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last updated:5/31/07

FMF: Foreign Military Financing


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Program description / Law | FMF by country


Program description Law
The Foreign Military Financing (FMF) program provides grants and loans to help countries purchase U.S.-produced weapons, defense equipment, defense services and military training. FMF funds purchases made through the Foreign Military Sales (FMS) program, which manages government-to-government sales. On a much less frequent basis, FMF also funds purchases made through the Direct Commercial Sales (DCS) 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.

The State Department's Bureau of Political-Military Affairs sets 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. According to the State and Defense Departments' Foreign Military Training Report (FMTR), FMF funded the training of 1,905 Latin American security-force personnel (out of 22,855 region-wide) in 2003.

During the 1980s FMF was an important funding mechanism for U.S. military assistance to Central America. In the 1990s use of FMF in Latin America was minimal. FMF for Latin America is now rising dramatically. In 2001, $4.9 million was provided to seven Latin American countries. The Bush Administration gave $119.6 million in FMF to fourteen countries (plus an Eastern Caribbean regional fund) in 2004. The largest share, $98.45 million for Colombia, supports protection of an oil pipeline and an anti-guerrilla military offensive known as "Plan Patriota," among other initiatives.

In 2006, FMF funded the launch of "Operation Enduring Friendship," a naval cooperation program that the Bush Administration has carried out in the Caribbean.

FMF to several Latin American countries has been frozen by the American Servicemembers' Protection Act.

The FMF program is authorized by sections 23 and 24 of the Arms Export Control Act (P.L. 90-269, or the AECA), as amended. In order to receive assistance through FMF, countries must meet all the eligibility requirements contained in the Foreign Assistance Act and the Arms Export Control Act.

Reports

Section 634 of the Foreign Assistance Act of 1961 (P.L. 87-195, or the "FAA"), as amended, requires that yearly congressional presentation documents provide amounts of FMF:

  1. Obligated to each country in the past fiscal year;
  2. Planned for the current fiscal year; and
  3. Proposed for the following fiscal year.

Click to read the text of section 23 of the AECA, also known as section 2763 of Title 22, U.S. Code. (From U.S. House of Representatives Internet Law Library)
Click to read the text of section 634 of the FAA, also known as section 2394 of Title 22, U.S. Code. (From U.S. House of Representatives Internet Law Library)

FMF recipients by country

2005-2008:

Country
2005 [10]
2006 [11]
2007 [11]
2008 Request [11]
Antigua and Barbuda
Argentina
0
0
0
0
Bahamas
99,000
99,000
99,000
0
Barbados
Belize
698,000
198,000
198,000
0
Bolivia
0
990,000
Brazil
Caribbean Regional
Central America Regional
Chile
495,000
592,000
592,000
0
Colombia
99,200,000
89,100,000
89,100,000
78,000,000
Costa Rica
Dominica
Dominican Republic
992,000
941,000
941,000
0
Eastern Caribbean Regional
1,113,000
905,000
905,000
0
Ecuador
0
495,000
495,000
0
El Salvador
1,488,000
9,900,000
5,500,000
4,800,000
Grenada
0
0
0
0
Guatemala
Guyana
99,000
99,000
99,000
0
Haiti
297,000
988,000
988,000
0
Honduras
1,492,000
891,000
891,000
0
Jamaica
595,000
594,000
594,000
0
Mexico
Nicaragua
496,000
594,000
594,000
0
Panama
992,000
990,000
990,000
0
Paraguay
Peru
0
0
0
0
South America Regional
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
Suriname
99,000
99,000
99,000
0
Trinidad and Tobago
0
0
0
0
Uruguay
0
0
0
0
Venezuela
Western Hemisphere Regional
0
3,960,000
0
Operation Enduring Friendship
0
3,960,000
0
0
Total
108,155,000
109,950,000
109,950,000
82,800,000

2000-2004:

Country
2000 [4]
2001 [5]
2002 [7]
2003 [8]
2004 [9]
Antigua and Barbuda
Argentina
450,000
998,000
1,000,000
1,990,000
0
Bahamas
50,000
139,000
100,000
90,000
99,000
Barbados
Belize
100,000
200,000
200,000
290,000
191,000
Bolivia
0
0
500,000
1,990,000
3,976,000
Brazil
Caribbean Regional
Central America Regional
Chile
278,671
0
500,000
990,000
347,000
Colombia
24,524
0
0
17,100,000
98,450,000
Costa Rica
Dominica
Dominican Republic
400,000
649,000
350,000
300,000
2,000,000
Eastern Caribbean Regional
1,300,000
1,996,000
2,000,000
782,000
3,137,000
Ecuador
0
0
3,000,000
990,000
0
El Salvador
104,185
0
1,000,000
2,480,000
5,000,000
Grenada
47,000
70,000
0
0
0
Guatemala
Guyana
100,000
124,000
200,000
390,000
95,000
Haiti
300,000
0
300,000
390,000
295,000
Honduras
5,320
0
0
168,000
2,375,000
Jamaica
500,000
584,000
600,000
690,000
597,000
Mexico
Nicaragua
0
0
500,000
1,000,000
938,000
Panama
0
0
0
990,000
2,000,000
Paraguay
Peru
0
0
0
990,000
0
South America Regional
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
Suriname
0
0
150,000
240,000
114,000
Trinidad and Tobago
250,000
300,000
300,000
390,000
0
Uruguay
4,602
0
1,000,000
990,000
0
Venezuela
Western Hemisphere Regional
Operation Enduring Friendship
0
0
0
0
0
Total
3,914,302
5,060,000
11,700,000
33,240,000
119,614,000

1996-1999:

Country 1996 [1] 1997 [1, 6] 1998 [2] 1999 [3]
Antigua and Barbuda
50,000
225,000
310,000
410,000
Argentina
0
0
1,250,000
1,850,000
Bahamas
75,000
75,000
140,000
130,000
Barbados
200,000
100,000
75,000
75,000
Belize
75,000
75,000
100,000
100,000
Bolivia
0
0
0
17,253
Chile
0
0
300,000
400,000
Colombia
0
Up to $30,000,000
0
440,788
Dominica
50,000
100,000
115,000
145,000
Dominican Republic
0
100,000
225,000
396,961
Ecuador
0
0
0
79,068
El Salvador
0
0
0
42,999
Grenada
350,000
100,000
145,000
190,000
Guyana
75,000
0
100,000
100,000
Haiti
0
225,000
650,000
390,000
Honduras
0
0
0
116,884
Jamaica
600,000
415,000
450,000
475,000
Nicaragua
0
0
0
0
Panama
0
0
0
595,036
Peru
0
0
0
0
St. Kitts and Nevis
50,000
100,000
130,000
155,000
St. Lucia
50,000
100,000
160,000
195,000
St. Vincent and the Grenadines
50,000
100,000
110,000
130,000
Suriname
75,000
0
0
0
Trinidad and Tobago
300,000
285,000
290,000
225,000
Uruguay
0
0
800,000
800,000
Total 2,000,000 Up to $32,000,000 5,350,000 7,558,989

Sources:

1 United States, Department of State, Office of Resources, Plans and Policy, Congressional Presentation for Foreign Operations, Fiscal Year 1999 (Washington: March 1998): 470-1, 999.

United States, Department of Defense, Defense Security Cooperation Agency, DSCA (Facts Book) -- Foreign Military Sales, Foreign Military Construction Sales and Military Assistance Facts, (Washington: September 30, 1999) <http://web.deskbook.osd.mil/reflib/DDOD/001EN/001ENdoc.htm>.

2 United States, Department of State, Office of Resources, Plans and Policy, Congressional Presentation for Foreign Operations, Fiscal Year 2000 (Washington: March 1999): 1114.

United States, Department of Defense, Defense Security Cooperation Agency, DSCA (Facts Book) -- Foreign Military Sales, Foreign Military Construction Sales and Military Assistance Facts, (Washington: September 30, 1999) <http://web.deskbook.osd.mil/reflib/DDOD/001EN/001ENdoc.htm>.

3 United States, Department of State, Office of Resources, Plans and Policy, Congressional Presentation for Foreign Operations, Fiscal Year 2001 (Washington: March 2000). <http://www.state.gov/www/budget/fy2001/fn150/forops_full/150fy01_fo_military-asst.html>.

United States, Department of Defense, Department of State, Foreign Military Training and DoD Engagement Activities of Interest in Fiscal Years 1999 and 2000: A Report to Congress (Washington: March 2000) <http://www.state.gov/www/global/arms/fmtrain/toc.html>.

United States, Department of Defense, Defense Security Cooperation Agency, DSCA (Facts Book) -- Foreign Military Sales, Foreign Military Construction Sales and Military Assistance Facts, (Washington: September 30, 1999) <http://web.deskbook.osd.mil/reflib/DDOD/001EN/001ENdoc.htm>.

4 United States, Department of State, Office of Resources, Plans and Policy, FY2002 International Affairs (Function 150) Budget Request (Washington: April 9, 2001) <http://www.state.gov/s/rpp/rls/iab/>.

United States, Department of State, Department of Defense, Foreign Military Training and DoD Engagement Activities of Interest In Fiscal years 2000 and 2001, Volume I (Washington: March 2001) <http://www.state.gov/t/pm/rls/rpt/2001/fmtrpt/>.

United States, Department of State, Office of Resources, Plans and Policy, Congressional Presentation for Foreign Operations, Fiscal Year 2002 (Washington: April 2001) <http://www.state.gov/documents/organization/3961.pdf>.

5 United States, Department of State, FY 2003 Congressional Budget Justification for Foreign Operations (Washington, DC: Department of State, April 15, 2002) <http://www.state.gov/m/rm/rls/cbj/2003/>.

6 Colombia 1997 figure: United States, General Accounting Office, "Drug Control: U.S. Counternarcotics Efforts in Colombia Face Continuing Challenges," GAO/NSIAD-98-60 (Washington: GAO, February 12, 1998) <http://frwebgate.access.gpo.gov/cgi-bin/useftp.cgi?IPaddress=waisback.access.gpo.gov&filename=ns98060.txt&directory=/diskb/wais/data/gao>.

7 United States, Department of State, FY 2004 Congressional Budget Justification for Foreign Operations (Washington, DC: Department of State, February 2003) <http://www.state.gov/m/rm/rls/cbj/2004/>.

8 United States, Department of State, FY 2005 Congressional Budget Justification for Foreign Operations (Washington, DC: Department of State, February 2004) <http://www.state.gov/m/rm/rls/cbj/2005/>.

9 United States, Department of State, FY 2006 Congressional Budget Justification for Foreign Operations (Washington, DC: Department of State, February 2005) <http://www.state.gov/m/rm/rls/cbj/2006/>.

10 United States, Department of State, Fiscal Year 2007 International Affairs (Function 150) Budget Request Summary and Highlights (Washington: Department of State, February 2006) <http://www.state.gov/s/d/rm/rls/iab/2007/>.

11 United States, Department of State, FY 2008 Congressional Budget Justification for Foreign Operations (Washington: Department of State, February 2007) <http://www.state.gov/documents/organization/80701.pdf>.

 

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