Department of Defense Abandons Commissary Privatization
The Department of Defense (DoD) has canceled plans to privatize the military commissary system after months of analysis and industry feedback. Anthony Tata, Under Secretary of Defense for Personnel and Readiness, confirmed the abandonment of the initiative in June 2026, during an American Logistics Association meeting.
Pentagon Abandons Commissary Privatization Plans
According to the DeCA official site, “On July 1, 2026, the Defense Commissary Agency will mark 159 years that commissaries have been providing a valuable benefit of low-cost groceries to the military community. “
The commissary benefit has evolved over the decades. “Initially, privileges were restricted to officers starting in 1825. However, the era of the modern benefit started on July 1, 1867, when Congress authorized enlisted service members to shop there as well.”
That evolution could have been derailed if DeCA had moved under a private sector company rather than direct federal control. Critics of the DeCA privatization plan point out that military privatization efforts in other sectors, especially military family housing, have not gone well.
DeCA Today
Today, military commissaries continue to provide discounted groceries to service members, retirees, and their families. Commissaries are non-appropriated fund activities, but they rely on taxpayer funds to operate and offer a 23.7 percent savings benchmark on groceries compared to commercial retailers.
>> Never miss benefits news and updates that are important to you. Sign up today to receive the MyMilitaryBenefits newsletter free to your inbox.
The DoD proposed that private industry could maintain these savings without direct government subsidies, but reality does not match the DoD’s vision for the Defense Commissary Agency.
Market research revealed that private-sector involvement is unsustainable.
- Pricing Constraints. Potential private operators could not reconcile their commercial business models with the DoD requirement to meet the 23.7 percent savings benchmark.
- Operational Inequity. Analysis indicated that while commercial operators might target high-volume, urban locations, they could not provide consistent service at remote or overseas installations.
- Statutory Limitations: The Fiscal Year 2026 National Defense Authorization Act includes requirements for the commissary benefit. The DoD formally notified Congress in 2026 that the proposed privatization was not possible.
Staying Federal
The decision to skip privatization maintains the current federal oversight of the Defense Commissary Agency (DeCA), ensuring the following for service members:
- Commissary pricing remains protected from commercial market volatility.
- Stores in remote and overseas locations remain operational, bypassing the profit-driven pressures that would otherwise likely result in closures.
- The current surcharge structure remains under federal control, ensuring funds continue to support facility modernization.
- DeCA operations continue to be informed by federal policies and the needs of the troops, rather than the profit margin needs of a private company.
>> Never miss benefits news and updates that are important to you. 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.
