; and (2) the recommendation of the President regarding whether to increase the amount of such allowance to better compensate a member of the uniformed services for separation from family during service described in such paragraph. 627. OCONUS cost-of-living allowance: adjustments Section 617 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 ( Public Law 117–263 ) is amended by striking subsections (a), (b), and (c) and inserting the following: (a) Reductions The Secretary of Defense may reduce an OCONUS COLA in accordance with this subsection. (1) Frequency The Secretary may not announce a reduction to an OCONUS COLA for a location outside the continental United States more than twice per calendar year. (2) Maximum reduction A reduction to an OCONUS COLA may not exceed the lesser of— (A) 10 OCONUS COLA index points; or (B) the number of OCONUS COLA index points by which the cost of living of the permanent duty station of the covered member exceeds the average cost of living index in the continental United States. (3) Limitations Paragraphs (1) and (2) shall not apply to a reduction on the basis of— (A) a change in the rate of exchange of foreign currencies; or (B) a permanent change of station for a covered member. (4) Implementation The Secretary may phase in a reduction under this subsection. (b) Increases The Secretary may increase an OCONUS COLA at any time. (c) Reporting Not later than February 1 of each year, the Secretary shall submit to the Committees on Armed Services of the Senate and House of Representatives a report regarding reductions and increases to OCONUS COLAs during the previous calendar year. Such report shall include the following elements: (1) The areas outside the continental United States subject to such a reduction or increase. (2) The previous and new amounts of an adjusted OCONUS COLA for a member with three dependents, 10 years of service, and in grade— (A) E-6