Is Stolen Valor a Federal Criminal Offense now?

The Stolen Valor Act is a real thing and it is a publishable crime.

But with that said what you described isn’t necessarily Stolen Valor.

Wearing a jacket with patches just means you are wearing a jacket with patches.

You have to determine the intent of fraud among other things. Unless a State has their own Stolen Valor legislation there is a very narrow scope for what can be punished under the Stolen Valor Act.

https://www.google.com/amp/s/http://www.military.com/daily-news/2013/06/03/obama-signs-new-stolen-valor-act.html/amp

Several states have a law that address the issue.
TEXAS
(b) A person commits an offense if the person:
(1) uses or claims to hold a military record that the person knows:
(A) is fraudulent;
(B) is fictitious or has otherwise not been granted or assigned to the person;  or
(C) has been revoked;  and
(2) uses or claims to hold that military record:
(A) in a written or oral advertisement or other promotion of a business;  or
(B) with the intent to:
(i) obtain priority in receiving services or resources under Subchapter G, Chapter 302, Labor Code;  1
(ii) qualify for a veteran's employment preference under Chapter 657, Government Code;
(iii) obtain a license or certificate to practice a trade, profession, or occupation;
(iv) obtain a promotion, compensation, or other benefit, or an increase in compensation or other benefit, in employment or in the practice of a trade, profession, or occupation;
(v) obtain a benefit, service, or donation from another person;
(vi) obtain admission to an educational program in this state;  or
(vii) gain a position in state government with authority over another person, regardless of whether the actor receives compensation for the position.

Federal Law
"The Stolen Valor Act of 2013 (Pub.L. 113–12 (text) (pdf); H.R. 258) is a United States federal law that was passed by the 113th United States Congress. The law amends the federal criminal code to make it a crime for a person to fraudulently claim having received a valor award specified in the Act, with the intention of obtaining money, property, or other tangible benefit by convincing another that he or she received the award."

None of the laws state or federal I have seen would call wearing a uniform item in of itself "stolen Valor" nor should they.

It's only punishable if someone using specific awards is trying to benefit of the 'stolen' valor.

Are these people wearing BDUs with patches trying to benefit off their service or made up service in any way? If no, then no it's not a crime.

"he Stolen Valor Act of 2013 (Pub.L. 113–12 (text) (pdf); H.R. 258) is a United States federal law that was passed by the 113th United States Congress. The law amends the federal criminal code to make it a crime for a person to fraudulently claim having received a valor award specified in the Act, with the intention of obtaining money, property, or other tangible benefit by convincing another that he or she received the award.

The law is a revised version of a previous statute struck down by the Supreme Court of the United States in United States v. Alvarez. In Alvarez the Supreme Court ruled the arrest and prosecution of a citizen for wearing unearned military awards, who did so without criminal intent, violates their constitutional right to freedom of speech."

The Stolen Valor Act of 2013 amends the federal criminal code to rewrite provisions relating to fraudulent claims about military service to subject to a fine, imprisonment for not more than one year, or both for an individual who, with intent to obtain money, property, or other tangible benefit, fraudulently holds himself or herself out to be a recipient of:

Medal of Honor
Distinguished Service Cross
Navy Cross
Air Force Cross
Silver Star
Bronze Star
Purple Heart
Combat Action Ribbon
Combat Infantryman's Badge
Combat Action Badge
Combat Medical Badge
Combat Action Medal
Or any replacement or duplicate medal for such medal as authorized by law.

Basically if they're wearing any of these awards and they didn't earn them AND they're benefitting someway off the false wear of these awards, then it's punishable. If not - oh well. Freedom of speech/expression.