H.R.8661 - Foreign Military Financing Loan Authorization Act of 2026
H.R. 8661, was introduced on May 4th, 2026 by Representative Brian Mast. It is currently scheduled for mark up on May 12, 2026, before the House Committee on Foreign Affairs.
Related legislation:
Bill Summary: H.R. 8661, authorizes the Security of State to provide certain loans and loan guarantees for the purchasing of “defense articles, defense services, and designed construction service, and for other purposes.” These guarantees can be provided to any international organizations the Secretary of State deems congruent with United States National State interests. These purchases are to be congruent with article 29 in the Arms Export Control. The secretary is authorized to establish the rate of interest, repayment schedule and terms applicable to direct loans to H.R. 8661. Any of these direct loans, shall be subject to:
The terms, conditions, eligibility requirements, and limitations set forth in section 23 of the Arms Export Control Act (22 U.S.C. 2763);
Such additional terms and conditions as the Secretary may prescribe; and
The availability of funds appropriated by Congress for purposes of this section.
H.R 8661 requires the Secretary of State to submit a report to the Committee of Foreign Affairs and Committee on Foreign Relations on any direct loan or loan guarantees including the recipient amount, terms, and purpose of each loan, but does not require any formal notification to, or pre-approval of the loans by, Congress
Context: H.R. 8661 creates an arms transfer funding invisibility cloak through expanded Foreign Military Financing (FMF) loan authority, bypassing the Congressional appropriations process and weakening existing guardrails that constrain how much military support the U.S. can give to foreign countries. The bill allows the Secretary to directly lend money to foreign governments the US deems a national security ally, for the purchase of American weapons systems, military training and support services, and the construction of military facilities and infrastructure.
This expanded FMF Loan Authority would give the Secretary of State wide authority to provide Israel with financing for defense materiel via 0% loans with repayment terms extending decades into the future, effectively replacing FMF grants with a loan that cuts Congress out of the funding process and leaves the American taxpayer holding the bag in case of default . It is the ultimate blank check.
American Values Analysis: H.R. 8661 stands against American values as it allows the Secretary of State to extend U.S. financing to countries committing human rights abuses without any real Congressional oversight and outside of Congress’ power of the purse.
American Interest Analysis: H.R. 8661 allows the Secretary of State to issue substantial financing for defense materiel via 0% loans with repayment terms extending decades into the future with little oversight. This would allow the secretary to provide countries such as Israel with substantial loans, bypassing the Congressional appropriations process and leaving the American taxpayer holding the bag in the event of default.
A New Policy’s Recommendation: OPPOSE
A New Policy opposes H.R. 8661 as it provides the Secretary of State to authorize substantial FMF loans to states with little to no interest far into the future. This allows the Secretary to continue to provide loans beyond what is Congressionally appropriated to states such as Israel which have used FMF-provided American weapons to commit a genocide in Gaza and pursue ethnic cleansing in the West Bank.
For more information please contact: Josh Paul, (202) 770-0055, info@anewpolicy.org
