https://crsreports.congress.gov
Updated June 30, 2021
Defense Primer: Military Commissaries and Exchanges
The Department of Defense (DOD) offers certain quality-
of-life benefits to military members, their families, and
retirees. The general purpose of these benefits is to attract,
retain, and support morale and readiness for military
servicemembers. One of these benefits is worldwide access
to grocery and retail stores—called commissaries and
exchanges—typically located on military installations.
Commissaries provide subsidized groceries and household
goods to eligible patrons. Exchanges sell goods for profit,
similar to a department or specialty store, but use some of
this profit to fund various Morale, Welfare, and Recreation
(MWR) activities (see Table 1).
Organization and Management
Defense Commissaries
The modern commissary system began in 1867. Each of the
services operated its own commissaries and exchanges until
1991, when the commissary system was consolidated under
the Defense Commissary Agency (DeCA). According to the
DeCA Annual Report for FY2020, as of September 30,
2020, DeCA operated 236 stores on military installations
worldwide, including in 13 countries and 2 U.S. territories;
and employ a workforce of over 12,000 civilian full-time
equivalents (FTEs). As a defense agency, DeCA reports to
the Office of the Secretary of Defense and has a board of
directors composed of members from each of the military
services. DeCA provides subsidized groceries and
household goods at cost plus a 5% surcharge that is used to
fund new commissary construction and store-level
refurbishment, maintenance, and equipment.
Table 1. Breakdown of Commissaries vs. Exchanges
Sources: “About DeCA” at https://www.commissaries.com/our-
agency/about-deca; and “Exchange Quick Facts,” at
https://www.aafes.com/about-exchange/exchange-quick-facts/.
Notes: *In 2013, DeCA started a trial program offering online
ordering with curbside pickup, known as Click2Go. The trial ended
on June 1, 2019. By the end of July 2021, approximately 87 stores
(which is nearly half of all 178 stateside stores) will have the online
ordering/curbside pickup service. DeCA is waiving the $4.95 service
fee for each order, until further notice. This fee is usually waived the
first 30 days after the Click2Go service is initiated at a store.
According to Bill Moore, DeCA’s director and CEO, “this will allow
DeCA to have a strong e-commerce presence in keeping with its
strategic goals to make the commissary benefit accessible to as many
patrons as possible.”
Military Exchanges
DOD maintains an exchange system that includes the Army
and Air Force Exchange System (AAFES), the Navy
Exchange (NEX), and the Marine Corps Exchange (MCX).
Each service has its own board of directors to align
operations and services. These exchanges provide military
installations with goods and services similar to department
stores and are often located near commissaries. Some
exchanges also operate gas stations, mini-marts, food
courts, barber and beauty shops, and liquor stores, some of
which are operated by outside or contract vendors.
According to AAFES, “20% to 30% of its foot traffic,
representing $1 billion in sales, is attributable to customers’
proximity to commissaries.” DOD regulates what items
may be sold at commissaries and exchanges to comply with
statutory requirements (10 U.S.C. §2483) and to avoid
direct competition with one another.
Authorized Patrons
Authorized patrons of military commissaries and exchanges
include active duty, National Guard and Reserve members,
military retirees, Medal of Honor recipients, 100% disabled
veterans, and certain family members or dependents. Since
November 11, 2017, DOD has allowed limited online
exchange shopping privileges to all honorably discharged
veterans. Veterans may verify eligibility at
https://www.shopmyexchange.com/veterans.
On January 1, 2020, more than 4 million service-connected
disabled veterans, Purple Heart recipients, former prisoners
of war, and their primary caregivers were granted eligibility
to full commissary access and certain MWR activities in
Section 621 of the John S. McCain National Defense
Authorization Act (NDAA) for FY2019 (P.L. 115-232).
Section 641 of the FY2020 NDAA (P.L. 116-92), extended
certain MWR privileges to Foreign Service officers of the
Department of State on mandatory home leave.
The FY2021 William M. (Mac) Thornberry NDAA (P.L.
116-283) enacted on January 1, 2021, included provisions
(Sections 631 and 632) that authorized base first responders
the use of commissary stores and MWR facilities, and
external first responders’ access to mobile commissary or
exchange stores when deployed to an area covered by a
declaration of a major disaster or emergency.
On April 29, 2021, DOD announced expanded access
effective May 1, 2021, to DOD and Coast Guard civilian
employees and civilian retirees to shop at military
exchanges in the United States, U.S. territories and
possessions. Online access is to be available to these
