Trump Admin Proposes New $8 Billion Loan Fund to Subsidize Foreign Weapon Sales | WHAT REALLY HAPPENED


Trump Admin Proposes New $8 Billion Loan Fund to Subsidize Foreign Weapon Sales

The Trump administration is pushing for the creation of an $8 billion loan fund in order to boost weapons sales to foreign allies, according to a summary of the administration’s draft budget for next year, which was made public on March 11. The loan program was first pitched in the early days of the administration but failed to gain support from Congress.

While the previously suggested loan program was touted as a replacement for the Foreign Military Financing (FMF) grant program — which subsidizes arms purchases made by foreign nations, particularly Israel and Egypt, to the tune of billions of dollars — the current loan program would not replace, but instead “complement” the FMF program. While the current budget would slightly reduce the requested budget for the FMF from $5.9 billion in FY 2019 to $5.4 billion, the suggested loan program would add an additional $8 billion, bringing the total amount budgeted by the Trump administration for financing arms purchases made by foreign nations to an astounding $13.4 billion.

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