“To amend the Arms Export Control Act to authorize the use of foreign military financing for direct commercial contracts, and for other purposes.”
No CRS summary available for this bill.
This section authorizes the use of Foreign Military Financing (FMF) funds for eligible foreign countries and international organizations to procure defense articles, defense services, and design and construction services directly from non-U.S. government commercial sources (i.e., direct commercial contracts), notwithstanding existing restrictions under section 23(h) of the Arms Export Control Act. (As background, FMF provides grants and loans to allies and partners to purchase U.S. defense items and services, typically through government-to-government Foreign Military Sales.) It requires prior approval by the Secretary of State (in consultation with the Secretary of Defense) subject to terms advancing U.S. foreign policy and national security interests; directs the Secretaries to issue implementing regulations within 180 days of enactment, including procedures for review and approval, audit and financial accountability standards, end-use monitoring and export controls, and promotion of nontraditional defense companies; and specifies that this authority supplements, but does not limit or replace, the existing Foreign Military Sales program.