Where do FMS funds come from?

Written by Editorial Team | Last Updated: August 2026

Foreign Military Sales funds originate either from the national treasury funds of the purchasing foreign government or through United States government-sponsored assistance programs, such as Foreign Military Financing grants and appropriations authorized by Congress. When partner nations procure defense articles or services through the security cooperation framework, payments are deposited into the United States FMS Trust Fund via the Defense Finance and Accounting Service to execute procurement contracts with American defense industries.

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