Title 22 — Foreign Relations and IntercourseRelease 119-73not60

§421 Contracts by Government Agencies for Defense Articles, Services, Etc., for Foreign Governments in Interests of United States

Title 22 › Chapter 9— FOREIGN WARS, WAR MATERIALS, AND NEUTRALITY › Subchapter I— WAR MATERIALS › § 421

Last updated Apr 5, 2026|Official source

Summary

The President can let a government department or agency enter into contracts to buy or provide defense equipment, information, or services for a foreign government if he thinks that country’s defense is important to U.S. security. The foreign government must agree to pay the United States before getting the items and make payments as the President requires. Once the full cost is paid, the President may transfer the items, information, or services to that government. The total amount of outstanding contracts minus payments already made can never exceed $600,000,000.

Full Legal Text

Title 22, §421

Foreign Relations and Intercourse — Source: USLM XML via OLRC

The President may, from time to time, when he deems it in the interest of national defense, authorize the head of any department or agency of the Government, to enter into contracts for the procurement of defense articles, information, or services for the government of any country whose defense the President deems vital to the defense of the United States, to the extent that such government agrees to pay the United States for such defense articles, information, or services prior to the receipt thereof and to make such payments from time to time as the President may require to protect the interests of the United States; and, upon payment of the full cost, the President may dispose of such articles, information, or services to such government: Provided, That the total amount of the outstanding contracts under this section, less the amounts which have been paid to the United States under such contracts, shall at no time exceed $600,000,000.

Reference

Citations & Metadata

Citation

22 U.S.C. § 421

Title 22 — Foreign Relations and Intercourse

Last Updated

Apr 5, 2026

Release point: 119-73not60