Foreign Military Financing Loan Authorization Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8661 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 8661

To authorize the Secretary of State to provide certain direct loans and
   loan guarantees for the procurement of defense articles, defense
services, and design and construction services, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 4, 2026

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

_______________________________________________________________________

                                 A BILL

To authorize the Secretary of State to provide certain direct loans and
   loan guarantees for the procurement of defense articles, defense
services, and design and construction services, 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 Financing Loan
Authorization Act of 2026''.

SEC. 2. AUTHORIZATION FOR DIRECT LOANS AND LOAN GUARANTEES.

    (a) Authorization.--The Secretary of State is authorized to
provide, to any country or international organization the Secretary
determines appropriate and consistent with United States national
security interests--
            (1) direct loans for the purpose of financing the
        procurement of defense articles, defense services, and design
        and construction services pursuant to section 23 of the Arms
        Export Control Act (22 U.S.C. 2763); and
            (2) loan guarantees for the purpose of financing the
        procurement of defense articles, defense services, and design
        and construction services pursuant to section 24 of such Act
        (22 U.S.C. 2764).
    (b) Loan Rate and Repayment Authority.--The Secretary is authorized
to establish the rate of interest, repayment schedule, and repayment
terms applicable to direct loans authorized under subsection (a)(1).
    (c) Conditions and Limitations.--Except as authorized in subsection
(b), any direct loan or loan guarantee authorized under subsection (a)
shall be subject to--
            (1) the terms, conditions, eligibility requirements, and
        limitations set forth in section 23 of the Arms Export Control
        Act (22 U.S.C. 2763);
            (2) such additional terms and conditions as the Secretary
        may prescribe; and
            (3) the availability of funds appropriated by Congress for
        purposes of this section.

SEC. 3. AUTHORIZING THE DEPARTMENT OF STATE TO OBLIGATE FUNDS FROM THE
              FOREIGN MILITARY SALES ADMINISTRATIVE SURCHARGE FUND.

    Funds deposited pursuant to section 21(e)(1)(A) of the Arms Export
Control Act (22 U.S.C. 2761(e)(1)(A)) may be obligated by the
Department of State for the purpose of carrying out activities pursuant
to such Act (22 U.S.C. 2751 et seq.).

SEC. 4. REPORTING REQUIREMENT.

    Not later than 180 days after the date of the enactment of this
Act, and annually thereafter, the Secretary of State shall submit to
the Committee on Foreign Affairs of the House of Representatives and
the Committee on Foreign Relations of the Senate a report describing--
            (1) any direct loan or loan guarantee provided pursuant to
        section 2(a);
            (2) the recipient, amount, terms, and purpose of each such
        loan or guarantee;
            (3) an assessment of the impact of such loans or guarantees
        on United States national security objectives; and
            (4) an assessment of additional resources needed by the
        Department of State to carry out the provisions of this Act.

SEC. 5. DEFINITIONS.

    In this Act, the terms ``defense articles'', ``defense services'',
and ``design and construction services'' have the meanings given such
terms in section 47 of the Arms Export Control Act (22 U.S.C. 2794).
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