Made-in-America Defense Act
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Would require the State Department to conduct annual reviews of the list of defense items that can only be sold government-to-government, examining whether some of those items should also be available for direct sale by U.S. companies to foreign governments — and report findings to Congress within 30 days.
Proponents argue that allowing more items to be sold through direct commercial channels could speed delivery to allies and boost U.S. defense-industry competitiveness, since government-to-government transfers can involve lengthier contracting timelines.
What this bill would do
What it would do
The bill would direct the Secretary of State, working with the Secretary of Defense, to review the FMS-Only List — the list of defense articles and services that may be sold to foreign governments only through the Foreign Military Sales (FMS) program, a government-to-government channel — and identify which items should also be eligible to be sold through Direct Commercial Sales (DCS), where U.S. companies transact directly with foreign governments. The review must be completed within one year of enactment and repeated annually. For each item identified, the review must address average transfer times under FMS versus DCS, the workload impact on the State and Defense Departments, and the national security and competitiveness benefits of allowing direct commercial sales.
Within 30 days of completing each review, the State Department must report to the relevant House and Senate committees on foreign affairs and armed services. The report must cover average transfer times, leading causes of delays, steps taken to reduce them, and any items added to or removed from the FMS-Only List. It would be submitted in unclassified form but may include a classified annex. The bill does not itself move any items off the FMS-Only List or authorize new commercial sales.
Key provisions
- 1Would require the Secretary of State, in coordination with the Secretary of Defense, to review the FMS-Only List annually to identify items that should also be eligible for direct commercial sales.
- 2Would require the review to assess average transfer times under FMS versus direct commercial sale, workload impacts on State and Defense, and national security and competitiveness benefits.
- 3Would require the State Department to report to designated congressional committees within 30 days of each review's completion, covering transfer-time averages, delay causes, remediation steps, and any FMS-Only List changes.
- 4Would require the report to be submitted in unclassified form, with an option to include a classified annex.
Who would be affected
The State Department and the Defense Department, which would carry out and coordinate the reviews and reports. U.S. defense manufacturers that sell internationally would benefit if the review results in items being made eligible for direct commercial sales. Allied and partner foreign governments would also be affected if delivery timelines change as a result of shifting items to direct commercial channels.
Why it matters
If the reviews lead the State Department to open more defense items to direct commercial sale, U.S. companies could compete for contracts they currently cannot, and foreign partners could receive equipment faster. For allies in contested regions, shorter delivery windows can be operationally significant. The reporting requirement also gives Congress visibility into transfer-time trends and the rationale for changes to the FMS-Only List over time.
What would change
Changes to existing law
Creates Arms Export Control Act, chapter 2 (Sec. 3)
Adds a new annual review-and-report requirement tied to the FMS program governed by this chapter, without amending its substantive text.
Creates Arms Export Control Act, section 38 (Sec. 3)
References the direct commercial sales authority in section 38 as the benchmark for the review; does not amend the section itself.
Agencies directed to act
Effective dates
- First annual review of the FMS-Only List must be completed
- Congressional report on each annual review must be submitted
How implementation would work
The Secretary of State leads each annual review in coordination with the Secretary of Defense. The review assesses FMS-versus-DCS transfer timelines (measured from letter of request to delivery), workload impacts, and national security benefits for each identified item. Within 30 days of completing the review, the State Department submits an unclassified report — with an optional classified annex — to the House Foreign Affairs and Armed Services Committees and the Senate Foreign Relations and Armed Services Committees. The bill does not specify a rulemaking process, but adding or removing items from the FMS-Only List would require the agencies' own administrative action.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Foreign Relations.
Official CRS summary
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This bill requires the Department of State to conduct an annual review to identify defense articles and services eligible to be sold only through Foreign Military Sales (FMS) (i.e., U.S. government to foreign government sales) that should also be eligible to be sold through Direct Commercial Sales (DCS) (i.e., U.S. company to foreign government sales).
For each article or service identified, the review must address (1) the length of time to complete a transfer of the article or service through the FMS program as compared to the DCS process; (2) the impact of a transfer of the article or service through the DCS process on the workload of the State Department and the Department of Defense; and (3) the benefits of the transfer of the article or service through the DCS process to U.S. national security and competitiveness.
Within 30 days of the completion of each annual review, the State Department must report to Congress on the results of the review.
Legislative subjects
Congressional oversight; Foreign aid and international relief; International Affairs; Military assistance, sales, and agreements; Trade restrictions