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Requires the Secretary of State, working with the Secretary of Defense, to review within 1 year and then annually the list of defense items that are available under the Foreign Military Sales (FMS) program but not available under Direct Commercial Sales (DCS). The review must compare average transfer times between FMS and DCS, assess workload impacts on State and Defense, evaluate national security and U.S. competitiveness effects, and identify items that could appropriately be moved from FMS-only to allow DCS. After each review the Secretaries must send an unclassified report (with an optional classified annex) to specified congressional committees within 30 days. Reports must show average transfer times (current and prior period comparisons), leading causes of delays, steps taken to reduce delays, and any proposed additions or removals from the FMS-only list with justification. The legislation sets reporting and review requirements but does not authorize new spending or change the underlying export-control authorities.
The bill aims to speed and expand commercial sales of certain defense items—potentially improving allied readiness and U.S. industry competitiveness—while increasing export‑control, oversight, and procurement‑cost risks if safeguards, reporting, and review rigor are not maintained.
Allied and partner forces (and U.S. military personnel working with them) will receive some defense equipment faster, improving readiness, deterrence, and interoperability.
Periodic reviews and joint State/Defense identification of items suitable for commercial sale will reduce procurement delays and expand pathways for non‑FMS transactions, speeding deliveries and increasing flexibility.
U.S. defense companies and contractors could gain new commercial sales and export opportunities, boosting competitiveness and potential industry growth.
Faster commercialization and reduced reliance on FMS could increase export‑control and national security risks if reviews are insufficient, raising the chance of unsuitable or insecure transfers.
Shifting items from government‑to‑government FMS to commercial channels could reduce congressional and government oversight and transparency over some arms transfers.
Allied purchasers could face higher costs, different pricing/support arrangements, or procurement uncertainty when items move from FMS protections to commercial contracts.
Introduced June 27, 2025 by Sheri Biggs · Last progress September 3, 2025