Foreign Military Sales Reform Act of 2025

This bill changes the dollar limits that decide when the U.S. must tell Congress about planned arms sales or defense services to other countries. It raises many notification limits (for example, from $50 million to $83 million, with some categories going up to $332 million or $500 million, and some to $42 million) and lowers a few smaller triggers from $4 million to $3 million. This could mean fewer medium‑sized deals get advance notice to Congress, while very small deals have a slightly lower trigger.

It also cracks down on “deal splitting” to avoid these rules. The State Department’s watchdog must report on any payment structuring meant to dodge the notice limits. Federal employees are banned from helping to structure deals this way. If a State Department employee does it, they must be removed from federal service and face a $100,000 civil fine.

• Who is affected: State Department employees; companies and foreign partners involved in U.S. arms sales; Congress’s oversight process.
• What changes: Several notice thresholds go up (e.g., to $83M, $332M, $500M, and $42M), while some small ones drop to $3M; new reporting and penalties to stop deal splitting.
• When: No specific timeline is stated in the text provided.