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Congress moves to ban commissary privatization

The House and Senate are set to vote on a compromise Fiscal year 2026 Defense Bill that includes a ban on privatizing commissaries.

Ban is one of many provisions with major effects on resale food and other on-base commerce programs in this year’s 2,900-page defense policy bill.    

Here’s the commissary language that is  included in the ’26 Bill that will be voted on (and most likely passed) by the House this week followed by the Senate.     “The Secretary may not take any action inconsistent with the restrictions in section 2485(a) of such title regarding private operation of the overall management of a commissary system or management of a commissary store.”

Here’s Section 2485 (a) of existing law (Title 10 of the United States Code) that is incorporated by reference in the above language.  “(a)Private Operation.—Under such regulations as the Secretary of Defense may approve, private persons may operate selected commissary store functions, except that such functions may not include functions relating to the procurement of products to be sold in a commissary store or functions relating to the overall management of a commissary system or the management of a commissary store. Such functions shall be carried out by personnel of the Department of Defense under regulations approved by the Secretary of Defense”.

The ban on privatization follows language in the House version of the ’26 bill that expressed concerns about Defense emphasis on resale privatization. The Senate report accompanying the FY 2026 National Defense Authorization Act had called for a simulated review of  “Whether a commercial grocery retailer can consistently deliver a 25 percent savings  benefit to commissary patrons across 235 global locations  without the use of congressional appropriations; and (2)  Whether DeCA could sustain operations in remote and overseas  locations under any proposed model, given that these sites  often depend on cross-subsidies from higher-revenue commissaries to remain viable.”  In the commissary outsourcing review and reporting requirement, the Senate Armed Services Committee also said: “the simulation should incorporate input from the Office of the Under Secretary of Defense for Personnel and Readiness, defense resale organizations, and relevant industry stakeholders.”

All four FY 2026 Defense funding and policy bills fully funded commissaries at a record $1.52 billion.  Commissaries enjoy wide and consistent support with strong statements of support in the FY 2024 and 2025 bills.  Also, an Oct. 10, 2025 letter from HASC Vice-Chairman Rep. Rob Wittman and HASC member Rep. Jen Kiggans expressed deep concerns about the privatization proposal.

ALA will be publishing detailed comprehensive coverage over the next few days of the many other measures affecting resale and food service and other on-base commerce programs that are included in the FY ’26 National Defense Authorization Act.

The bill is the result of weeks of negotiations between the House and Senate Armed Services committees, congressional leaders and the White House. The House passed its version of the NDAA in September, while the Senate cleared a competing policy bill in October.

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