June 4 House Armed Services Committee action

Commissary supply chain transformation
Food security, WIC, SNAP, tobacco, and produce
Commissary and exchange patronage
Exchange gas
Commissary funding
Eliminating bag charges in commissaries
Food technology
Tobacco cessation and alternatives
Trademarked goods
Small business contracting
Nutrition labeling
SNAP and PCS
Europe force structure
Compliance platform
Ultra-processed foods
Guam produce
Berry Amendment seafood purchases
Military trademarked item sales
Dining facility and commissary purchases in the Pacific region

The committee action and corresponding Senate action to be covered at ALA’s June 24 Congressional Caucus and Public Policy Forum

Senate defense committee moves week of June 8

The House Armed Services Committee met June 4 with major action on Defense resale and food service matters. This is the opening shot in the months-long process of developing Congressional Defense spending levels and policy.

Here’s the run-down of actions on resale and food programs:

Food Insecurity Among Members of the Armed Forces

Here’s the language:

“The committee notes ongoing challenges with food insecurity among servicemembers and military families. Section 656 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92) directed the Secretary of Defense to report on food insecurity among servicemembers and their dependents. The resulting analysis, conducted by the RAND National Defense Research Institute and published in 2023, found that approximately 25.8 percent of active duty members were food insecure in 2018, nearly triple the rate of comparable civilians.

The committee is concerned that recent statutory changes may affect servicemembers’ access to and eligibility for nutrition assistance programs. The committee believes the Department should assess potential impacts of such changes and food insecurity levels across the Armed Forces.

The committee directs the Secretary of Defense, in coordination with the Service Secretaries, to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services, not later than March 1, 2027, on food insecurity among members of the Armed Forces and the dependents of such members. The report should include the following information:

(1) an identification of the total number of members and dependents of such members enrolled in Federal nutrition assistance programs as of the most recent period for which data were collected for Public Law 116-92, including but not limited to:

(a) Supplemental Nutrition Assistance Program (SNAP);

(b) Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); and

(2) an identification of the total number of members and dependents of such members enrolled in Federal nutrition assistance programs as of the date of the report;

(3) a comparison of the number of members and dependents identified under paragraph (1) with the number of members and dependents identified under paragraph (2), including the net change in enrollment in total numbers of members and dependents and in percentage of members and dependents and a disaggregation by Armed Force, grade of the member, geographic location, and program type;

(4) an identification of the number of members receiving the Basic Needs Allowance (BNA) under section 402b of title 37, United States Code, as of the baseline period established under paragraph (1) and as of the date of the report, and a comparison of such numbers, including the net change in total numbers of members and percentage of members and a disaggregation by Armed Force, grade of the member, geographic location;

(5) an identification of the number of dependents of members using free or reduced-price school meal programs as of the baseline period established under paragraph (1) and as of the date of the report, and a comparison of such numbers, including the net change in total numbers of dependents and percentage of dependents;

(6) an identification of the number of members and dependents of members using food banks, food pantries, or similar charitable food assistance on or near military installations as of the baseline period established under paragraph (1) and as of the date of the report, and a comparison of such numbers of members, including the net change in total numbers.”

DOD Education Activity and childcare worker commissary and exchange eligibility

Legislation passed the committee to allow DoDEA and Child Development Center employees to use commissaries, exchanges and MWR programs.

Discount on gas

The committee passed an amendment that would allow the Secretary of Defense to provide patrons with a discount on fuel sold at exchanges in an amount equal to the federal gas tax.

The measure would authorize the Secretary of Defense to provide to eligible patrons a discount on motor fuel sold at exchange stores, equivalent to the federal gas tax. It also allows an additional discount equal to the state and local tax. This authority would end in 2029.

Limitation on commissary supply chain transformation

The committee passed restraints on the efforts of the commissary system to transform its supply chain for until more information is forthcoming.

Here’s the language that passed committee:

“LIMITATION ON IMPLEMENTATION OF SUPPLY CHAIN TRANSFORMATION INITIATIVE OF THE DEFENSE COMMISSARY AGENCY.

No funds authorized to be appropriated or otherwise made available to the Department of Defense for fiscal year 2027 may be obligated or expended to implement, award contracts in furtherance of, or change commissary supply chain operations pursuant to the two-wholesaler national supply model of the Supply Chain Trans- formation Initiative of the Defense Commissary Agency until 180 days after the day when the Secretary of Defense submits to the congressional defense committees the report regarding the Defense Commissary Agency required by the conference report accompanying the FY 2026 National Defense Authorization Act (Public Law 119–60).”

Here’s the language in the FY 2026 Defense Bill that the above supply chain transformation measure is referring to:

“Sec. 652 – Defense commissary system and exchange system: patronage; privatization

The House bill contained a provision (sec. 652) that would amend chapter 54 of title 10, United States Code, by adding a new section to authorize civilian employees of the Department of Defense or the department in which the Coast Guard is operating to use Morale, Welfare, and Recreation retail facilities. The Senate bill contained no similar provision.

The agreement includes the House provision with amendments that maintain current commissary and exchange access through January 1, 2027, preserve existing statutory limits on privatization, and direct the Secretary of Defense to propose a consolidated legislative framework that clearly defines recommended patron categories.

Not later than 180 days after the conclusion of the Department of Defense civilian employee access pilot program, we direct the Secretary of Defense to submit to the Committees on Armed Services of the Senate and the House of Representatives a report evaluating:

(1) The number and categories of civilian participants, including participation rates by installation, grade, and employment type;

(2) The total volume of sales and patronage levels generated by civilian participants, and the proportion of total commissary sales represented by such patronage;

(3) The gross and net revenue generated from civilian sales, including the disposition or use of any additional revenues, fees, or surcharges collected;

(4) The impact of the pilot programs on overall commissary operating costs, including labor, supply chain, and inventory management;

(5) Any observed or projected effects on appropriated funding requirements for the Defense Commissary Agency and the commissary subsidy;

(6) The impact on facility infrastructure, security, parking, and utilities at participating installations;

(7) The effect on military patron access, wait times, and customer satisfaction;

(8) Any operational challenges, staffing adjustments, or system modifications required to accommodate the pilot;

(9) Any adjustments to procurement or contracting requirements associated with increased patronage; and

(10) The Secretary’s assessment of the overall feasibility, fiscal sustainability, and advisability of expanded access for Department of Defense civilian employees.”

Commissary funding

The Defense Commissary Agency was authorized at the President’s requested amount of about $1.501 billion.

A provision was included on single use shopping bags in commissaries that states: “The Defense Commissary Agency may not prohibit the use of, or charge a fee for, single-use shopping bags in a commissary store.’’. DeCA announced earlier this year that they would have to charge for bags. This policy was reversed by the Secretary of War and patrons no longer have to pay for bags.

Electronic nicotine delivery systems

The Committee included language on tobacco and vape products:

“The committee commends the Marine Corps Exchange (MCX) for conducting a comprehensive compliance review of all electronic nicotine delivery systems (ENDS) products supplied at MCX locations. Pursuant to Federal tobacco regulations, including the Federal Food, Drug and Cosmetic Act (21 U.S.C. 301), in order to legally market a new tobacco product, a company must receive a written marketing order from the Food and Drug Administration (FDA). Companies may receive marketing authorization through one of three pathways: a Premarket Tobacco Product Application (PMTA), a determination of substantial equivalence, or an exemption from substantial equivalence requests. The committee is aware that to legally market a new tobacco product through the PMTA pathway, a company must receive a written Marketing Granted Order (MGO) from the FDA.

The report should include:

(1) the process to determine which tobacco products, particularly ENDS products, are sold on military installations, to include any coordination with the FDA;

(2) any review process to ensure that tobacco products currently available for sale on military installations comply with federal regulations; and

(3) a list of any tobacco products removed from sale due to noncompliance, disaggregated by installation.”

SNAP and PCS

The Committee also included language to encourage the provision of information on food access (including SNAP) and childcare when military personnel and families change duty stations.

Compliance platform

The Chairman of the Committee also is recommending language in support of platforms simplifying compliance with rules and laws by contractors of the Department of War. ALA has been working with the Department on its Synthesis platform that simplifies regulatory and legal compliance and reduces costs for contractors and, by extension, for patrons of exchange and commissaries. The Chairman’s language said:

“Expanding the Defense Industrial Base through Balanced Compliance

The committee remains concerned that compliance burdens are a significant barrier to entry for potential defense contractors, particularly small- and medium-sized businesses. Companies are increasingly forced to choose between investing in innovation and maintaining compliance, contributing to attrition from the defense industrial base and reduced resilience across defense supply chains. At the same time, the committee emphasizes that the expansion of the defense industrial base must not come at the expense of security, accountability, or oversight.

The committee further notes that many compliance frameworks rely on episodic audits and point-in-time certifications that do not provide continuous insight into contractor readiness or supply chain risk. The committee encourages the Department to evaluate the use of qualified and trusted third-party commercial solutions to support continuous assessment and monitoring of contractor compliance, improve portfolio-level visibility into supply chain health, and enable more efficient attainment and maintenance of cybersecurity, workforce security, and cloud accreditation requirements.

Accordingly, the committee directs the Principal Director, Defense Pricing, Contracting, and Acquisition Policy, to provide a briefing to the House Committee on Armed Services not later than December 1, 2026, on the Department’s approach to expanding and sustaining the defense industrial base while maintaining strong compliance and accountability standards.

The briefing should include:

(1) an assessment of how current compliance regimes impact innovation, sustainment, and the long-term viability of small- and medium-sized businesses, including an evaluation of the extent to which companies exit the defense ecosystem due to compliance requirements, security requirements, or other administrative burdens unique to participation in the defense industrial base;

(2) a description of steps the Department is taking to encourage and sustain affordable compliance across prime contractors, subcontractors, and lower-tier suppliers; and

(3) options for improving visibility into contractor and supply chain readiness without creating duplicative administrative burdens.”

Small business contracts

A GAO review of contracts and awards to small businesses, especially for contracts awarded below the small business threshold.

Europe force structure

An assessment by October 1, 2026, of permanent stationing of U.S. forces in Poland to include the impact of any delays in planned deployments there.

An assessment of recent force posture Adjustments within the United States European Command to include: “whether such realignment will result in the reduction of the total number of American servicemembers within the United States European Command area of responsibility below 76,000; whether such realignment will result in divesting, consolidating, or otherwise returning to a host country any parcel of land or facility located on real property under the jurisdiction of United States European Command as of June 1, 2025; and whether such realignment will result in divesting, redeploying, withdrawing, or otherwise permanently moving out of the area of responsibility of United States European Command any Department of Defense equipment or physical property with an initial purchase value of more than $500,000 and positioned in such area of responsibility as of June 1, 2025.”

Military Service Trademark Royalty Waiver Feasibility Study

The committee included a requirement for a report on sale of military trademark royalty items.

Here’s the exact language that passed: “The committee is aware that small businesses partnering with military exchanges to produce branded merchandise, are subject to trademark royalty payments to the Military Departments under the general licensing authority of section 2260 of title 10, United States Code. The committee has questions about whether the current royalty structure may impose costs that are prohibitive for small businesses operating in this space, with downstream effects on the affordability and accessibility of military-branded merchandise for servicemembers and their families.

Therefore, the committee directs the Secretary of Defense, in coordination with the Secretaries of the military departments, to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services not later than March 31, 2027, regarding the feasibility and advisability of establishing a reduced royalty or fee-waiver mechanism for small businesses that produce military-branded merchandise sold exclusively through military exchanges.

The report shall include the following:

(1) an assessment of the current royalty fee structures applicable to small businesses licensing military trademarks under section 2260 of title 10, United States Code, including the range of fees charged, the basis for fee determinations, and an estimate on the price increase caused by the royalty fee structure on the typical small business’s wares (expressed in both monetary value and a percentage);

(2) an analysis of the feasibility of a reduced-fee or waiver category for small businesses, as defined under the Small Business Act (section 632 of title 15, United States Code), whose licensed products are sold exclusively through military exchanges;

(3) an evaluation of the potential impact of such a mechanism on royalty revenue currently flowing to Morale, Welfare, and Recreation programs, and options for offsetting any revenue reduction;

(4) an assessment of the potential recruiting and community engagement benefits associated with increased civilian access to affordable military-branded merchandise; and

(5) any legislative or regulatory changes necessary to implement such a mechanism.”

Berry Amendment and seafood

The committee passed a measure that provides that seafood shall not be eligible for an exception to the Berry amendment.

Ultra processed foods and preservatives

The committee passed a measure that directs the Secretary of Defense to conduct a comprehensive assessment of the prevalence of ultra-processed foods, artificial dyes, preservatives, and other synthetic additives in food available to servicemembers and their families.

Nutritional labeling

The committee passed a measure that directs the Secretary of Defense to report the Department’s implementation of programs to provide healthy and nutritious food and nutrition labeling on foods.

Local procurement of meat, produce and seafood in the Pacific region

The committee passed a measure that would require DoD to develop and implement a plan to increase procurement of local produce, seafood, and meat for dining facilities and commissary stores in the Indo-Pacific and provide an implementation plan.

Here’s the language:

“PROCUREMENT OF LOCAL PRODUCE, SEAFOOD, AND MEAT IN THE AREA OF RESPONSIBILITY OF THE UNITED STATES INDO-PACIFIC COMMAND.

(a) PROCUREMENT FOR CERTAIN FACILITIES IN THE INDO-PACIFIC REGION.—Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall develop and implement a plan to be carried out by the Defense Commissary Agency and the Defense Logistics Agency to increase procurement of local produce, seafood, and meat for a dining facility or commissary store located on a military installation or onboard a naval vessel located in the area of responsibility of the United States Indo-Pacific Command. Such plan will include a requirement, to the extent practicable, to procure local produce for commissary stores located in such area of responsibility.

(b) PROHIBITION ON PROCUREMENT OF FOREIGN PRODUCE OR MEAT.—Section 4862(g)(2)(A) of title 10, United States Code, is amended by inserting ‘‘, produce, or meat’’ after ‘‘seafood’’.

(c) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report that includes the following:

(1) The plan required under subsection (a), including ways in which the plan would—

(A) support partner or allied nations that are experiencing economic coercion from China; and

(B) provide fresher food in dining facilities or commissary stores described in such subsection.

(2) The percentage of local produce, seafood, and meat available, and projected percentage after two years of implementing such plan—

(A) in each commissary store located on a military installation located in the area of responsibility of the United States Indo-Pacific Command;

(B) in each dining facility located on a military installation located in the area of responsibility of the United States Indo-Pacific Command; and

(d) LOCAL DEFINED.—In this section, the term ‘‘local’’ means, with respect to produce, seafood, or meat, that such produce, seafood, or meat is sourced from a partner or allied nation or a State or territory of the United States located in the area of responsibility of the United States Indo-Pacific Command.”

Produce procurement for commissaries in Guam

Here’s the language that passed the committee:

“LOCAL AGRICULTURAL PROCUREMENT IN GUAM COMMISSARIES.

(a) DESIGNATION OF LIAISON.—The Director of the Defense Commissary Agency shall designate an official within the Defense Commissary Agency responsible for liaising with farmers, ranchers, fishermen, and food producers in Guam for the purpose of assisting those persons in doing business with the Defense Commissary Agency and increasing the availability of locally produced food products in commissaries located in Guam.

(b) PLAN TO INCREASE LOCAL PROCUREMENT.—

(1) PLAN REQUIRED.—Not later than 180 days after the date of the enactment of this Act, the Director of the Defense Commissary Agency shall submit to the congressional defense committees a plan to increase the volume of locally grown produce sold in commissaries located in Guam.

(2) ELEMENTS.—The plan required under paragraph (1) shall—

(A) identify barriers to procuring locally grown produce from producers in Guam;

(B) describe steps the Defense Commissary Agency will take to improve outreach, contracting, distribution, and procurement opportunities for producers in Guam;

(C) establish measurable benchmarks and timelines for increasing the amount of locally grown produce sold in commissaries located in Guam; and

(D) include a goal that not less than 15 percent of all produce sold in commissaries located in Guam be locally sourced from Guam producers.

(c) REPORT ON IMPLEMENTATION.—Not later than two years after the date of the submission of the plan required under subsection (b), the Director of the Defense Commissary Agency shall submit to the congressional defense committees a report on the implementation of the plan, including—

(1) the percentage of produce sold in commissaries located in Guam that is locally sourced;

(2) a description of progress made toward achieving the goal described in subsection (b)(2)(D);

(3) any challenges encountered in implementing the plan; and

(4) recommendations for legislative or administrative action to further increase procurement from producers in Guam.”

Tobacco use and smoking cessation and alternatives

Here’s the language:

“PILOT PROGRAM TO HELP CERTAIN MEMBERS OF THE ARMED FORCES STOP SMOKING.

(a) AUTHORITY.—Beginning not later than 180 days after the date of the enactment of this Act, the Secretary of Defense may carry out a one-year pilot program to furnish to covered members the alternatives to smoking specified in subsection (b)—

(1) to help such covered members stop smoking; and

(2) to improve the health of such covered members.

(b) ALTERNATIVES TO SMOKING.—The alternatives to smoking specified in this subsection are—

(1) counseling;

(2) nicotine gum;

(3) nicotine patches;

(4) electric nicotine delivery systems;

(5) nicotine pouches; and

(6) heat-not-burn products.

(1) in not less than one covered Armed Force; and

(2) at not less than one military installation at which covered members serve in numbers that exceed the national average for—

(A) smoking cigarettes or other combustible tobacco products;

(B) the population of Black Americans;

(D) the population of Hispanic Americans; and

(E) the population of Appalachian Americans.

(d) REPORT.—Not later than one year after the date on which the pilot program under subsection (a) is completed, the Secretary shall submit to the Committees on Armed Services of the Senate and House of Representatives a report regarding the results of the pilot program, including the determination of the Secretary regarding—

(1) whether the pilot program helped covered members stop smoking;

(2) the alternatives specified in subsection (b) that are most effective in helping covered members to stop smoking;

(3) gaps in health care services available to covered members who belong to the populations described in subsection (c)(2); and

(4) the recommendation of the Secretary whether to expand, extend, or make permanent the pilot program.

(e) DEFINITIONS.—In this section:

(1) The term ‘‘covered Armed Force’’ means the Army, Navy, Marine Corps, Air Force, or Space Force.

(2) The term ‘‘covered member’’ means a member of a covered Armed Force—

(A) serving on active duty; and

(B) who smokes at least one cigarette (or other combustible tobacco product) per week.”

Prohibit research on cell-cultivated meat products

Here’s the language that passed the committee::

“PROHIBITION ON PROCUREMENT OR RESEARCH OF CELL-CULTIVATED MEAT PRODUCTS.

(a) PROHIBITION.—None of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2027 for the Department of Defense may be obligated or expended to procure, or to fund research or development of, cell-cultivated meat products for human consumption.

(b) DEFINITION.—In this section, the term ‘‘cell-cultivated meat product’’ means any product capable and intended for use as human food that—

(1) is made wholly or in part from any cell culture or the DNA of an amenable species using animal cell culture technology; and

(2) is grown or cultivated outside of the live animal from which the cell culture or DNA was acquired.”