Military and Veterans Fuel Discount Act of 2026

This bill authorizes the Secretary of Defense to establish a program offering discounts on motor fuel sold at military exchange stores to eligible patrons. The primary purpose is to provide financial relief to service members and other authorized individuals by reducing the cost of gasoline and diesel purchased on base. The core provision mandates a discount equivalent to at least the federal fuel tax rate, specifically 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel fuel . The Secretary may also provide a supplemental discount if state or local taxes apply, with the discount applied automatically at the point of sale. To prevent fraud, abuse, or commercial resale of discounted fuel, the Secretary must update regulations. This temporary program is set to expire on September 30, 2029 , and requires annual reports to Congress detailing its costs, sales volumes, and any recommendations for its future.