Overview
- An OMB official said $5.3 billion for the Oct. 31 payroll will come from about $2.5 billion tied to the One Big Beautiful Bill’s housing funds and roughly $1.4 billion each from Pentagon research and procurement accounts.
- This marks the second reallocation to cover paychecks since Oct. 1, following roughly $6.5–$8 billion shifted from research accounts for the mid‑October pay period.
- The Pentagon has accepted a $130 million private donation intended for troop pay, which The New York Times identified as coming from Timothy Mellon.
- Budget and legal experts say using donated or repurposed funds raises questions under federal appropriations rules, noting agencies cannot spend Treasury-held gifts without explicit authorization.
- Treasury Secretary Scott Bessent cautioned the workarounds could run out by Nov. 15 as Senate efforts to pass troop or broader federal pay bills failed, while military families report rising financial strain and demand for assistance.