H.R. 4481: Accelerate Revenue for Manufacturing and Sales Act

This bill is called the "Accelerate Revenue for Manufacturing and Sales Act," or the ARMS Act. Its primary focus is to modify existing laws related to the Special Defense Acquisition Fund (SDAF) under the Arms Export Control Act. The key objectives and provisions of the bill can be summarized as follows:

Findings and Purpose

The bill highlights several findings that support its purpose:

• The U.S. defense industrial base is essential for national security and economic prosperity.
• There is a growing global demand for U.S.-manufactured defense products, which requires a robust production capacity.
• International sales of U.S. defense equipment, including Foreign Military Sales (FMS) and Direct Commercial Sales (DCS), have surpassed domestic defense purchases.
• Delays in the delivery of defense supplies to allies can undermine U.S. credibility and security partnerships.
• The SDAF has successfully reduced delivery times and enhanced contracting for high-demand defense items.
• Improving the SDAF will benefit not only the defense industry but also enhance relationships with allied nations and support U.S. leadership in the global defense sector.

Key Modifications to the Special Defense Acquisition Fund

The bill proposes specific amendments to the SDAF provisions:

• The language related to sales under the SDAF will be changed to streamline the process, making it easier to manage transactions related to defense supplies.

These modifications are intended to increase the efficiency and predictability of defense deliveries to international partners. The bill aims to facilitate timely access to U.S. defense systems, which can enhance cooperation among allied nations and improve readiness for shared security challenges.

Implications

Through these changes, the bill seeks to ensure that the U.S. defense supply chain is agile enough to respond to the growing demand from international partners while reinforcing strategic relationships and improving the U.S. position in the global defense marketplace.

Relevant Companies

• BA (Boeing Company): Boeing is likely to be impacted as a major manufacturer of defense equipment and aircraft, possibly benefiting from increased international sales.
• LMT (Lockheed Martin Corporation): Lockheed Martin may see benefits from improved export processes and capabilities for its defense products.
• RTX (Raytheon Technologies Corporation): Raytheon, which specializes in defense systems and technologies, could experience increased international demand thanks to streamlined acquisition processes.