Military aid was an important foreignpolicy tool during the Cold War. The superpowers tried to expand theirinfluence through military aid, especially in developing and third-worldcountries. After the Cold War, military trade became more important thanmilitary aid. The United Nations also has a monitoring system for militarytrade and transfer, but it depends on the information the concerned countriesprovide. Hence, this research paper analyzes whether the transfer system iswell established in the world's largest arms exporter, the US. The U.S. exportsarms worth about $200 billion and is responsible for more than 25% of the totalglobal arms trade. Hence, to understand the global arms transfer system, onemust also understand the U.S. arms transfer system. This research paperattempts to analyze the concept of military aid, its various names anddimensions, and especially the various methods available for military aid inthe U.S.