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 FMF	4,464.90	4,536.00
1.1 Counter-Terrorism	0.05	-
1.1.3 Governments’ Capabilities	0.05	-
1.3 Stabilization Operations and Security Sector Reform	4,464.85	4,536.00
1.3.1 Operations Support	244.63	231.99
1.3.5 Immediate Protection of Civilians in Conflict	1.23	0.01
1.3.6 Defense, Military, and Border Restructuring, Reform and Operations	4,177.79	4,262.05
1.3.8 Program Support (Stabilization)	41.20	41.95

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	Afghanistan	6012	51.14	2400.00
2	Iraq	4369	51.14	2400.00
3	Israel	2389	51.14	2400.00
3	Egypt	1291.00	29.16	1300.00
3	Pakistan	297.00	6.73	300.00
4	Jordan	207.90	4.71	200.00
5	Colombia	89.10	2.02	78.00
6	Poland	29.70	0.67	27.20
7	Philippines	29.70	0.67	11.10
8	Bahrain	15.59	0.35	4.30
9	Turkey	14.85	0.34	11.82
10	Oman	13.86	0.31	10.11
11	Romania	12.87	0.29	18.40
12	Morocco	12.38	0.28	3.65
13	Georgia	11.88	0.27	10.00
14	Ukraine	10.89	0.25	9.00
15	El Salvador	9.90	0.22	4.80
16	Bulgaria	9.90	0.22	13.20
17	Bosnia and Herzegovina	8.91	0.20	7.80
18	Yemen	8.41	0.19	4.68
19	Tunisia	8.41	0.19	2.06
20	Latvia	5.94	0.13	3.00
21	Lithuania	4.46	0.10	3.00
22	Estonia	4.45	0.10	3.00
23	Slovakia	3.96	0.09	3.00
24	Macedonia	3.96	0.09	4.50
25	Djibouti	3.96	0.09	3.20
26	Azerbaijan	3.96	0.09	4.30
27	Armenia	3.96	0.09	3.00
28	Czech Republic	3.96	0.09	3.00
29	Lebanon	3.71	0.08	9.60
30	Kazakhstan	3.46	0.08	2.00
31	Albania	3.46	0.08	2.60
32	Mongolia	2.97	0.07	1.00
33	Hungary	2.47	0.06	2.00
34	Liberia	1.98	0.04	1.00
35	Ethiopia	1.98	0.04	0.85
36	Kyrgyzstan	1.88	0.04	1.50
37	Thailand	1.49	0.03	0.50
38	Sri Lanka	0.99	0.02	0.85
39	Panama	0.99	0.02	-
40	Nigeria	0.99	0.02	1.35
41	Indonesia	0.99	0.02	15.70
42	East Timor	0.99	0.02	-
43	Cambodia	0.99	0.02	0.20
44	Bangladesh	0.99	0.02	0.88
45	Haiti	0.99	0.02	-
46	Dominican Republic	0.94	0.02	-
47	Eastern Caribbean	0.91	0.02	-
48	Honduras	0.89	0.02	-
49	Nicaragua	0.59	0.01	-
50	Jamaica	0.59	0.01	-
51	Chile	0.59	0.01	-
52	Tajikistan	0.49	0.01	0.68
53	Senegal	0.49	0.01	-
54	Moldova	0.49	0.01	-
55	Ghana	0.49	0.01	0.30
56	Slovenia	0.49	0.01	0.50
57	Fiji	0.49	0.01	0.11
58	Turkmenistan	0.30	0.01	-
59	Tonga	0.25	0.01	0.20
60	Belize	0.20	0.00	-
61	Suriname	0.10	0.00	-
62	Guyana	0.10	0.00	-
63	Bahamas	0.10	0.00	-
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	-	-	-