This bill, titled the "Values in Arms Export Act of 2026," significantly amends the Arms Export Control Act to make a foreign government's respect for and compliance with internationally recognized human rights and international humanitarian law central to its eligibility for purchasing U.S. defense articles or services. It explicitly defines actions inconsistent with this policy, including gross human rights violations, failure to adhere to proportionality, harm to civilians or aid workers, restriction of humanitarian assistance, and corruption. The legislation mandates a comprehensive monitoring and verification program for countries designated as "countries of concern." This program requires observation and evaluation by U.S. personnel, including the use of direct observation, real-time data, and information from media and non-governmental organizations. All collected information must be made available to the Secretary of State, appropriate congressional committees, and a newly established oversight board. The bill establishes a new independent Human Rights and Law of War Oversight Board within the executive branch. This Board is tasked with analyzing recipient governments' adherence to human rights and international humanitarian law, advising on policy development, and overseeing the executive branch's implementation of arms transfer regulations. It also has the authority to designate foreign governments as countries of concern, a designation that can be reversed by the President with detailed justification to Congress. Foreign governments designated as a country of concern face immediate ineligibility for defense sales and transfers . A first designation results in a three-year ineligibility for "covered defense articles," while a second designation within a decade, or a failure to improve, leads to a ten-year ineligibility for all defense articles and services, requiring the return of existing covered articles. Eligibility can be restored if the Secretary of State determines meaningful corrective steps have been taken and Congress approves via a joint resolution. Furthermore, the bill requires the Secretary of State to assess whether defense articles or services are "more likely than not" to be used to violate human rights or international humanitarian law before any offer or export license is issued. New arms transfer agreements must include terms requiring foreign governments to cooperate with U.S. investigations into potential policy inconsistencies. The Secretary of State must also submit regular reports to Congress on countries of concern and the findings of the monitoring program.