Sec. 7. Taiwan critical munitions acquisition fund

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There shall be established in the Treasury of the United States a revolving fund to be known as the Taiwan Critical Munitions Acquisition Fund (in this section referred to as the Fund ). Subject to the availability of appropriations, amounts in the Fund shall be made available by the Secretary of Defense— to ensure that adequate stocks of critical munitions necessary for a denial defense are available to allies and partners of the United States in advance of a potential operation to defend the autonomy and territory of Taiwan; and to finance the acquisition of critical munitions necessary for a denial defense in advance of the transfer of such munitions to foreign countries for such a potential operation.

Subject to the availability of appropriations, the Secretary of Defense may also use amounts made available to the Fund— to keep on continuous order munitions that the Secretary of Defense considers critical due to a reduction in current stocks as a result of the drawdown of stocks provided to the government of one or more foreign countries; or with the concurrence of the Secretary of State, to procure munitions identified as having a high-use rate. The Fund shall consist of each of the following:

Collections from sales made under letters of offer (or transfers made under the Foreign Assistance Act of 1961 ( 22 U.S.C. 2151 et seq. )) of munitions acquired using amounts made available from the Fund pursuant to this section, representing the value of such items calculated, as applicable, in accordance with— subparagraph

(B)or

(C)of section 21(a)(1) of the Arms Export Control Act ( 22 U.S.C. 2761(a)(1) ); section 22 of the Arms Export Control Act ( 22 U.S.C. 2762 ); or section 644(m) of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2403(m) ). Such amounts as may be appropriated pursuant to the authorization under this section or otherwise made available for the purposes of the Fund. Not more than $2,000,000,000 may be transferred to the Fund for any fiscal year, in accordance with subsection (e), from amounts authorized to be appropriated for the Department of Defense in such amounts as the Secretary of Defense determines necessary to carry out the purposes of this section, which shall remain available until expended. The transfer authority provided under this subparagraph is in addition to any other transfer authority available to the Secretary of Defense. Subject to subparagraph (B), the Secretary of Defense may accept contributions of amounts to the Fund from any foreign government or international organization. Any amounts so accepted shall be credited to the Taiwan Critical Munitions Acquisition Fund and shall be available for use as authorized under subsection (b). The Secretary of Defense may not accept a contribution under this paragraph if the acceptance of the contribution would compromise, or appear to compromise, the integrity of any program of the Department of Defense. If the Secretary of Defense accepts any contribution under this paragraph, the Secretary shall notify the appropriate committees of Congress. The notice shall specify the source and amount of any contribution so accepted and the use of any amount so accepted. No amount may be transferred pursuant to subsection (d)(1)(C) until the date that is 15 days after the date on which the Secretary of Defense submits to the appropriate committees of Congress— notice in writing of the amount and purpose of the proposed transfer; and in the case of an authorization pursuant to subsection (f)(1)(A), a description of the manner in which the use of critical munitions is necessary to meet national defense requirements. No amounts in the Fund may be used to purchase ammunition, as authorized by this section, until the date that is 15 days after the date on which the Secretary of Defense notifies the appropriate committees of Congress in writing of the amount and purpose of the proposed purchase. No munition purchased using amounts in the Fund may be transferred to a foreign country until the date that is 15 days after the date on which the Secretary of Defense notifies the appropriate committees of Congress in writing of the proposed transfer. No munition acquired by the Secretary of Defense using amounts made available from the Fund pursuant to this section may be transferred to any foreign country unless such transfer is authorized by the Arms Export Control Act ( 22 U.S.C. 2751 et seq. ), the Foreign Assistance Act of 1961 ( 22 U.S.C. 2151 et seq. ), or other applicable law, except as follows: The Secretary of Defense, with the concurrence of the Secretary of State, may authorize the use by the Department of Defense of munitions acquired under this section prior to transfer to a foreign country, if such use is necessary to meet national defense requirements and the Department bears the costs of replacement and transport, maintenance, storage, and other such associated costs of such munitions. Except as required by subparagraph (A), amounts made available to the Fund may be used to pay for storage, maintenance, and other costs related to the storage, preservation, and preparation for transfer of munitions acquired under this section prior to their transfer, and the administrative costs of the Department of Defense incurred in the acquisition of such items, to the extent such costs are not eligible for reimbursement pursuant to section 43(b) of the Arms Export Control Act ( 22 U.S.C. 2792(b) ). No amounts in the Fund may be used pursuant to this section unless the President— certifies to the appropriate committees of Congress that the Special Defense Acquisition Fund established pursuant to chapter 5 of the Arms Export Control Act ( 22 U.S.C. 2795 et seq. ) cannot be used to fulfill the same functions and objectives for which such amounts to be made available from the Fund are to be used; and includes in such certification a justification for the certification, which may be included in a classified annex, if necessary. The President may not delegate any responsibility of the President under subparagraph (A). The authority for the Fund under this section shall expire on December 31, 2040. In this section, the term appropriate committees of Congress means— the Committee on Armed Services, the Committee on Appropriations, and the Committee on Foreign Relations of the Senate; and the Committee on Armed Services, the Committee on Appropriations, and the Committee on Foreign Affairs of the House of Representatives.

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Sec. 7

Taiwan critical munitions acquisition fund

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