There are a lot of possible outcomes most not too nice. Your wife is in a heap of trouble and she needs legal counsel in Copperas Cove or whereever she lives. Fraud is a felony as is theft and perjury. She may have committed all of those if not more assuming the accusation is accurate. If it isn't she needs a lawyer all the more. With you in the military and she in trouble and possibly in jail, the kids will be up the creek. Get a good criminal defense lawyer, preferably one who handles white collar crimes and let him or her do their job. Then hope for the best.
An attorney can not say what will happen in your wife's case. She seems to be charged with a state jail felony. The range of punishment for this type of felony is from 6 months to two years in a state jail and a fine up to $10,000. Nevertheless, it is uncommon for a first offender to get jail time in my practice for this time of crime. Please keep in mind that your wife is presumed to be innocent.
You should hire an experienced criminal attorney in your area. There are several options available to your wife such as deferred adjudication and the like.
Good luck to you.