H.R. 907 would authorize the Department of State to enter into an agreement with Jordan to increase assistance to and defense cooperation with that country. For a three year period, it would allow the President to expedite military sales to Jordan and to waive or reduce certain surcharges on military sales from Department of Defense stocks.
Earlier this year, the United States and Jordan entered into a memorandum of understanding under which Jordan would receive additional foreign assistance. CBO estimates that implementing the bill would not result in any further foreign assistance being provided to Jordan, and that the administrative expenses associated with expediting consideration for military sales and reporting on those sales would be less than $500,000.
The surcharges that would be affected represent a portion of the costs of research and development for the purchased items and are deposited into the Special Defense Acquisition Fund. That fund is a revolving fund subject to appropriations action and is used to procure, store, and sell defense items that are in high demand. By allowing the President to waive or reduce those surcharges, H.R. 907 could reduce the amount of collections that are deposited into the fund and later spent.
On net, CBO estimates that implementing H.R. 907 would cost less than $500,000 over the 2016-2020 period, assuming the availability of appropriated amounts. Enacting H.R. 907 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
H.R. 907 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.
