The military assistance program in the statute

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1. The oldest grant authority in the field

Before Foreign Military Financing and most of today’s security cooperation authorities existed, military assistance was given under Part II of the Foreign Assistance Act of 1961. That part still sits in the United States Code, and much of the vocabulary of later programs comes from it. The distinction between sales under the Arms Export Control Act and grant assistance under this Act is set out in security cooperation and security assistance.

The statement of purpose is broad. "It is the purpose of subchapter II of this chapter to authorize measures in the common defense against internal and external aggression, including the furnishing of military assistance, upon request, to friendly countries and international organizations" (22 U.S.C. 2301). The same section keeps a policy of pursuing arms control and regulation alongside that assistance.

The policy section sets out the aims in more detail. They include improving the ability of friendly countries and international organizations to deter or defeat aggression, facilitating arrangements for individual and collective security, and assisting friendly countries to maintain internal security (22 U.S.C. 2301). Congress also records its support for cooperation among members of the North Atlantic Treaty Organization. It welcomes multilateral programs of coordinated procurement, research, development and production of defense articles, and urges that they be expanded (22 U.S.C. 2301).

Priority is addressed as well. The sense of Congress is that, in administering this part, priority goes to the needs of countries in danger of becoming victims of aggression or whose internal security is threatened by subversion supported from outside (22 U.S.C. 2301). Other countries able to contribute are urged to join a common undertaking toward the same goals.

2. What articles and services may be used for

The Act limits use, not only eligibility. Defense articles and services furnished to any country shall be furnished solely for internal security, including antiterrorism and nonproliferation, for legitimate self-defense, or for regional or collective arrangements consistent with the United Nations Charter (22 U.S.C. 2302). Participation in collective measures requested by the United Nations is also a permitted purpose.

One further purpose is civic action. Assistance may help foreign military forces in less developed friendly countries build public works and support economic and social development. Congress added a caution: "It is the sense of the Congress that such foreign military forces should not be maintained or established solely for civic action activities" (22 U.S.C. 2302).

3. The general authority

The President is authorized to furnish military assistance, on terms the President determines, to a friendly country or international organization whose assistance the President finds will strengthen American security and promote world peace (22 U.S.C. 2311(a)). The Act lists three ways of doing it. The first is acquiring from any source and providing, by loan or grant, a defense article or service. The second is assigning members of the armed forces and other Defense personnel to perform noncombatant duties. The third is transferring assistance funds into the account a recipient uses to pay for purchases under the Arms Export Control Act.

The third route links grants to sales. Funds transferred that way are merged with the recipient’s own deposits and used solely to pay for its purchases. Sales paid wholly from such funds, or from non-repayable financing, must be priced to exclude the salaries of members of the armed forces other than the Coast Guard (22 U.S.C. 2311(a)).

4. When an article may be loaned

Loans are allowed but tightly conditioned. An article may be loaned only if five conditions are met (22 U.S.C. 2311(b)). There must be a bona fide reason, other than a shortage of funds, for a loan rather than a grant. There must be "a reasonable expectation that such articles will be returned to the agency making the loan at the end of the loan period, unless the loan is then renewed" (22 U.S.C. 2311(b)(2)).

The loan period must be fixed and no longer than five years, and the United States may recall the article for any reason during it. The lending agency must be reimbursed from the military assistance appropriation. The loan agreement must make the recipient pay to restore a damaged article, and pay replacement cost less depreciation for one lost or destroyed (22 U.S.C. 2311(b)).

The charge to the appropriation is set by formula. For each fiscal year on loan, it is based on the out-of-pocket expenses of the loan and the depreciation during the year (22 U.S.C. 2311(c)(1)). The charge does not apply to loans agreed before 17 December 1973, or to articles bought with military assistance funds in the first place (22 U.S.C. 2311(c)(2)).

5. Funding, and competing with the Pentagon’s own programs

The authorization figure in the Code is historic: $805,100,000 each for fiscal years 1986 and 1987, available until expended (22 U.S.C. 2312(a)). The section has not been updated with later figures.

The budgeting rule is more lasting. The President must establish programming and budgeting procedures "so that programs of military assistance come into direct competition for financial support with other activities and programs of the Department of Defense" (22 U.S.C. 2312(b)). The stated aim is to make sure a dollar spent on military assistance is as necessary as a dollar spent on the American military establishment.

6. Three tests on every decision

Every decision to furnish military assistance under this part must weigh three risks (22 U.S.C. 2321d). The first is whether it will contribute to an arms race. The second is whether it will increase the possibility of outbreak or escalation of conflict. The third is whether it will prejudice the development of bilateral or multilateral arms control arrangements.

These are considerations, not prohibitions. The statute requires that they be taken into account, and leaves the weighing to the executive branch.

7. Why this part still matters

Many current programs borrow this part’s structures, including the use of funds transferred into purchase accounts and the loan conditions. The drawdown and peacekeeping authorities in the same part are covered in drawdowns and peacekeeping assistance, and the President’s waiver and delegation powers in delegation, debarment and waiver powers.

Key terms

Military assistance	Grant or loan of defense articles and services, or noncombatant personnel, under Part II of the Act.
Civic action	Work by foreign forces on public works and development, a permitted but secondary purpose.
Loan period	A fixed term of no more than five years, during which the United States may recall the article.
Section 511 considerations	The three risks every military assistance decision must take into account.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Articles furnished under grant programs still have to reach the units that will use them. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.