“The Trump administration has already shown us …how irresponsible it is with US taxpayer dollars, and we should not enable the executive branch to spend potentially billions of more dollars without adequate plan for implementation and accountability in place first,” Rep. Gregory Meeks, the committee’s ranking Democrat, said during debate.
The tied 23–23 defeat of the FMF direct-sales bill
On Wednesday the House Foreign Affairs Committee (HFAC) voted down a bill that would have allowed Foreign Military Financing (FMF) grants to be used to buy U.S. weaponry via the direct commercial sales process rather than the more stringent Foreign Military Sales (FMS) process overseen by the State Department. The measure failed in a 23–23 tie after two Republicans, Rep. Scott Perry (Pa.) and Rep. Tim Burchett (Tenn.), sided with Democrats.
FMF funds are grants restricted to U.S.-made weapons and are allocated through the annual budget process. For fiscal 2027, the State Department is requesting $5.25 billion in FMF funding. Supporters of the bill, including its sponsor Rep. Michael Baumgartner, R-Wash., argued that allowing FMF to finance direct commercial sales would speed purchases for partners such as Ukraine and Taiwan.
Corruption and family conflict concerns raised on the committee floor
Democrats questioned the proposal’s safeguards. Rep. Meeks warned that removing State Department oversight could make FMF dollars vulnerable to corruption and flagged potential financial benefits to the Trump family’s investments in defense startup Powerus. He offered a substitute requiring State to submit a detailed review strategy for direct commercial sales made with FMF to identify bribery, slush funds or other instances of corruption, and to provide a plan ensuring no sales are made by firms owned or controlled by the Trump family or U.S. government officials.
Rep. Johnny Olszewski, D-Md., proposed an amendment to prohibit FMF-funded direct commercial sales that would financially benefit a family member of the president or vice president. Both Meeks’ substitute and Olszewski’s amendment were defeated on party-line votes before the Baumgartner bill ultimately failed in the tie.
PORCUPINE Act cleared, Taiwan’s export status elevated in committee
HFAC approved three other bills intended to speed arms exports. One successful measure was the PORCUPINE Act, which streamlines the arms sale process to Taiwan and was passed by the Senate last year. Chairman Brian Mast, R-Fla., offered PORCUPINE as a substitute for Rep. Scott Perry’s Taiwan PLUS Act; both shorten congressional notification and review to 15 days and raise the monetary threshold that triggers those reviews.
Ranking Member Meeks objected that PORCUPINE goes further by amending the Arms Export Control Act to list Taiwan among the United States’ closest allies — a change he argued could signal a departure from the U.S. one-China policy. After replacing the Taiwan PLUS Act with the PORCUPINE substitute in a 31–14 vote, committee members advanced the PORCUPINE Act in a 45–0 vote.
The committee’s action came as President Donald Trump and senior administration officials were in China for meetings where arms for Taiwan were expected to be raised.
FMF loans and multinational procurement measures pass committee
Separately, HFAC cleared a bill to formally authorize the State Department’s FMF loan and loan guarantee program. If enacted, the measure would give State explicit authority to provide FMF through loans and loan guarantees in addition to traditional grants. The source notes State sought authority in its FY27 request “to provide up to $16 billion in FMF loans and $2 billion in FMF loan guarantees to maximize the Administration’s ability to offer more competitive financing options relative to strategic competitors.”
The committee also approved a bill offered by Rep. Ryan Zinke, R-Mont., directing State to develop a strategy for involving more countries in multinational agreements to procure U.S. weapons through the FMS and direct commercial sales processes. A senior GOP committee staff member told reporters these changes would enable smaller countries to band together under the State Department’s Lead-Nation Procurement initiative, expanding access for nations that lack resources to participate in large-scale FMS cases.
What this means for Taiwan, the State Department, and Congress
- Taiwan and allied purchasers: The PORCUPINE Act’s shorter review window and higher monetary thresholds would accelerate certain sales to Taiwan, raising the pace at which equipment could be bought from the United States.
- The State Department and procurement officials: If Congress authorizes expanded FMF loan authority, State would gain greater flexibility to offer loans and guarantees as financing tools rather than relying solely on grants, matching options used previously in cases noted in committee debate.
- Congress and oversight advocates: The FMF direct-sales defeat underscores congressional concern about oversight and potential conflicts when shifting from FMS to direct commercial sales; efforts to restrict use of FMF where presidential family members might benefit were debated and rejected along party lines.
House leaders, HFAC chairman Brian Mast said, are prepared to bring the three approved bills to the floor for consideration on June 8. The committee cleared measures that would speed arms exports to Taiwan and other partners, formalize FMF loan authority, and push multinational procurement — but it also revealed fault lines over oversight, conflicts of interest, and how far to alter longstanding export controls.
