Military and Veterans Fuel Discount Act of 2026
- Bill Number
- H.R. 9027
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2026-05-26: Referred to the House Committee on Armed Services.
- Last Updated
- 2026-06-23T17:47:42Z
AI-Generated Summary
Purpose This legislation authorizes the Secretary of Defense to establish a temporary program offering discounts on motor fuel purchased at military exchange stores by eligible patrons, primarily to offset applicable federal, state, or local fuel taxes.
Key Provisions
- The Secretary may implement a discount program for motor fuel sold at exchange stores and dispensed directly into an eligible patron’s vehicle.
- The base discount must equal or exceed the federal excise tax rates under Internal Revenue Code section 4081 (minimum 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel).
- An optional supplemental discount may be added for any applicable state or local taxes.
- Discounts must be applied automatically at the point of sale to the greatest extent practicable.
- The Secretary must issue or update regulations to prevent fraud, abuse, and resale or commercial use of discounted fuel.
- The program authority ends on September 30, 2029.
- Annual reports to the House and Senate Armed Services Committees must detail store participation, fuel sales volumes, program costs, pre-enactment sales comparisons, any fraud issues, and recommendations for continuation or modification.
- The Secretary may coordinate with other federal agencies to encourage similar discounts outside the Department of Defense.
Significant Changes to Existing Law The bill creates new statutory authority for a DoD-administered fuel discount program tied to exchange stores. It does not amend the underlying federal fuel tax provisions in the Internal Revenue Code but uses those tax rates as the minimum discount floor. No permanent changes to exchange store operations or eligibility rules are made.
Potential Impacts
- Government agencies: The Department of Defense and its exchange systems (such as the Army & Air Force Exchange Service and Navy Exchange) would bear implementation and reporting costs, with potential effects on exchange revenues.
- Citizens: Eligible military members, veterans, and other authorized patrons could receive reduced fuel prices at on-base or exchange facilities.
- International relations: No direct effects are addressed in the legislation.
Main Stakeholders Affected
- Department of Defense and military exchange systems.
- Active-duty service members, veterans, and other persons authorized to purchase fuel at exchange stores.
- Congressional committees with oversight of armed services matters.
Notable Legal, Constitutional, or Political Implications The measure operates within Congress’s authority to regulate the armed forces and defense appropriations. It includes built-in safeguards against misuse and a fixed sunset date. The legislation contains no provisions that raise apparent constitutional concerns regarding separation of powers or individual rights.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Hamadeh, Abraham J. [R-AZ-8]
Cosponsors (4)
Rep. Panetta, Jimmy [D-CA-19], Rep. Bacon, Don [R-NE-2], Rep. Davis, Donald G. [D-NC-1], Rep. Vindman, Eugene Simon [D-VA-7]
Recent Actions
- 2026-05-26: Referred to the House Committee on Armed Services.
- 2026-05-26: Introduced in House
- 2026-05-26: Introduced in House
Bill Versions
- Military and Veterans Fuel Discount Act of 2026 — issued 2026-05-26 — PDF (5 pages)