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Referenced Laws
22 U.S.C. 2753(d)
22 U.S.C. 2776(b)
Section 1
1. Short title This Act may be cited as the Foreign Military Sales Reform Act of 2025.
Section 2
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.
Section 3
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.
Section 4
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.
Section 5
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.