May 1, 2025
Mr. Davidson introduced the following bill; which was referred to the Committee on Foreign Affairs
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.
Section 1. Short title
This Act may be cited as the Foreign Military Sales Reform Act of 2025
.
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:
(1)
In section 3(d) (22 U.S.C. 2753(d))—
(A)
in paragraph (1)—
(i)
by striking $14,000,000
and inserting $23,000,000
; and
(ii)
by striking $50,000,0000
and inserting $83,000,000
; and
(B)
in paragraph (3)(A)—
(i)
by striking $14,000,000
and inserting $23,000,000
; and
(ii)
by striking $50,000,0000
and inserting $83,000,000
.
(2)
In section 36(b) (22 U.S.C. 2776(b))—
(A)
in paragraph (1)—
(i)
by striking $50,000,0000
and inserting $83,000,000
;
(ii)
by striking $200,000,000
and inserting $332,000,000
; and
(iii)
by striking $14,000,000
and inserting $23,000,000
;
(B)
in paragraph (5)(C)—
(i)
by striking $14,000,000
and inserting $23,000,000
;
(ii)
by striking $50,000,0000
and inserting $83,000,000
; and
(iii)
by striking $200,000,000
and inserting $332,000,000
; and
(C)
in paragraph (6)—
(i)
in subparagraph (A), by striking $25,000,000
and inserting $42,000,000
;
(ii)
in subparagraph (B), by striking $100,000,0000
and inserting $166,000,000
; and
(iii)
in subparagraph (C), by striking $300,000,000
and inserting $500,000,000
.
(3)
In section 36(c) (22 U.S.C. 2776(c))—
(A)
in paragraph (1)—
(i)
by striking $14,000,000
and inserting $23,000,000
; and
(ii)
by striking $50,000,0000
and inserting $83,000,000
; and
(B)
in paragraph (5)—
(i)
in subparagraph (A), by striking $25,000,000
and inserting $42,000,000
; and
(ii)
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—
(1)
shall be barred from employment in Federal service; and
(2)
shall be subject to civil penalties in the amount of $100,000.