussed in CRS Report R44577, FY2017 National Defense Authorization Act: Selected Military Personnel Issues , by [author name scrubbed] et al., and similar reports from earlier years. CRS Point of Contact: [author name scrubbed], x[phone number scrubbed]. Background: The overall authorized end-strength of the Selected Reserves has declined by about 6% over the past 16 years (874,664 in FY2001 versus 820,200 in FY2017). Much of this can be attributed to the reductions in Navy Reserve strength during this period. There were also modest shifts in strength for some other components of the Selected Reserve. Authorized end-strengths for FY2017 and proposed end-strengths for FY2018 are in Figure 2 . Discussion: Relative to FY2017 authorized end-strengths, the Administration's FY2018 budget proposed increases for the Navy Reserve (+1,000 compared to FY2017 authorized), Air Force Reserve (+800), and Air National Guard (+900); and no change for the Marine Corps Reserve, Army National Guard, and Army Reserve. The final bill approved end-strengths identical to the Administration's request for all the reserve components except for the Army Reserve and Army National Guard. In comparison to the Administration's request, the final bill approved an extra 500 personnel for both the Army National Guard and Army Reserve. References: Previously discussed in CRS Report R44577, FY2017 National Defense Authorization Act: Selected Military Personnel Issues , by [author name scrubbed] et al., and similar reports from earlier years. CRS Point of Contact: [author name scrubbed], x[phone number scrubbed]. Background: Concerns with the overall cost of military personnel, combined with long-standing congressional interest in recruiting and retaining high-quality personnel to serve in the all-volunteer military, have continued to focus interest on the military pay raise. Section 1009 of Title 37 United States Code provides a permanent formula for an automatic annual increase in basic pay that is indexed to the annual increase in the Employment Cost Index (ECI). The statutory formula stipulates that the increase in basic pay for 2018 will be 2.4% unless either (1) Congress passes a law to provide otherwise; or (2) the President specifies an alternative pay adjustment under subsection (e) of 37 U.S.C. Section 1009. Increases in basic pay are typically effective at the start of the calendar year, rather than the fiscal year. The FY2018 President's Budget requested a 2.1% military pay raise, lower than the statutory formula of 2.4%. Discussion: The final bill requires the statutory formula go into effect, resulting in a 2.4% pay raise for all servicemembers effective on January 1, 2018. Section 604 of the Senate bill, which would have modified the language allowing the President to make an alternative pay adjustment, was not adopted. Reference(s): For an explanation of the pay raise process and historical increases, see CRS In Focus IF10260, Defense Primer: Military Pay Raise , by [author name scrubbed]. Previously discussed in CRS Report R44577, FY2017 National Defense Authorization Act: Selected Military Personnel Issues , by [author name scrubbed] et al., and similar reports from earlier years. CRS Point of Contact: [author name scrubbed], x[phone number scrubbed]. Background: Under current law, all servicemembers are entitled to either government-provided housing or a housing allowance. For those living in the United States, the housing allowance is known as Basic Allowance for Housing (BAH). Some servicemembers entitled to BAH live on military bases in housing that has been privatized. During the mid-1990s, Congress granted DOD a number of special authorities to enable the department to provide incentives for private firms to partner with DOD to improve the quality of housing available to servicemembers living on military installations. Since then, the Military Housing Privatization Initiative (MHPI) has enabled DOD to rely on private sector financing, expertise, and innovation for the construction and operation of housing for both families and individual servicemembers. The FY2015 NDAA allowed the Secretary of Defense to reduce BAH payments by 1% of the national average monthly housing cost. The FY2016 National Defense Authorization Act extended this authority, authorizing an additional 1% reduction per year through 2019, for a maximum reduction of 5% of the national monthly average housing cost. Discussion: The amount of money paid to the companies that operate privatized housing is tied to the Basic Allowance for Housing (BAH) rates for the individual occupying the housing. As these payments may constitute a significant source of revenue for firms owning and operating privatized military housing, reductions in BAH could lower those firms' revenues. The final bill requires the Secretary of Defense to pay an amount equal to the 2018 BAH reduction throughout 2018 to the lessors of MHPI housing, effectively offsetting the reduction for that year. The final bill would also require the Comptroller General to provide to the House and Senate Armed Services Committees a report on several aspects of MHPI. Reference: CRS Report RL33446, Military Pay: Key Questions and Answers , by [author name scrubbed] and [author name scrubbed]. CRS Point of Contact: [author name scrubbed], x[phone number scrubbed]. Background: Over the past few years, Congress has been concerned with improving the Defense Commissary Agency (DeCA) system, mandating several studies and reports on the topic. Recent reform proposals have sought to reduce DeCA's reliance on appropriated funds without compromising patrons' commissary benefits or the revenue generated by DOD's nonappropriated fund (NAF) entities. However, Congress has stopped short of major changes that would significantly reduce or eliminate the commissary subsidy. DeCA's Board of Directors establishes a desired average savings rate over commercial providers. A March 2017 GAO report found that DOD "lacks reasonable assurance that it is maintaining its desired savings rate for commissary patrons." This GAO report recommends that DOD address limitations identified in its savings rate methodology; develop a plan with objectives, goals, and time frames to improve efficiency in product management; and conduct comprehensive cost-benefit analyses for service contracts and distribution options.