Trade Law Daily is a Warren News publication.

House Committee Approves Threshold Increases for Arms Sales Notifications

The House Foreign Affairs Committee late Feb. 6 approved a bill that would make inflation-based adjustments to the dollar thresholds that trigger congressional notification of arms sales.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

For NATO members plus Australia, Israel, Japan, New Zealand and South Korea, the $25 million threshold for major defense equipment would increase to $42 million, the $100 million threshold for defense articles and services would grow to $166 million, and the $300 million threshold for design and construction services would rise to $500 million.

For other countries, the $14 million threshold for major defense equipment would increase to $23 million, the $50 million threshold for defense articles and services would grow to $83 million, and the $200 million threshold for design and construction services would rise to $332 million.

The committee voted, 26-20, to favorably report the proposed Foreign Military Sales Technical, Industrial, and Governmental Engagement for Readiness (TIGER) Act. Rep. Mike Waltz, R-Fla., who introduced the bill, said the thresholds have not been adjusted in 20 years and need to be increased to account for inflation of nearly 70% (see 2402060075). Opponents countered that congressional overseers should have more information, not less, on arms sales.

Waltz said the bill also would establish a “cumulative threshold structure” to ensure that large numbers of below-threshold sales receive oversight from Congress. The thresholds would be $5 billion over three years for NATO-plus countries and $1 billion for non-NATO-plus countries. “Countries should not be able to game the system and structure their purchases to avoid congressional oversight,” Waltz asserted.

Waltz said the bill also contains a “forcing function” to ensure senior officials prioritize arms sales to Taiwan. Committee Chairman Rep. Michael McCaul, R-Texas, welcomed the provision, saying he has approved “over 20 weapon systems that have yet to go into Taiwan, and that does not provide deterrence against a very aggressive China.”