As has been pointed out by other posters, the Military has their own
regulation bringing them into compliance with some sections of CFR14,
but this document is controlled by the military and is in no way
subject to FAA review.

This law you speak of was created by the Congress that you say has no
power over the military.

# U.S. Code:

* 10 U.S.C. - Armed Forces
* 18 U.S.C. § 1024 - Purchase or Receipt of Military, Naval, or
Veteran's Facilities Property
* 32 U.S.C. - National Guard
* 37 U.S.C. - Pay and Allowances of the Uniformed Services
* 38 U.S.C. - Veterans' Benefits
* 50 U.S.C. - War and National Defense


The President being Commander-in-Chief in no way reduces the ability
of Congress to make laws governing the military.