The Virgin Islands are seeking to change their housing allowance from a reimbursable allowance rate to a flat-rate allowance. Every state, territory, and the District of Columbia have an Active Guard and Reserve (AGR) Program consisting of airmen and soldiers performing full-time National Guard duty (FTNGD). This action will provide fair and equitable housing allowances to AGR members on FTNGD in the territory. In accordance with 37 U.S.C. § 403, 37 USC 403, AGR members are entitled to a monthly basic allowance (BAH) for privately leased/owned housing in the local economy when government quarters are not provided. Currently, AGR members on FTNGD in the 50 states and the District of Columbia receive BAH, a flat rate allowance, which is paid independently of the AGR member’s actual housing costs. BAH members are free to make housing choices that best suit their needs. A member may choose to use all their housing allowance to rent more expensive housing close to their duty station or have a longer commute for either a larger or less expensive house in an outlying area. Unlike their AGR counterparts in the states and the District of Columbia, AGR members in the territories receive Overseas Housing Allowance (OHA) which is a reimbursable rate allowance. They must submit a claim, comply with unfair and unreasonable regulations, and provide specific documentation to receive a calculated housing allowance. The change from OHA to BAH would comply with Congress’ intent to provide fair and equitable housing to AGR service members residing in the United States, whether in a state, the District of Columbia, or territory.