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119-hr-8649119th CongressWALLET

Expanding the Defense Industrial Base Sales Act

Sponsored By: Representative Baumgartner, Michael [R-WA-5]

In Committee

Summary

Allows Foreign Military Financing to be used for direct commercial defense contracts so eligible foreign countries and international organizations could use FMF dollars to buy defense articles, defense services, and design and construction services that are not sold by the U.S. government. The bill would also require approval from the Secretary of State in consultation with the Secretary of Defense and set rules for how the authority is used.

Show full summary
  • Eligible foreign governments and international organizations: Could use Foreign Military Financing to buy defense items and services from private sellers instead of only through U.S. government-to-government sales.
  • U.S. defense and commercial companies: Opens new sales opportunities, including for nontraditional defense firms, to compete for FMF-funded contracts.
  • Department of State and Department of Defense: The Secretary of State must approve extensions in consultation with Defense and issue implementing regulations within 180 days covering review procedures, audits, financial accountability, end-use monitoring, and export control compliance.
  • Policy scope: The authority is added on top of the existing Foreign Military Sales program and does not replace it.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

U.S. financing for commercial defense sales

If enacted, the bill would let Foreign Military Financing (FMF) money pay for a foreign government's purchase of defense articles, defense services, and design and construction services that are not sold by the U.S. Government. The Secretary of State, after consulting the Secretary of Defense, would have to approve using this authority for any eligible country or international organization and would be able to set terms, conditions, and limits. Within 180 days of enactment, the Secretary of State and Secretary of Defense would have to write rules on approvals, audits and financial accountability, end‑use monitoring and export control compliance, and steps to encourage nontraditional defense companies. This authority would be additional to, and would not replace, the existing Foreign Military Sales program, and if enacted it would expand sales options for U.S. defense firms while increasing federal financing exposure.

Sponsors & CoSponsors

Sponsor

Baumgartner, Michael [R-WA-5]

WA • R

Cosponsors

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 5/12/2026

Roll Call Votes

No roll call votes available for this bill.

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