Security Sector Governance Compacts Act

(1) strong security sector governance is the transparent, accountable, management, and oversight of security policy and practice by legitimate and democratic civilian leadership;

(2) security partners with well-governed security sectors are more effective, more reliable, better positioned to absorb and protect United States-origin defense articles from misuse or illicit transfer, and conduct military operations in a manner that encourages stability at home and abroad;

(3) weak security sector oversight institutions inhibit security sector professionalism, effectiveness, and accountability;

(4) effective security sector governance requires a system of checks and balances where vibrant legislatures, engaged civil society, and independent judiciaries provide the necessary oversight to hold authorities accountable to citizens; and

(5) improving security sector governance in United States security partners requires predictable, long-term investments.

Not later than 90 days after the date of the enactment of this Act, the Secretary, acting through the Defense Security Cooperation University and the Office of Security Assistance, shall develop metrics and indicators to assess the quality of security sectors governance by security partner countries, to be known as the Security Sector Governance Index.

The Index required by subsection (a) shall include measurements of the following:

(1) The level of state corruption, as defined under the Combating Global Corruption Act (22 U.S.C. 10501), in the country’s security sector.

(2) The level of civilian oversight of the partner’s national and internal security forces.

(3) The level of such security force’s—

(A) involvement in politics;

(B) commercial holdings; and

(C) merit-based promotions.

(4) The record of violations of international human rights law, international humanitarian law, and civilian harm by such security force actors or their affiliates and subsequent meaningful investigations and accountability processes.

(5) Other factors relevant to assessing the level of security sector governance.

The Secretary shall develop the Index required by subsection (a) in consultation with—

(1) the Secretary of Defense;

(2) the Bureau of Democracy, Human Rights, and Labor of the Department; and

(3) relevant nongovernmental organizations, nongovernmental experts, and civil society.

Not later than 30 days after the date on which the Index required by subsection (a) is developed, the Secretary shall publish a summary of the Index in the Federal Register.

Not later than 90 days after the date on which the Index required by section 3(a) is published in the Federal Register pursuant to section 3(d), the Secretary, in coordination with the Secretary of Defense, shall, for each security partner country—

(1) based on such Index, conduct an assessment of the quality of governance of the country’s security sector;

(2) based on the assessment, designate the country as a tier one partner country, tier two partner country, tier three partner country, or tier four partner country in accordance with the requirements of subsection (b); and

(3) submit to the appropriate congressional committees a report that contains—

(A) the assessment required by paragraph (1); and

(B) the designation required under paragraph (2).

A country shall be designated as a tier one partner country if the government of the country has a low quality of governance of its security sector, as determined by the Secretary, based on the Index required by section 3(a).

A country shall be designated as a tier two partner country if the government of the country has a low to mid quality of governance of its security sector, as determined by the Secretary, based on the Index required by section 3(a).

A country shall be designated as a tier three partner country if the government of the country has a mid to high quality of governance of its security sector, as determined by the Secretary, based on the Index required by section 3(a).

A country shall be designated as a tier four partner country if the government of the country has a high quality of governance, as determined by the Secretary, based on the Index required by section 3(a).

Not later than one year after the initial designation completed pursuant to subsection (a), the Secretary, in coordination with the Secretary of Defense, shall, on an annual basis—

(1) based on the Index required by subsection (b), conduct an assessment of the quality of governance of the country’s security sector;

(2) based on such assessment, conduct an update of the designation of each security partner country under this section; and

(3) submit to the appropriate congressional committees a report that contains the assessment required by paragraph (1) and the update required by paragraph (2).

Notwithstanding any other provision of law (other than the provisions of law described in subsection (g)), a country ranked as a tier one partner country is authorized to receive only the following types of security sector assistance:

(1) Assistance for defense institution building, including assistance under sections 332 and 342 of title 10, United States Code.

(2) International Military and Education Training assistance pursuant to section 541 of the Foreign Assistance Act of 1961 (22 U.S.C. 2347).

(3) Global Peace Operations Initiative assistance pursuant to section 551 of the Foreign Assistance Act of 1961 (22 U.S.C. 2348).

(4) International Narcotics Control and Law Enforcement assistance pursuant to section 481 of the Foreign Assistance Act of 1961 (22 U.S.C. 2291).

(5) Nonproliferation, Demining, and Related Programs assistance pursuant to section 504 of the Foreign Assistance Act of 1961 (22 U.S.C. 5854).

(6) Other educational and classroom-based training, including under sections 343, 346, 347, 348, 349, 351, and 352, of title 10, United States Code.

(7) Disaster management and humanitarian assistance, including through sections 182, 401, 402, 404, 407, 2557, and 2561 of title 10, United States Code, and support for foreign assistance implementation under section 385 of title 10, United States Code.

(8) The State Partnership Program under section 341 of title 10, United States Code.

(9) Any other programs related to human rights, international humanitarian law, and protection of civilians training.

(10) Any other programs related to civil-military support, including through Civil Affairs teams.

(11) Maritime cooperation assistance, including through section 1263 of the National Defense Authorization Act of Fiscal Year 2016 (Public Law 114–92), the Asia Reassurance Initiative Act of 2018 (Public Law 115–409), and section 333 of title 10, United States Code.

Notwithstanding any other provision of law (other than the provisions of law described in subsection (g)), a country ranked as a tier two partner country is authorized to receive only the following types of security sector assistance:

(1) Tier one partner country assistance.

(2) Anti-Terrorism related assistance with respect to Nonproliferation, Anti-Terrorism, Demining, and Related Programs assistance pursuant to section 571 of the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa).

(3) Tailored capacity-building assistance, including with respect to counternarcotics, counterterrorism, and border security, including Peacekeeping Operations assistance pursuant to section 551 of the Foreign Assistance Act of 1961 (22 U.S.C. 2348), section 333 of title 10, United States Code, and section 1021 of the National Defense Authorization Act of Fiscal Year 2005, section 1022 of the National Defense Authorization Act of Fiscal Year 2004, section 1226 of the National Defense Authorization Act of Fiscal Year 2016 (Public Law 114–92), and section 1233 of the National Defense Authorization Act of Fiscal year 2008, and any other programs related to counternarcotics and counterterrorism.

(4) Military and intelligence capabilities technical assistance and specialized military education, including under sections 342, 345, and 350 of title 10, United States Code.

(5) Nonlethal equipment, including equipment under the Foreign Military Financing program under section 23 of the Arms Export Control Act (22 U.S.C. 2763).

Notwithstanding any other provision of law (other than the provisions of law described in subsection (g)), a country ranked as a tier three partner country is authorized to receive only the following types of security sector assistance:

(1) Tier one partner country assistance.

(2) Tier two partner country assistance.

(3) Lethal equipment, including equipment under the Foreign Military Financing program under section 23 of the Arms Export Control Act (22 U.S.C. 2763).

(4) United States military staff colleges and exchanges, including Professional Military Education Student Exchanges, Unit Exchanges, conferences, and centers of excellence under section 311, 312, and 344 of title 10, United States Code, and under section 544(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2347c(a)).

(5) Exercises under sections 321 and 322, of title 10, United States Code, and section 1251 of the National Defense Authorization Act of Fiscal Year 2016 (Public Law 114–92), and operational support, including section 331 of title 10, United States Code.

Notwithstanding any other provision of law (other than the provisions of law described in subsection (g)), a country ranked as a tier four partner country is authorized to receive only the following types of security sector assistance:

(1) Tier one partner country assistance.

(2) Tier two partner country assistance.

(3) Tier three partner country assistance.

(4) International armament cooperation activities under chapter 138 of title 10, United States Code, and the Arms Export Control Act.

(5) Support under sections 127d and 127e of title 10, United States Code.

(6) Any activities related to Foreign Internal Defense.

Notwithstanding the requirements of subsections (a), (b), (c), and (d), security sector assistance of a type that a security partner country was eligible to receive before the ranking of the country as a tier one partner country, tier two partner country, tier three partner country, or tier four partner country in accordance with the requirements of subsection (b) that has been obligated but not expended as of the date of the ranking of the country and with respect to which the country is no longer eligible to receive by reason of the ranking of the country may be expended with respect to the country during the first year in which the country is ranked as such a country.

Nothing in this section may be construed to authorize a type of security sector assistance in one tier for a partner country that is authorized only in a higher tier for a partner country.

The Secretary, in coordination with the Secretary of Defense, may waive the requirements of subsections (a), (b), (c), and (d), and provide security sector assistance of a type that a security partner country is not eligible to receive by reason of the ranking of the country as a tier one partner country, tier two partner country, tier three partner country, or tier four partner country in accordance with the requirements of subsection (c) if the Secretary, in coordination with the Secretary of Defense, provides to the appropriate congressional committees—

(A) a certification that the country is a long-standing and strategically important partner for the purpose of United States national security;

(B) a justification for how the relevant security sector assistance is in the United States national security interests; and

(C) a plan to work with the country to improve relevant indicators and metrics.

The Secretary shall, on an annual basis—

(A) update the plan required by paragraph (1)(C) on an annual basis;

(B) submit each such updated plan to the appropriate congressional committees; and

(C) publish a list of countries that are granted such waiver, including the relevant tier designation, and a summary of the justification for such waiver on a publicly available website.

For countries that are subject to a waiver pursuant to this paragraph and are designated as a tier lower than the previous year, the Secretary, in coordination with the Secretary of Defense, shall submit to appropriate congressional committees with the requirements described in paragraph (2) the completion of a diagnostic assessment of such country’s security sector to include an identification of specific weaknesses in such sector that contributed to a lower designation, an assessment of the threat such weaknesses pose to United States national security interests, and a diplomatic plan to engage such country on improving such weaknesses.

In the case of a country receiving security sector assistance by reason of being subject to a waiver pursuant to this paragraph for 5 consecutive years, such country shall be ineligible to continue to receive a waiver pursuant to this paragraph beginning on the day after the end of such 5-year period, unless a law is enacted that provides for the continuation of the waiver and identifies the specific purpose or purposes for which the relevant security sector assistance may be used.

The matters required to be provided under this paragraph shall be provided in unclassified form but may include a classified annex.

The provisions of law described in subsection (a) are the following:

(1) Section 7008 of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2023 (division K of Public Law 117–328) or any similar provision of law.

(2) The Child Soldiers Prevention Act of 2008 (22 U.S.C. 2370c).

(3) Section 620I of the Foreign Assistance Act of 1961 (22 U.S.C. 2378–1).

(4) The Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

(5) Restrictions described in section 502B of the Foreign Assistance Act of 1961 (22 U.S.C. 2304).

(6) Any other provision of law that restricts the provision of security sector assistance.

For the purposes of this subsection, not later than 180 days after the enactment of this Act, the Secretary of State, in consultation with the Secretary of Defense, shall establish and submit to the appropriate congressional committees definitions for lethal equipment and non-lethal equipment in consultation with relevant external stakeholders with expertise in defense equipment, civilian harm, and other related areas as appropriate.

The Secretary and the Secretary of Defense may jointly enter into a compact, to be known as a Security Sector Governance Compact, with a country ranked as a tier two partner country or a tier three partner country that is not subject to a waiver pursuant to section 5(f) and that meets the eligibility criteria of subsection (b) in order to establish a multi-year plan to provide security sector assistance to the country for purposes of achieving shared security objectives in furtherance of the purposes of this section.

The Secretary of State, in coordination with the Secretary of Defense, shall determine eligibility of a country to enter into a compact authorized under this subsection based on the following criteria:

(1) The country’s performance on the Security Sector Governance Index and other baseline assessments, including the following:

(A) The commitment and political will of the recipient to use such assistance in a manner that achieves mutual objectives.

(B) Recipient country’s assessment of internal and external security threats, including in relation to United States assessments of such threats, and the manner in which such perceptions may inform the use of security assistance.

(C) The recipient’s capacity to absorb the security assistance given and to achieve the objectives of such assistance.

(D) Country- or region-specific opportunities and risks that could enhance or impair the outcomes associated with providing security assistance.

(2) The relevant assessments pursuant to the Department of Defense’s assessment, monitoring, and evaluation program under section 383 of title 10, United States Code.

(3) An analysis of the extent to which the political conditions for continued improvements in security sector governance are present, including an assessment of security sector reforms with domestic political support.

(4) An assessment of the strategic significance of such country to United States national security interests.

Each compact authorized under this subsection shall include the following elements:

(1) Joint planning with the partner country, including senior level consultations and joint diagnosis of the strengths, priorities, and challenges of the country’s security institutions, including priority capacity and capability requirements.

(2) Joint development with the partner country of a security sector assistance plan, including tailored goals for an enhanced security partnership and a common strategy to improve the governance and capacity of the country’s security institutions and an agreement on more tailored, specific conditions for graduation to the next tier.

(3) A plan that includes a commitment by the country specifying the manner in which security sector assistance will be used, within a defined time-frame, and plans for sustainment by the country of any capabilities built as a result of such assistance, and mutually agreed oversight mechanisms for security sector assistance and metrics, to determine whether such assistance is accomplishing the agreed-upon objectives.

(4) A plan for coordination with other donors to maximize impact of security sector assistance and objectives related to strengthening security sector governance.

(5) Consultations with the national legislature of the country and a wide range of civil society groups in the country on such plans and the compact’s design, oversight, and evaluation.

Not less than 30 percent of assistance provided pursuant to a compact shall be for the purposes of institutional capacity building.

The Secretary and the Secretary of Defense may jointly establish a second compact with a country that was ranked as a tier two partner country and entered into a compact with the United States under this subsection if such country has been subsequently ranked as a tier three partner country.

The Secretary, in coordination with the Secretary of Defense, shall—

(1) as soon as possible before seeking negotiations to enter into a compact with a partner country under this section, consult with the appropriate congressional committees; and

(2) not later than 15 days before entering into such compact, notify appropriate congressional committees.

The duration of a compact under this section may not exceed 5 years.

Funds made available under the International Security Cooperation Program account are authorized to be made available to the Secretary and the Secretary of Defense for the purposes of entering into compacts authorized under section 6. Funds made available under this paragraph for entering into a compact are authorized to remain available until the completion of the compact.

There is established in the Treasury of the United States a fund, which shall be known as the Security Sector Compact Fund (in this paragraph referred to as the Fund), to be administered by the Department and the Department of Defense, as appropriate, to support security sector assistance programs that advance shared security goals through the establishment of a compact authorized under section 6.

There are authorized to be appropriated to carry out this paragraph such sums as may be necessary for each of the fiscal years 2027 through 2031.

Amounts authorized to be appropriated to the Fund shall be used to provide training, technical assistance, capacity building assistance, defense equipment, or military-to-military exchanges for the purposes of addressing shared security challenges, enhancing the bilateral security partnership, and advancing shared security sector governance objectives to conduct one or more of the following:

(A) Defense institutional capacity building.

(B) Institutional capacity building of oversight institutions and capabilities, including relevant legislative committees, ombudspersons and audit institutions, and civil society stakeholders.

(C) Counterterrorism operations.

(D) Counter-weapons of mass destruction operations.

(E) Counter-illicit drug trafficking operations.

(F) Counter-transnational organized crime operations.

(G) Maritime and border security operations.

(H) Military intelligence operations.

(I) Air domain awareness operations.

Funds may not be obligated under this paragraph unless the appropriate congressional committees are notified of the amount and nature of such proposed obligation at least 15 days in advance of such proposed obligation, including a description of the ongoing, completed, and planned institutional capacity building efforts with the recipient country.

Notwithstanding any other provision of law, assistance made available under the Fund shall be available to any recipient country that is a tier two partner country or a tier three partner country and is a recipient of a Compact.

Any assistance such partner country is eligible for pursuant to the relevant Tier as described in section 4 may also be provided as part of the Compact described in section 6.

The Secretary, in coordination with the Secretary of Defense, shall conduct an assessment of each partner country that has been ranked as a tier four partner country for 5 consecutive years to determine whether—

(1) the partner country should continue to receive security sector assistance or whether the type and amount of such assistance should be adjusted as appropriate; and

(2) the type and amount of security sector assistance provided to the partner country has achieved previously-identified short-term and long-term desired outcomes.

The Secretary, in coordination with the Secretary of Defense, shall submit to the appropriate congressional committees a report on an annual basis that contains the assessments required by subsection (a), including the results of the assessments.

The Secretary shall not be required to conduct an assessment under subsection (a) with respect to any country that is a North Atlantic Treaty Organization member country or Australia, New Zealand, Japan, or South Korea.

(1) except as otherwise provided, the term appropriate congressional committees means—

(A) the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Armed Services of the Senate;

(2) the term Department means the Department of State;

(3) the term Index means the metrics and indicators of the Security Sector Governance Index developed under section 3;

(4) except as otherwise provided, the term Secretary means the Secretary of State;

(5) the term security assistance means assistance provided under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), the Arms Export Control Act (22 U.S.C. 2751 et seq.) (other than Foreign Military Sales or Direct Commercial Sales), or any other provision of law;

(6) the term security sector assistance means—

(A) security assistance (as defined in paragraph (5)); and

(B) security cooperation and related activities and engagement provided under title 10, United States Code, to include sections 127e and 127d of title 10;

(7) the term security partner country means a foreign country that currently receives or participates in security sector assistance;

(8) the term tier one partner country assistance means the types of security sector assistance described in section 5(a);

(9) the term tier two partner country assistance means the types of security sector assistance described in section 5(b);

(10) the term tier three partner country assistance means the types of security sector assistance described in section 5(c); and

(11) the term tier four partner country assistance means the types of security sector assistance described in section 5(d).