Comment on DOS-2026-0562-0001

The Department should increase the Part 130 monetary thresholds beyond what were originally proposed: First, the Department has always increased these thresholds beyond the consumer price index (CPI). When the Part 130 requirements were first issued in 1976, the amount was $100,000. Then it increased to $250,000 in 1985, and then to $500,000 in 1993. Unlike the proposed rule's formulation, the Department did not rely on the CPI to raise the thresholds. Rather, those increases greatly exceeded inflationary adjustments under the CPI: the CPI adjusted figure of $100,000 in 1985 was around $190,000, and yet the increase there went to $250,000; the CPI adjusted figure of $250,000 in 1993 was around $338,000, and yet the increase there went to $500,000. Second, the rulemaking context supports a higher monetary threshold. The Department acknowledges that the proposal is in furtherance of an Executive Order seeking to improve defense trade, and the Department further acknowledges that even using its reliance on CPI adjustments that the figure should be higher: around $1,140,435. Both factors weigh heavily in favor of higher monetary thresholds rather than the Department lowering the increases below even the CPI adjusted figure. Third, the Department should recognize that it went more than three decades before even proposing another increase, especially after the Department consistently raised the monetary thresholds between 1976 and 1993. At the previous pace, the amount should have been at least $4,000,000. It is also not clear when the next increase will occur, especially when it has been six years to even get to this proposed rule. The Department should raise the monetary threshold to $2,000,000, with the other thresholds increased by the same ratio. This would be consistent with the Executive Order and how the Department previously adjusted the monetary thresholds; also, it would recognize that the last adjustment has been more than three decades ago while being future oriented.