S2130-119

What This Bill Does

The AUKUS Improvement Act streamlines arms export controls between the United States, Australia, and the United Kingdom. It allows defense contractors and governments in these three countries to transfer military equipment and technology to each other without seeking Presidential approval for each transaction. The bill also eliminates requirements for companies to notify Congress when entering into manufacturing or technical assistance agreements with Australian and UK partners.

Who Benefits and How

U.S. defense contractors benefit significantly by facing fewer regulatory hurdles when exporting weapons and military technology to Australia and the UK. They no longer need to wait for Presidential consent for re-exports or transfers, and they avoid congressional certification requirements for licensing agreements. Major defense companies like Lockheed Martin, Raytheon, Northrop Grumman, and Boeing stand to benefit from faster deal approvals and reduced compliance costs.

Australian and UK defense contractors also benefit by gaining easier access to U.S. military technology through simplified manufacturing licenses and technical assistance agreements. The governments of Australia and the UK benefit from streamlined procurement of American defense equipment to support the AUKUS security partnership.

Who Bears the Burden and How

Congressional oversight is significantly reduced. Under current law, Congress receives notifications when companies enter major technology transfer or manufacturing agreements. This bill eliminates those notifications for Australia and UK deals, reducing congressional visibility into which U.S. military technologies are being transferred abroad and to whom.

The U.S. State Department loses oversight authority as transfers between AUKUS partners no longer require Presidential consent, reducing the Department's ability to review and potentially block sensitive technology transfers for foreign policy or national security reasons.

Arms control advocates and transparency groups face reduced visibility into arms exports, as the elimination of certification and notification requirements makes it harder to track which military technologies are leaving U.S. control.

Key Provisions

• Exempts defense article transfers between the U.S., Australia, and UK from requiring Presidential consent, allowing unlimited re-exports and temporary imports between AUKUS partners
• Authorizes intra-company transfers of defense technology between employees of multinational defense firms, including dual nationals and third-country nationals who meet security requirements
• Eliminates congressional certification requirements for Manufacturing License Agreements and Technical Assistance Agreements with Australia and the UK
• Removes the UK from the list of NATO countries that require congressional notification for technology transfer agreements
• Applies to both government-to-government transfers and transfers between eligible private defense contractors in the three countries