Expanding the Defense Industrial Base Sales Act
Sponsored By: Representative Baumgartner, Michael [R-WA-5]
In Committee
Summary
Expands Foreign Military Financing to let partners buy defense goods directly from private companies. This bill would allow Foreign Military Financing (FMF) to fund purchases of defense articles, defense services, and design and construction services that are not sold by the U.S. government, while keeping the existing foreign military sales framework intact.
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- Foreign partners: Eligible countries and international organizations could use FMF dollars to pay contractors directly for defense items and services that the U.S. government does not sell. This creates a new payment option for recipients of U.S. security assistance.
- U.S. oversight and policy control: The Secretary of State, in consultation with the Secretary of Defense, must approve each use and set terms and limits to advance U.S. foreign policy and national security interests.
- Rules and industry access: The Secretary of State and Secretary of Defense must issue implementing regulations within 180 days covering review procedures, audits, reporting, end-use monitoring, export controls, financial accountability, and steps to encourage nontraditional defense companies to participate.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Foreign Military Financing for commercial sales
If enacted, the bill would let Foreign Military Financing (FMF) money pay for defense articles, defense services, and design and construction services that the U.S. Government does not sell. This would apply to any foreign country or international organization eligible for FMF. The Secretary of State, after consulting the Secretary of Defense, would have to approve each use and could set terms and limits to protect U.S. policy and security. The Secretaries would have to issue implementing regulations within 180 days covering approval steps, audits and financial accountability, end‑use monitoring and export control compliance, and ways to encourage nontraditional defense companies. This authority would be in addition to the existing Foreign Military Sales program.
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.
View on Congress.gov