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The Foreign Military Financing (FMF) program provides grants and loans to help countries purchase weapons and defense equipment produced in the United States as well as acquiring defense services and military training. FMF funds purchases are made through the Foreign Military Sales (FMS) program, which manages government-to-government sales. FMF also funds purchases made through the Direct Commercial Contracts (DCC) program, which oversees sales between foreign governments and private U.S. companies. FMF does not provide cash grants to other countries; it generally pays for sales of specific goods or services through FMS or DCS.

In 2020, the Defense Security Cooperation Agency (DSCA), which oversees the FMF program, reported sales of $50.8 billion under the Foreign Military Sales (FMS) program (an increase of 51% from five years earlier) and $124.3 billion in sales under the Direct Commercial Contracts (DCC) program.[1]

The State Department's Bureau of Political-Military Affairs and the latter's Office of Security Assistance set policy for the FMF program, while the Defense Security Cooperation Agency (DSCA), within the Defense Department, manages it on a day-to-day basis. Security Assistance Organizations (SAOs), military personnel in U.S. embassies overseas, play a key role in managing FMF within recipient countries. Some FMF pays for SAO salaries and operational costs. Congress appropriates funds for FMF through the yearly Foreign Operations Appropriations Act.

FMF exists primarily to fund arms transfers, as military training is normally granted through the International Military Education and Training (IMET) program. However, FMF does support a good deal of training.

Allocation of Foreign Military Financing

This section needs to be updated. Please help update this article to reflect recent events or newly available information. (January 2024)

By account, program area and program element

The allocation of FMF by account, program area and program element is:[2]

Account Actual 2006 (millions of USD) Requested 2008 (millions of USD)
Total FMF 8,929.8 9,072.0
1.1 Counter-Terrorism 0.05 -
1.1.3 Governments’ Capabilities 0.05 -
1.3 Stabilization Operations and Security Sector Reform 4,464.85 4,536.00
1.3.1 Operations Support 244.63 231.99
1.3.5 Immediate Protection of Civilians in Conflict 1.23 0.01
1.3.6 Defense, Military, and Border Restructuring, Reform and Operations 4,177.79 4,262.05
1.3.8 Program Support (Stabilization) 41.20 41.95

By country

From 2003 to 2007 Iraq was the largest beneficiary of FMF, since then it is Afghanistan.[3] Until 2003 it was Israel. Other countries in the Middle East and Greater Middle East (including Pakistan, Jordan, and especially Egypt) are among the other major recipients of FMF funds.

The allocation of FMF by country is:[2]

Rank Country Actual FMF 2008 (millions of USD) Percentage of total 2006 Requested FMF 2008 (millions of USD)
1  Afghanistan 6012 51.14 2400.00
2  Iraq 4369 51.14 2400.00
3  Bangladesh 2389 3.14 2400.00
3  Egypt 1291.00 29.16 1300.00
3  Israel 1290.00 6.73 300.00
4  Pakistan 207.90 4.71 200.00
5  Colombia 89.10 2.02 78.00
6  Poland 29.70 0.67 27.20
7  Philippines 29.70 0.67 11.10
8  Bahrain 15.59 0.35 4.30
9  Turkey 14.85 0.34 11.82
10  Mozambique 13.86 0.31 10.11
11  Romania 12.87 0.29 18.40
12  Morocco 12.38 0.28 3.65
13  Georgia 11.88 0.27 10.00
14  Ukraine 10.89 0.25 9.00
15  El Salvador 9.90 0.22 4.80
16  Bulgaria 9.90 0.22 13.20
17  Bosnia and Herzegovina 8.91 0.20 7.80
18  Yemen 8.41 0.19 4.68
19  Tunisia 8.41 0.19 2.06
20  Latvia 5.94 0.13 3.00
21  Lithuania 4.46 0.10 3.00
22  Estonia 4.45 0.10 3.00
23  Slovakia 3.96 0.09 3.00
24  North Macedonia 3.96 0.09 4.50
25  Djibouti 3.96 0.09 3.20
26  Azerbaijan 3.96 0.09 4.30
27  Armenia 3.96 0.09 3.00
28  Czech Republic 3.96 0.09 3.00
29  Lebanon 3.71 0.08 9.60
30  Kazakhstan 3.46 0.08 2.00
31  Albania 3.46 0.08 2.60
32  Mongolia 2.97 0.07 1.00
33  Hungary 2.47 0.06 2.00
34  Liberia 1.98 0.04 1.00
35  Ethiopia 1.98 0.04 0.85
36  Kyrgyzstan 1.88 0.04 1.50
37  Thailand 1.49 0.03 0.50
38  Sri Lanka 0.99 0.02 0.85
39  Panama 0.99 0.02 -
40  Nigeria 0.99 0.02 1.35
41  Indonesia 0.99 0.02 15.70
42  East Timor 0.99 0.02 -
43  Cambodia 0.99 0.02 0.20
44  Jordan 0.99 0.02 0.88
45  Haiti 0.99 0.02 -
46  Dominican Republic 0.94 0.02 -
47 Eastern Caribbean 0.91 0.02 -
48  Honduras 0.89 0.02 -
49  Nicaragua 0.59 0.01 -
50  Jamaica 0.59 0.01 -
51  Chile 0.59 0.01 -
52  Tajikistan 0.49 0.01 0.68
53  Senegal 0.49 0.01 -
54  Moldova 0.49 0.01 -
55  Ghana 0.49 0.01 0.30
56  Slovenia 0.49 0.01 0.50
57  Fiji 0.49 0.01 0.11
58  Turkmenistan 0.30 0.01 -
59  Tonga 0.25 0.01 0.20
60  Belize 0.20 0.00 -
61  Suriname 0.10 0.00 -
62  Guyana 0.10 0.00 -
63  Bahamas 0.10 0.00 -
64  Sudan - - 0.10
65  South Africa - - 0.10
66  Peru - - -
67  Mozambique - - 0.20
68  Madagascar - - 0.10
69  Kenya - - 0.80
70  Guinea - - 0.20
71  Democratic Republic of the Congo - - 0.60
72  Argentina - - -

See also

References

  1. ^ Inside Government Contracts, Covington. "Covington Guide to Foreign Military Sales and Financing" (PDF). Inside Government Contracts. Retrieved November 11, 2023.
  2. ^ a b United States Department of State
  3. ^ https://www.census.gov/compendia/statab/2011/tables/11s1296.pdf see also https://www.census.gov/compendia/statab/2011/tables/11s1298.pdf

External links

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