ALA Webinar – August 13, 2025 – American Logistics Association

• WASHINGTON

WATCH THE ALA AUGUST 13TH WEBINAR REPLAY

This summer has been a hot one around the country, but the real heat has been right here in our nation’s capitol.

Congressional and Administration action is on the front burner, and in another one of the American Logistic Association’s periodic webinars, these were among the hot topics of discussion.

Once again hosted by ALA President Steve Rossetti, the webinar focused on a number of pertinent topics impacting the business of military resale now and into the near future.

OPENING STATEMENTS

“We have a lot of action going on,” Rossetti told attendees. “The ‘Big Beautiful Bill’ that passed earlier this summer has really opened up the floodgates on a lot of other legislative action.

“The bill included $150 billion in additional funding for the Department of Defense, and we will talk about how that money is laying into the overall defense structure.

“We call this time of year our ‘hunting season,’ in the sense that there is so much action going on at Capitol Hill and in the administration on the National Defense Authorization Act, which is the principle policy bill that governs the Department of Defense and a lot of our issues, and there is a lot of action in there, and also, appropriations bills, where the funding issues are resolved, and that process is moving forward as well,” and there are also issues in that wrapped up in the continuing resolutions.”

Rossetti said, “we are seeing unprecedented action” in the government.

“With the Trump Administration being very aggressive on a massive agenda across the board … we will be talking about the issues dominating the news cycle, steering a lot of the currents that will affect not only this business, but the national economy.”

DEFENSE FUNDING

The ALA president said that we are seeing “a major, colossal struggle” between the Trump Administration and Congress over funding issues.

“The other day, I watched a hearing with Susan Collins (R- Maine), the chairman of the Senate Appropriation Committee, and Russell Vought, the head of the Office of Management and Budget (OMB),” he noted. “And the appropriation committee is trying to assert their authority, the authority of Congress, and OMB is trying to assert its authority and responsibility on behalf of the executive branch.

“At issue here is the way government is funded. Does Congress have, when it appropriates money, does it have to be spent, and OMB is saying basically that they want to have the flexibility to not spend money that is appropriated and allocate it to different sources.

“This gets into two key areas: one is impoundment, which is kind of an arcane term here in Washington, where you talk about not spending money that is appropriated, and then, the Department of Defense, the administration, sent a rescission package to the Congress, saying these are areas that we are not going to spend money that was appropriated.”

Rossetti said “this back and forth” is going on right now, “and a subset of that is $150 billion in additional funding that was allocated to the Department of Defense in the bill.

“That is going back and forth now, with the chairmen of the Armed Services Committee dealing with the Department of Defense and OMB, because the oversight committees want detail and fidelity over how that $150 billion is being spent … and keep in mind that that $150 billion is added into an already more than $860 billion defense budget, and that is why everyone is saying it pushes it up to close to $1 trillion.

“We will be watching this struggle very closely because it is a key element in how everything moves forward with appropriations bills and authorization bills during this summer and fall.”

CONTINUING RESOLUTION

Rossetti told attendees, “We are operating in continuing resolution and have been doing so for some time … what that is is basically the administration is spending money authorized at 2024 levels, because we had a CR for all of this year, probably for the remainder of the year, and we may have one that flows into the next fiscal year, which starts in October, fiscal year 2026.

“What that does is to keep funding levels low, at the 2024 levels, so all of this added funding for DoD, either with the Defense Authorization Act or the Defense Appropriations Bill, doesn’t get to be spent, because the CR, by law, requires that it be funded at the prior year levels.”

Rossetti said that the ALA would communicate to its members on how these major developments in Washington would be proceeding in the coming months.

COMMISSARY FUNDING, PRIVATIZATION

The Appropriations Bill is how the Defense Commissary Agency (DeCA) is funded, and Rossetti noted, “We have been very fortunate this year that all four of the committees — House and Senate Appropriations and House and Senate Authorizations Armed Services — have funded DeCA at a very robust level, averaging about $1.52 billion, which is about a $300 million ahead of where we were a couple of years ago, when Congress gave additional funding to DeCA to continue to lower prices for patrons.

“It is good news for DeCA, because we had heard a lot of rumors — and there is actually a lot of action — on privatization.

“How that sets up is this: several months ago, Steve Feinberg, who is the deputy secretary of defense, released a memorandum to the Department talking about reorganization changes, and he said that privatization of base resale operations — commissaries and exchanges — was a preferred option for DoD.”

Rossetti noted that this memo “has been guiding the entire defense structure as they move forward on dealing with policy issues this year, and we may see some action on DeCA’s side, where they will be exploring some privatization options going forward … we don’t have a lot of detail on that, but I do expect there will be some action by DoD on privatization, and they are exploring what is possible, and what stores, parts and components of DeCA’s structure can be outsourced.

“In addition to that, in the Senate Armed Services Committee, the fiscal 2026 bill that is in play right now, the committee report basically called for a tabletop exercise review of outsourcing commissary operations.

“That is being given to what is called an FRDDC, federal research organizations in a roundabout way … they are asking DoD to use one of these research organizations to do a tabletop exercise, and look at what the art of the possible is on privatization, and what some of the second-and-third-order affects are going to be. And they did ask for industry input on that.”

Rossetti assured attendees that ALA “will take every opportunity to import its views” on that review.

“That review, surprisingly, is protracted in terms of not being required until January 1, 2027,” Rossetti noted. “That is well into fiscal 2028, and we are in fiscal 2025 right now, so that is going to be very interesting in how it unfolds — whatever the Pentagon and the administration may be doing on this issue.”

The ALA president said that on privatization, the House Armed Services Committee’s chairman, Mike Rogers (R-Ala.), put a measure in the Defense Authorization Bill, which the committee adopted, stating “we want guard rails on any type of privatization that might be examined … particularly to look at savings for patrons and some of the second-and-third-order affects when you outsource.

“I think that one of the things that we will be looking at in our inputting into the process is that commissaries are a very important part of the military commerce ecology, and we will be looking at the second-ant-third-order affects, taking out a chunk of the resale ecology out, and putting it into the private sector, and how it affects that ecology.”

He further noted, “If there was going to be hard privatization taking place in fiscal 2026, I think you would have seen that manifested not only in what the four oversight committees did, in trying to get full funding for commissaries, but also in what the administration did … the administration requested full funding for commissaries.

“If you look at the glass half full, DoD continues to be committed to the commissary benefit, it is exploring different management options, and we and many others will be inputting into that process … the House Armed Services Committee has put up some guidelines, and there is strong support for the commissary benefit both on Capitol Hill and in many sectors of DoD, and among the organizations that represent the millions of patrons that use the commissaries.”

On the exchange side, the ALA president told attendees that there are “active reviews” going on in DoD “where the exchange can cooperate. We haven’t seen any movement on consolidation yet, or even rumors of that, but what we expect to see that DoD has a Defense Executive Resale Board, and that board has a charter that states that it is tasked to look at all areas of exchange and commissary operations, and they will see where cooperation can take place, and increase dividends and savings for patrons.

“I expect that that process will be reinvigorated and activated at the Pentagon to explore areas of consolidation and cooperation among the various resale entities.”

Rossetti noted that ALA “will be pushing more information out” on the privatization issue over the next couple of weeks.

TARIFFS

Rossetti said that ALA is working with both the U.S. trade representative and the Department of Commerce and others involved in the tariff issue “because we are deeply involved in the tariff and export issues. We are trying to get our views in on the effects of the tariffs.

“I do think that the administration is making a lot of progress on settling a lot of the tariff issues — they did a deal with the European Union, a couple of days ago, President Trump extended the China status quo for a few more months as they negotiate with them, and they are getting settlements with various countries, picking them off one at a time.

“There have been agreements with several of the key providers primarily to the exchanges. The impact of tariffs is far greater to the exchanges than the commissaries, because most of the food is inherently produced here in the United States, so they are not affected by that.”

OTHER ISSUES, AMENDMENTS, PROVISIONS

Issues, amendments and provisions covered in both the Senate and House version of the authorization bills included several that Rossetti characterized as being in “different stages,” all proposals, “even if they are embedded in the Senate and House bills, they are still subject to conference and accordingly, subject to change. And there are also amendments that are being worked.”

The ALA has communicated to its members about these issues and where the stand, with dozens of issues, amendments and provisions affecting military resale, food service and morale, welfare and recreation (MWR) programs, across the board, expressing its opinions and garnering input from members.

These issues, amendments and provisions include:

Restricting the sale of seafood originating in China: proposed by the Senate Armed Services Committee.

“That bill has been offered and embedded in the Senate bill,” Rossetti said. “Here, like we treat many issues and how we behave on a lot of different issues, is that regardless of the merits of blocking Chinese products, the key issue is: Do you take action in the military to deny them products where you haven’t taken action in the private sector, in the commercial operations to deny products?

“The ALA has a well-known and consistent position that the troops that defend this nation and the rights and privileges of its citizens are entitled to at least the same rights and privileges of the citizens they defend.

“Until you decide to outlaw certain products across the board in the commercial marketplace, you shouldn’t treat the ,military as any different.”

Restricting the sale of printers and other equipment involving China entities: proposed by the Senate Armed Services Committee.

“That didn’t hit resale organizations, but it does prohibit the government from acquiring these type of products,” Rossetti said. “Here again, the key issue is whether this will affect consumer products.

“It is one thing for the Third Infantry Division deciding to buy a computer for its operations and then that gets banned, and there is a product offered for resale in the exchanges with that extent to ban, so we will be digging into this.”

A ban on some sports supplements: proposed as an amendment in the Senate Armed Services Committee bill.

Rossetti said that the ALA believes that such a ban “would be very disruptive in that sector.”

“We are currently slicing and dicing this, looking at the second-and-third-order effects are,” he added. “We have already received a lot of input from our members on their views, which will be incorporated into our appeal paper as we move forward.”

Issues related to non-appropriated-fund (NAF) employees: proposed in the House Armed Services Committee bill.

Requires a Government Accountability Office (GAO) review of the categorization of NAF employees in DoD.

“That will have a strong bearing on how personal policy is structured going forward for NAF workers,” Rossetti noted.

An examination of the retirement programs for NAF programs in DoD

“This is with an eye toward homogenizing these programs,” Rossetti explained.

“We will be weighing in on that issue, DoD will be weighing in on that issue, and all of these issues, but we are tracking that, as well,” he added.

Commissary privileges for DoD civilian employees: proposed by the House Armed Services Committee.

“DeCA has a pilot out there where they are testing allowing DoD civilian employees to use commissaries,” Rossetti said. “Overseas, DoD civilian employees are all able to use it, and this would be for bases located in the United States.

Commissary construction: proposed by the House Armed Services Committee.

“I think that largely, the Hill is trying to get its arms around what any type of construction short fall or requirements may be, and the commissary agency’s plans are to address the brick-and-mortar and maintenance requirements of the commissary organization,” Rossetti noted.

Easing base access: A few years ago, Congressman Mark Alford (R-Mo.) proposed to ease base access into military bases.

Rossetti said the ALA has been working with Alford to make the base access process easier, “not only for our delivery folks but also for patrons, primarily veterans who have eligibility for the commissary and exchange benefits but may have some friction on getting on base.

“Congressman Jack Bergman (R-Mich.), who is the chairman of the Armed Services Military Personnel Subcommittee, which oversees our programs, this year has introduced a bill to streamline the base accessing problem, to explore processes using technology like AI to embrace the veterans’ health and identification card, easing access through the gate.

“We have been chasing this issue for years, because we want to reduce some of the friction that is associated with people using their benefit.”

Single focal point on military bases to deal with all food issues: Rossetti referred to the issues discussed during the foodservice webinars and Summit that ALA held earlier this year that are encapsulated in this specific issue.

“This gets to key issues,” Rossetti said. “Having a single focal point for food, having a universal meal card to be used at all entities by particularly junior enlisted folks who are in sore need of it, because their schedules many not allow them to use the dining facilities … it is a convenience issue, encouraging not only the single folks but te full use of the card.”

Rossetti added that ALA will soon be issuing a report on its findings that were gathered during the foodservice Summit related to this topic, “and deliver it to policymakers so that they can deliberate to the art of the possible, to uplifting food on military bases.

“Certainly, allowing the meal card to be used in the exchanges in the food courts will have a second-order effect of bringing more people into the exchanges, because now the enlisted people will be able to use their basic allowance for subsistence, a benefit to access exchange food operations.”

The ALA president said pilot tests are currently being conducted. “Last year, the House Armed Services Committee pressed DoD to proceed in a pilot on the use of the meal card, and that is being used in several DoD sectors, including Army installations, and they are moving very aggressively there, and we are looking in partnering with the Department and all the military departments to advance the ball on the accessing of food on the installation.

“When you look at food on base, this is one which is very near and dear to primarily junior enlisted people. We put billions of dollars … tens, hundreds of billions of dollars … to uplifting health care, uplifting family housing, uplifting a lot of family programs, but we don’t allot for the single senior enlisted people.

“This is one area that we believe DoD will have a huge return on investment … little investment, but massive return, a geometric return, if we can get it right. And we are working with the Department to get food right on base.”

Expansion of the Military Star Card: through a provision in the House bill, the committee has asked the Department to look at expanding this card, with the committee asking the Department to come back and tell them what their take is of this issue.

“Certainly, this is something we support,” Rossetti said. “The Military Star Card offers many, many benefits to the troops, not just lower interest rates but also the ability as troops deploy to get some of their payments delayed or forgiven.

“We think this is a wonderful program, and we want to make sure that it is something well used by all of the military folks because of the impact on their financial readiness.”

Restricting certain concessions on military bases: through a provision in the House bill, concessions that are operated by selected foreign nations that may be considered adversaries — including China, Iran, North Korea — that are on a prohibited list.

“That is an outright ban on any concessions that are owned or operated by these nations,” Rossetti explained to attendees. “GNC has been cited as one of these, and I am sure that the department is moving back and forth dealing with that issue, but it will have major implications, especially if you are owned or operated by one of these countries … it will have a massive effect on your operations.”

[Note: Although GNC is headquartered in Pittsburgh, Pa., its parent company is Harbin Pharmaceutical Group Co., Ltd., which is a Chinese partially state-owned company.]

Provision prohibiting DoD from banning single-use shopping bags or charging a fee: Rossetti said that he does not know what the “genesis” of this is, “but that is certainly a provision that is out there and may be included in the House bill. It is in play.”

Uniform funding for Coast Guard exchange and MWR programs: proposed as an amendment to the Senate bill.

Rossetti said that what this means, “in a lot of sectors in DoD, what they do when the get money appropriated, they are able to ‘change the color’ of that money to non-appropriated funds and execute it as NAF money, and they realize efficiencies because the rules on managing non-appropriated fund money are a little looser than they are for appropriated funding.

“We will be supporting this provision. We think it is good for the Coast Guard. It was proposed as an amendment to the Senate bill as part of as part of the entire Coast Guard authorization act — I think Sen. Ted Cruz (R-Texas) put that in — but that one is very near and dear to our Coast Guard resale partners, and we will be advocating for that going forward.”

Combating illicit tobacco: proposed in the House bill, this would impact such products sold in commissaries and exchanges.

“We are slicing and dicing this one to see what the effects of it are,” Rossetti explained. “It was included in the House bill, and it is now included as an amendment in the Senate bill.

Other amendments and provisions that Rossetti spoke about included:

The requiring of a report on the use of credit cards and debit cards in the commissaries, exchanges and MWR programs; a provision limiting sub-culture meat products being sold; the sale of over-the-counter (OTC) drugs in commissaries and exchanges, with the Senate amendment mimicking what is included in the House bill; providing coupons to junior enlisted service members, to be used in the commissaries.

To sum it all up, Rossetti told attendees, “All of these issues may be in play, many more may be in play … we have reviewed all 1,200 of the amendments, and there are more coming in, waiting for action in the fall, with the ALA president stating that all of this should consummate with a conference report in November or December.

PASSAGE OF AUTHORIZATION BILLS

Rossetti said he believes that the House will pass its authorization bill, “like they did last year,” while the Senate “probably will pass an authorization bill in regular order, but last year, what occurred is that the Senate actually didn’t pass a bill on the floor … what they did was that they took the committee mark-up and cherry-picked amendments and put it in a package and smashed it up against the House for conference, and then they voted on the conference report.

“We don’t know if they will duplicated that process this year, but we are watching very closely, because it has to do a lot with what amendments are accepted and adopted because you can’t begin that process if anything is contentious. You usually have to throw it overboard before you can adopt it.”

DoD TEAM

Rossetti said that the “team is coming together,” specifically citing Tony Tata, the new under secretary of defense for Personnel and Readiness (USD, P&R), and Steve Simmons, deputy assistant secretary of defense for Military Community and Family Policy (DASD, MCFP).

“We are looking forward to working with all of these folks and reminding them of the wonderful things that industry does and the resale agencies do in furthering this very aggressive Trump defense agenda,” Rossetti said.

GOVERNMENT ACCOUNTABILITY OFFICE REPORT

The Government Accountability Office (GAO) recently came out with a report related to a protest action with one of the exchanges.

“What was very key here was that the GAO, which looks at contract protests, affirmed that the non-appropriated funds programs are not subject to these protests,” Rossetti noted. “That is existing policy, but the GAO affirmed that.”

MILITARY COMMERCE MAGAZINE

Rossetti spoke about the launch of the ALA’s own magazine focusing on military resale, MWR and foodservice programs, Military Commerce Magazine, an online publication which will debut in September.

“What this is designed to do is to highlight and publicize all of the wonderful things that this system does,” he explained. “I think that it is important that the administration, that Congress be reminded about all the attributes of this system, what it does for people, the fact that it is, indeed, an important part of the warfighting and readiness mission of the Department of Defense.

“One thing that President Trump and Defense Secretary Pete Hegseth have been emphasizing very heavily is boosting the readiness of DoD. What we will be communicating to the administration is that military bases are key power-projection platforms for national security, and that the exchanges and commissaries, MWR, and foodservice programs are cornerstones to those base power-projection platforms.

“All of the attributes, in terms of military family employment, the fact that there is a ‘gift’ given to DoD in brick-and-mortar facilities that are financed by the exchanges and commissaries, all of those things that are operated on base and worldwide, including tactical field exchanges, milk and dairy plants, and many, many other things that are done by this resale ecosystem, are all there to sure up the Department’s warfighting mission. We are going to be emphasizing that very heavily.”

Rossetti said that the online magazine will be emphasizing these things and “giving us and advocacy voice to Congress and the administration, but it is also a sorely needed mechanism to recognize all of the thousands of resale employees, people in industry, of all the accomplishments that they do.”

He added that ALA has received agreements from all of the resale organizations to circulate the magazine “down to the store level, maybe the department level, and I hope that ALA member companies will look to advertise in this publication as we get it off the ground.”

ALA ANNUAL NATIONAL CONFERENCE & PROFESSIONAL DEVELOPMENT FORUM

Slated to be held November 3-5 in Virginia Beach, Va., Rossetti told attendees, “We are honored to have the resale commanders agreeing to come and talk about their agenda at the conference, and we are looking forward to a lot of the resale folks attending.”

Agenda details, and the confirmation of several guest speakers are forthcoming.

REGISTER, VIEW AGENDA DETAILS & GUEST SPEAKERS HERE

CLOSING REMARKS

“I want to thank Stephanie Supplee and the ALA Board of Directors for all of the work they have been doing on a multitude of issues,” Rossetti said. “All of the committees, the Commissary Council, the Exchange Council, Bill Doyle and Andy Lassiter, I just wanted to acknowledge all the work they are doing, running interference on a whole range of issues with the resale programs.

“I want to once again congratulate the resale programs for multiple initiatives that they have achieved that make life better for the troops.

“We are honored to be partners with the resale programs, and we get into all of these issues, and moving through the next year, we are locking arms with our resale partners to make sure this system lands on its feet, and tat policymakers do the right thing.”