H.R. 4216: Made-in-America Defense Act

This bill, known as the Made-in-America Defense Act, aims to improve the process of transferring defense articles and services to U.S. allies and partners. Specifically, it directs the Secretary of State, in coordination with the Secretary of Defense, to review a specific list of defense items known as the FMS-only list. This list contains items available for transfer only through the Foreign Military Sales program, but not through direct commercial sales. The main objectives of the bill are as follows:

Key Objectives of the Bill

• To conduct a review of the defense articles and services included on the FMS-only list within one year of the bill’s enactment and annually thereafter.
• To evaluate which of these items could be eligible for direct commercial sales, meaning they could be sold more quickly without the lengthy processes associated with the Foreign Military Sales program.

Details of the Review

The review will focus on several key areas:

• Time Comparison: The average time taken to complete a transfer of each defense article or service through the Foreign Military Sales program will be compared to the time required for direct commercial sales.
• Workload Impact: The review will assess the impact a shift to direct commercial sales would have on the workload of the Department of State and the Department of Defense.
• National Security and Competitiveness: The examination will also look at the potential benefits to U.S. national security and competitiveness that could arise from allowing a broader range of items to be sold through direct commercial sales.

Reporting Requirements

After each review, the Secretary of State is required to submit a report to the relevant congressional committees. This report must include:

• The average time for transfers during the review period via both sales processes and how they compare to previous periods.
• The main factors that caused delays in the transfer process.
• Any measures taken to reduce identified delays.
• A list of defense articles and services that have been added to or removed from the FMS-only list during the period, along with justifications for these changes.

The reports will be submitted in an unclassified format but may include classified information as an annex if necessary.

Relevance of the FMS-only List

The FMS-only list is significant because it restricts certain defense items from being sold directly to foreign buyers. By reviewing and potentially updating this list, the act aims to streamline sales to allies, ultimately enhancing the timely provision of needed defense resources.

Relevant Companies

None found.