United States Foreign Military Financing

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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.

Contents

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.Inside Government Contracts, Covington. "Covington Guide to Foreign Military Sales and Financing" (PDF). Inside Government Contracts. Retrieved November 11, 2023.

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

By account, program area and program element

The allocation of FMF by account, program area and program element is: [1]

AccountActual 2006 (millions of USD)Requested 2008 (millions of USD)
Total FMF8,929.89,072.0
1.1 Counter-Terrorism0.05-
1.1.3 Governments’ Capabilities0.05-
1.3 Stabilization Operations and Security Sector Reform4,464.854,536.00
1.3.1 Operations Support244.63231.99
1.3.5 Immediate Protection of Civilians in Conflict1.230.01
1.3.6 Defense, Military, and Border Restructuring, Reform and Operations4,177.794,262.05
1.3.8 Program Support (Stabilization)41.2041.95

By country

From 2003 to 2007 Iraq was the largest beneficiary of FMF, since then it is Afghanistan. [2] 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: [1]

RankCountryActual FMF 2008 (millions of USD)Percentage of total 2006Requested FMF 2008 (millions of USD)
1Flag of Afghanistan (2004-2013).svg  Afghanistan 601251.142400.00
2Flag of Iraq.svg  Iraq 436951.142400.00
3Flag of Bangladesh.svg  Bangladesh 23893.142400.00
3Flag of Egypt.svg  Egypt 1291.0029.161300.00
3Flag of Israel.svg  Israel 1290.006.73300.00
4Flag of Pakistan.svg  Pakistan 207.904.71200.00
5Flag of Colombia.svg  Colombia 89.102.0278.00
6Flag of Poland.svg  Poland 29.700.6727.20
7Flag of the Philippines.svg  Philippines 29.700.6711.10
8Flag of Bahrain.svg  Bahrain 15.590.354.30
9Flag of Turkey.svg  Turkey 14.850.3411.82
10Flag of Mozambique.svg  Mozambique 13.860.3110.11
11Flag of Romania.svg  Romania 12.870.2918.40
12Flag of Morocco.svg  Morocco 12.380.283.65
13Flag of Georgia.svg  Georgia 11.880.2710.00
14Flag of Ukraine.svg  Ukraine 10.890.259.00
15Flag of El Salvador.svg  El Salvador 9.900.224.80
16Flag of Bulgaria.svg  Bulgaria 9.900.2213.20
17Flag of Bosnia and Herzegovina.svg  Bosnia and Herzegovina 8.910.207.80
18Flag of Yemen.svg  Yemen 8.410.194.68
19Flag of Tunisia.svg  Tunisia 8.410.192.06
20Flag of Latvia.svg  Latvia 5.940.133.00
21Flag of Lithuania.svg  Lithuania 4.460.103.00
22Flag of Estonia.svg  Estonia 4.450.103.00
23Flag of Slovakia.svg  Slovakia 3.960.093.00
24Flag of North Macedonia.svg  North Macedonia 3.960.094.50
25Flag of Djibouti.svg  Djibouti 3.960.093.20
26Flag of Azerbaijan.svg  Azerbaijan 3.960.094.30
27Flag of Armenia.svg  Armenia 3.960.093.00
28Flag of the Czech Republic.svg  Czech Republic 3.960.093.00
29Flag of Lebanon.svg  Lebanon 3.710.089.60
30Flag of Kazakhstan.svg  Kazakhstan 3.460.082.00
31Flag of Albania.svg  Albania 3.460.082.60
32Flag of Mongolia.svg  Mongolia 2.970.071.00
33Flag of Hungary.svg  Hungary 2.470.062.00
34Flag of Liberia.svg  Liberia 1.980.041.00
35Flag of Ethiopia.svg  Ethiopia 1.980.040.85
36Flag of Kyrgyzstan (2023).svg  Kyrgyzstan 1.880.041.50
37Flag of Thailand.svg  Thailand 1.490.030.50
38Flag of Sri Lanka.svg  Sri Lanka 0.990.020.85
39Flag of Panama.svg  Panama 0.990.02-
40Flag of Nigeria.svg  Nigeria 0.990.021.35
41Flag of Indonesia.svg  Indonesia 0.990.0215.70
42Flag of East Timor.svg  East Timor 0.990.02-
43Flag of Cambodia.svg  Cambodia 0.990.020.20
44Flag of Jordan.svg  Jordan 0.990.020.88
45Flag of Haiti.svg  Haiti 0.990.02-
46Flag of the Dominican Republic.svg  Dominican Republic 0.940.02-
47Eastern Caribbean0.910.02-
48Flag of Honduras.svg  Honduras 0.890.02-
49Flag of Nicaragua.svg  Nicaragua 0.590.01-
50Flag of Jamaica.svg  Jamaica 0.590.01-
51Flag of Chile.svg  Chile 0.590.01-
52Flag of Tajikistan.svg  Tajikistan 0.490.010.68
53Flag of Senegal.svg  Senegal 0.490.01-
54Flag of Moldova.svg  Moldova 0.490.01-
55Flag of Ghana.svg  Ghana 0.490.010.30
56Flag of Slovenia.svg  Slovenia 0.490.010.50
57Flag of Fiji.svg  Fiji 0.490.010.11
58Flag of Turkmenistan.svg  Turkmenistan 0.300.01-
59Flag of Tonga.svg  Tonga 0.250.010.20
60Flag of Belize.svg  Belize 0.200.00-
61Flag of Suriname.svg  Suriname 0.100.00-
62Flag of Guyana.svg  Guyana 0.100.00-
63Flag of the Bahamas.svg  Bahamas 0.100.00-
64Flag of Sudan.svg  Sudan --0.10
65Flag of South Africa.svg  South Africa --0.10
66Flag of Peru.svg  Peru ---
67Flag of Mozambique.svg  Mozambique --0.20
68Flag of Madagascar.svg  Madagascar --0.10
69Flag of Kenya.svg  Kenya --0.80
70Flag of Guinea.svg  Guinea --0.20
71Flag of the Democratic Republic of the Congo.svg  Democratic Republic of the Congo --0.60
72Flag of Argentina.svg  Argentina ---

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