UPDATE: It appears that things have been worked out. Check out Terry's updated report at 2012 Military Pay Raise Appears Safe.
Remember that 1.6% pay raise that we're thinking that active duty military folks might get come January? Well, it is likely still coming, it just might not show up in the January paychecks.
This pay raise is clearly included in the National Defense Authorization Act of 2012, which was passed by the Senate on 1 December 2011 and was expected to easily pass the House and then go on to the President for signing into law. However, there is a small provision in the Act that has some people upset, and the President's staff has said that it will be vetoed if presented as currently written. Terry Howell at the Military Advantage blog explains the problem in his article, 2012 Military Pay Raise Hits A Snag.
The good news? The 1.6% active duty military pay raise is included in the Act, and it isn't the part that is controversial. Any changes to the bill are very unlikely to touch that raise. The bad news? It is hard to say how long it will take until all parties can agree on the Act. While the raise will still be effective on 1 January, it won't get paid until the Act is signed into law. You'll get your pay raise in a lump after it gets approved, so don't start spending that money yet.