{"id":30342,"date":"2018-07-02T20:06:31","date_gmt":"2018-07-02T20:06:31","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/07\/02\/to-rein-in-rebates-for-us-weapon-sales-lawmakers-offer-changes\/"},"modified":"2026-08-07T22:34:25","modified_gmt":"2026-08-07T22:34:25","slug":"to-rein-in-rebates-for-us-weapon-sales-lawmakers-offer-changes","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/congress\/2018\/07\/02\/to-rein-in-rebates-for-us-weapon-sales-lawmakers-offer-changes\/","title":{"rendered":"To rein in rebates for US weapon sales, lawmakers offer changes"},"content":{"rendered":"\n

WASHINGTON \u2014 The Pentagon\u2019s arms-selling agency would have to clamp down on discounts for arms sales<\/a> to certain countries under legislation proposed by a liberal California Democrat and the conservative head of the House Freedom Caucus.<\/p>\n\n\n\n

The Arms Export Control Act requires the Pentagon to recoup one-time production, research and development costs for major equipment sold under the Foreign Military Sales process. But the Department of Defense can grant waivers for those fees when not doing so would endanger a sale, among other reasons.<\/p>\n\n\n\n

Since 2012, the Pentagon has granted such waivers 99 percent of the time, giving up $16 billion from 2012 to 2017, according to a Government Accountability Office report<\/a>.<\/p>\n\n\n\n

\u201cWealthy nations\u201d Saudi Arabia, Qatar, the United Arab Emirates and Kuwait were granted $8.5 billion in waivers, according to co-sponsors House Armed Services Committee member Rep. Jackie Speier, D-Calif., and House Freedom Caucus leader Rep. Mark Meadows, R-N.C.<\/p>\n\n\n\n

\u201cOur defense relationships with these countries are important, but these nations have the interest and ability to pay these small added costs. At the very least, our negotiators shouldn\u2019t be giving away billions of dollars without asking hard questions,\u201d Speier said in a statement Monday.<\/p>\n\n\n\n

Saudi Arabia was granted a $3.5 billion waiver last year as part of a $15 billion sale for Lockheed Martin\u2019s Terminal High Altitude Area Defense anti-missile system<\/a>, Bloomberg News reported<\/a> in March. Saudi Arabia reportedly won waivers totaling $4.82 billion, including the THAAD sale, while other waivers included $2.6 billion to Qatar.<\/p>\n\n\n\t