Military and Veterans Fuel Discount Act of 2026

This bill authorizes the Secretary of Defense to create a program offering discounts on motor fuel sold at exchange stores to eligible patrons, with the authority ending on September 30, 2029.

Sec. 2, Program to provide discount on motor fuel at exchange stores: The Secretary of Defense may run a program to give eligible patrons a discount on motor fuel sold at exchange stores and dispensed directly into their vehicle, if a federal tax applies to the fuel. The base discount must be at least 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel fuel, matching the federal tax rates. The Secretary may also add a supplemental discount for state or local taxes, in an amount they decide. The discount should be applied automatically at sale when possible. The Secretary must update regulations to prevent fraud, abuse, resale, or commercial use of discounted fuel. The program authority ends on September 30, 2029. Within 180 days of starting the program and annually until termination, the Secretary must report to Congress on the number of stores, gallons sold, costs, average sales before the act, any fraud or issues, and recommendations. The Secretary may coordinate with other federal agencies to encourage similar fuel discounts for uniformed services members or others served by exchange systems outside the Department of Defense. An eligible patron is someone authorized by federal law and regulations to buy motor fuel from a fuel station run by an exchange store.