[Congressional Record Volume 168, Number 158 (Thursday, September 29, 2022)]
[Senate]
[Pages S5893-S5894]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6357. Mr. MENENDEZ submitted an amendment intended to be proposed
to amendment SA 5499 submitted by Mr. Reed (for himself and Mr. Inhofe)
and intended to be proposed to the bill H.R. 7900, to authorize
appropriations for fiscal year 2023 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:
At the end of title XII, add the following:
Subtitle G--Arsenal of Democracy Act of 2022
SEC. 1281. SHORT TITLE.
This subtitle may be cited as the ``Arsenal of Democracy
Act of 2022''.
SEC. 1282. DEFINITIONS.
In this subtitle:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations, the Committee on
Appropriations, and the Committee on Armed Services of the
Senate; and
(B) the Committee on Foreign Affairs, the Committee on
Appropriations, and the Committee on Armed Services of the
House of Representatives.
(2) Defense article; defense service.--The terms ``defense
article'' and ``defense service'' have the meanings given
those terms in section 47 of the Arms Export Control Act (22
U.S.C. 2794).
(3) NATO.--The term ``NATO'' means the North Atlantic
Treaty Organization.
SEC. 1283. ARSENAL OF DEMOCRACY FUND FOR THE PROVISION OF
DEFENSE ARTICLES AND DEFENSE SERVICES.
(a) Establishment of Arsenal of Democracy Fund.--
(1) In general.--There is established the Arsenal of
Democracy Fund (in this section referred to as the ``Fund''),
which shall be administered by the Secretary of State,
subject to the requirements this section.
(2) Use of fund.--The Secretary of State may use amounts in
the Fund for the following purposes:
(A) To replace defense articles provided by countries to
Ukraine to assist in the defense of Ukraine against Russian
aggression.
(B) To enable countries threatened by Russia to
strategically stockpile and transfer defense articles to aid
those countries in preparation for--
(i) protection of civilian populations and defending the
territorial integrity of countries against Russian military
aggression;
(ii) ensuring continued sources of supply for non-standard
ammunition and spare parts, as necessary, to meet the urgent
needs of Ukraine until permanent NATO-standard equipment can
be effectively used by the armed forces of Ukraine; or
(iii) protection of civilians.
(b) Provision of Defense Articles and Defense Services to
Democratic Countries.--
(1) In general.--In accordance with the Arms Export Control
Act (22 U.S.C. 2751 et seq.) and the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.), the Secretary of State is
authorized to provide defense articles and defense services
pursuant to this section to the countries described in
paragraph (2)--
(A) on a grant, loan, sale, or lease basis, as appropriate;
and
(B) on such terms and conditions as the Secretary
determines supports the security of the United States and
international security.
(2) Countries described.--The countries described in this
paragraph are the following:
(A) Ukraine.
(B) Any NATO member.
(C) Any democratic country that has provided defense
articles to Ukraine.
(c) Funding.--
(1) Authorization of appropriations for arsenal of
democracy fund.--There is authorized to be appropriated
$12,000,000,000 to the Fund for the period of fiscal years
2023 through 2025 to facilitate the provision of defense
articles and defense services to the countries described in
subsection (b)(2) pursuant to this section.
(2) Transfer of amounts to special defense acquisition
fund.--
(A) In general.--The Secretary of State may transfer
amounts in the Fund to the Special Defense Acquisition Fund
established under section 51 of the Arms Export Control Act
(22 U.S.C. 2795) for the purchase of defense articles
consistent with the Arms Export Control Act (22 U.S.C. 2751
et seq.) and the purposes described in subsection (a)(2).
(B) Exclusion of amounts from limitation.--Amounts
transferred under subparagraph (A) shall not count toward the
size of the Special Defense Acquisition Fund for purposes of
the limitation described in section 51(c)(1) of the Arms
Export Control Act (22 U.S.C. 2795(c)(1)).
(3) Match from nato members in europe.--The President
should work with and encourage NATO members to match
contributions made by the United States pursuant to this
section.
(d) Fund Transfer Authorizations.--
(1) Department of state support for defense exportability
features.--The Secretary of State may transfer not more than
$50,000,000 in any fiscal year from the Fund to the
Department of Defense for the purpose of supporting the
design and incorporation of exportability features into
Department of Defense systems identified for possible future
export during the research and development phases of such
systems.
(2) Support for united states replacement defense articles
and defense services.--The Secretary of State may transfer
not more than $500,000,000 in any fiscal year from the Fund
to the Department of Defense--
(A) for the acquisition of defense articles and defense
services for the purposes described in subsection (a)(2); and
(B) to replace defense articles provided to countries
described in subsection (b)(2).
(3) Department of defense support for arsenal of democracy
fund.--The Secretary of Defense may transfer not more than
$100,000,000 in any fiscal year to the Fund for the purposes
of this subtitle.
SEC. 1284. SUPPORTING LOANS, LOAN GUARANTEES, AND GRANTS TO
ENHANCE FOREIGN COUNTRIES' DEFENSE AGAINST
RUSSIA.
(a) In General.--The President is authorized to provide
loans, loan guarantees, and grants to the countries described
in subsection (b)(2) of section 1283 to support the expansion
of the defense production capacity of those countries in a
manner consistent with the purposes described in subsection
(a)(2) of such section, if the President--
(1) determines that the provision of such a loan, loan
guarantee, or grant is necessary for the security of the
United States; and
(2) submits to the appropriate congressional committees
such determination, as specified in subsection (c), prior to
the provision of such loan, loan guarantee, or grant.
(b) Terms and Conditions.--The terms and conditions of any
loan, loan guarantee, or grant provided under subsection (a)
shall--
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(1) require that a significant percentage of the defense
articles to be produced through the expanded defense
production capacity supported by the loan, loan guarantee, or
grant will support the defense needs of the country to which
the loan, loan guarantee, or grant is provided, consistent
with the purposes described in subsection (a)(2) of such
section;
(2) include cooperative measures with United States
industry to the maximum extent possible; and
(3) include such other terms and conditions as the
President considers necessary and appropriate.
(c) Determination.--
(1) In general.--A determination submitted under subsection
(a)(2) shall--
(A) provide in detail the basis for the President's
determination under subsection (a)(1) that the provision of
the loan, loan guarantee, or grant is necessary for the
security of the United States;
(B) specify the recipient of the loan, loan guarantee, or
grant;
(C) describe the specific defense production capacity to be
expanded;
(D) specify the terms and conditions of the loan, loan
guarantee, or grant, including--
(i) the condition described in subsection (b)(1); and
(ii) the percentage of the defense articles to be produced
through the expanded defense production capacity supported by
the loan, loan guarantee, or grant that will support defense
needs as described in subsection (b)(1), disaggregated by
country;
(E) specify the amount of the loan, loan guarantee, or
grant; and
(F) include any other information that the President
considers relevant to justify the determination.
(2) Form.--A determination submitted under subsection
(a)(2) shall be unclassified to the maximum extent
practicable, but may include a classified annex.
(d) Authorization of Appropriations.--There is authorized
to be appropriated $3,000,000,000 for the period of fiscal
years 2023 through 2025 for loans, loan guarantees, and
grants provided under subsection (a).
SEC. 1285. REPORTS.
(a) Initial Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of State shall
submit to the appropriate congressional committees a report
on the use of the authorities of this subtitle.
(2) Contents.--The report required by paragraph (1) shall
include the following:
(A) A list of--
(i) all defense articles provided to foreign countries
pursuant to section 1283; and
(ii) the terms and conditions under which such defense
articles were provided.
(B) A description of any loans, loan guarantees, and grants
provided under section 1284.
(b) Subsequent Reports.--Not later than 180 days after the
date on which the initial report is submitted under paragraph
(1) of subsection (a), and every 180 days thereafter until
September 30, 2025, the Secretary of State shall submit to
the appropriate congressional committees a report that
includes the contents described in paragraph (2) of such
subsection for the period covered by the report.
(c) Form.--Each report required by this section shall be
unclassified to the maximum extent practicable, but may
include a classified annex.
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