REPS. VEASEY (TX-33), HORSFORD (NV-04) LEAD LETTER URGING DEFENSE SECRETARY AUSTIN TO CURB RISING PRICES FOR MILITARY FAMILIES ON BASE

Statement

Today, Reps. Veasey (TX-33) and Horsford (NV-04) of the House Armed Services Committee led six of their colleagues in a letter urging Secretary of Defense Lloyd Austin to address the issue of rising costs facing military families on bases across the country. The letter urges Secretary Austin to remove the revenue requirement on the Defense Commissary Agency (DeCA) to allow military families to buy groceries and other household goods from commissaries at cost.

"Families across the country--including those at our military bases--are struggling with the rising costs of basic everyday needs," said Rep. Veasey (TX-33). "Today, I am proud to join a group of fellow House Armed Services colleagues to call on Secretary Austin to take action to combat inflation and help our nation's brave military families be able to afford essential goods while on base."

The letter is additionally signed by Reps. Strickland (WA-10), Keating (MA-09), Larsen (WA-02), Escobar (TX-16), Brown (MD-04), and Kahele (HI-02).

The full letter can be found below and here.

Mr. Secretary,

Today, many of our military families are struggling to meet their basic needs due to rising prices. While Congress has sought to address this issue through the establishment of a basic needs allowance, there is one action you may take that would have an immediate impact on the problem: remove the revenue requirement on the Defense Commissary Agency (DeCA) in order to lower prices and maximize savings.

On U.S. military bases around the world, military families have invested billions of dollars through the commissary surcharge to build their commissary system, which was intended to deliver a non-pay compensation benefit to our servicemembers and their families through selling groceries at cost. In 2016, the Department of Defense requested and was granted permission by Congress to permit the Secretary of Defense to implement variable pricing, which would allow DeCA to raise prices in order to generate margins to offset its appropriation.

In FY21, DeCA generated $108 million in margin through these higher prices. That is $108 million out of our military families' pockets. In FY22, DeCA is expected to generate $118.7 million in revenue and the budget request for FY23 calls for $128 million in offsets. Our view is those dollars should remain with servicemembers to help them take care of their families.

There are a few advantages to removing the revenue offset requirement for DeCA:

It leverages current infrastructure and systems. No administrative programs must be developed, contracted for, or implemented.
It has an immediate, direct impact for families, lowering their grocery bills and extending their pay as a non-pay compensation benefit, and reducing food insecurity and inflationary effects.
It helps all military families regardless of where they are serving around the world; however, it will have the greatest impact on those most affected by rising prices and those living in high cost-of-living areas.

Mr. Secretary, we greatly appreciate your consideration of this request and look forward to your action on this opportunity to support our deserving military families and improve their quality of life.

Source