The XM250 light machine gun features a free-floating reinforced M-LOK handguard for direct accessory attachment onto the "negative space" (hollow slot) mounting points.

[5] In January 2019, the United States military began the Next Generation Squad Weapon Program to find replacements for the M4 carbine and M249 light machine gun.

[7] The XM250 light machine gun and XM7 rifle were designed to fire the 6.8×51mm SIG Fury cartridge in response to concerns that improvements in body armor would diminish the effectiveness of common battlefield rounds such as the 5.56×45mm NATO (used in the M4 carbine and M249 light machine gun) and 7.62×51mm NATO.

The contract has the capacity to build additional weapons should the U.S. Marine Corps and U.S. Special Operations Command choose to be included.

[14][15] The XM250 light machine gun was delivered to soldiers in the 101st Airborne Division and 75th Ranger Regiment in September 2023 for user tests.