AAFES and Commissary Operations During the Government Shutdown
AAFES and Commissary Operations During the Government Shutdown
The 2025 government shutdown has created plenty of uncertainty for military communities. There are too many shutdown-related questions to list here, but among them, “What happens to the Commissary and the Base Exchange during the shutdown?” is an important one to address.
Find Out What Military Benefits You’re Missing — Sign up today to receive the MyMilitaryBenefits newsletter free to your inbox.
Understanding the Agencies
The Defense Commissary Agency (DeCA) is the military’s grocer. Its mission is to sell food and household goods at cost, providing a key savings for military families. It is an appropriated fund agency, meaning its operations depend on a budget approved by Congress.
The Army & Air Force Exchange Service (AAFES) and Navy Exchange, commonly referred to as “the Exchange,” are the military’s retail stores, with locations found on bases both stateside and overseas.
The Exchange offers a wide range of general merchandise, clothing, electronics, and services. AAFES is a non-appropriated fund organization. It funds itself, like a private business, using its own sales revenue. This financial independence is how AAFES can remain open when government funding is stopped.
BX/PX/NEX Open For Business
Because AAFES is self-funded, it is immune to the direct effects of the appropriations lapse resulting in the shutdown. All AAFES stores, food courts, and online services continue to operate normally.
Find Out What Military Benefits You’re Missing — Sign up today to receive the MyMilitaryBenefits newsletter free to your inbox.
At press time, the Army & Air Force Exchange Service (AAFES), which is responsible for running BX and PX operations at military bases worldwide, will remain fully operational indefinitely during the government shutdown.
Similarly, the Navy Exchange Service Command (NEXCOM) keeps its NEX stores and Navy Lodges open. These operations are paid with earnings, not taxpayer dollars. This allows Navy exchanges to operate normally and pay employees.
Defense Commissary Agency (DeCA)
The same is not true of the Defense Commissary Agency (DeCA) faces potential stateside closures in December if funding is not restored.
AAFES is able to continue operations because it is a non-appropriated fund (NAF) entity. This structure means AAFES funds its own operations and payroll through the sale of its goods and services, not from funds allocated by Congress.
DeCA’s Financial Deadline
To prevent an immediate shutdown of all 235 commissaries, the Department of Defense authorized DeCA to continue operations by spending its existing cash reserves.
Agency officials confirmed in late October that DeCA has enough cash on hand to maintain normal operations for all stores through the Thanksgiving holiday. DeCA Director John Hall stated the agency’s goal included plans to “sprint through Thanksgiving.”
Based on current spending, DeCA projects its working capital fund will be completely exhausted by December 4, 2025. If Congress fails to pass a funding bill before that date, the agency is required to close stores.
Find Out What Military Benefits You’re Missing — Sign up today to receive the MyMilitaryBenefits newsletter free to your inbox.
DeCA Contingency Plan
If the shutdown continues into December, DeCA will implement a two-tiered contingency plan. This plan prioritizes service members and families in locations that have no other access to American groceries.
Under the plan, DeCA would close all 168 commissaries within the continental United States (CONUS). This would be a major blow to stateside families who rely on the commissary savings to stretch their budgets.
The plan would keep 67 commissaries open. This includes all OCONUS (overseas) stores, such as those in Europe, Japan, and Korea, as well as commissaries in Puerto Rico and Guam.
It also protects a handful of commissaries in remote US locations, such as Fort Irwin, California, and Dugway Proving Ground, Utah, where local grocery options are limited.
Find Out What Military Benefits You’re Missing — Sign up today to receive the MyMilitaryBenefits newsletter free to your inbox.\
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
