Critical Munitions Acquisition Fund

(a)

Establishment

There shall be established in the Treasury of the United States a revolving fund to be known as the Critical Munitions Acquisition Fund (in this section referred to as the Fund). (b)

Purpose

Amounts in the Fund shall be made available by the Secretary of Defense— (1) to ensure that adequate stocks of munitions that the Secretary deems critical due to a reduction in stocks or identification as having a high use rate are available for allies and partners of the United States during the war in Ukraine and future conflicts; and (2)to finance the acquisition of critical munitions in advance of the transfer of such munitions to foreign countries during the war in Ukraine and future conflicts.(c)

Additional authority

The Secretary may also use amounts made available to the Fund to keep on continuous order munitions that the Secretary deems as critical due to a reduction in current stocks or identification as having a high-use rate during the war in Ukraine or a potential high-use rate during a future conflict.(d)

Deposits

(1)

In general

The Fund shall consist of each of the following: (A)Collections from sales made under letters of offer (or transfers made under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.)) of munitions acquired using amounts made available from the Fund pursuant to this section, representing the value of such items calculated, as applicable, in accordance with— (i)subparagraph (B) or (C) of section 21(a)(1) of the Arms Export Control Act (22 U.S.C. 2761(a)(1)); (ii)section 22 of the Arms Export Control Act (22 U.S.C. 2762); or (iii)section 644(m) of the Foreign Assistance Act of 1961 (22 U.S.C. 2403(m)). (B)Such amounts as may be appropriated pursuant to the authorization under this section or otherwise made available for the purposes of the Fund.(C)Not more than $500,000,000 may be transferred to the Fund for any fiscal year, in accordance with subsection (e), from amounts authorized to be appropriated for the Department in such amounts as the Secretary determines necessary to carry out the purposes of this section, which shall remain available until expended. The transfer authority provided under this subparagraph is in addition to any other transfer authority available to the Secretary. (2)

Contributions from foreign governments

(A)

In general

Subject to subparagraph (B), the Secretary of Defense may accept contributions of amounts to the Fund from any foreign entity, foreign government, or international organization. Any amounts so accepted shall be credited to the Critical Munitions Acquisition Fund and shall be available for use as authorized under subsection (b). (B)

Limitation

The Secretary may not accept a contribution under this paragraph if the acceptance of the contribution would compromise, or appear to compromise, the integrity of any program of the Department of Defense. (C)

Notification

If the Secretary accepts any contribution under this paragraph, the Secretary shall notify the congressional defense committees, the Committee on Foreign Relations of the Senate, and the Committee on Foreign Affairs of the House of Representatives. The notice shall specify the source and amount of any contribution so accepted and the use of any amount so accepted.(e)

Notice and wait requirements

(1)

In general

No amount may be transferred pursuant to subsection (d)(1)(C) until the date that is 15 days after the date on which the Secretary notifies the congressional defense committees in writing of the amount and purpose of the proposed transfer. (2)

Ammunition purchases

No amounts in the Fund may be used to purchase ammunition, as authorized by this Act, until the date that is 15 days after the date on which the Secretary notifies the congressional defense committees in writing of the amount and purpose of the proposed purchase. (3)

Foreign transfers

No munition purchased using amounts in the Fund may be transferred to a foreign country until the date that is 15 days after the date on which the Secretary notifies the congressional defense committees in writing of the proposed transfer.(f)

Limitation

No munition acquired by the Secretary of Defense using amounts made available from the Fund pursuant to this section may be transferred to any foreign country unless such transfer is authorized by the Arms Export Control Act (22 U.S.C. 2751 et seq.), the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), or other applicable law, except as follows:(1)The Secretary of Defense may authorize the use by the Department of Defense of munitions acquired under this section prior to transfer to a foreign country, if such use is necessary to meet national defense requirements and the Department bear the costs of replacement and transport, maintenance, storage, and other such associated costs of such munitions. (2)Except as required by paragraph (1), amounts made available to the Fund may be used to pay for storage, maintenance, and other costs related to the storage, preservation, and preparation for transfer of munitions acquired under this section prior to their transfer, and the administrative costs of the Department of Defense incurred in the acquisition of such items, to the extent such costs are not eligible for reimbursement pursuant to section 43(b) of the Arms Export Control Act (22 U.S.C. 2792(b)). (g)

Termination

The authority for the Fund under this section shall expire on December 31, 2024.(h)

Semiannual report

(1)

In general

Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of Defense shall submit to the congressional defense committees, the Committee on Foreign Relations of the Senate, and the Committee on Foreign Affairs of the House of Representatives a report on the use of the Fund.(2)

Elements

The report required under paragraph (1) shall include—(A)an accounting of all inlays and outflows in the Fund;(B)a list of munitions procured by type, make, model, and quantity, together with a justification for the procurement;(C)an assessment of the status of munitions procured to include munitions in production, those placed in stockpile, and those set aside or transferred to a non-Federal government entity;(D)an updated list of munitions designated consistent with subsection (b), along with a justifications for munitions designated and estimated procurement quantity objectives; and(E)any other matters the Secretary determines appropriate.(3)

Form

The report required under paragraph (1) shall be submitted to Congress in an unclassified form without any additional disseminations controls, but may include a classified or otherwise restricted annex as necessary.