To promote the AUKUS pact and ease technological collaboration, the Biden administration is attempting to integrate Australia and the UK in the Defense Production Act, making them eligible for grants and loans just like US businesses.
The Biden administration is seeking to include Australia and the United Kingdom in the Defense Production Act, allowing them to be eligible for grants and loans. This move is part of the efforts to advance the trilateral AUKUS agreement. President Biden announced his intention to designate Australia as a “domestic source” under Title III of the Defense Production Act during his meeting with Australian Prime Minister Anthony Albanese at the G7 summit. The Pentagon submitted a legislative proposal to Congress to amend the law and add Australia and the UK to Title III, enabling the president to direct grants and loans to companies in these countries as if they were US companies. This expansion aims to streamline technological and industrial collaboration, accelerate AUKUS implementation, and create investment opportunities. The Defense Production Act grants would support the technology-sharing components of AUKUS, focusing on hypersonic weapons, quantum technologies, and artificial intelligence. The endorsement by President Biden at the G7 summit is expected to encourage Congress to pass the legislation into law.