Purpose:
The Foreign Military Sales (FMS) program is a form of security assistance authorized by the Arms Export Control Act (AECA) and a fundamental tool of U.S. foreign policy.
Under Section 3, of the AECA, the U.S. may
sell defense articles and services to foreign countries and international organizations when the President formally finds that to do so will strengthen the security of the U.S. and promote world peace.
Under FMS the US Government and a foreign government enter into a government-to-government sales agreement. The international agreement is called a Letter of Offer and Acceptance (LOA).
Who:
Secretary of State determines which countries will have programs. Secretary of Defense executes the program.
Funding:
May be funded by country national funds or US Government funds.
Foreign Military Sales (FMS) | The Official Home of the Defense Security Cooperation Agency
As for the funding but: you may simply pay or,
e.g. when the US owes you money, the US government may pay. Either way, it is not a GIFT.
By comparison....
Purpose:
The Arms Export Control Act (AECA) authorizes the President
to finance procurement of defense articles and services
for foreign countries and international organizations.
FMF enables eligible partner nations to purchase U.S. defense articles, services, and training through either FMS or , for a limited number of countries, through
Direct Commercial Contracts (DCC) channels.
Who:
Secretary of State determines which countries will have programs. Secretary of Defense executes the program.
Funding:
FMF is a source of financing and may be provided to a partner nation on
either a grant (non-repayable) or direct loan basis.
Foreign Military Financing (FMF) | The Official Home of the Defense Security Cooperation Agency
The question is how the FMS will be funded.....
It certainly is NOT EDA
EDA DataBase Tool:
Access the Database
This database contains authorization and transfer data, but no information on potential offers not yet been notified to Congress. Prior to notification to Congress, the decision to provide EDA is not yet final and disclosure of potential offers is not possible.
- The following information on each notified transfer is available:
- The recipient country
- The item(s) to be transferred and the quantity of each
- The implementing agency for each transfer (Army, Navy, Air Force, Defense Logistics Agency (DLA)
- Transfer via grant or sale
- The notified acquisition value and current value of the equipment.
- For grants, the current value is the value at which the equipment would be sold through FMS if it was not being granted.
- The status of the transfer and the date of the latest status change.
Purpose of the Program:
Transfers excess defense equipment to foreign governments or international organizations. Typically used for modernization of partner forces. Excess defense articles provided to partner nation at a reduced price (based on the condition of the equipment) or as a grant. Partner nations pay for packing, crating, handling, and transportation (PCH&T), as well as refurbishment if applicable – EDA is “as is, where is”.
Who:
The Military Departments identify excess equipment
Combatant Commands identify possible recipients to MILDEPS
DSCA facilitates coordination and approval of requests
Excess Defense Articles (EDA) | The Official Home of the Defense Security Cooperation Agency
Note: This wording strongly suggests a sale trough FMS is NOT a grant.
The Congress is where the real money games happen.
It has happened in the past that a recipient country was offered EDA equipment (e.g. Spruance destroyer to Pakistan) but that the recipient refused the equipment for one reason or another. Here too you have a situation where an administration proposes a transfer, which can only take place provided a) no objection by congress (they don't get to change the proposed deal) and b) approval/acceptance by the target country.
