Hearings to examine the Department of Defense responsibilities related to Foreign Military Sales system and international armaments cooperation

Defense Posture and Global ThreatsSenate Armed Services · May 15, 2025 · 119th Congress
The Senate Armed Services Committee held this hearing to examine how the Department of Defense manages the Foreign Military Sales (FMS) system and international armaments cooperation, and how the process could be reformed to move faster and better support allies. Begins at ▶ 0:16:35
Transcript
Highlights

Title

Reforming the Foreign Military Sales process and arms cooperation

Purpose

The Senate Armed Services Committee held this hearing to examine how the Department of Defense manages the Foreign Military Sales (FMS) system and international armaments cooperation, and how the process could be reformed to move faster and better support allies. Three witnesses — Dr. William Greenwalt, Mr. Keith Webster, and Dr. Karen Saum-Manning — testified on regulatory, statutory, and workforce barriers slowing arms transfers, drawing on Dr. Saum-Manning's year-long RAND study of 100 FMS stakeholders. Members from both parties raised concerns about tariffs, ITAR restrictions, workforce cuts, and industrial base capacity. Begins at▶ 0:16:35

Who spoke

• Chair Roger Wicker (R-MS)▶ 0:16:35: Opened by noting the U.S. exported $118 billion in weaponry in 2024, equal to 70% of the 2024 procurement budget▶ 0:19:49, and proposed reforming FMS to treat production as a weapon in itself▶ 0:20:51; later pressed witnesses on statutory versus regulatory fixes▶ 0:42:59 and on whether the U.S. should resume stockpiling▶ 1:22:28.

• Sen. Jack Reed (D-RI), Ranking Member▶ 0:23:22: Said FMS is largely Foreign Relations Committee jurisdiction but DOD plays a major implementing role▶ 0:23:48; asked about workforce cuts' impact on FMS delivery▶ 1:00:38 and about "non-programs of record"▶ 1:03:52.

• Dr. William Greenwalt▶ 0:27:15: Testified the arms cooperation system, built in the mid-1970s, is "fundamentally broken" for close allies▶ 0:27:52; proposed a preapproved capabilities list, pre-negotiated pricing, stockpiles, and a broad ITAR waiver beyond the limited one given Canada▶ 0:30:48; recommended a Defense War Production Board under the Deputy Secretary of Defense▶ 0:31:28.

• Mr. Keith Webster▶ 0:32:10: Said FMS has seen 15 DOD "tiger teams" in 27 years with no meaningful reform▶ 0:32:57, and that DOD contracting to implement a major FMS program averages 18 months, worsened by 15–30% understaffing▶ 0:34:34; said continuing resolutions are "an absolute disaster"▶ 0:48:10 and steel tariffs pushed ball-bearing lead times for one supplier from 20 weeks to 2.5 years▶ 0:53:17.

• Dr. Karen Saum-Manning▶ 0:37:23: Presented RAND's year-long study of 100 FMS stakeholders representing 1,300 years of experience▶ 0:38:13, finding DSCA lacks authority and enforcement power and recommending a "data czar" for fragmented FMS data▶ 0:41:32; called this year's Saudi Arabia sale, a potential $142 billion deal, evidence of FMS's scale▶ 0:37:49.

• Sen. Jeanne Shaheen (D-NH)▶ 0:48:56: Said a recent air-to-air missile sale she reviewed on Foreign Relations will take seven years to deliver▶ 0:50:26, and flagged that DOD is not tracking tariffs' cost impact on production▶ 1:29:43.

• Sen. Deb Fischer (R-NE)▶ 0:54:34: Asked whether DOD has followed up on RAND's 2024 recommendations▶ 0:55:03 and pressed on unclear ITAR exemption eligibility burdening smaller contractors▶ 0:56:19.

• Sen. Mike Rounds (R-SD)▶ 1:05:52: Asked about U.S. companies' lost sales opportunities and learned 70% of prime contractor funding is domestic versus 30% international, with Europe currently sourcing 60% of acquisitions from U.S. firms▶ 1:07:13.

• Sen. Tim Kaine (D-VA)▶ 1:11:07: Endorsed an "easy pass lane" for allies▶ 1:11:49; later asked whether U.S. legal frameworks let American firms invest in allied production capacity, citing Ukraine's armaments output growing from $5 billion to $30 billion▶ 1:34:40, and said German officials called tariffs an obstacle to defense cooperation▶ 1:38:27.

• Sen. Angus King (I-ME)▶ 1:11:54: Displayed the 642-page FMS manual as a symbol of the process's dysfunction▶ 1:13:12; argued for "one throat to choke" — a single accountable authority — and pushed on ITAR barriers for allied scientists▶ 1:14:45.

• Sen. Ted Budd (R-NC)▶ 1:17:11: Asked whether AI and automation could speed FMS processes▶ 1:17:36 and relayed complaints from Israel, UAE, Taiwan, and the Philippines about decade-long delivery delays▶ 1:18:33.

• Sen. Mazie Hirono (D-HI)▶ 1:23:07: Pressed on giving DSCA more authority▶ 1:23:34 and linked workforce cuts across agencies, citing NOAA layoffs as a comparison, to FMS staffing shortfalls▶ 1:25:58.

• Sen. Tim Sheehy (R-MT)▶ 1:28:53: Argued ITAR is "a relic" of an era of U.S. technological dominance and works poorly for close allies like the U.K. and Australia▶ 1:29:01; raised India's need for capable systems amid the India-Pakistan conflict▶ 1:30:06.

• Sen. Rick Scott (R-FL)▶ 1:39:20: Relayed frustration from Denmark, Finland, and Estonia leaders that they can't get timely FMS answers or on-time deliveries▶ 1:40:41, and questioned why contractor-owned technology blocks alternative production▶ 1:41:12.

• Sen. Elizabeth Warren (D-MA)▶ 1:44:40: Highlighted "right to repair" limits on U.S. troops fixing their own equipment, citing an Army 3D-printed safety clip made in under an hour for 1/100th of contractor cost▶ 1:46:24, and praised Army Secretary Dan Driscoll's new right-to-repair contract initiative▶ 1:47:00.

Key moments

• Dr. Saum-Manning revealed the White House had that week announced a potential $142 billion arms sale to Saudi Arabia, on top of $118 billion in total 2024 FMS▶ 0:37:49.

• Webster testified DOD contracting to implement major FMS programs takes 18 months on average, worsened by chronic 15–30% understaffing in contracting offices▶ 0:34:34.

• Sen. Shaheen said an air-to-air missile sale she recently reviewed would take seven years to deliver, and that steel tariffs pushed an allied supplier's ball-bearing lead time from 20 weeks to 2.5 years▶ 0:50:26▶ 0:49:30.

• Webster said tariff-driven metal benchmark prices had doubled since November because more than half of U.S. demand is imported from Canada▶ 0:53:17.

• Chair Wicker publicly corrected the record after suggesting he'd misattributed views to Dr. Saum-Manning, clarifying that Webster speaks only for the Chamber of Commerce and himself▶ 0:59:21▶ 0:59:57.

• Sen. King displayed the 642-page Foreign Military Sales Manual, arguing no single official is accountable for the process, prompting agreement from Dr. Saum-Manning that DSCA needs more enforcement authority▶ 1:13:12▶ 1:14:14.

• Dr. Greenwalt estimated allied defense spending could reach $600 billion a year — twice current U.S. production and R&D spending — representing a major market opportunity if allies buy U.S. rather than build competing capabilities▶ 1:36:18.

• Sen. Warren cited an Army case where a 3D-printed safety clip took under an hour and cost 1/100th of the contractor's charge, and noted a Canadian task force found inadequate data rights hurt Canada's ability to independently repair equipment, ultimately making Lockheed Martin's bid uncompetitive▶ 1:47:00▶ 1:48:51.

• Webster and Dr. Greenwalt both endorsed reviving Cold War–style weapons stockpiles abroad to enable rapid transfer to allies▶ 1:21:03▶ 1:22:34.

• Sen. Sheehy argued ITAR still reflects 1970s-era assumptions of U.S. technological dominance and works poorly for close allies like the U.K. and Australia, while newer technologies like AI and robotics fall under separate, less restrictive export rules▶ 1:29:32▶ 1:30:23.

Metadata

CommitteeSenate Armed Services
Chamber / CongressSenate · 119th Congress
DateMay 15, 2025
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript287 caption blocks · 11,469 words · 1:51:42 runtime
EventCongress.gov 336964