Carter received an angry reaction from Republicans and Democrats that demanded he relieve the burden from Guard members.
 
The White House said, Barack Obama warned the Defense Department not to "nickel and dime" service members who were victims of fraud.
 
During a meeting with defense ministers in Brussels, Carter said the collection of reimbursement should stop "as soon as is practical."
 
Due to the program moving slowly Carter ordered the department to set up a streamlined process by January 1 in order to help troops get relief from the repayment obligation.
 
"This process has dragged on too long, for too many service members," Carter said. "Too many cases have languished without action. That's unfair to service members and to taxpayers."
 
The new process will put "as little burden as possible on any soldier who received an improper payment through no fault of his or her own, Carter said.
 
"At the same time, it will respect our important obligation to the taxpayer," he said.
 
Carter added that some soldiers knew or should have known that they did not qualify for the reimbursement.
 
"While some soldiers knew or should have known they were ineligible for benefits they were claiming, many others did not," Carter said.
 
All cases are planned to be completed by July of 2017. About 2,000 members of the National Guard in California have already been asked to repay the erroneous payments.
 
On Tuesday, House Majority Leader Kevin McCarthy, R-California, told Deputy Defense Secretary Robert Work that veterans "have already given more than what they owe to this nation. Today's swift action demonstrates that the department agrees."
 
He also said he will work with other members of Congress to provide a long-term legislative solution so the repayment issue does not recur.
 
House Speaker Paul Ryan, R-Wisconsin, and other members of Congress also urged the Pentagon to stop their pursuit for repayments. (Photo via Wikipedia)

Prior to the halt of repayments, the Los Angeles Times reported on Tuesday that the Pentagon demanded some soldiers to repay their enlistment bonuses after audits showed overpayments by the California National Guard.
 
The paper reported that recruiters under pressure to fill ranks and hit enlistment goals during the two wars improperly offered bonuses of $15,000 or more to those who re-enlisted.
 
If soldiers do not pay the bonus back, they could face interest charges, wage garnishments, and tax liens.
 
On Tuesday the Pentagon said they instructed around 6,500 California Guard soldiers to repay the enlistment bonuses. That number is smaller than the widely reported 10,000 soldiers who were told to make the repayment.
 
The California Guard said on Tuesday that they collected $22 million from fewer than 2,000 soldiers who improperly received bonuses and student loan aid.

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