A military family could see grocery bills go up by $3,000 a year under the latest Pentagon budget proposal.
Grocery stores for military families, also called commissaries, will be able to offer fewer savings over the next three years as the Department of Defense would slash most of the taxpayer subsidies that prop up these stores, according to the plan released Monday.
Each year, $1.4 billion in taxpayer dollars go to 178 commissaries nationwide and 67 located overseas. The Department of Defense plans to slash $1 billion of those subsidies, mostly affecting the U.S. stores.
Besides paring back grocery savings, the Pentagon would also cap military pay raises at 1% in 2015 and trim housing subsidies for families who don't live on bases. They will also no longer be reimbursed for rental insurance.
Families are likely to feel the sharpest pain every week when they shop for their grocery. By the end of the third year, the savings will be slashed by about two-thirds, a senior defense official acknowledged on Monday.
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