This legislation, known as the Foreign Military Sales Reform Act of 2025, aims to update and strengthen oversight of defense transfers by amending the Arms Export Control Act . Its primary purpose is to substantially raise the financial thresholds that trigger congressional notification and review for the transfer of defense articles and services. These adjustments include increasing various limits, such as from $14 million to $23 million, $50 million to $83 million, and $200 million to $332 million, among others, across different sections of the Act. Beyond adjusting monetary limits, the bill introduces critical measures to prevent the circumvention of these thresholds. It explicitly prohibits any Federal employee from intentionally or knowingly structuring payments or assisting in such activities to avoid congressional reporting requirements. Furthermore, it mandates the Office of the Inspector General of the Department of State to submit a report to Congress detailing any attempts to structure payments to circumvent these thresholds. For Department of State employees found to have knowingly engaged in such circumvention, the bill imposes severe penalties, including being permanently barred from Federal service and facing a civil penalty of $100,000.