WASHINGTON, D.C. – As part of his commitment to work across the aisle for the benefit of our nation’s Service members and Veterans, Congressman Abe Hamadeh (AZ-08) has introduced the Military and Veterans Fuel Discount Act of 2026.
Congressman Hamadeh’s bill is co-sponsored by fellow Congressmen Don Bacon (NE-02), Eugene Vindman (VA-07), Don Davis (NC-01), and Jimmy Panetta (CA-19).
“As part of my unwavering commitment to America’s military heroes and keeping my promise to improve service members’ lives, I introduced legislation authorizing a fuel discount at military exchange pumps to lower living costs for our troops, veterans, and dependents,” stated Congressman Hamadeh. “Fuel is one of the few products sold by exchanges still subject to tax. This discount, equal to the federal fuel tax, shows profound gratitude to our nation’s heroes who have borne the heavy costs of war defending our freedoms. This common-sense step delivers real relief to our selfless service members and their families.”
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Provisions:
- Allows the Secretary of War to apply a discount tied to federal fuel tax rates as outlined by statute.
- Authorizes the Secretary of War to approve additional discounts to counteract state and local fuel taxes.
- Mandates that any discounts be applied automatically at the time of sale to the maximum extent practicable.
BACKGROUND:
Americans currently pay a federal gasoline tax of 18.4 cents per gallon and a diesel tax of 24.4 cents per gallon. These costs disproportionately impact military families, veterans, and retirees who often face long commutes to bases, training facilities, work, or VA medical appointments.
With inflation and transportation costs continuing to push a strain on household budgets, many service members spend a significant portion of their income on fuel and commuting expenses.
The Military and Veteran Fuel Discount Act of 2026 would provide direct financial relief by allowing military exchanges to apply fuel discounts tied to federal fuel tax rates and additional reductions, aimed to offset the cost of state and federal fuel taxes.
