H.R. 8665 — Allied Defense Sales Act

This section directs the Secretary of State, not later than 180 days after the date of enactment, to implement a strategy to encourage foreign partners to participate in foreign military sales (FMS) and direct commercial sales (DCS) processes on a multinational basis (i.e., a lead nation purchases U.S. defense articles or services for retransfer to participating countries or those identified via a qualifying multilateral agreement such as a cross-servicing agreement). The strategy must incorporate Department of State efforts to (1) survey interest among potentially eligible countries; (2) identify potential lead coordinators and incentives; (3) review participation pathways for countries ineligible for foreign military financing loans; (4) identify challenges and solutions under the Arms Export Control Act, including end-use monitoring and licensing; (5) expedite license authorizations and sales outside programs of record; (6) detail national security benefits such as interoperability and industrial base support; and (7) promote exportable defense articles and services, including for the AUKUS partnership (i.e., the Australia-United Kingdom-United States trilateral security partnership announced in September 2021). The section further requires the Secretary to submit to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations an initial report on the strategy and its implementation not later than 180 days after enactment, and additional reports every 180 days thereafter for three years. Each report must describe implementation updates, challenges and efforts to address them, potential legislative changes needed, and promotion of exportables for multinational processes including AUKUS. Reports must be unclassified, with a possible classified annex.