The federal government largely makes the policy affecting military and veterans affairs, but state governments pay for and manage a variety of programs that represent substantial investments in active-duty service members, veterans and their families. In addition to connecting military members to federal resources, each state offers additional benefits and services in areas such as employment, taxes, behavioral health, education and housing. States also oversee the National Guard and run state veterans cemeteries and veterans homes.
The top military and veterans issues for states in upcoming legislative sessions include suicide prevention, sustainment of military installations, military spouse employment and family support, National Guard recruitment and justice-connected veterans.
Here’s a look at what might be in store for 2025.
NCSL Forecast ’25
This special report from State Legislatures News covers the topics NCSL’s policy experts anticipate will occupy state lawmakers’ time in 2025 legislative sessions. Read the full report here.
Hot Topic: Suicide Prevention
The Department of Veterans Affairs recorded 6,392 veteran suicide deaths in 2021, an increase of 114, or about 2%, from 2020. These unacceptably high numbers are part of an ongoing and vexing public health problem. Though the federal government handles most mental health needs for veterans through the VA, states have acted for many years to address and prevent veteran suicides, and this trend will continue in 2025.
Suicide prevention legislation may address issues including implementing and raising awareness of the national 988 Suicide & Crisis Lifeline; increasing access to behavioral health services; training providers; and improving data collection.
ACTION: In 2024, Kentucky (HB 30) and New Mexico (HB 298) created programs to raise awareness of and reduce suicides among service members, veterans and their families; and Alabama formed a steering committee to develop a statewide plan to address the mental health needs of veterans (HB 135).
Hot Topic: Military Installations
The Department of Defense contributes billions of dollars each year to state economies through the operation of military installations. Defense spending in the 50 states and Washington, D.C., in fiscal year 2023 totaled $618 billion. Defense spending ranged from $577 million in Wyoming to $71.6 billion in Texas, with a median value of $7.4 billion per state. The impact of this spending is felt in salaries and benefits paid to military personnel and retirees, defense contracts and tax revenues.
To help support military installations and sustain their employment impact and overall economic footprint, states increasingly are providing funds for near-base and on-base infrastructure needs and seeking ways to encourage land uses that are compatible with the military mission.
ACTION: In 2025, states will continue to address such needs, as Utah recently did in requiring the owner of a wind energy facility to undergo a review by the Defense Department before constructing a wind turbine or wind energy facility to ensure such projects do not adversely impact the military (HB 117). In addition, several states, including Georgia (SB 420) and Indiana (HB 1183), restricted foreign ownership of agricultural land or land near military installations.
NCSL Resource: Mission Ready: State Policy Options to Sustain Military Installations
Hot Topic: Military Spouse Employment and Family Support
Lack of employment contributes to a rising number of military families struggling to make ends meet. Military spouse unemployment is four to six times higher than in the civilian population, and many of those who are employed earn far less than they could. Military spouses are well educated and highly qualified, but frequent moves make it difficult to stay on a consistent career path.
Occupational licensing regulations present another obstacle, with an estimated 34% of military spouses working in a licensed field. Despite significant legislation in recent years to address license portability, military spouses continue to face barriers to employment. In addition to adjusting existing policies, states are also pursuing new initiatives such as employer tax credits, job training, entrepreneurship, licensure compacts and various measures to support military dependents, including with school enrollment and child care.
ACTION: Maryland added a hiring preference for military spouses in 2024 (SB 478) as well as the ability to terminate or suspend certain consumer-related contracts due to relocation orders (HB 1026).
Hot Topic: National Guard Benefits
The National Guard serves state and federal roles. The forces, which are organized by units, are state organizations, and state laws give governors the authority to activate the units in domestic emergencies such as natural disasters and civil disturbances. The president can also call up the National Guard to federal duty to support war efforts and national emergencies. Many of the roughly 450,000 guard members work in civilian jobs while serving part time alongside full-time service members. The states with at least 15,000 National Guard members include California, New York, Ohio, Pennsylvania and Texas. Meanwhile, recruitment continues to decline due to several factors, including the strong economy, a smaller eligible population, less connection to the military and public perception.
ACTION: Lawmakers will continue to enhance the benefits available to guard members in 2025. States are formalizing leaves of absence when guard members are deployed and indemnifying actions while on military status. Many states give guard members tuition assistance or tuition waivers and other educational assistance. Several states exempt guard members from all or part of state income tax payments. States are also considering options to boost recruitment and retention. New Hampshire offers up to $1,000 to current guard members for each new or prior service recruit they bring in, and this year added a reenlistment bonus up to $6,000 (HB 1355). Tennessee, Utah and Washington took similar action.
Trending: Justice-Connected Veterans
About 200,000 active-duty service members leave the armed forces each year, and while most transition successfully, many struggle with mental health and substance use disorders, the effects of traumatic brain injury, homelessness and criminality. This is particularly true for the post-9/11 generation of veterans who faced historically high rates of deployments and combat exposure.
Veterans who enter the criminal justice system confront a patchwork of intervention programs that are often inaccessible and vary substantially across jurisdictions. While existing policies such as veteran diversion, sentence mitigation and veterans treatment courts serve an important role, states are increasingly considering options to fill gaps and support veterans throughout the process.
ACTION: In 2024, Nebraska lawmakers created a statewide veteran justice program (LB 253) to recognize and address military service-connected conditions that contribute to a criminal offense. The law codifies a framework developed by the Veterans Justice Commission under the leadership of former U.S. Defense Secretary and U.S. Sen. Charles Hagel.
NCSL Resource: Justice-Involved Veterans: Honoring Service and Advancing Public Safety