(1)

by inserting (a) In general.— before Defense articles; and

(2)

by inserting at the end the following new subsection:

(b) United States policy

It is the policy of the United States that a foreign government’s respect for and compliance with internationally recognized human rights and international humanitarian law are central and deciding factors in determining the eligibility of the foreign government to purchase defense articles or defense services under this Act.

(1)

by redesignating the second section designated section 40A as section 40B; and

(2)

by inserting after section 40B, as so redesignated, the following new section:

40C. Monitoring and verification of use of defense articles and defense services

(a) Statement of policy

(1) In general

It is the policy of the United States that a foreign government’s respect for and compliance with internationally recognized human rights and international humanitarian law are central and deciding factors in determining the eligibility of the foreign government to purchase defense articles or defense services under this Act.

(2) Examples of inconsistent actions and behaviors

Actions or behaviors by a foreign government or its officers or agents inconsistent with the policy described in paragraph (1) include the following:

(A)

Gross violations of internationally recognized human rights (as defined in section 502B(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 2304(d))).

(B)

Failure to adhere to standards of proportionality, distinction, and discrimination.

(C)

Patterns or egregious incidents of destruction or damage of medical facilities or other civilian objects.

(D)

Patterns or egregious incidents of harm or disregard for the safety of medical personnel, aid workers, peacekeepers, or journalists.

(E)

Patterns or egregious incidents of harm or disregard for the safety of civilians.

(F)

Prohibition or restriction, directly or indirectly, of the transport or delivery of humanitarian assistance.

(G)

Gross or systemic corruption, lack of transparency, or lack of accountability in the government, including among security forces.

(3) Reporting of inconsistent actions and behaviors

(A) Reports by officers or employees of united states

Any officer or employee of the United States Government with knowledge of action or behavior by a foreign government or its officers or agents that is inconsistent with the policy described in paragraph (1) shall report the action or behavior to the chief of mission (as defined in section 102 of the Foreign Service Act of 1980 (22 U.S.C. 3902)) for that country.

(B) Reports from external sources

The Secretary of State shall establish and periodically update written procedures to facilitate receipt by the Department of State and United States foreign missions of credible information about information inconsistent with the policy described in paragraph (1) from individuals outside the United States Government.

(C) Recordkeeping

The Secretary of State shall ensure information received under subparagraphs (A) and (B) is stored with appropriate confidentiality and protection measures in a centrally managed, searchable database to be utilized for purposes of compliance with section 620M of the Foreign Assistance Act of 1961 (22 U.S.C. 2378d) and similar provisions of law and policy restricting assistance for foreign security forces.

(4) Inclusion in intelligence priorities

The Director of National Intelligence shall ensure that collection and analysis of information related to the policy described in this subsection is included in each National Intelligence Priorities Framework, or any successor directive.

(b) Monitoring and verification program

(1) In general

The President shall carry out a program of monitoring and verification of the use of defense articles and defense services acquired under this Act by countries of concern.

(2) Elements

The program established under this subsection shall include the following elements:

(A)

The observation and evaluation by United States Government personnel, including contractors and members of the United States Armed Forces, as appropriate, of the targeting process used by the country of concern, the employment of the acquired defense articles by the country of concern, the return of any unused defense articles, and the post-use assessment of damage and casualties.

(B)

Employment by the President of direct observation, real-time video feeds, other real-time sensory data and collection methods, and other relevant and reliable sources of information from media, nongovernmental organizations, and other entities.

(3) Availability and use of information

(A) In general

All information collected or evaluated as part of the program established under this subsection shall be made available to the Secretary of State, the appropriate congressional committees, and the Human Rights and Law of War Oversight Board established under section 4 of the Values in Arms Export Act of 2026.

(B) Appropriate congressional committees defined

In this paragraph, the term appropriate congressional committees means—

(i)

the Committee on Foreign Relations, the Committee on Armed Services, and the Committee on Appropriations of the Senate; and

(ii)

the Committee on Foreign Affairs, the Committee on Armed Services, and the Committee on Appropriations of the House of Representatives.

(4) Separate budgetary line item

The Secretary of Defense and the Secretary of State shall include in the budget justification materials submitted to Congress in support of the Department of Defense and the Department of State budget for each fiscal year (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) specific identification, as a budgetary line item, of the amounts required for the program established under this subsection.

(5) Funding

Funding to carry out the requirements of this section shall be derived from amounts collected under section 21. The President shall ensure such charges pursuant to such section are sufficient to fully meet all requirements of this section without cost to the United States Government.

(c) Evaluation by the Secretary of State

(1) Consideration of information

The Secretary of State—

(A)

shall consistently review all relevant information related to a country of concern to determine whether its government or its officers or agents have engaged in any action or behavior inconsistent with the policy described in subsection (a)(1), including—

(i)

information gathered through the program established under subsection (b);

(ii)

information from any agency of the United States Government;

(iii)

information referred by Members of Congress; and

(iv)

credible reports or information gathered by members of the media, nongovernmental organizations, foreign governments, international organizations, or academic experts; and

(B)

may consider exculpatory information proffered by the foreign government if—

(i)

the information can be independently authenticated by the United States;

(ii)

the foreign government provides access to all information in its possession about alleged incidents of the use of security forces of the foreign government in a manner that is inconsistent with the policy described in subsection (a)(1);

(iii)

the foreign government is assessed to be forthcoming in providing access to all information; and

(iv)

there is no evidence that the foreign government has attempted to obstruct investigations by independent parties.

(2) Determinations required

In each case in which a country of concern may have engaged in an action or behavior inconsistent with the policy described in subsection (a)(1), the Secretary of State, based on United States standards and policy for the conduct of the United States Armed Forces or international law, as applicable, shall make a determination as to the legality and appropriateness of—

(A)

the action or behavior; and

(B)

the employment of defense articles or defense services acquired under this Act in the action or behavior.

(d) Designation of countries of concern

(1) Country of concern defined

In this section, the term country of concern means—

(A)

a foreign government designated as a country of concern by the President, the Secretary of State, the Secretary of Defense, or the Human Rights and Law of War Oversight Board established under section 4 of the Values in Arms Export Act of 2026;

(B)

a foreign government designated as a country of concern by law or by Congress through the adoption of a concurrent resolution; or

(C)

any foreign government with respect to which the United States has determined that one or more units of the security forces of the foreign government is ineligible for assistance pursuant to section 620M of the Foreign Assistance Act of 1961 (22 U.S.C. 2378d) or section 362 of title 10, United States Code, notwithstanding any waiver exercised under such sections.

(2) Duration of designation

The designation of a foreign government as a country of concern under paragraph (1)—

(A)

shall remain in effect for a period of three years; and

(B)

may be renewed, before the previous designation expires, in any manner in which a designation may be made under paragraph (1).

(3) Expedited procedures

(A) Consideration in Senate

Any bill, joint resolution, or concurrent resolution designating a foreign government as a country of concern under paragraph (1)(B) or terminating a country of concern’s ineligibility period shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94–329; 90 Stat. 765).

(B) Consideration in House of Representatives

For the purpose of expediting the consideration of bills, joint resolutions, or concurrent resolutions designating a foreign government as a country of concern under paragraph (1)(B) or terminating a country of concern’s ineligibility period, a motion to proceed to the consideration of any such bill, joint resolution, or concurrent resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives.

(e) Ineligibility for sales and transfers

(1) Immediate limited ineligibility upon initial designation

A foreign government shall be ineligible for sale or transfer of a covered defense article under this Act for a three-year period beginning on the date the foreign government is designated a country of concern.

(2) In general

A foreign government shall be ineligible for sale or transfer of defense articles (including spare parts for such articles) or defense services, or the extension of credit (including participation in the extension of credit) or loan guarantees under this Act, for a 10-year period beginning on, and shall immediately discontinue the use of, or return to the United States, any covered defense articles in its possession effective as of, the date—

(A)

the foreign government is designated a country of concern under subsection (d) for the second time in a 10-year period;

(B)

the Secretary of State, in consultation with the Secretary of Defense, determines that the foreign government, at the end of the three-year designation period under subsection (d)(2), has failed to demonstrate sufficient improvement in adherence to the policy described in subsection (a)(1); or

(C)

during the three-year designation period under subsection (d)(2), the foreign government engages in an action or behavior inconsistent with the policy described in subsection (a)(1).

(3) Restoration of eligibility

A foreign government may qualify for early termination of the ineligibility period under paragraphs (1) or (2)—

(A)

if the Secretary of State determines and reports to Congress that the foreign government has taken meaningful steps to correct the deficiencies upon which such ineligibility is based, which shall include—

(i)

enacting and enforcing new laws or policy;

(ii)

substantial remedial training for government officials and members of the military or security forces;

(iii)

in the case of organized armed groups that are not part of the formal chain of command for regular and irregular forces of the foreign government, but that are controlled or supported by the foreign government to any degree, taking actions to cease any support for or affiliation with those organizations or to cause them to cease participation in hostilities; and

(iv)

fully investigating and holding accountable individuals at any level who were responsible for a violation of internationally recognized human rights or international humanitarian law; and

(B)

upon the enactment of a joint resolution approving such early termination of ineligibility.

(4) Waiver for valid training

(A) In general

The President may waive the application of this subsection to International Military Education and Training (IMET) assistance or training provided by any United States Government agency, and carried out by United States Government personnel, focused on internationally recognized human rights, international humanitarian law, anticorruption, or similar issues.

(B) Limitation on scope of waiver

In no case may a waiver under subparagraph (A) extend to cover operations that are part of any armed conflict or any activity that would be subject to the War Powers Resolution (50 U.S.C. 1541 et seq.).

(5) Covered defense article defined

In this subsection, the term covered defense article means—

(A)

any defense article in the same category of the United States Munitions List as a defense article determined to have been involved in the foreign government’s designation as a country of concern; and

(B)

any spare parts or services related to the defense article determined to have been involved in the foreign government’s designation as a country of concern.

(f) Required agreement terms

Any agreement for the transfer of defense articles or defense services under this Act entered into after the date of the enactment of this section shall include terms requiring the foreign government receiving such articles or services to agree to the requirements of this section and to permit and fully cooperate with any investigation by United States Government personnel into an action or behavior by the foreign government that may be inconsistent with the policy described in subsection (a)(1). No such sale or transfer shall be permitted without inclusion of such requirements.

(g) Reports required

(1) In general

Not later than 180 days after the date of the enactment of this section, and every 180 days thereafter, the Secretary of State shall submit to Congress a report that includes—

(A)

an assessment of whether each country of concern has engaged in actions or behaviors inconsistent with the policy described in subsection (a)(1) during the 180-day period preceding submission of the report, including any progress in improving, or worsening of, such actions or behaviors of that foreign government;

(B)

an identification of each country of concern for which, during the 180-day period following submission of the report—

(i)

the designation of the foreign government as a country of concern will expire;

(ii)

more than 10 years will have elapsed following the designation of the foreign government as a country of concern; or

(iii)

a 10-year ineligibility period under subsection (e) will expire;

(C)

an assessment of any progress made during the 180-day period preceding submission of the report by a foreign government subject to a 10-year ineligibility period under subsection (e) toward eligibility for early termination of that period under paragraph (3) of that subsection;

(D)

all reports submitted pursuant to subsection (a)(3) during the 180-day period preceding submission of the report;

(E)

the findings of the program established under subsection (b), including any instances in which a foreign government failed to fully comply with the program; and

(F)

an identification of any foreign government that has failed to fully comply with investigations described in subsection (f).

(2) Form of report

Each report required by paragraph (1) shall be submitted in unclassified form to the maximum extent possible, but may include a classified annex.

(h) Rule of construction

Nothing in this section shall be construed as authorizing the use of military force or otherwise authorizing the President to introduce United States forces into hostilities that have not been specifically authorized by Congress pursuant to the War Powers Resolution (50 U.S.C. 1541 et seq.).

(1)

in subparagraph (O), by striking ; and and inserting a semicolon;

(2)

in subparagraph (P), by striking the period at the end and inserting ; and; and

(3)

by inserting after subparagraph (P) the following new subparagraph:

(Q)

an assessment of whether the defense articles, defense services, or design and construction services to be offered are more likely than not to be used to violate internationally recognized human rights or international humanitarian law, prepared by the Secretary of State through the Assistant Secretary for the Bureau of Democracy, Human Rights, and Labor, in consultation with the Secretary of Defense and the Director of Central Intelligence.

(1)

by striking and (C) and inserting (C); and

(2)

by inserting after items to be exported the following: , and (D) an assessment of whether the items being offered are more likely than not to be used to violate internationally recognized human rights or international humanitarian law, prepared by the Secretary of State through the Assistant Secretary for the Bureau of Democracy, Human Rights, and Labor, in consultation with the Secretary of Defense and the Director of Central Intelligence..

(1)

analyze and review the actions and conduct of recipient governments for adherence to internationally recognized human rights and international humanitarian law, and their continual efforts to improve such adherence; and

(2)

ensure that internationally recognized human rights and international humanitarian law concerns are appropriately considered in the negotiation, approval, and execution of arms transfers, including as required under section 4 of the Arms Export Control Act (22 U.S.C. 2754), as amended by section 2(a) of this Act, and section 40C of the Arms Export Control Act, as added by section 2(b) of this Act.

(1) Advice and counsel on policy development and implementation

The Board shall—

(2) Oversight

The Board shall continually review—

(3) Testimony

The members of the Board shall appear and testify before Congress upon request.

(4) Assessments

The Board shall submit to Congress, at the time of any notification under subsection (b) or (c) of section 36 of the Arms Export Control Act (22 U.S.C. 2776), the assessment of the Board, along with any minority views, of the appropriateness of the proposed transfer based on the recipient government’s adherence to internationally recognized human rights and international humanitarian law.

(1) In general

The Board may in its sole discretion, by a majority vote of the Members, designate a foreign government as a country of concern under section 40C(d)(1)(A) of the Arms Export Control Act, as added by section 2 of this Act. Not later than the time of the designation, the Board shall transmit to the Senate, the House of Representatives, and the President the Board's determination supporting such designation, along with any minority views. The determination shall be submitted in unclassified form, but may include a classified annex.

(2) Reversal

The President may vacate a designation by the Board under paragraph (1). In exercising this authority, the President shall submit to the Board, the Senate, and the House of Representatives a detailed justification for the action. This authority may not be delegated. Such justification shall be submitted in unclassified form, but may include a classified annex.

(1) In general

The Board shall periodically, but not less frequently than annually, submit to the Senate, the House of Representatives, and the President a report on the activities of the Board.

(2) Elements

The report required under paragraph (1) shall include the following elements:

(3) Form

The report required under this subsection shall be submitted in unclassified form to the greatest extent possible, but may include a classified annex as necessary.

(1)

shall make its reports, including its reports to Congress, available on a publicly accessible website within 30 days of transmittal to Congress to the greatest extent that is consistent with the protection of classified information and applicable law; and

(2)

shall hold public hearings and otherwise inform the public of its activities, as appropriate and in a manner consistent with the protection of classified information and applicable law, but may, notwithstanding section 552b of title 5, United States Code, meet or otherwise communicate in any number to confer or deliberate in a manner that is closed to the public.

(1) Authorization

If determined by the Board to be necessary to carry out its responsibilities under this section, the Board is authorized to—

(2) Assistance

The Secretary of State, the Secretary of Defense, and any other head of a department, agency, or entity shall provide to the Board any necessary assistance to facilitate activities set forth under paragraph (1).

(3) Review of subpoena request

(4) Enforcement of subpoena

In the case of contumacy or failure to obey a subpoena issued pursuant to paragraph (1)(C), the United States district court for the judicial district in which the subpoenaed person resides, is served, or may be found may issue an order requiring such person to produce the evidence required by such subpoena.

(5) Agency cooperation

Whenever information or assistance requested under subparagraph (A) or (B) of paragraph (1) is, in the judgment of the Board, unreasonably refused or not provided, the Board shall report the circumstances to the head of the department, agency, or element concerned without delay. The head of the department, agency, or element concerned shall ensure that the Board is given access to the information, assistance, material, or personnel the Board determines to be necessary to carry out its functions.

(6) Access

Nothing in this section shall be construed to authorize the Board, or any agent thereof, to gain access to information regarding an activity covered by section 503(a) of the National Security Act of 1947 (50 U.S.C. 3093(a)).

(1) Members

The Board shall be composed of a full-time chair and four additional members, who shall be appointed by the President, by and with the advice and consent of the Senate.

(2) Qualifications

(3) Incompatible office

An individual appointed to the Board may not, while serving on the Board, be an elected official, officer, or employee of the Federal Government, other than in the capacity as a member of the Board.

(4) Term

Each member of the Board shall serve a term of 6 years, except that—

(5) Quorum and meetings

The Board shall meet upon the call of the chair or a majority of its members. Three members of the Board shall constitute a quorum.

(1) Compensation

(2) Travel expenses

Members of the Board shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for persons employed intermittently by the Government under section 5703(b) of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Board.

(1) Appointment and compensation

The chair of the Board, in accordance with rules agreed upon by the Board, shall appoint and fix the compensation of a full-time executive director and such other personnel as may be necessary to enable the Board to carry out its functions, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, except that no rate of pay fixed under this subsection may exceed the equivalent of that payable for a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.

(2) Appointment in absence of chair

If the position of chair of the Board is vacant, during the period of the vacancy, the Board, at the direction of the unanimous vote of the serving members of the Board, may exercise the authority of the chair under paragraph (1).

(3) Detailees

Any Federal employee may be detailed to the Board without reimbursement from the Board, and such detailee shall retain the rights, status, and privileges of the detailee’s regular employment without interruption.

(4) Consultant services

The Board may procure the temporary or intermittent services of experts and consultants in accordance with section 3109 of title 5, United States Code, at rates that do not exceed the daily rate paid a person occupying a position at level IV of the Executive Schedule under section 5315 of such title.

(1) In general

The appropriate departments, agencies, and elements of the executive branch shall cooperate with the Board to expeditiously provide the Board members and staff with appropriate security clearances to the extent possible under existing procedures and requirements.

(2) Rules and procedures

After consultation with the Secretary of Defense, the Attorney General, and the Director of National Intelligence, the Board shall adopt rules and procedures of the Board for physical, communications, computer, document, personnel, and other security relating to carrying out the functions of the Board.

(1)

is an agency (as defined in section 551(1) of title 5, United States Code); and

(2)

is not an advisory committee (as defined in section 1001(2) of title 5, United States Code).

(1) In general

Not later than 180 days after the first date on which three members have been appointed to the Board, by and with the advice and consent of the Senate, the Board shall adopt policies governing ethical conduct of its members and staff, which shall include—

(2) Review

The Board shall review and revise as appropriate such policies not less frequently than every three years.

(3) Transmission to President and Congress

The Board shall transmit the policies required by paragraph (1), and any revisions to such policies under paragraph (2), to the President and to Congress.

(1)

For fiscal year 2027, $5,000,000.

(2)

For fiscal year 2028, $7,000,000.

(3)

For fiscal year 2029, $9,000,000.

(4)

For fiscal year 2030, $11,000,000.

(5)

For fiscal year 2031 and each subsequent fiscal year, such sums as may be necessary.