Made-in-America Defense Act

#4216 | HR Congress #119

Subjects:

Last Action: Received in the Senate and Read twice and referred to the Committee on Foreign Relations. (9/3/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Made-in-America Defense Act" is a piece of legislation aimed at enhancing the efficiency of defense article and service transfers to U.S. allies and partners. It mandates the Secretary of State, in collaboration with the Secretary of Defense, to review the list of defense items classified as "FMS-Only"—those that can only be sold through the Foreign Military Sales (FMS) program and not through Direct Commercial Sales (DCS).

Key provisions of the Act include:

1. **Purpose**: The Act emphasizes the importance of quick delivery of defense materials for strengthening U.S. national security and acknowledges that the current FMS process can be slow compared to DCS.

2. **Annual Review**: The legislation requires an annual examination of defense articles and services to determine if any can be moved from the FMS-Only list to the DCS category, which would allow for faster transactions.

3. **Reporting**: After each review, the Secretary of State must submit a report to Congress detailing findings such as average transfer times, causes of delays, and any changes to the FMS-Only list.

Overall, the Act seeks to streamline defense sales to allies, reducing bureaucratic hurdles and enhancing U.S. military partnerships.

Possible Impacts

The "Made-in-America Defense Act" as outlined in the legislation could affect people in the following ways:

1. **Increased Defense Collaboration with Allies**: By expediting the process for transferring defense articles and services through direct commercial sales, the legislation could enhance military collaboration between the U.S. and its allies. This could lead to improved security partnerships and joint military operations, potentially affecting military personnel who may find themselves engaging in more collaborative missions or activities with partner nations.

2. **Impact on Defense Industry Jobs**: The shift from foreign military sales (FMS) to direct commercial sales could create job opportunities within the defense industry. Companies that produce defense articles may experience increased demand for their products and services, leading to job growth in manufacturing, sales, and logistics. Conversely, there may also be job reductions in sectors reliant on FMS if the shift leads to a reduced need for certain government contracts.

3. **National Security and Public Perception**: The periodic review and potential changes to the FMS-Only List could influence public perception of U.S. defense policy and national security. If the legislation is seen as strengthening U.S. alliances and promoting quicker defense support to partners, it could foster a sense of security among the American public. However, if the changes lead to concerns about the risks associated with direct commercial sales, such as the potential for sensitive technology to fall into the wrong hands, it could lead to public debate and scrutiny regarding the implications for national security.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4216 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
  1st Session
                                H. R. 4216


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 3, 2025

Received; read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 AN ACT


 
To direct the Secretary of State, in coordination with the Secretary of 
  Defense, to carry out a review of the list of defense articles and 
 services required to be transferred under the foreign military sales 
     program as opposed to direct commercial sale (FMS-Only List).

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Made-in-America Defense Act''.

SEC. 2. SENSE OF CONGRESS.

    Congress--
            (1) believes the expeditious delivery of defense articles 
        and services to allies and partners strengthens American 
        national security;
            (2) notes that the Department of Defense contracting 
        process often adds significant amounts of time to the delivery 
        of defense articles and services to allies and partners, and in 
        some cases these articles and services could be appropriately 
        transferred more quickly using direct commercial sales; and
            (3) supports the ongoing and periodic review of the FMS-
        Only List to ensure that defense articles and services that can 
        be appropriately transferred using direct commercial sales are 
        not included on the FMS-Only list.

SEC. 3. REVIEW AND REPORT.

    (a) Review.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, and annually thereafter, the 
        Secretary of State, in coordination with the Secretary of 
        Defense, shall carry out a review of defense articles and 
        defense services that are eligible to be provided under the 
        foreign military sales program under chapter 2 of the Arms 
        Export Control Act, but not eligible to be provided under 
        direct commercial sales under section 38 of such Act, in order 
        to identify those articles and services that should also be 
        eligible to be provided under direct commercial sales.
            (2) Matters to be addressed.--The review required by this 
        subsection shall address the following with respect to each 
        defense article and defense services identified under this 
        subsection:
                    (A) The average length of time to complete a 
                transfer of the article or service under the foreign 
                military sales program compared to such a transfer 
                under a direct commercial sale, measured from the 
                initial submission of the letter of request to the 
                delivery of the article or service.
                    (B) The impact on the workload for the Department 
                of State and Department of Defense by reason of a 
                transfer of the article or service under a direct 
                commercial sale.
                    (C) The benefits to United States national security 
                and United States competitiveness by reason of a 
                transfer of the article or service under a direct 
                commercial sale.
    (b) Report.--
            (1) In general.--Not later than 30 days after the 
        completion of each review required by subsection (a), the 
        Secretary of State, in coordination of the Secretary of 
        Defense, shall submit to the appropriate congressional 
        committees a report that contains the results of the review, 
        including--
                    (A) the average time to transfer the reviewed 
                defense articles or services during the previous 
                reporting period through the foreign military sales 
                program and through direct commercial sales and how 
                those averages compare to the averages reported in the 
                previous reporting period;
                    (B) the leading causes of delays;
                    (C) any steps taken to reduce those delays; and
                    (D) any defense articles and services added to or 
                removed from the FMS-Only list during the preceding 
                reporting period, as well as the justification for such 
                decisions.
            (2) Form.--The report required by this subsection shall be 
        submitted in unclassified form, but may contain a classified 
        annex.
            (3) Definitions.--In this subsection--
                    (A) the term ``appropriate congressional 
                committees'' means--
                            (i) the Committee on Foreign Affairs and 
                        the Committee on Armed Services of the House of 
                        Representatives; and
                            (ii) the Committee on Foreign Relations and 
                        the Committee on Armed Services of the Senate; 
                        and
                    (B) the term ``FMS-only list'' means the list 
                maintained by the Secretary of State of defense 
                articles and defense services that are eligible to be 
                provided under the foreign military sales program under 
                chapter 2 of the Arms Export Control Act, but not 
                eligible to be provided under direct commercial sales 
                under section 38 of such Act.

            Passed the House of Representatives September 2, 2025.

            Attest:

                                             KEVIN F. MCCUMBER,

                                                                 Clerk.