Foreign Military Financing

(in thousands)

(2002-2008)

The administration is seeking more than $4.9 billion in foreign Military Financing (FMF). FMF spending in Fiscal Year 2005 will be entirely for grants and administration; the loan component of FMF has been phased out. This program "enables selected friendly and allied countries to improve their ability to defend themselves by financing their acquisition of U.S. military articles, services, and training." Israel and Egypt receive the lion’s share of FMF, about 73% in FY 2003. \

The majority of funds – approximately 77% – provides continued assistance for the Near East. These funds help to promote regional stability and ensure the influence of moderate governments friendly to U.S. interests. With FMF, we seek to boost the legitimate defense needs of countries such as Israel, Egypt and Jordan, who, through their efforts, have demonstrated their desire to seek a comprehensive Middle East peace. FMF for other friends and allies in the region, such as Bahrain, Morocco, Oman, Tunisia and Yemen will help to strengthen their self-defense capabilities, safeguard their borders and territorial waters, meet their legitimate indigenous security needs and support coalition efforts in the war on terrorism.

Foreign Military Financing — $4,464,900,000 (FY2006 including supplemental)

$4,052,256,000 (FY2002 including ERF and supplemental)

($ in thousands)
FY2002 Actual

FY2003 Actual

FY2004 Actual
FY2005 Actual
FY2006 Actual
FY2007 Request
FY2008 Request

Israel

 $2,040,000

$2,086,350

$2,147,256

 $2,202,240 $2,257,200 $2,340,000 $4,300
Israel (Supplemental) --
$1,000,000
--
 -- -- -- --

Egypt

 $1,300,000

$1,291,550

$1,292,330

 $1,289,600 $1,287,000 $1,300,000 $1,300,000

Jordan

 $75,000

$198,000

$204,785

 $204,352 $207,900 $206,000 $200,000
Jordan (Supplemental) $25,000
406,000
--
 -- -- -- --

Morocco

 $3,500

$4,900

$9,940

 $15,128 $12,375 $12,500 3,655

Tunisia

 $3,500

$4,900

$9,827

 $9,920 $8,413 $8,500 $2,064
Yemen $0
$1,900
$14,910
 $9,920 $8,415 $8,500 $4,676
Yemen (Supplemental) $20,000
--
--
 -- -- -- --

Enhanced Int'l Peacekeeping Initiative

 $4,000

$3,050

$1,990

 $1,800 -- -- --

FMF administrative costs

 $35,000

$36,762

$40,260

 $40,500 $41,085 $43,500 $41,900

Sources: Foreign Military Financing Account Summaries, U.S. State Department

Federation of American Scientists, FY2005 Budget - Congressional Budget Justification for FY05 Foreign Operations (February 2004), Request by Appropriation Account "Military Assistance"

FY2004 Budget - Congressional Budget Justification for FY04 Foreign Operations, Request by Appropriation Account "Military Assistance"

Congressional Budget Justification for FY06 Foreign Operations, March 2005