H.R. 8649

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8649 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8649

To amend the Arms Export Control Act to authorize the use of foreign 
military financing for direct commercial contracts, and for other 
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 4, 2026

Mr. Baumgartner introduced the following bill; which was referred to 
the Committee on Foreign Affairs

_______________________________________________________________________

A BILL

To amend the Arms Export Control Act to authorize the use of foreign 
military financing for direct commercial contracts, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Expanding the Defense Industrial 
Base Sales Act''.

SEC. 2. AUTHORIZATION OF FOREIGN MILITARY FINANCING FOR DIRECT 
COMMERCIAL CONTRACTS.

The Arms Export Control Act (22 U.S.C. 2751 et seq.) is amended by 
inserting after section 23 the following new section:

``SEC. 23A. USE OF FOREIGN MILITARY FINANCING FOR DIRECT COMMERCIAL 
CONTRACTS.

``(a) Authority.--Notwithstanding section 23(h), funds made 
available to carry out the foreign military financing program under 
this Act may be used to finance the procurement by any foreign country 
or international organization eligible to receive such financing under 
this Act of defense articles, defense services, and design and 
construction services that are not sold by the United States 
Government.
``(b) Approval and Oversight.--The use of foreign military 
financing authorized in subsection (a) shall--
``(1) be approved by the Secretary of State, in 
consultation with the Secretary of Defense, prior to the 
extension of such authority to any foreign country or 
international organization; and
``(2) be subject to such terms, conditions, and limitations 
as the Secretary of State determines appropriate to advance the 
foreign policy and national security interests of the United 
States.
``(c) Implementing Regulations.--Not later than 180 days after the 
date of the enactment of this section, the Secretary of State, in 
coordination with the Secretary of Defense, shall prescribe regulations 
to implement this section, including regulations relating to, with 
respect to foreign military financing for direct commercial contracts 
authorized in subsection (a)--
``(1) procedures for review and approval;
``(2) audit, reporting, and financial accountability 
standards;
``(3) compliance with end-use monitoring and export control 
requirements; and
``(4) efforts to encourage participation by nontraditional 
defense companies.
``(d) Rule of Construction.--The authority provided by this section 
is in addition to, and shall not be construed to limit or replace, the 
foreign military sales program otherwise authorized by this Act.''.
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