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ARLINGTON, Va. — All soldiers who spent extra time on active duty because of stop loss since September 2001 will be eligible by for $500-per-month cash payouts that could begin arriving later this year, an Army compensation official said.

Earlier this year, the Army began compensating soldiers held under stop-loss since October 2008, but Congress has expanded the program to include all troops stop-lossed since September 2001.

Those eligible under the program can receive $500 for every month they were held beyond his or her initial end of obligated service, said Deborah Holman, deputy chief of compensation for Army G-1.

The Defense Department will issue implementing instructions for the new program on Oct. 21. The Army plans on setting up a Web site by November that will allow people to apply for the compensation, Holman said.

Stop loss allows the Defense Department to hold servicemembers beyond their separation or retirement date to complete their deployments. All of the services have used stop loss, but only the Army has continued to use it since 2003.

Roughly 185,000 servicemembers are eligible for the compensation. Of those the Army estimates about 136,000 are soldiers or family of deceased soldiers.

Current and former soldiers, as well as surviving spouses, can apply for the compensation. Holman said applicants must provide a servicemember’s DD-214, a copy of their contract, and proof that the soldier was stop-lossed.

Those eligible under the program have until Oct. 21, 2010, to apply, she said.

Congress allocated $534.4 million to the program in June, but the Defense Department may need about $600 million to make all the payouts, Holman said.

Of the remaining servicemembers who are eligible for compensation, about 39,000 are from the Air Force, 9,660 are from the Marines and 250 are from the Navy, officials said.

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