On January 8, 2025, the U.S. Department of Education published a proposed rule in the Federal Register to amend and expand certain definitions in the Randolph-Sheppard Act (R-S Act) regulations. These changes aim to clarify statutory requirements and implement conforming updates to help Federal agencies, States, and non-governmental stakeholders better administer the Randolph-Sheppard Vending Facilities Program (RSVFP). The proposed rule seeks to modernize the program, allowing it to adapt to evolving technologies and changing customer demands. 

The public comment period for the proposed rule is open from January 9, 2025, to March 11, 2025. The American Logistics Association (ALA) is closely reviewing the proposed changes to assess their potential impact on the military resale and Morale, Welfare, and Recreation (MWR) systems. ALA plans to advocate for a comprehensive risk and impact analysis before any policy changes are enacted to ensure the interests of all stakeholders, especially military personnel and their families, are fully considered. 

Longstanding Collaboration at Risk 

For decades, blind vendors and military exchanges have worked in close partnership to support the military mission. This collaboration has maintained a delicate balance, consistent with the Randolph-Sheppard Act and its implementing policies. However, the proposed changes could disrupt this balance and adversely affect military resale organizations, as well as the military personnel and families they serve. Specifically, the loss of exchange dividends—critical for funding MWR programs—could negatively impact quality-of-life services for military communities. 

Key Concerns About the Proposed Rule 

The proposed rule suggests expanding the mandate for blind vendors to include additional areas of exchange operations and other on-base businesses. This broader interpretation of the statute could have far-reaching consequences, including: 

• Impact on Military Retail Operations: Changes could disrupt military retail stores, micromarkets, food trucks, and concession contracts. 

• Effect on Non-Blind Vendors: Many of these operations are managed by minority- and veteran-owned small businesses, which could face significant challenges under the new regulations. 

• Strain on Department of Defense (DoD) Initiatives: The proposed changes could undermine efforts to provide accessible and affordable food services to military personnel. 

ALA strongly believes that any changes to the Randolph-Sheppard Act regulations must be preceded by a thorough risk and impact analysis. This evaluation should prioritize the well-being of military personnel and their families, as well as the sustainability of military resale systems and MWR programs. Without clear justification or demonstrated need, these proposed changes risk introducing significant disruptions to established systems that have long supported the military community. 

Next Steps 

ALA will continue to monitor developments, engage with stakeholders, and submit formal comments during the public comment period to ensure that the Department of Education carefully considers the broader implications of these proposed changes 

Federal Register Information: 

DATES: Comments must be received on or before March 11, 2025. ADDRESSES: Comments must be submitted via the Federal eRulemaking Portal at www.regulations.gov. However, if you require an accommodation or cannot otherwise submit your comments via www.regulations.gov, please contact the program contact person listed under FOR FURTHER INFORMATION CONTACT shown below.  

The Department will not accept comments submitted by fax or by email, or comments submitted after the comment period closes. To ensure that we do not receive duplicate copies, please submit your comments only once. Additionally, please include the Docket ID at the top of your comments. Federal eRulemaking Portal: Go to www.regulations.gov to submit your comments electronically. Information on using Regulations.gov, including instructions for finding a rule on the site and submitting comments, is available on the site under “FAQ”. Privacy Note: The Department’s policy is generally to make all comments received from members of the public available for public viewing in their entirety on the Federal eRulemaking Portal at www.regulations.gov. Therefore, commenters should include in their comments only information about themselves that they wish to make publicly available.  

Commenters should not include in their comments any information that identifies other individuals or that permits readers to identify other individuals. If, for example, your comment describes an experience of someone other than yourself, please do not identify that individual or include information that would allow readers to identify that individual. The Department reserves the right to redact at any time any information in comments that identifies other individuals, includes information that would allow readers to identify other individuals, or includes threats of harm to another person.  

FOR FURTHER INFORMATION CONTACT: Corinne Weidenthal, U.S. Department of Education, 400 Maryland Ave. SW, Room 4A212, Washington, DC 20202. Telephone: (202) 245-6529. Email: Corinne.Weidenthal@ed.gov. If you are deaf, hard of hearing, or have a speech disability and wish to access telecommunications relay services, please dial 7-1-1. A brief summary of the proposed rule is available at https://www.regulations.gov/docket/ED-2024-OSERS-0088

ALA Staff contributed to this article.