H.R. 9027: Military and Veterans Fuel Discount Act of 2026

This bill, titled the Military and Veterans Fuel Discount Act of 2026, aims to authorize the Secretary of Defense to create a program that provides discounts on motor fuel sold at exchange stores for eligible patrons, specifically focusing on military personnel and veterans. Here are the main points of the bill:

Program for Fuel Discounts

The bill permits the Secretary of Defense to establish a program to offer discounts on motor fuel under certain conditions:

• The discounts would apply to fuel sold at exchange stores, which are retail outlets for military personnel.
• The fuel must be dispensed directly into a vehicle owned by eligible patrons.

Discount Amounts

According to the bill, the base discount amounts are defined as follows:

• The discount for gasoline would not be less than the tax rate under Section 4081 of the Internal Revenue Code (which is currently 18.4 cents per gallon).
• The discount for diesel fuel would not be less than 24.4 cents per gallon.
• Additionally, if there are state or local taxes on motor fuel, the Secretary may provide an extra discount, the amount of which would be determined at their discretion.

Application of Discounts

The bill mandates that the discounts should automatically apply at the time of sale as much as possible, ensuring that eligible patrons receive the benefits without needing to claim them separately.

Regulations and Oversight

The Secretary of Defense would be responsible for updating regulations to:

• Prevent fraud or misuse of the discount program.
• Restrict the resale or commercial use of fuel purchased at a discounted rate.

Termination of Authority

The authority to provide these discounts is set to end on September 30, 2029, after which the program would no longer be in effect.

Reporting Requirements

The Secretary must submit a report to Congressional committees within 180 days of implementing the program and annually thereafter. The report would include:

• The number of exchange stores participating in the discount program.
• The total gallons of discounted fuel sold annually.
• The total costs of the discounts.
• Information on any identified fraud or issues with the program's implementation.
• Recommendations for the program's continuation or modifications.

Coordination with Other Agencies

The bill allows the Secretary of Defense to collaborate with other federal departments or agencies to promote similar fuel discount policies for military members and others served by exchange systems beyond the Department of Defense.

Definition of Eligible Patron

An eligible patron is defined as someone who is authorized by federal law and applicable regulations to buy motor fuel from a fuel station managed by an exchange store.

Relevant Companies

• None found