Bonus-Payback Deal May Bring Financial Relief To Thousands Of California Soldiers

LOS ANGELES (CBSLA.com) — Congressman Adam Schiff of Burbank tells CBS2 that U.S. House and senate negotiators have brokered a deal for the Pentagon to forgive the debts of up to 10,000 California National Guard soldiers who received signing bonuses but may not have been entitled to them.

Sgt. 1st Class Robert Richmond served in Iraq and Afghanistan and was promised a $15,000 bonus to join the California National Guard.

"They paid me 11k, they're collecting back 19 after penalties and interest," Richmond said.

Richmond was one of thousands of members who were paid improper enlistment bonuses a decade ago, then were told to pay the bonuses back.

"It wasn't a debt; it was a contract that I fulfilled, so it ruined my credit," he said.

Susan Haley was another service member told to pay back $22,000.

"It was extremely stressful, causing troubles with our marriage, worried, stressed about how we're going to pay this bill or that bill," Haley said.

Now they may see some relief as Congress looks to address the problem.

House and Senate negotiators struck a deal and made it part of the annual defense bill to be voted on over the next couple of weeks.

Schiff says the deal will forgive debts, repay bonuses with interest and address credit concerns for service members who acted in "good faith."

"It is moving like lightning speed for Congress," Schiff said. "Nothing really gets done this quick, but I'm very pleased because it will give service members, I hope, some comfort going into the holidays."

But some veterans still have doubt.

"It's so vague, and what is their litmus test? And who's going to make that decision?" Haley said. "I don't want any soldier to get left behind."

They worry the bill doesn't go far enough addressing problems in all military branches, now and in the future.

"They can't be trusted to make that decision on their own," Richmond said.

Congress must approve the deal. The first vote is expected Friday.