House lawmakers advanced a measure Thursday to slash gasoline prices at military exchanges in an effort to make fuel cheaper for U.S. service members.
The proposal would authorize Defense Secretary Pete Hegseth to offer a discount at exchange stores that’s equivalent to the price of the federal gas tax. The tax is 18.4 cents per gallon for regular and 24.4 cents per gallon for diesel.
The proposal would also allow the secretary to cut fuel prices further in order to counteract state and local taxes.
Rep. Abe Hamadeh, R-Ariz., introduced the measure, which was included — with bipartisan support — in the House’s version of the fiscal 2027 National Defense Authorization Act that passed through the House Armed Services Committee early Friday morning.
“This discount, equal to the federal fuel tax, shows profound gratitude to our nation’s heroes who have borne the heavy costs of war defending our freedoms,” Hamadeh said in a statement. “This common-sense step delivers real relief to our selfless service members and their families.”
But the relief won’t be imminent. The bill next goes to the full House for a vote, followed by negotiations with the Senate to establish a final fiscal 2027 defense package.
Over the past several years, the budgeting process has included stopgap funding measures and stretched to December before defense appropriations were finalized.
Domestic gas prices have surged since the U.S.-Israeli strikes against Iran began on Feb. 28. The prolonged closure of the Strait of Hormuz — a key waterway for global oil trade — has sent oil prices up.
Across the U.S., Memorial Day weekend prices were the highest they’d been in four years, according to the American Automobile Association.
The national average for a gallon of regular was $4.56 over that holiday weekend, $1.38 higher than the same weekend last year.
Pump prices have cooled in the days since, with the average cost of a gallon of regular on Thursday at $4.24.
“But uncertainty lingers over when the Strait of Hormuz will fully reopen and resume traffic,” AAA said in a release. “That unknown means oil prices will likely not decrease dramatically as summertime gasoline demand starts going up.”
According to the Army & Air Force Exchange Service, fuel prices are set locally by surveying gas stations in close proximity to installations and matching the lowest price.
Polling about the Iran war has revealed deep concerns from Americans about the increased gas prices. According to a Reuters/Ipsos poll from May, 63% of the country say their household’s personal financial situation has taken a hit from recent gas price increases, up from 55% in a Reuters/Ipsos poll conducted in March.
President Donald Trump said in a CBS News interview in May that he would consider suspending the federal gas tax for all Americans, but the tax moratorium would require an act of Congress.
