Foreign Military Sales Reform Act of 2025

HR 3138 raises dollar thresholds in the Arms Export Control Act for congressional notification on foreign military sales. It increases key thresholds from $14 million to $23 million and $50 million to $83 million for certain defense transfers, while raising other related caps. The bill also requires a State Department report on efforts to circumvent these thresholds and prohibits federal employees from structuring transactions to avoid notification rules. Violations could result in a $100,000 civil penalty and barring from federal employment. This directly affects defense contractors and State Department officials handling foreign military sales.