Expanding the Defense Industrial Base Sales Act

This Act may be cited as the Expanding the Defense Industrial Base Sales Act.
The Arms Export Control Act (22 U.S.C. 2751 et seq.) is amended by inserting after section 23 the following new section:
Notwithstanding section 23(h), funds made available to carry out the foreign military financing program under this Act may be used to finance the procurement by any foreign country or international organization eligible to receive such financing under this Act of defense articles, defense services, and design and construction services that are not sold by the United States Government.
The use of foreign military financing authorized in subsection (a) shall—
be approved by the Secretary of State, in consultation with the Secretary of Defense, prior to the extension of such authority to any foreign country or international organization; and
be subject to such terms, conditions, and limitations as the Secretary of State determines appropriate to advance the foreign policy and national security interests of the United States.
Not later than 180 days after the date of the enactment of this section, the Secretary of State, in coordination with the Secretary of Defense, shall prescribe regulations to implement this section, including regulations relating to, with respect to foreign military financing for direct commercial contracts authorized in subsection (a)—
procedures for review and approval;
audit, reporting, and financial accountability standards;
compliance with end-use monitoring and export control requirements; and
efforts to encourage participation by nontraditional defense companies.
The authority provided by this section is in addition to, and shall not be construed to limit or replace, the foreign military sales program otherwise authorized by this Act.