On February 6, 2026, President Donald Trump signed Executive Order (E.O.) 14383, the America First Arms Transfer Strategy (the Strategy), which proposes to reframe when, how, and why the U.S. manages and authorizes the sale and transfer of American-made defense equipment to foreign partners. At its core, the Strategy revises U.S. international arms transfer policy so that decisions account for domestic industrial base and economic goals in addition to foreign policy and national security. The Strategy signals significant structural changes to existing arms transfer procedures, enumerates new priorities, addresses compliance measures for efficiency and transparency, and embeds industrial base expansion into arms transfer decision-making. While many of the details will take time to develop, one point is already clear: U.S. defense contractors should soon have increased opportunities to market and sell defense technologies and equipment to international customers. 

New Priorities: Industry, Arms, and Allies 

First, the Strategy fundamentally prioritizes the growth and resilience of the U.S. defense industrial base and domestic production capacity. It specifically directs the Secretaries of State, War, and Commerce to proactively identify Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) that will benefit the U.S. defense industry. It also signals a possible appetite for new foreign direct investment in at least parts of the U.S. defense industrial base. This may shift how U.S. defense contractors choose to structure their business models and where they court new investment (for example, by looking to potential foreign sales and foreign investors as a way to spread the costs of new technology development).

Second, the Strategy directs the Secretaries of State, War, and Commerce to identify the weapons and platforms that are most important for U.S. national defense needs and relevant to executing the National Security Strategy. The Strategy starts a 120-day clock for the Departments of State, War, and Commerce to create a sales catalog of the weapons systems and platforms (the catalog) that the U.S. should encourage foreign partners to purchase from U.S. contractors. This catalog promises to formalize a list of platforms which the U.S. government will actively promote to foreign governments and could lead to a presumption of exportability for listed platforms (at least, when exports are intended for allied government customers).

Third, the Strategy states that the U.S. will prioritize arms sales to foreign partners that have invested in their own defense capabilities and that play a role in U.S. national or economic security. For foreign allies, this means increased pressure to raise defense budgets and potentially greater scrutiny of strategic alignment and commitment, as well as incentives to purchase the particular platforms listed in the sales catalog discussed above.

Efficiency and Transparency

To reduce inefficiency, the Strategy directs the Secretaries of War and State to craft criteria to determine which weapons and platforms should be subject to Enhanced End-Use Monitoring within 90 days and, with the Secretary of Commerce, establish an End-Use Monitoring Group. The Strategy also calls for a review of Third-Party Transfer processes within 60 days. These directives signal that implementation of the Strategy may remove some more onerous burdens on acquiring less sensitive platforms, thereby removing some perceived drawbacks to purchasing American systems.

In addition, the Strategy notes the need for increased transparency. The Secretary of War has 90 days to develop a process to give allies advanced notice of upcoming contract actions and deadlines for FMS letters. The E.O. also amends parts of E.O. 13637 (2013), which delegates responsibility for the administration of export controls, to streamline the congressional notification process for proposed arms transfers.

The Strategy requires development of an industry engagement plan within 60 days. On a shorter 30-day timeline, the Secretaries of War, State, and Commerce also must establish a "Promoting American Military Sales Task Force" (Task Force) to implement the directives of the Strategy. The establishment of the Task Force formalizes cross-agency coordination, with a particular focus on accountability and transparency in the arms transfer process.

Strategic Reframing: Industrial Policy at the Core

The Strategy represents a reordering of arms transfer priorities: Economic and industrial outcomes are no longer secondary benefits – they are explicit primary objectives. Arms export decisions are now explicitly linked to domestic industrial planning. The Strategy aims to support domestic reindustrialization, positioning foreign capital and demand to expand domestic factories, strengthen supply chains, and improve the resilience of the U.S. defense industrial base. In addition, the Strategy involves encouraging innovation and competition by incentivizing new and non-traditional defense companies to participate in U.S. defense manufacturing. While U.S. arms transfer policy traditionally balanced alliance management, regional stability, deterrence, and defense industry competitiveness, the new strategy arguably elevates the strengthening of the U.S. defense industrial base above some of those other factors. 

Implementation is already underway: On February 10, 2026, the Defense Security Cooperation Agency (DSCA) and the Defense Technology Security Administration (DTSA) were realigned under acquisition and sustainment leadership within the Department of War. With the stated goals of streamlining authority and improving speed and accountability, this structural change integrates arms export policy with domestic acquisition planning, industrial base management, and supply chain oversight. Fundamentally, the reorganization reflects the Strategy's core thesis: Arms exports are not an adjunct diplomatic activity but a lever of industrial strategy.

Key Takeaways 

The Strategy could be a game changer for U.S. defense companies. It signals a shift toward a more deliberate arms transfer approach that aligns foreign defense sales with U.S. industrial and security priorities. The practical effects of the Strategy, however, remain to be seen and will rest on the implementation efforts of the Departments of War, State, and Commerce, as well as responses from industry, foreign partners, and Congress. While its true impact will not be clear until the government finalizes implementation details, U.S. defense companies can take several steps now to prepare for the Strategy's rollout over the next few months. Those steps include: 

• Assess whether and how the Strategy presents opportunities for new or expanded business and begin mapping alternative sales and production strategies that could yield maximum results through alignment with stated administration priorities.
• Monitor developments relating to the forthcoming catalog of prioritized weapons platforms to ensure products are included to the greatest extent practicable.
• Prioritize development of customers and partners in countries that have recently increased investments in their own defense capabilities, as well as partners in countries exploring co-development of platforms that are or may be of particular interest to the Department of War.
• Review internal compliance guidance for sales teams and any joint ventures, identifying which policies and procedures are likely to require updates as key elements of the Strategy are implemented. 
• Prepare roadmaps or lists of company priorities – with input from compliance, production, and government affairs teams – for planned industry engagement opportunities with the U.S. government.

If you have questions about the Strategy or how best to prepare for its implementation, please contact the Miller & Chevalier attorneys listed below.

Timothy P. O'Toole, totoole@milchev.com, 202-626-5552

Alex L. Sarria, asarria@milchev.com, 202-626-5822

Jason N. Workmaster, jworkmaster@milchev.com, 202-626-5893

Melissa Burgess, mburgess@milchev.com, 202-626-5914

Collmann Griffin, cgriffin@milchev.com, 202-626-5836

Ashley Powers, apowers@milchev.com, 202-626-5564

Caroline J. Watson, cwatson@milchev.com, 202-626-6083

Connor W. Farrell, cfarrell@milchev.com, 202-626-5925

Elissa B. Harwood, eharwood@milchev.com, 202-626-5890

Peter Kentz, pkentz@milchev.com, 202-626-5891

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