Who decides which countries get Foreign Military Financing?
Updated 27 September 2026·Checked against the SAMM: 26 September 2026
Congress appropriates Foreign Military Financing and may earmark amounts for particular countries. Within those limits the Department of State decides which partners receive grants or loans and how much, and , acting under authority delegated from the President, administers the program. Credit is extended only where the purchase cannot reasonably be financed otherwise.
Who decides which countries get Foreign Military Financing?
program facilitates the purchase of U.S. military equipment, spare parts, services, and training by many international partners.
The DOS, in accordance with AECA Section 2, is responsible for the continuous supervision and general direction of sales and exports of defense articles and services. In fulfillment of those responsibilities, the DOS determines which international partners will receive grants/loans, unless Congress has enacted into law specific country/amount determinations (i.e., earmarks), prohibitions, or ceilings.
The President has delegated to the Secretary of War the authority to issue and guarantee loans to eligible international partners. The Secretary of War has delegated to the Director of the authority to administer the credit program while ensuring that such funds are used only to buy authorized materiel and services. As such, DOS must first approve the use of loans.
program credit financing will normally be extended when it has been determined that purchases of defense items cannot be financed reasonably by other means, taking into account any U.S. military and economic assistance that such international partners may be receiving, and indigenous financing. In addition to being evaluated for consistency with U.S. foreign policy interests (including human rights), proposed arms purchases by the country and the suitability of items being purchased will be taken into account. Of particular attention are the level of weapons sophistication and the capability of the international partners to maintain, support, and employ the items effectively. program credit assistance will not be extended solely to consummate a sale.
References
Drawn exclusively from publicly available authorities.
A group of programs authorized by federal statutes by which the United States provides defense articles, military training, and other defense-related services by grant, lease, loan, credit, or cash sales in furtherance of national policies and objectives, and those that are funded and authorized through the Department of State to be administered by Department of Defense/Defense Security Cooperation Agency, which are considered part of security cooperation.
