Section 1 Short title
This Act may be cited as the “Foreign Military Sales Reform Act of 2025”.
Foreign Military Sales Reform Act of 2025
A BILL
To modify the dollar amount thresholds relating to transfers of defense articles and defense services under the Arms Export Control Act, and for other purposes.
Sec. 2 Modification of dollar amount thresholds relating to transfers of defense articles and defense services under the Arms Export Control Act
The Arms Export Control Act is amended as follows:
In section 3(d) (22 U.S.C. 2753(d))—
in paragraph (1)—
by striking “$14,000,000” and inserting “$23,000,000”; and
by striking “$50,000,0000” and inserting “$83,000,000”; and
in paragraph (3)(A)—
by striking “$14,000,000” and inserting “$23,000,000”; and
by striking “$50,000,0000” and inserting “$83,000,000”.
In section 36(b) (22 U.S.C. 2776(b))—
in paragraph (1)—
by striking “$50,000,0000” and inserting “$83,000,000”;
by striking “$200,000,000” and inserting “$332,000,000”; and
by striking “$14,000,000” and inserting “$23,000,000”;
in paragraph (5)(C)—
by striking “$14,000,000” and inserting “$23,000,000”;
by striking “$50,000,0000” and inserting “$83,000,000”; and
by striking “$200,000,000” and inserting “$332,000,000”; and
in paragraph (6)—
in subparagraph (A), by striking “$25,000,000” and inserting “$42,000,000”;
in subparagraph (B), by striking “$100,000,0000” and inserting “$166,000,000”; and
in subparagraph (C), by striking “$300,000,000” and inserting “$500,000,000”.
In section 36(c) (22 U.S.C. 2776(c))—
in paragraph (1)—
by striking “$14,000,000” and inserting “$23,000,000”; and
by striking “$50,000,0000” and inserting “$83,000,000”; and
in paragraph (5)—
in subparagraph (A), by striking “$25,000,000” and inserting “$42,000,000”; and
in subparagraph (B), by striking “$100,000,0000” and inserting “$166,000,000”.
Sec. 3 Report
The Office of the Inspector General of the Department of State shall submit to Congress a report on any activity of structuring payments to circumvent the dollar amount thresholds of congressional notification and review with respect to transfers of defense articles and defense services under the Arms Export Control Act.
Sec. 4 Prohibition on certain activities of Federal employees
No Federal employee may intentionally or knowingly structure, assist in structuring, or attempt to structure or assist in structuring any transfer of defense articles and defense services under the Arms Export Control Act to circumvent congressional reporting thresholds under that Act.
Sec. 5 Imposition of penalties on Department of State employees
Any employee of the Department of State who is found to have knowingly structured payments relating to transfers of defense articles or defense services to circumvent requirements relating to congressional notification and review of such transfers under the Arms Export Control Act—
shall be barred from employment in Federal service; and
shall be subject to civil penalties in the amount of $100,000.