The KOALA Act streamlines the export of military equipment and defense services between the United States, Australia, and the United Kingdom by removing certain licensing requirements for these allied nations. Specifically, the bill eliminates the need for bilateral agreements and formal licenses when exporting defense articles or services in support of the AUKUS partnership, a trilateral defense cooperation agreement announced in 2021, though Congress retains the power to block specific exemptions through a joint resolution of disapproval. The legislation also requires the President to submit semiannual reports to Congress detailing defense transfers to Australia that would normally require certification, and it strengthens enforcement by increasing criminal penalties for violations of arms export laws from $1 million and 20 years imprisonment to $5 million and 25 years. The bill takes effect 180 days after enactment, allowing these three close allies to conduct defense trade more efficiently while maintaining congressional oversight.
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