Foreign Military Financing Loan Authorization Act of 2026

Loans for foreign governments to buy weapons

If enacted, the Secretary of State would be able to make direct loans and loan guarantees to foreign countries and international organizations. These loans would finance purchases of defense articles, defense services, and design and construction services under the Arms Export Control Act. The Secretary would set interest rates, repayment schedules, and other loan terms. Loans and guarantees would remain subject to the Arms Export Control Act, any terms the Secretary prescribes, and the availability of funds Congress appropriates. The Department of State would be allowed to use funds deposited under the Foreign Military Sales administrative surcharge for these activities. Within 180 days after enactment, and annually after that, the Secretary would report to the House Foreign Affairs Committee and the Senate Foreign Relations Committee on each loan or guarantee, the recipient, amount, terms, purpose, a national security impact assessment, and any additional State Department resource needs.