In an effort to enhance the United States’ foreign defense sales system, President of the United States has issued a significant executive order aimed at reforming the processes surrounding defense exports.
This executive order, dated April 9, 2025, underscores the necessity for a dynamic defense industrial base and a collaborative network of allies to maintain military superiority worldwide.
The President’s administration emphasizes that a faster, more transparent foreign defense sales system is not just beneficial for U.S. interests but also crucial in supporting allied security capabilities.
Section 1 of the order outlines its primary purpose: to ensure that the U.S. remains a dominant military force while simultaneously fostering effective partnerships with other nations.
By reforming the foreign defense sales system, the administration aims to bolster American supply chains and promote domestic production levels, thereby enhancing overall technological development.
The policy framework presented in Section 2 lays out several key objectives.
Firstly, the administration seeks to improve accountability and transparency throughout foreign defense sales operations, ensuring that American products reach foreign partners in a predictable and reliable manner.
To achieve this, the order emphasizes the consolidation of parallel decision-making processes with respect to military capabilities that the U.S. provides to various countries.
Additionally, the order aims to delineate and reduce the rules and regulations surrounding foreign defense sales in order to align more closely with U.S. foreign policy objectives.
Collaboration between the government and industry is also prioritized in this reform effort, aimed at achieving cost and schedule efficiencies within the Foreign Military Sales (FMS) program.
Furthermore, the order addresses enhancing U.S. competitiveness abroad by integrating exportability features in the design phase, improving financing options for partners, and increasing contract flexibility overall.
The phased implementation plan outlined in Section 3 instructs the Secretary of State and the Secretary of Defense to take immediate action to fulfill the objectives of this reform.
They are directed to implement National Security Presidential Memorandum 10 from April 2018, which relates to U.S. Conventional Arms Transfer Policy, along with any successor policy directives.
Moreover, the order calls for a reevaluation of existing restrictions imposed by the Missile Technology Control Regime, particularly concerning specific Category I items.
These evaluations will be conducted in consultation with the Secretary of Commerce.
One notable initiative is the proposal for a statutory update regarding congressional certification thresholds for proposed sales under FMS and Direct Commercial Sales (DCS) programs, based on the Arms Export Control Act.
The administration also emphasizes the need for ongoing refinement of congressional notification processes to ensure timely adjudication of notified FMS and DCS cases.
Within a short time frame of 60 days from the date of the order, the Secretary of State, in consultation with the Secretary of Defense, is tasked with developing a list of priority partners for conventional arms transfers.
Updated guidance will be issued to U.S. Diplomatic Missions concerning this prioritized list.
The Secretary of Defense is directed to create a corresponding list of priority end-items for potential transfer to these identified partners.
The Secretary is also required to ensure that the transfer of these end-items does not significantly harm U.S. force readiness while supporting allied capabilities.
This dual approach emphasizes not just military support for allies but also encourages burden-sharing in defense capabilities.
In a commitment to regular updates, the Secretary of State and the Secretary of Defense are instructed to review and reissue the lists of priority partners and military end-items on an annual basis, maintaining relevance and responsiveness to global security needs.
Section 3 also addresses modifications to the United States Munitions List, focusing protections on the most advanced technologies and defining clear criteria for items included on the potential FMS-Only List.
Within 90 days, the Secretaries of State and Defense, in consultation with the Secretary of Commerce, are to submit a plan to the President, which will enhance transparency in U.S. defense sales.
This includes setting accountability metrics, integrating exportability requirements early in the acquisition process, and consolidating technology security and foreign disclosure approvals.
Furthermore, a single electronic system is scheduled to be developed to effectively track all DCS export license requests and ongoing FMS efforts throughout their life cycles within 120 days.
The definitions section of the executive order clarifies several key terms, including
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