Military and Veterans Fuel Discount Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9027 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9027

To authorize the Secretary of Defense to carry out a program to provide 
 to certain patrons a discount on motor fuel sold at exchange stores, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2026

 Mr. Hamadeh of Arizona (for himself, Mr. Panetta, Mr. Bacon, and Mr. 
   Davis of North Carolina) introduced the following bill; which was 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL

 
To authorize the Secretary of Defense to carry out a program to provide 
 to certain patrons a discount on motor fuel sold at exchange stores, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military and Veterans Fuel Discount 
Act of 2026''.

SEC. 2. PROGRAM TO PROVIDE TO CERTAIN PATRONS A DISCOUNT ON MOTOR FUEL 
              SOLD AT EXCHANGE STORES.

    (a) In General.--The Secretary of Defense may, if there is a tax 
described in subsection (b) applicable to motor fuel, carry out a 
program to provide to eligible patrons a discount on such motor fuel--
            (1) sold at an exchange store; and
            (2) dispensed directly into a vehicle owned by an eligible 
        patron.
    (b) Amount of Discount.--
            (1) Base discount.--A discount provided under subsection 
        (a) shall be an amount not less than--
                    (A) the rate of tax applicable to gasoline under 
                section 4081 of the Internal Revenue Code of 1986 (26 
                U.S.C. 4081), except that such discount may not be less 
                than 18.4 cents per gallon; and
                    (B) the rate of tax applicable to diesel fuel under 
                such section 4081, except that such discount may not be 
                less than 24.4 cents per gallon.
            (2) Authorization of supplemental discount.--The Secretary 
        may, if there is a State or local tax applicable to such motor 
        fuel, provide an additional discount to an eligible patron, 
        with respect to each gallon of motor fuel sold at an exchange 
        store, of such amount as the Secretary determines appropriate.
    (c) Automatic Application.--The Secretary shall, to the maximum 
extent practicable, ensure that a discount provided under this section 
is applied upon the sale of motor fuel at an exchange store to an 
eligible patron.
    (d) Regulations.--The Secretary shall update any appropriate 
regulations to prevent--
            (1) fraud or abuse of a program carried out under this 
        section; and
            (2) the resale or commercial use of motor fuel purchased at 
        a discount under this section.
    (e) Termination.--The authority of the Secretary to provide a 
discount under this section shall terminate on September 30, 2029.
    (f) Report.--Not later than 180 days after the date on which the 
Secretary carries out a program under this section, and annually 
thereafter until the termination under subsection (e), the Secretary 
shall submit to the Committees on Armed Services of the House of 
Representatives and the Senate a report on such a program, including--
            (1) the number of exchange stores, disaggregated by 
        exchange system, that sold motor fuel subject to a discount 
        under subsection (b)(1);
            (2) the total gallons of such motor fuel sold annually by--
                    (A) each exchange store;
                    (B) all exchange stores; and
                    (C) all exchange stores, disaggregated by exchange 
                system;
            (3) the total annual cost of the discount under subsection 
        (b)(1)(A);
            (4) the total annual cost of any additional discount under 
        subsection (b)(1)(B);
            (5) the average amount of motor fuel sold annually by each 
        exchange store before the date of the enactment of this Act;
            (6) any identified fraud, abuse, or issues with 
        implementation with respect to such program; and
            (7) any recommendations with respect to continuing or 
        modifying such program.
    (g) Coordination.--Nothing in this section shall be construed to 
prohibit the Secretary from coordinating with the heads of other 
Federal departments or agencies to encourage the adoption of similar 
policies with respect to discounts on motor fuel--
            (1) for members of the uniformed services; or
            (2) other persons served by exchange systems outside the 
        Department of Defense.
    (h) Eligible Patron Defined.--The term ``eligible patron'' means a 
person who is authorized under Federal law and applicable regulations 
to purchase motor fuel from a fuel station operated by an exchange 
store.
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