President Donald J. Trump has signed a new executive order titled “Reforming Foreign Defense Sales to Improve Speed and Accountability,” aiming to modernize and streamline the United States’ foreign military sales process. The directive outlines a series of actions intended to strengthen U.S. defense partnerships abroad while revitalizing the domestic defense industrial base.
Purpose and Policy
The order emphasizes the need for a rapid and transparent foreign defense sales system to support U.S. foreign policy objectives and enhance the defense capabilities of allies. It calls for improved efficiency, accountability, and industry collaboration in the Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) programs.
Key policy objectives include:
- Increasing predictability in defense deliveries.
- Consolidating decision-making on military exports.
- Reducing regulatory burdens in the sales and transfer process.
- Enhancing collaboration between government and industry.
- Promoting exportability and competitive pricing.
Implementation Measures
The order sets forth a phased implementation plan with several directives:
- The Secretary of State and Secretary of Defense are instructed to implement National Security Presidential Memorandum 10 and review existing restrictions under the Missile Technology Control Regime. They are also tasked with submitting to Congress proposed updates to the notification thresholds in the Arms Export Control Act.
- Within 60 days, a list of priority foreign partners and priority military end-items will be developed. These lists will guide future arms transfers, ensuring they do not adversely impact U.S. force readiness and contribute to shared defense responsibilities with allied nations.
- The lists of priority partners and end-items will be reviewed annually. The executive order also mandates a review of the FMS-Only List and the U.S. Munitions List to focus protections on the most sensitive technologies.
- Within 90 days, a plan is to be submitted to the President to improve the transparency of defense sales, including the development of metrics for accountability and early integration of exportability in the acquisition process.
- Within 120 days, the Secretary of Defense, with assistance from the Secretaries of State and Commerce, will present a plan to create a unified electronic system for tracking FMS and DCS cases across their life-cycle.
Definitions and Scope
The order provides definitions for terms such as “parallel decision-making,” “exportability,” “end-item,” and “FMS-only.” It also affirms that the order will be executed in accordance with existing laws and subject to available appropriations.