[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--

[[Page S5894]]

       (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.
                                 ______