1. (a) The Secretary of Defense, after consultation with the Secretary of State, may pay the incremental expenses of a developing country that are incurred by that country as the direct result of participation in a bilateral or multilateral military exercise if—

   1. (1) the exercise is undertaken primarily to enhance the security interests of the United States; and
   2. (2) the Secretary of Defense determines that the participation by such country is necessary to the achievement of the fundamental objectives of the exercise and that those objectives cannot be achieved unless the United States provides the incremental expenses incurred by such country.
2. (b) The Secretary of Defense shall establish by regulation such accounting procedures as may be necessary to ensure that funds expended under this section are properly expended.
3. (c) Funds available to carry out this section shall be available, to the extent provided in appropriations Acts, for bilateral or multilateral military exercises that begin in a fiscal year and end in the following fiscal year.
4. (d) In this section, the term “incremental expenses” means the reasonable and proper cost of the goods and services that are consumed by a developing country as a direct result of that country’s participation in a bilateral or multilateral military exercise with the United States, including rations, fuel, training ammunition, and transportation. Such term does not include pay, allowances, and other normal costs of such country’s personnel.

(Added Pub. L. 99–661, div. A, title XIII, § 1321(a)(1), Nov. 14, 1986, 100 Stat. 3988; amended Pub. L. 105–85, div. A, title X, § 1073(a)(35), Nov. 18, 1997, 111 Stat. 1902; Pub. L. 110–417, [div. A], title XII, § 1203(a), Oct. 14, 2008, 122 Stat. 4622; Pub. L. 112–81, div. A, title X, § 1061(12), Dec. 31, 2011, 125 Stat. 1583.)

Amendments 2011—Subsecs. (b) to (e). Pub. L. 112–81 redesignated subsecs. (c) to (e) as (b) to (d), respectively, and struck out former subsec. (b) which read as follows: “The Secretary of Defense shall submit to Congress a report each year, not later than March 1, containing—

“(1) a list of the developing countries for which expenses have been paid by the United States under this section during the preceding year; and

“(2) the amounts expended on behalf of each government.”

2008—Subsecs. (d), (e). Pub. L. 110–417 added subsec. (d) and redesignated former subsec. (d) as (e).

1997—Subsec. (e). Pub. L. 105–85 struck out subsec. (e) which read as follows: “Not more than $13,400,000 may be obligated or expended for the purposes of this section during fiscal years 1987 through 1991.”

Effective Date of 2008 Amendment Pub. L. 110–417, [div. A], title XII, § 1203(b), Oct. 14, 2008, 122 Stat. 4622, provided that:

“The amendments made by subsection (a) [amending this section] shall take effect on

October 1, 2008, and shall apply with respect to bilateral and multilateral military exercises described in

section 2010 of title 10, United States Code, as so amended, that begin on or after that date.”