H.R. 4233 would require the Departments of Defense and State to expedite reviews of transfers of certain defense articles within or among Australia, Canada, and the United Kingdom, or to the United States. It also would exempt exports and transfers of those defense articles from requirements to notify the Congress about pending transactions. The bill would require the Department of State to periodically review a list of defense articles and services that are ineligible for expedited reviews. Lastly, it would require the Administration to report to the Congress on its implementation of the bill.
U.S. defense articles and services are exported or transferred to foreign countries through the Foreign Military Sales (FMS) program, which is managed by the Department of Defense. Those countries pay all costs associated with such sales, and the amounts received into the FMS trust fund are available for obligation without further appropriation. The trust fund operates at no net cost to the federal government, and its cash flows are classified as direct spending. To the extent that implementing the bill would affect the timing of sales that would occur under current law, CBO estimates that the net effect on direct spending would be insignificant over time.
The Department of State manages the Direct Commercial Sales program and requires defense manufacturers, exporters, and brokers of defense articles and services to register with its Directorate of Defense Trade Controls. The directorate charges registration fees and can spend those fees without further appropriation. To the extent that implementing the bill would affect the collection and subsequent spending of registration fees, CBO estimates that the net effect on direct spending would be insignificant over time.
On the basis of information about spending reviews and reports similar to those required by H.R. 4233, CBO estimates that implementing those requirements would cost less than $500,000 over the 2025-2030 period. Such spending would be subject to availability of appropriated funds.
The CBO staff contact for this estimate is Sunita D’Monte. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.
Phillip L. Swagel
Director, Congressional Budget Office