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.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 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]

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

• United States military aid

References

External links

• U.S. Department of Defense
• U.S. Department of State
• U.S. Department of State Foreign Military Financing Account Summary
• Defense Security Cooperation Agency
• "Report: U.S. Routinely Sends Arms to Undemocratic Nations", on Democracy Now!, May 27, 2005 (video, audio, and print transcript).