S.Amdt. 6357

1. Adds Subtitle G--Arsenal of Democracy Act of 2022 SEC. 1281. SHORT TITLE at the end of title XII

   Adds a section

   In S.Amdt. 5499 as proposed

   (2) Form of report.--The report required by paragraph (1) shall be submitted in unclassified form but may contain a classified annex.

   Inserted: Subtitle G--Arsenal of Democracy Act of 2022 SEC. 1281. SHORT TITLE.

   Inserted: This subtitle may be cited as the "Arsenal of Democracy Act of 2022".

   Inserted: SEC. 1282. DEFINITIONS.

   Inserted: In this subtitle:

   Inserted: (1) Appropriate congressional committees.--The term "appropriate congressional committees" means--

   Inserted: (A) the Committee on Foreign Relations, the Committee on Appropriations, and the Committee on Armed Services of the Senate; and

   Inserted: (B) the Committee on Foreign Affairs, the Committee on Appropriations, and the Committee on Armed Services of the House of Representatives.

   Inserted: (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).

   Inserted: (3) NATO.--The term "NATO" means the North Atlantic Treaty Organization.

   Inserted: SEC. 1283. ARSENAL OF DEMOCRACY FUND FOR THE PROVISION OF DEFENSE ARTICLES AND DEFENSE SERVICES.

   Inserted: (a) Establishment of Arsenal of Democracy Fund.--

   Inserted: (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.

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   Inserted: (2) Use of fund.--The Secretary of State may use amounts in the Fund for the following purposes:

   Inserted: (A) To replace defense articles provided by countries to Ukraine to assist in the defense of Ukraine against Russian aggression.

   Inserted: (B) To enable countries threatened by Russia to strategically stockpile and transfer defense articles to aid those countries in preparation for--

   Inserted: (i) protection of civilian populations and defending the territorial integrity of countries against Russian military aggression;

   Inserted: (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

   Inserted: (iii) protection of civilians.

   Inserted: (b) Provision of Defense Articles and Defense Services to Democratic Countries.--

   Inserted: (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)--

   Inserted: (A) on a grant, loan, sale, or lease basis, as appropriate; and

   Inserted: (B) on such terms and conditions as the Secretary determines supports the security of the United States and international security.

   Inserted: (2) Countries described.--The countries described in this paragraph are the following:

   Inserted: (A) Ukraine.

   Inserted: (B) Any NATO member.

   Inserted: (C) Any democratic country that has provided defense articles to Ukraine.

   Inserted: (c) Funding.--

   Inserted: (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.

   Inserted: (2) Transfer of amounts to special defense acquisition fund.--

   Inserted: (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).

   Inserted: (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)).

   Inserted: (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.

   Inserted: (d) Fund Transfer Authorizations.--

   Inserted: (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.

   Inserted: (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--

   Inserted: (A) for the acquisition of defense articles and defense services for the purposes described in subsection (a)(2); and

   Inserted: (B) to replace defense articles provided to countries described in subsection (b)(2).

   Inserted: (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.

   Inserted: SEC. 1284. SUPPORTING LOANS, LOAN GUARANTEES, AND GRANTS TO ENHANCE FOREIGN COUNTRIES' DEFENSE AGAINST RUSSIA.

   Inserted: (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--

   Inserted: (1) determines that the provision of such a loan, loan guarantee, or grant is necessary for the security of the United States; and

   Inserted: (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.

   Inserted: (b) Terms and Conditions.--The terms and conditions of any loan, loan guarantee, or grant provided under subsection (a) shall--

   Inserted: (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;

   Inserted: (2) include cooperative measures with United States industry to the maximum extent possible; and

   Inserted: (3) include such other terms and conditions as the President considers necessary and appropriate.

   Inserted: (c) Determination.--

   Inserted: (1) In general.--A determination submitted under subsection (a)(2) shall--

   Inserted: (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;

   Inserted: (B) specify the recipient of the loan, loan guarantee, or grant;

   Inserted: (C) describe the specific defense production capacity to be expanded;

   Inserted: (D) specify the terms and conditions of the loan, loan guarantee, or grant, including--

   Inserted: (i) the condition described in subsection (b)(1); and

   Inserted: (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;

   Inserted: (E) specify the amount of the loan, loan guarantee, or grant; and

   Inserted: (F) include any other information that the President considers relevant to justify the determination.

   Inserted: (2) Form.--A determination submitted under subsection (a)(2) shall be unclassified to the maximum extent practicable, but may include a classified annex.

   Inserted: (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).

   Inserted: SEC. 1285. REPORTS.

   Inserted: (a) Initial Report.--

   Inserted: (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.

   Inserted: (2) Contents.--The report required by paragraph (1) shall include the following:

   Inserted: (A) A list of--

   Inserted: (i) all defense articles provided to foreign countries pursuant to section 1283; and

   Inserted: (ii) the terms and conditions under which such defense articles were provided.

   Inserted: (B) A description of any loans, loan guarantees, and grants provided under section 1284.

   Inserted: (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.

   Inserted: (c) Form.--Each report required by this section shall be unclassified to the maximum extent practicable, but may include a classified annex.

   Original wording

   At the end of title XII, add the following:

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As printed