AUKUS IMPROVEMENT ACT OF 2025.

SEC. 1085. AUKUS IMPROVEMENT ACT OF 2025. (a) [22 U.S.C. 2751 note] Short Title.—This section may be cited as the “AUKUS Improvement Act of 2025”. (b) Modification to AUKUS Defense Trade Cooperation.—Section 38(l) of the Arms Export Control Act (22 U.S.C. 2778(l)) is amended— (1) in paragraph (2), by adding at the end the following: “The congressional notification requirements of subsections (c) and (d) of section 36 shall not apply with respect to the export or transfer of defense articles or defense services subject to the exemption described in this paragraph.”; and (2) by redesignating paragraph (7) as paragraph (8); and (3) by inserting after paragraph (6) the following: “(7) Exemption from certain requirements.— “(A) In general.—Defense articles sold by the United States under this Act, whether pursuant to the exemption authorized under this section or pursuant to an exemption under another authority under this Act, may be reexported, retransferred or temporarily imported exclusively between the Government of Australia, the Government of the United Kingdom, or entities described in paragraph (b) of section 126.7(b)(2) of title 22, Code of Federal Regulations, or successor regulations, that are eligible for the exemption described in paragraph (a) of such section, notwithstanding the requirement for the consent of the President under section 3(a)(2) or section 505(a)(1)(B) of the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(1)(B)). “(B) Intra-company, intra-organizational, and intra-governmental transfers.—Intra-company, intra-organization, and intra-governmental transfers related to defense articles described in subparagraph (A) are authorized to be made between officers, employees, and agents who meet the definition of the term ‘regular employee’ under section 120.64 of title 22, Code of Federal Regulations, or successor regulations, including dual nationals or third-country nationals who satisfy the requirements of section 126.18 of title 22, Code of Federal Regulations, or successor regulations.” . (c) Report.—Not later than 180 days after the date of the enactment of this Act, and annually thereafter for five years, the President shall submit to the appropriate congressional committees a report with respect to the use of the expedited review process established by section 1344 of the National Defense Authorization Act for Fiscal Year 2024 (22 U.S.C. 10423), that includes the following: (1) An update on the progress made toward implementing such expedited review process. (2) The number of licenses issued under such process. (3) A list of each recipient of such license. (d) [22 U.S.C. 2778 note] Requirement to Review Excluded Technology List.— (1) In general.—Not later than 180 days after the date of the enactment of this Act, and annually for five years and every three years thereafter for 12 years, the Secretary of State, in consultation with the Secretary of Defense, shall review Supplement No. 2 to part 126 of title 22, Code of Federal Regulations, commonly known at the “Excluded Technology List”, to ensure inclusion of only those items required by statute or otherwise determined by the Secretary of State to require continued licensing review for reasons of United States national security. (2) Report.—The Secretary of State shall submit to the appropriate congressional committees and the Committee on Armed Services of the House of Representatives and the Committee on Armed Services of the Senate a report on the results of each review required by this subsection. Each such report shall include a justification of any item removed or added to the Excluded Technology List. (e) Appropriate Congressional Committees Defined.—In this section, the term “appropriate congressional committees” means— (1) the Committee on Foreign Affairs of the House of Representatives; and (2) the Committee on Foreign Relations of the Senate.