May 12, 2026 | Endorsements

H.R. 8649, the Expanding the Defense Industrial Base Sales Act

May 12, 2026 Endorsements

H.R. 8649, the Expanding the Defense Industrial Base Sales Act

Bottom Line Up Front

H.R. 8649, the Expanding the Defense Industrial Base Sales Act, amends the Arms Export Control Act to authorize the use of foreign military financing (FMF) for direct commercial contracts. It would further require the Secretary of State, in coordination with the Secretary of Defense, to prescribe new regulations for its use. These regulations would include review and approval procedures, financial accountability standards, export control compliance, and efforts to encourage participation by nontraditional defense companies.

Bill Number H.R. 8649
Bill Name Expanding the Defense Industrial Base Sales Act
Summary H.R. 8649 amends the Arms Export Control Act to authorize foreign military financing for direct commercial sales, enabling faster delivery of defense articles and services to U.S. allies and partners.
Chamber House
Lead Sponsor Rep. Michael Baumgartner (R-WA)
Date Introduced 05/04/2026

Click here to read the full legislative text and view the list of cosponsors.

Why It Matters

  • Providing financing for direct commercial sales. It allows any foreign country or international organization eligible to receive FMF to procure defense articles, defense services, and design and construction services not sold by the U.S. government.
  • Maintaining Approval and Oversight. The Secretary of State must approve any use of FMF authorized by this legislation and may impose terms, conditions, and limitations to advance U.S. foreign policy and national security interests.
  • Governing Regulations. The Secretary of State is required to prescribe specific regulations of FMF for direct commercial sales authorized by this Act.
  • Improving Weapons Delivery Timelines. This financing would route more arms exports through direct commercial sales, bypassing the Department of Defense’s contracting process, a leading source of delivery delays. The result would be dramatically faster weapons deliveries to U.S. allies.

“U.S. arms sales are an integral part of U.S. foreign policy and a core responsibility of the State Department. The Expanding the Defense Industrial Base Act would allow additional countries the flexibility to purchase systems and munitions through the commercial sales process. The result is faster delivery of key capabilities to the places they are needed most. This would provide U.S. manufacturers more certainty in producing and delivering defense items without costly delays.”

Tyler Stapleton

Senior Director of Government Relations, FDD Action

Issues:

Defense