House Committee Approves Threshold Increases for Arms Sales Notifications

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.”