Foreign Military Financing Loan Authorization Act of 2026 — Full text

Section 1. Short title

This Act may be cited as the Foreign Military Financing Loan Authorization Act of 2026.

(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.

Section 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.).

Section 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.

Section 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).