White House Orders Arms Sales Reform

President Trump Wednesday signed a sweeping executive order aimed at overhauling the U.S. foreign defense sales system, seeking to reduce delays and regulatory barriers in the sale of military equipment to international partners.

The directive—“Reforming Foreign Defense Sales to Improve Speed and Accountability”—initiates a broad set of reforms to the Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) processes, with the stated aim of improving delivery predictability, enhancing allied burden-sharing, and invigorating the domestic defense industrial base.

The order directs the Departments of State and Defense to increase coordination with industry, implement accountability measures, streamline regulatory review, and reevaluate certain export restrictions—most notably those related to Category I items under the Missile Technology Control Regime. It also mandates the development of a unified electronic system to track export license requests and active FMS cases throughout the acquisition lifecycle.

According to the White House, the directive is intended to consolidate decision-making, improve transparency, and ensure American defense articles reach partners in a timely and efficient manner. “This mutually reinforcing approach would enhance United States warfighting capabilities by fostering healthy American supply chains, domestic production levels, and technological development,” the order states.

The executive order calls for:

• Reevaluation of Category I restrictions for select partners.

• Annual updates to priority partner and end-item transfer lists.

• Adjustments to congressional notification thresholds for arms sales.

• Inclusion of exportability requirements in early acquisition planning.

• Creation of metrics for program accountability.

• Implementation of the 2018 National Security Presidential Memorandum on arms transfers.

This action marks the second major effort by the Trump administration to reform foreign defense sales. A previous 2018 reform effort sought to use defense exports as a tool for economic growth but fell short of industry expectations. The new directive also builds on recommendations from the Biden-era “Tiger Team,” which had identified recurring obstacles to implementing prior reforms.

Trump Signs Executive Order to Accelerate Foreign Weapons Sales, Echoing Proposals in Waltz Arms Sales Bill

Washington, D.C., April 9, 2025 — President Donald J. Trump today signed an executive order aimed at expediting the sale of U.S. defense articles and services to foreign partners, marking a significant escalation in efforts to modernize the Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) systems. The directive—“Reforming Foreign Defense Sales to Improve Speed and Accountability”—seeks to reduce acquisition delays, expand industry-government cooperation, and strengthen allied self-sufficiency.

Among other reforms, the executive order instructs the Departments of State and Defense to submit a joint proposal to Congress to adjust statutory notification thresholds for foreign arms sales under the Arms Export Control Act. If enacted, such adjustments would parallel provisions in legislation introduced last year by Rep. Michael Waltz (R-FL). The Arms Sales Modernization Act, introduced in 2024, sought to amend the Arms Export Control Act by raising congressional review thresholds from $14 million to $23 million for arms transfers, and from $50 million to $83 million for military equipment, training, and associated services.

Although Waltz’s bill did not become law, its key provisions appear reflected in the new executive directive. The order identifies inflation-adjusted thresholds and more efficient notification processes as necessary to reduce bottlenecks in the arms sales approval chain. These measures align with longstanding industry and allied concerns that regulatory lag undermines timely access to critical U.S. defense technologies.

In addition to legislative outreach, the order mandates reevaluation of export restrictions under multilateral regimes, such as the Missile Technology Control Regime, and requires the annual identification of “priority partners” and “priority end-items” for expedited delivery. It further calls for development of a consolidated digital platform to track both FMS and DCS transactions throughout their lifecycle, and directs the integration of exportability features at the earliest stages of defense system acquisition.

The directive builds on both the Trump administration’s 2018 arms transfer policy and recommendations by the Biden-era Tiger Team, which found that previous reform efforts often stalled due to implementation lapses. Fiscal year 2024 set new records for U.S. defense exports: $117.9 billion in FMS transfers—a 45.7% increase over FY2023—and $200.8 billion in authorized DCS transactions.

Major FY2024 FMS buyers included Türkiye ($23.0 billion for F-16 aircraft), Israel ($18.8 billion for F-15IA and F-15I+ aircraft), and Romania ($9.7 billion for F-35 aircraft and Abrams tanks). The Department of State currently oversees over 16,000 active FMS cases, with an open case value exceeding $845 billion.

The Trump administration’s renewed focus comes amid heightened global demand for U.S. defense systems. Fiscal Year 2024 saw record foreign weapons sales, with $117.9 billion in FMS transfers—a 45.7% increase from FY2023. The value of active FMS cases now exceeds $845 billion, according to the State Department. Major sales in FY2024 included Türkiye’s $23 billion F-16 acquisition and modernization, Israel’s $18.8 billion purchase of F-15 aircraft, and Romania’s $9.7 billion procurement of F-35 jets and M1A2 tanks.

Direct Commercial Sales also surged, reaching $200.8 billion in FY2024, a 27.5% year-over-year increase. The three-year rolling average for FMS rose nearly 50%, while DCS authorizations increased by 23.5%.

Industry leaders quickly welcomed the executive order. “We are excited to see President Trump take these long-overdue steps towards reforming the FMS process,” said Nicola Johnson, Vice President of Government Affairs at General Atomics Aeronautical Systems. Eric Fanning, President and CEO of the Aerospace Industries Association, called the action “a welcome step as American industry continues to support our nation’s foreign policy objectives.”

The order is expected to trigger further interagency planning, with several deadlines set within the next 120 days for implementation plans, partner prioritization, and congressional engagement. Some measures—such as adjustments to notification thresholds—will require legislative action.

[Executive Order]. [Fact Sheet]