The United State provides military training on a grant or sales basis to foreign governments. Under the Foreign Assistance Act of l96l, as amended, the Congress makes grants available to foreign governments for training through the International Military Education and Training (IMET) program. The Arms Export Control Act, as amended, authorizes the Department of Defense to sell training to foreign countries under the foreign military sales (FMS) program. Appropriations for the IMET program and revenues received from the FMS program do not fully reimburse the services for the cost of training foreign students. Indirect training costs are waived for NATO countries, and incremental pricing is allowed for countries receiving IMET grant training. The Reagan administration has proposed amending the Arms Export Control Act to eliminate the current multitier pricing structure on the sale of training and permit only the recovery of incremental or additional costs for both the IMET and the FMS programs. If approved, the proposal would substantially reduce the amount foreign customers pay for U.S. military training. (Appendixes include examples of training course prices and proposed legislative amendments.) (YLB)