United States Foreign Military Financing

The Foreign Military Financing (FMF) program provides grants and loans to help countries purchase weapons and defense equipment produced in the United States as well as acquiring defense services and military training. FMF funds purchases are made through the Foreign Military Sales (FMS) program, which manages government-to-government sales. On a much less frequent basis, FMF also funds purchases made through the Direct Commercial Sales (DCS) program, which oversees sales between foreign governments and private U.S. companies. FMF does not provide cash grants to other countries; it generally pays for sales of specific goods or services through FMS or DCS.

The State Department's Bureau of Political-Military Affairs sets policy for the FMF program, while the Defense Security Cooperation Agency (DSCA), within the Defense Department, manages it on a day-to-day basis. Security Assistance Organizations (SAOs), military personnel in U.S. embassies overseas, play a key role in managing FMF within recipient countries. Some FMF pays for SAO salaries and operational costs. Congress appropriates funds for FMF through the yearly Foreign Operations Appropriations Act.

FMF exists primarily to fund arms transfers, as military training is normally granted through the International Military Education and Training (IMET) program. However, FMF does support a good deal of training.

Allocation of Foreign Military Financing

By account, program area and program element

The allocation of FMF by account, program area and program element is:[1]

Account Actual 2006 (millions of USD) Requested 2008 (millions of USD)
Total FMF4,464.904,536.00
1.1 Counter-Terrorism0.05-
1.1.3 Governments’ Capabilities0.05-
1.3 Stabilization Operations and Security Sector Reform4,464.854,536.00
1.3.1 Operations Support244.63231.99
1.3.5 Immediate Protection of Civilians in Conflict1.230.01
1.3.6 Defense, Military, and Border Restructuring, Reform and Operations4,177.794,262.05
1.3.8 Program Support (Stabilization)41.2041.95

By country

From 2003 to 2007 Iraq was the largest beneficiary of FMF, since then it is Afghanistan.[2] Until 2003 it was Israel. Other countries in the Middle East and Greater Middle East (including Pakistan, Jordan, and especially Egypt) are among the other major recipients of FMF funds.

The allocation of FMF by country is:[1]

Rank Country Actual FMF 2008 (millions of USD) Percentage of total 2006 Requested FMF 2008 (millions of USD)
1 Afghanistan601251.142400.00
2 Iraq436951.142400.00
3 Israel238951.142400.00
3 Egypt1291.0029.161300.00
3 Pakistan297.006.73300.00
4 Jordan207.904.71200.00
5 Colombia89.102.0278.00
6 Poland29.700.6727.20
7 Philippines29.700.6711.10
8 Bahrain15.590.354.30
9 Turkey14.850.3411.82
10 Oman13.860.3110.11
11 Romania12.870.2918.40
12 Morocco12.380.283.65
13 Georgia11.880.2710.00
14 Ukraine10.890.259.00
15 El Salvador9.900.224.80
16 Bulgaria9.900.2213.20
17 Bosnia and Herzegovina8.910.207.80
18 Yemen8.410.194.68
19 Tunisia8.410.192.06
20 Latvia5.940.133.00
21 Lithuania4.460.103.00
22 Estonia4.450.103.00
23 Slovakia3.960.093.00
24 Macedonia3.960.094.50
25 Djibouti3.960.093.20
26 Azerbaijan3.960.094.30
27 Armenia3.960.093.00
28 Czech Republic3.960.093.00
29 Lebanon3.710.089.60
30 Kazakhstan3.460.082.00
31 Albania3.460.082.60
32 Mongolia2.970.071.00
33 Hungary2.470.062.00
34 Liberia1.980.041.00
35 Ethiopia1.980.040.85
36 Kyrgyzstan1.880.041.50
37 Thailand1.490.030.50
38 Sri Lanka0.990.020.85
39 Panama0.990.02-
40 Nigeria0.990.021.35
41 Indonesia0.990.0215.70
42 East Timor0.990.02-
43 Cambodia0.990.020.20
44 Bangladesh0.990.020.88
45 Haiti0.990.02-
46 Dominican Republic0.940.02-
47Eastern Caribbean0.910.02-
48 Honduras0.890.02-
49 Nicaragua0.590.01-
50 Jamaica0.590.01-
51 Chile0.590.01-
52 Tajikistan0.490.010.68
53 Senegal0.490.01-
54 Moldova0.490.01-
55 Ghana0.490.010.30
56 Slovenia0.490.010.50
57 Fiji0.490.010.11
58 Turkmenistan0.300.01-
59 Tonga0.250.010.20
60 Belize0.200.00-
61 Suriname0.100.00-
62 Guyana0.100.00-
63 Bahamas0.100.00-
64 Sudan--0.10
65 South Africa--0.10
66 Peru---
67 Mozambique--0.20
68 Madagascar--0.10
69 Kenya--0.80
70 Guinea--0.20
71 Democratic Republic of the Congo--0.60
72 Argentina---


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