Allows foreign military financing funds to pay for defense equipment and services that foreign governments buy directly from companies rather than through the U.S. government.

• Adds a new section 23A to the Arms Export Control Act.
• Lets foreign military financing pay for defense articles, defense services, and design and construction services not sold by the U.S. government, overriding the limits in section 23(h).
• Requires the Secretary of State, after consulting the Secretary of Defense, to approve this use before it is extended to any country or international organization, and lets the Secretary set the terms and conditions.
• Requires the State and Defense Departments to issue implementing regulations within 180 days after enactment covering review, audit and reporting, end-use monitoring, and encouraging nontraditional defense companies to take part.
• States that this authority is in addition to the foreign military sales program and does not limit or replace it.

• Foreign Affairs Committee (House)

International Affairs