The Trump administration wants to make it easier for partners and allies to purchase US weapons and other military equipment in an effort to divert them from the temptations of Chinese and Russian markets.
A US State Department official said at least $ 8 billion will be made available to offer more flexible loans that, according to the budget overview, "will make US military equipment a more competitive and more affordable option for partner countries ".
The loan fund would add to an existing grant assistance fund available to dozens of nations around the world. Israel, Jordan and Egypt benefit from it for the most part. The fund's budget is $ 5,4 billion, also confirmed in Fiscal Year 2020. Trump has progressively reduced the grant program since taking office as president. Now the White House has launched the idea of turning it into a "loan program". The idea would be shelved for the time being due to resistance from Congress.
The proposed new fund, controlled by the State Department, would be managed by the Department of Defense with the aim of providing financial assistance to various allied countries to help them purchase everything from military training trucks to fighter jets and drones. Although the assistance fund already exists, it has rarely been used and never adequately funded in recent years.
For example, in 2016, the United States offered Iraq, during the fight against ISIS, $ 250 million in the form of a loan to be repaid over eight years to help the country purchase ammunition, aircraft maintenance and training.