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1 [1] (June 3, 2024)

handle is hein.crs/govepsz0001 and id is 1 raw text is: Congressional Research Se~ Informing the legislitive debate s~nee 1914 ice Updated June 3, 2024 Defense Primer: Military Commissaries and Exchanges The Department of Defense (DOD) offers certain quality- of-life benefits to military members, their families, and retirees. The general purpose of these benefits is to attract, retain, and support morale and readiness for military servicemembers. One of these benefits is worldwide access to grocery and retail stores-called commissaries and exchanges-typically located on military installations. Commissaries provide subsidized groceries and household goods to eligible patrons. Exchanges sell goods for profit, similar to a department or specialty store, but use some of this profit to fund various Morale, Welfare, and Recreation (MWR) activities (see Table 1). Organzaton and Management Defense Commissaries The modern commissary system began in 1867. Each of the services operated its own commissaries and exchanges until 1991, when the commissary system was consolidated under the Defense Commissary Agency (DeCA). According to the DeCA Annual Reportfor FY2023, as of September 30, 2023, DeCA operated 235 stores on military installations worldwide, serving approximately 8.3 million authorized households in 12 countries and 2 U.S. territories; and employing a workforce of 12,820. DeCA aims to provide food savings of over 25% compared to civilian marketplaces. As a defense agency, DeCA reports to the Office of the Secretary of Defense and has a board of directors composed of members from each of the military services. DeCA provides subsidized groceries and household goods at cost plus a 5% surcharge that is used to fund new commissary construction and store-level refurbishment, maintenance, and equipment. Table I. Breakdown of Commissaries vs. Exchanges Commissaries Exchanges Funding Appropriated Sales of goods, non- Funds (APF) appropriated (NAF) Management DeCA Board of Board of Directors for Directors each exchange system Products Grocery and Clothing, shoes, uniforms, household furniture, computers, goods alcohol, cigarettes, jewelry Online Sales Limited* Yes (excludes cigarettes, and Delivery alcohol, and military uniforms) Sources: About DeCA at https://www.commissaries.com/our- agency/about-deca; and Exchange Quick Facts, at https://www.aafes.com/about-exchange/exchange-quick-facts/. Notes: *In 2013, DeCA started a program offering online ordering with curbside pickup, known as Click2Go. New features include ordering via a mobile app and online payment of Electronic Benefits Transfer/Supplemental Nutrition Assistance Program (EBT/SNAP). Miltary Exchanges DOD maintains an exchange system that includes the Army and Air Force Exchange System (AAFES), the Navy Exchange (NEX), and the Marine Corps Exchange (MCX). Each system has its own board of directors to align operations and services. These exchanges provide military installations with goods and services similar to department stores and are often located near commissaries. Some exchanges also operate gas stations, mini-marts, food courts, barber and beauty shops, and liquor stores, some of which are operated by outside or contract vendors According to AAFES, the exchange system operates more than 5,100 facilities with operations in more than 30 countries and four U.S. territories, and serves an eligible customer base of 31 million shoppers. DOD regulates what items may be sold at commissaries and exchanges to comply with statutory requirements (10 U.S.C. §2483) and to avoid direct competition with one another. Authorized Patrons Authorized patrons of military commissaries and exchanges include active duty, National Guard and Reserve members, military retirees, Medal of Honor recipients, 100% disabled veterans, and certain family members or dependents. Since November 11, 2017, DOD has allowed limited online exchange shopping privileges to all honorably discharged veterans. Veterans may verify eligibility at https://www.shopmyexchange.com/veterans. On January 1, 2020, more than 4 million service-connected disabled veterans, Purple Heart recipients, former prisoners of war, and their primary caregivers were granted eligibility to full commissary access and certain MWR activities in Section 621 of the John S. McCain National Defense Authorization Act (NDAA) for FY2019 (P.L. 115-232). Section 641 of the FY2020 NDAA (P.L. 116-92), extended certain MWR privileges to Foreign Service officers of the Department of State on mandatory home leave. The FY2021 William M. (Mac) Thomberry NDAA (P.L. 116-283) enacted on January 1, 2021, included provisions (Sections 631 and 632) that authorized base first responders the use of commissary stores and MWR facilities, and external first responders' access to mobile commissary or exchange stores when deployed to an area covered by a declaration of a major disaster or emergency. On April 29, 2021, DOD announced expanded access effective May 1, 2021, to DOD and Coast Guard civilian employees and civilian retirees to shop at military exchanges in the United States, U.S. territories and possessions. Online access became available to these patrons in October 2021.Civilian dependents were not included in this expanded access. The NDAA for FY2024 (P.L. 118-31) enacted December 22, 2023, included a provision in Section 633 that allows

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