Guide
How much does the U.S. make on Foreign Military Sales?
operates under a legislatively mandated "no-loss" concept and an administratively mandated "no-gain" policy: the U.S. Government must recover its costs, and an upper control on the administrative surcharge account guards against collecting more than the program needs.
How much does the U.S. make on Foreign Military Sales?
The execution of U.S. Government () () programs involves the management of substantial amounts of funds. The fact that operates under a legislatively mandated “no-loss” concept and an administratively mandated “no-gain” policy enforces the requirement for effective financial planning and accountability and has caused the creation of data collecting and reporting systems peculiar to . The also require attentive financial management and planning due to their expiring and canceling funds legislative limitations. Financial management is far-reaching and must be considered by all functional disciplines in the community throughout the life cycle of cases and programs.
References
SAMM
- SAMM C9.3.1.1 — Recovery of Cost.
- SAMM C9.3.1.2 — Materiality.
- SAMM C9.15.2.1 — Account Upper Control General Information.
Related
Foreign Military Sales (FMS)
A process, authorized by the Arms Export Control Act, through which eligible foreign governments and international organizations may purchase defense articles, services, and training from the United States Government.
SAMM Glossary, as of 12 September 2026
Security Cooperation
Activities undertaken by the DoD to encourage and enable international partners to work with the United States to achieve strategic objectives. It includes all DoD interactions with foreign defense and security establishments, including all DoD-administered security assistance programs, that: build defense and security relationships that promote specific U.S. security interests, including all international armaments cooperation activities and security assistance activities; develop allied and friendly military capabilities for self-defense and multinational operations; and provide U.S. forces with peacetime and contingency access to host nations.
SAMM Glossary, as of 12 September 2026
FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
Building Partner Capacity (BPC) Programs
Security cooperation and security assistance activities funded with USG appropriations (not including Foreign Military Sales Credit and Military Assistance Program/Merger).
SAMM Glossary, as of 12 September 2026
DoD Components (DSCA)
The Office of the Secretary of Defense, the Military Departments, the Joint Chiefs of Staff, the Combatant Commands, the DoD Office of the Inspector General, the Defense agencies, and DoD field activities.
SAMM Glossary, as of 12 September 2026
Security Assistance (SA)
A group of programs authorized by federal statutes by which the United States provides defense articles, military training, and other defense-related services by grant, lease, loan, credit, or cash sales in furtherance of national policies and objectives, and those that are funded and authorized through the Department of State to be administered by Department of Defense/Defense Security Cooperation Agency, which are considered part of security cooperation.
SAMM Glossary, as of 12 September 2026
AECA — Arms Export Control Act
SAMM Acronyms, as of 12 September 2026
DoD Financial Management Regulation (DoD FMR)
A manual published by the Defense Finance and Accounting Service under the authority of DoD Instruction (DoDI) 7000.14. It establishes basic financial procedures for security assistance activities involving management, fiscal matters, accounting, pricing, budgeting for reimbursements to DoD appropriations accounts and revolving funds, auditing, international balance of payments, and matters affecting the DoD budget.et.
SAMM Glossary, as of 12 September 2026
Indirect Cost
Costs which are incurred for common or joint objectives, and which are not as readily subject to treatment as direct costs. See also direct costs.
SAMM Glossary, as of 12 September 2026
DSCA — Defense Security Cooperation Agency
SAMM Acronyms, as of 12 September 2026
Glossary entry →Defense Security Cooperation Agency (DSCA) →
Trust Fund
A type of account, designated by law as a “trust fund,” regardless of any other meaning of the term “trust fund.” A trust fund account is usually either a receipt, an expenditure, or a revolving fund account (trust revolving fund account).
SAMM Glossary, as of 12 September 2026