Expanding the Defense Industrial Base Sales Act

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