H.R. 4233: AUKUS Reform for Military Optimization and Review Act

This bill, known as the AUKUS Reform for Military Optimization and Review Act (or ARMOR Act), aims to enhance defense cooperation and trade among Australia, the United Kingdom, and the United States. Here are the key components of the legislation:

Short Title

The bill may be referred to as the AUKUS Reform for Military Optimization and Review Act or ARMOR Act.

Sense of Congress

The U.S. Congress expresses that the President should collaborate with the governments of Australia and the United Kingdom to create policies addressing the issue of extraterritoriality, which affects defense repair, maintenance, and support for military articles and services not on a specific technology exclusion list.

Modifications to Defense Trade and Cooperation

1. Expansion of Export License Review

The bill proposes changes to simplify and expand the expedited review process for exporting defense articles and services to include:

• All exports and transfers within or between Australia, Canada, the United Kingdom, and the United States.
• Reexports, retransfers, temporary imports, and brokering activities.

The President is also required to submit reports every year for 15 years detailing the use of this expedited review process, including:

• Progress on implementing the expedited review process.
• The number of licenses issued.
• A list of principal applicants who received licenses.
• A list of defense articles and services for which licenses were granted.

2. Congressional Notification Requirement Clarification

The bill amends existing regulations to clarify that specific congressional notification rules do not apply to the export or transfer of defense articles or services involving Australia and the United Kingdom under the new expedited review process.

3. Review of Excluded Technologies List

The Secretary of State, with input from the Secretary of Defense, is tasked with reviewing an existing Excluded Technologies List annually for five years following the bill's enactment, and then every three years thereafter. This review aims to ensure that only items necessary for national security continue to require licensing review.

Reporting Timeline

Notably, the first report about the new expedited review process must be submitted within 180 days of the bill's enactment, with subsequent reports due annually for the following 15 years.

Overall Intent

The legislation seeks to streamline defense cooperation and improve the efficiency of defense transactions among the three countries involved, enhancing military readiness and operational capabilities.

Relevant Companies

• BA (Boeing) - Boeing could see an increase in defense contracts related to the expedited export process.
• RTX (Raytheon Technologies) - Raytheon may benefit from expanded defense exports and increased collaboration.
• NOC (Northrop Grumman) - Northrop Grumman could be impacted positively by new opportunities for defense exports.
• LMT (Lockheed Martin) - Lockheed Martin may experience changes in their international defense trade due to the bill.