Concerned with the climbing costs of the service’s Credentialing Assistance program, Army officials plan to cut stipends for the benefit from $4,000 to $2,000 and block commissioned officers from participating in the education initiative.
At the same time, the service will boost its tuition assistance program from $4,000 annually to $4,500 a year, acknowledging the ever-rising cost of higher education.
The changes were mandated to put the Army benefits “on a fiscally sustainable path” and align them better with other services’ education offerings, according to John Stoneburg IV, deputy assistant secretary of the Army for Manpower and Reserve Affairs.
“Because [the credentialing program] was wildly successful, we were very quickly running out of money to fund it,” he told reporters Wednesday. “So we had to take a hard look at both and make sure we were being good stewards of our resources and we could still achieve our desired end state.”
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The credentialing program — which pays for courses and exams related to private-sector industry credential requirements — has been used by more than 60,000 soldiers in the four years since its launch, according to service statistics.
As its popularity has soared, so has the cost. The program’s payouts totaled $31.2 million in its first year. This year, that was up to $70.5 million, Stoneburg said.
“We have to put some guardrails in place to make sure that we could sustain the program over time, and so that the majority of soldiers in the Army would still have access to what we think is a pretty important program for both their individual readiness … and when they decide to to move on and continue their careers outside of the Army,” he said.
While the 50% cut in credentialing support appears dramatic, Army officials said most credentialing programs averaged about $1,700 in costs. They do not anticipate major problems emerging from that change.
But blocking officers from participating will be more significant. About one-quarter of enrollees currently are commissioned officers, with the rest enlisted and warrant officers.
And participants will be restricted to one credentialing course per year, and three over the course of 10 years.
Exactly when the changes will go into effect is unclear. Service leaders will have to amend current regulations to put the new rules in place, a process that Stoneburg said could take several months or longer.
But the increase in tuition assistance totals is effective immediately, officials said. A service-wide message on the change was posted Wednesday morning.
“This is about making soldiers more prepared and more ready, because we think that makes our Army stronger,” Stoneburg said. “That is why we want to maintain the fiscal sustainability of our programs.”
Leo covers Congress, Veterans Affairs and the White House for Military Times. He has covered Washington, D.C. since 2004, focusing on military personnel and veterans policies. His work has earned numerous honors, including a 2009 Polk award, a 2010 National Headliner Award, the IAVA Leadership in Journalism award and the VFW News Media award.
