This bill creates a system to monitor Azerbaijan's behavior toward Armenia and tie U.S. military aid to Armenia based on whether Azerbaijan meets certain conditions. Here's how it works: Every year, the Secretary of Defense must certify (officially confirm) that Azerbaijan has taken meaningful steps toward five goals—honoring peace agreements, withdrawing military forces from Armenian territory, releasing Armenian prisoners, stopping military attacks, and allowing ethnic Armenians to return to their homes in Nagorno-Karabakh while protecting Armenian cultural and religious sites.

If the Secretary of Defense cannot make this certification, two things happen. First, the Pentagon must review what military support Armenia currently receives and identify any gaps in Armenia's ability to defend itself against threats. Second, the President loses the ability to waive certain restrictions on aid to former Soviet countries—essentially removing a loophole that could have allowed aid to flow to Azerbaijan despite non-compliance. The Pentagon then reports back to Congress with recommendations on how to increase military assistance to Armenia to strengthen its defenses.

In practical terms, this bill uses U.S. military aid as leverage to pressure Azerbaijan into meeting specific conditions regarding Armenia. It's designed to protect Armenia's security by ensuring that if Azerbaijan doesn't comply with these demands, the U.S. will increase military support to Armenia rather than maintain the status quo. The bill essentially says: "We'll help Armenia defend itself more effectively unless Azerbaijan demonstrates it's committed to peace and respecting Armenian rights."