119-hr3138

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3138 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3138

To modify the dollar amount thresholds relating to transfers of defense 
 articles and defense services under the Arms Export Control Act, and 
 for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 1, 2025

 Mr. Davidson introduced the following bill; which was referred to the 
 Committee on Foreign Affairs

_______________________________________________________________________

 A BILL

To modify the dollar amount thresholds relating to transfers of defense 
 articles and defense services under the Arms Export Control Act, and 
 for other purposes.

 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 ``Foreign Military Sales Reform Act of 
2025''.

SEC. 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:

    (1) In 

section 3
            (d) (22 U.S.C. 2753
            (d) )--
        (A) in paragraph

    (1) --
            (i) by striking ``$14,000,000'' and 
 inserting ``$23,000,000''; and
            (ii) by striking ``$50,000,0000'' and 
 inserting ``$83,000,000''; and
        (B) in paragraph

    (3)
        (A) --
            (i) by striking ``$14,000,000'' and 
 inserting ``$23,000,000''; and
            (ii) by striking ``$50,000,0000'' and 
 inserting ``$83,000,000''.

    (2) In 

section 36

    (b) (22 U.S.C. 2776

    (b) )--
        (A) in paragraph

    (1) --
            (i) by striking ``$50,000,0000'' and 
 inserting ``$83,000,000'';
            (ii) by striking ``$200,000,000'' and 
 inserting ``$332,000,000''; and
            (iii) by striking ``$14,000,000'' and 
 inserting ``$23,000,000'';
        (B) in paragraph

    (5)
            (C) --
            (i) by striking ``$14,000,000'' and 
 inserting ``$23,000,000'';
            (ii) by striking ``$50,000,0000'' and 
 inserting ``$83,000,000''; and
            (iii) by striking ``$200,000,000'' and 
 inserting ``$332,000,000''; and
            (C) in paragraph

    (6) --
            (i) in subparagraph
        (A) , by striking 
 ``$25,000,000'' and inserting ``$42,000,000'';
            (ii) in subparagraph
        (B) , by striking 
 ``$100,000,0000'' and inserting 
 ``$166,000,000''; and
            (iii) in subparagraph
            (C) , by striking 
 ``$300,000,000'' and inserting 
 ``$500,000,000''.

    (3) In 

section 36
            (c) (22 U.S.C. 2776
            (c) )--
        (A) in paragraph

    (1) --
            (i) by striking ``$14,000,000'' and 
 inserting ``$23,000,000''; and
            (ii) by striking ``$50,000,0000'' and 
 inserting ``$83,000,000''; and
        (B) in paragraph

    (5) --
            (i) in subparagraph
        (A) , by striking 
 ``$25,000,000'' and inserting ``$42,000,000''; 
 and
            (ii) in subparagraph
        (B) , by striking 
 ``$100,000,0000'' and inserting 
 ``$166,000,000''.

SEC. 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.

SEC. 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.

SEC. 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--

    (1) shall be barred from employment in Federal service; and

    (2) shall be subject to civil penalties in the amount of 
 $100,000.
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