Some in Congress have proposed a plan that could result in the elimination of the military resale system – and a significant rise in the cost of groceries for military families and the loss of tens of thousands of jobs.
The Congressional Budget Office has developed a proposal that was included in its 2011 Budget Options, which calls for the defunding of the Defense Commissary Agency (DeCA), which is responsible for this important benefit.
S. 277 is a bill proposed by Senator Richard Burr (R-NC) which would require the elimination of the subsidy for the Defense Commissary Agency. It would also require that DeCA and the exchanges to be consolidated into one agency, which would be funded through increased prices on all products sold.
Additionally, Sen. Tom Coburn (R-OK) included this same proposal in his Back in Black deficit reduction package.
The potential impact of this cut-and-consolidate proposal is the loss of the benefit and the loss of the $5.6 billion in annual savings military families currently enjoy by shopping in the commissaries and exchanges.
House Committee Letter to the Secretary of Defense (SECDEF) 07/21/2011
Senate - S. 277 (112th Congress)
Proposal to Consolidate or Eliminate Exchanges and Commissaries by Senator Coburn (OK)
Committe on Armed Services Letter to Chairman, Defense Business Board (DBB)
Congressional Budget Office (CBO) Budget Options Proposal to Consolidate Exchanges