Military and Veterans Fuel Discount Act of 2026

This bill authorizes the Department of Defense to offer fuel discounts to eligible military members and veterans at exchange stores, provided the fuel is dispensed directly into their personal vehicles. The program guarantees a minimum discount equal to the federal tax rate on gasoline or diesel, with a floor of 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, while allowing for additional reductions to cover state and local taxes. To prevent fraud and ensure the fuel is used only for personal transportation, the Secretary of Defense must update regulations to stop resale or commercial use of the discounted fuel. The authority to run this program will end on September 30, 2029, and the Department must submit annual reports to Congress detailing the program's usage, costs, and any issues encountered.