Stop Prison Price Gouging Act of 2026
- Sponsor
- Rep. Foushee, Valerie P. [D-NC-4]
- Committees
- Judiciary Committee (primary)
- Last action
- Jul 23, 2026
Bottom line
The bill aims to prevent price gouging in federal prison commissaries by linking prices to fair market value and increasing oversight and transparency in BOP contracting and pricing practices.
What it actually does
This bill mandates that the Director of the Bureau of Prisons (BOP) set prices for commissary goods in federal facilities at no more than the fair market value in the state where the facility is located. It requires competitive bidding for commissary contracts, prohibits revenue sharing, and establishes monthly price reviews, annual reports to Congress, and annual audits by the Comptroller General to ensure compliance. The bill also defines 'fair market value' by excluding prices from other correctional or captive markets.
Proponents argue
Supporters argue that incarcerated individuals and their families constitute a captive market, making them vulnerable to inflated prices for essential goods. This bill, proponents contend, ensures fairness, reduces the financial burden on these vulnerable populations, and promotes transparency and accountability in federal prison operations by introducing market-based pricing and rigorous oversight.
Opponents contend
Critics might argue that implementing and continuously monitoring 'fair market value' across diverse states and product categories could create a significant administrative burden for the Bureau of Prisons. They may also contend that reducing commissary profits, which often fund inmate welfare programs, could inadvertently harm incarcerated individuals unless alternative funding sources are secured.
The bill is short and clearly written, allowing for a quick and comprehensive understanding of its provisions.
Section 2(a)
Fair Market Value Pricing for Commissary Goods
This provision requires the Director of the Bureau of Prisons (BOP) to ensure that the price of any commissary good sold in a federal prison facility does not exceed the fair market value for that same good in the state where the prison is located. This aims to prevent inflated prices for items purchased by incarcerated individuals.
Supporters argue
Supporters argue this provision is essential to prevent the exploitation of a captive market, ensuring that incarcerated individuals and their families are not subjected to exorbitant prices for basic necessities, thereby promoting dignity and reducing financial strain.
Critics contend
Opponents might argue that the unique logistics and security costs associated with operating prison commissaries justify higher prices, and that a strict fair market value cap could make it difficult for BOP to cover operational expenses or contribute to inmate welfare funds.
Tradeoffs
The provision balances the goal of fair pricing for incarcerated individuals against potential administrative complexities for the BOP and the financial viability of commissary operations, including any funds they might generate for inmate services.
Section 2(b)(1)
Competitive Bidding and Prohibition on Revenue Sharing for Contracts
This section mandates that the Bureau of Prisons Director use a competitive bidding process when entering into contracts for commissary goods. Crucially, it also prohibits the BOP from entering into any contract that includes revenue sharing, meaning vendors cannot pay a portion of their sales back to the BOP.
Section 2(c)
Annual Report to Congress
This provision requires the Director of the Bureau of Prisons to submit an annual report to Congress. This report must include a detailed list of every commissary good available in each BOP facility, its price, and a summary of all contracts entered into for commissary goods, including their specific terms.
Section 2(d)
Annual Audit by Comptroller General
This provision mandates that the Comptroller General of the United States (who heads the Government Accountability Office, or GAO) conduct an annual audit of every Bureau of Prisons facility. The purpose of these audits is to determine whether the BOP is complying with the requirement to set commissary prices at or below fair market value.
Section 2(e)
Definition of Fair Market Value
This section precisely defines 'fair market value' for the purpose of the bill. It specifies that it means the average retail price of an identical or similar consumer good sold to the general public within the state where the prison is located. The BOP Director must determine this value using prices from multiple nationally recognized retail stores, regional retailers, and online retailers, explicitly excluding prices from other correctional institutions or captive markets.
Requires the Director of the Bureau of Prisons to review commissary prices monthly to ensure they comply with the fair market value requirement.
Section 2(b)(2)
Why it matters:This is standard legislative practice for detailing implementation steps and ongoing compliance mechanisms for a primary policy.
Case for: Proponents argue that this monthly review is crucial for continuous oversight, preventing prices from gradually creeping up and ensuring the sustained effectiveness of the fair market value mandate.
Case against: Critics might contend that a monthly review for potentially thousands of items across numerous facilities imposes an excessive administrative burden on the BOP, potentially diverting resources from other critical correctional functions.
Estimated impact: Increased administrative workload for the Bureau of Prisons, requiring ongoing resource allocation for price monitoring and verification.