,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #caid  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #aa1 #bjai,mr4  
,engel 7= himself & ,mr4 ,mc,caul7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,=eign ,affairs  ,a    
,,bill  ,to provide f9ancial l5d+       
me*anisms to assi/ ,nor? ,atlantic      
,treaty ,organization allies 9 mod]niz+ 
_! milit>y =ces1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,,nato ,def5se ,f9anc+ ,act4  #b4 ,f9d+s
 ,congress f9ds ! foll[+3  7#a7 ,_m     
,unit$ ,/ates allies1 includ+ "s ,nor?  
,atlantic ,treaty ,organization 7,,nato7
 memb]s1 cont9ue to op]ate ,soviet era  
milit>y equipm5t4 ,?is equipm5t is      
outdat$1 unreliable1 increas+ly unsafe &
 is unable to effectively integrate &   
op]ate jo9tly ) ,unit$ ,/ates milit>y   
=ces4  7#b7 ,! inability ( "s ,,nato    
allies to fully op]ate alongside ,unit$ 
,/ates milit>y =ces decreases ,,nato    
combat effectiv5ess & places additional 
/ra9 on ! ,unit$ ,/ates milit>y4  7#c7  

,"s ,,nato allies are compell$ to buy   
sp>e p>ts & s]vices f ,russian provid]s 
to keep _! ,soviet-design$ equipm5t     
functional4 ,^! ,,nato allies desire to 
op]ate mod]n ,we/]n milit>y equipm5t1 b 
h limit$ f9ancial res\rces available to 
pur*ase exp5sive new equipm5t4  7#d7    
,foll[+ ! end ( ,_w ,w> ,,ii1 ! ,unit$  
,/ates fac$ a ne$ to help allies rebuild
 _! milit>ies1 :i* x address$ by provid+
 sub/antial f9ancial assi/ance ?r\gh !  
,mutual ,def5se ,assi/ance ,act ( #aidi 
7#bb ,u4,s4,c4 #aega et seq47 & !       
,mutual ,security ,act ( #aiea 7,public 
,law #hb-afe2 #fe ,/at4 #cgc74 ,h[ev]1 !
 ,unit$ ,/ates has n provid$ simil>     
assi/ance to new ,,nato allies foll[+ ! 
end ( ! ,cold ,w>4  7#e7 ,giv5 ! return 
( great p[] competition & an aggressive 
,russia1 !re is a press+ ne$ to assi/   
,,nato allies to mod]nize _! =ces &     
replace _! obsolete ,soviet milit>y     
equipm5t4  7#f7 ,! ,unit$ ,/ates does   
provide "s milit>y equipm5t to ,,nato   
allies ?r\gh ! =eign milit>y f9anc+     

program & o!r grant assi/ance1 b t      
assi/ance is insuffici5t to meet allies'
 ne$s4  7#g7 ,to supplem5t exi/+ grant  
assi/ance1 provid+ =eign milit>y f9anc+ 
loans to allies--at rates competitive ) 
^? already available on comm]cial       
m>kets--to pur*ase ,,nato int]op]able   
milit>y equipm5t supports allies'       
mod]nization requirem5ts4  7#h7 ,z      
describ$ 9 ,article #b ( ! ,nor?        
,atlantic ,treaty1 9 addition to provid+
 security to allies1 ,,nato 0 e/abli%$  
to promote democratic in/itutions &     
values by /r5g!n+ _! free in/itutions1  
by br++ ab\t a bett] und]/&+ ( !        
pr9ciples ^u :i* ^! in/itutions are     
f\nd$1 & by promot+ conditions (        
/ability & well-be+4  #c4 ,/atem5t (    
,policy ,x is ! policy ( ! ,unit$ ,/ates
 to-- 7#a7 det] aggression aga9/ ,nor?  
,atlantic ,treaty ,organization 7,,nato7
 allies by ,russia or any o!r adv]s>y2  
7#b7 assi/ ,,nato allies 9 acquir+ &    
deploy+ mod]n1 ,,nato int]op]able       
milit>y equipm5t & r$uc+ _! dep5d5ce on 

,russian or =m] ,soviet-era def5se      
articles2  7#c7 ensure t ,,nato allies  
meet alliance def5se commitm5ts1 includ+
 ?r\gh adequate inve/m5ts 9 national    
def5se2 &  7#d7 "w to ma9ta9 & /r5g!n ! 
democratic in/itutions & practices ( all
 ,,nato allies1 9 accordance ) ! goals (
 ,article #b ( ! ,nor? ,atlantic        
,treaty4  #d4 ,=eign milit>y loan       
au?ority  7a7 ,9 g5]al ,subject to !    
notification requirem5ts "u subsection  
7b71 ! ,presid5t1 act+ ?r\gh ! ,secret>y
 ( ,/ate1 is au?oriz$--  7#a7 to make   
direct loans "u section #bc ( ! ,arms   
,export ,control ,act 7#bb ,u4,s4,c4    
#bgfc7 to memb] c\ntries ( ! ,nor?      
,atlantic ,treaty ,organization 7,,nato7
 t jo9$ aft] ,m>* #a1 #aiii1 not)/&+ !  
m9imum int]e/ rate requir$ by subsection
 7c77#a7 ( su* section2 &  7#b7 to *>ge 
fees = su* loans "u p>agraph 7#a71 :i*  
%all be collect$ f borr[]s 9 accordance 
) section #ejb7g7 ( ! ,congressional    
,budget ,act ( #aigd1 & :i* may be us$  
to cov] ! co/s ( su* loans z def9$ 9    

section #ejb ( ! ,congressional ,budget 
,act ( #aigd4  7b7 ,notification ,a loan
 may n be made "u ! au?ority provid$ by 
subsection 7a7 unless ! ,secret>y (     
,/ate submits to ! appropriate          
congressional committees a c]tification1
 n few] ?an fifte5 days be=e ent]+ into 
an agreem5t to make su* loan1 t--  7#a7 
! recipi5t c\ntry is mak+ demon/rable   
progress t[>d meet+ its sp5d+ commitm5ts
 9 accordance ) ! #bjad ,,nato ,wales   
,summit ,decl>ation2  7#b7 ! gov]nm5t ( 
su* recipi5t c\ntry is respect+ t       
c\ntry's con/itution & upholds          
democratic values su* z fre$om (        
religion1 fre$om ( spee*1 fre$om ( !    
press1 ! rule ( law1 & ! rights (       
m9orities2 &  7#c7 ! recipi5t c\ntry has
 demon/rat$ fiscal /ability1 a commitm5t
 to a free m>ket economy1 & ! f9ancial  
capacity to meet ! t]ms ( ! loan propos$
 to be provid$ by ! ,unit$ ,/ates4  7c7 
,repaym5t ,a loan made "u ! au?ority    
provid$ by subsection 7a7 %all be repaid
 9 n m ?an #ab ye>s1 b may include a    

grace p]iod ( up to "o ye> on ! repaym5t
 ( ! pr9cipal4  7d7 ,appropriate        
congressional committees def9$ ,9 ?is   
,act1 ! t]m appropriate congressional   
committees means-- 7#a7 ! ,committee on 
,=eign ,affairs & ! ,committee on       
,appropriations ( ! ,h\se (             
,repres5tatives2 &  7#b7 ! ,committee on
 ,=eign ,relations & ! ,committee on    
,appropriations ( ! ,s5ate4