A bill to direct the Secretary of Commerce to establish a demonstration program to adapt the lessons of providing foreign aid to underdeveloped economies to the provision of Federal economic development assistance to certain similarly situated individuals, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign Aid Lessons for Domestic 
Economic Assistance Act of 2007''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to adapt the lessons of foreign aid to underdeveloped 
        economies, such as the experience of the Millennium Challenge 
        Corporation, to the provision of Federal economic development 
        assistance to similarly situated remote Native American 
        communities;
            (2) to provide Federal economic development assistance for 
        Native American communities through the Native American 
        Challenge Demonstration Project;
            (3) to administer Federal economic development assistance 
        in a manner that--
                    (A) promotes economic growth and the elimination of 
                poverty;
                    (B) strengthens good governance, entrepreneurship, 
                and investment in Native American communities; and
                    (C) builds the capacity of Native people to deal 
                with rapid change and uncertainty due to climate 
                change;
            (4) to improve the effectiveness of Federal economic 
        development assistance by encouraging the integration and 
        coordination of the assistance in Native American communities;
            (5) to promote sustainable economic growth and poverty 
        reduction policies in Native American communities in a manner 
        that promotes self-determination and self-sufficiency among 
        remote Native American communities while preserving the 
        cultural values of those communities; and
            (6) to establish a demonstration project that, if 
        successful, may be broadly applied to other Native American 
        communities in the United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Compact.--The term ``compact'' means a binding 
        agreement with the United States entered into pursuant to this 
        Act.
            (2) Economic development strategy.--The term ``economic 
        development strategy'' means a strategy--
                    (A) written by an eligible entity and designed to 
                achieve sustainable economic growth and reduce poverty 
                over a defined period; and
                    (B) developed in consultation with public and 
                private sector entities, as appropriate to the 
                geographic area and intended beneficiaries of the 
                compact.
            (3) Eligible entity.--The term `` eligible entity'' means--
                    (A) in the State of Alaska, a consortium of not 
                more than 2 regional Alaska Native nonprofit 
                organizations, to be determined by the Secretary, in 
                consultation with the Secretary of the Interior and the 
                Alaska Federation of Natives, with priority given to 
                organizations serving regions with high poverty levels;
                    (B) in the State of Hawaii, a consortia of local 
                Native Hawaiian community organizations, to be 
                determined by the Secretary, in consultation with the 
                Secretary of the Interior and the Office of Hawaiian 
                Affairs; and
                    (C) in the 48 contiguous States, not more than 3 
                organizations, to be determined by the Secretary, in 
                consultation with the Secretary of the Interior, which 
                may be Indian tribes, consortia of Indian tribes, or 
                nongovernmental entities authorized by 1 or more Indian 
                tribes.
            (4) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.

SEC. 4. MILLENNIUM CHALLENGE DEMONSTRATION PROJECT.

    (a) Establishment.--The Secretary shall establish and implement in 
the Department of Commerce a demonstration project, to be known as the 
``Native American Millennium Challenge Demonstration Project'' 
(referred to in this section as the ``demonstration project'').
    (b) Authorization of Assistance.--In carrying out the demonstration 
project, the Secretary may provide assistance to any eligible entity 
that enters into a compact with the United States pursuant to this Act.
    (c) Form of Assistance.--Assistance under the demonstration 
project--
            (1) shall be provided in the form of funding agreements 
        established under the applicable compact;
            (2) may not be provided in the form of loans; and
            (3) may not be used for gaming activities covered by the 
        Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.).
    (d) Coordination.--
            (1) In general.--The provision of assistance under the 
        demonstration project shall be coordinated, to the maximum 
        extent practicable, with other Federal economic development 
        assistance programs for Native Americans carried out by the 
        Federal agencies and departments described in paragraph (2).
            (2) Agencies and departments.--The Federal agencies and 
        departments referred to in paragraph (1) are--
                    (A) the Department of Agriculture;
                    (B) the Department of Commerce;
                    (C) the Department of Energy;
                    (D) the Department of Health and Human Services;
                    (E) the Department of Housing and Urban 
                Development;
                    (F) the Department of the Interior;
                    (G) the Small Business Administration; and
                    (H) such other Federal agencies and 
                instrumentalities as the Secretary determines to be 
                appropriate.
            (3) Integrated funding.--On execution of a compact with an 
        eligible entity, the Secretary, in cooperation with other 
        Secretaries as appropriate, shall authorize the eligible entity 
        to coordinate the federally funded economic development 
        assistance programs provided for the area served by the 
        eligible entity in a manner that integrates the program 
        services into a single, coordinated program.
    (e) Programs Affected.--The programs that may be integrated under 
the demonstration project include any program under which an Indian 
tribe is eligible for receipt of funds under a statutory or 
administrative formula for economic development purposes.
    (f) Waiver Authority.--On receipt of an executed compact, the 
Secretary shall consult with the eligible entity that is a party to the 
compact and the Secretary of each Federal agency or department that 
provides funds to be used to implement the compact to identify any 
waiver of statutory requirements or applicable regulations, policies, 
or procedures necessary to enable the eligible entity to implement the 
compact.

SEC. 5. CHALLENGE COMPACTS.

    (a) Compacts.--
            (1) In general.--The Secretary shall develop and recommend 
        procedures for consideration of proposals for compacts 
        submitted by eligible entities.
            (2) Assistance.--The Secretary may provide assistance to an 
        eligible entity only if the eligible entity enters into a 
        compact with the United States, to be known as a ``Native 
        American Challenge Compact'', that establishes a multiyear plan 
        for achieving development objectives in furtherance of the 
        purposes of this Act.
    (b) Applications.--The Secretary shall develop and recommend 
procedures for considering applications for compacts submitted by 
eligible entities.
    (c) Criteria for Selection of Eligible Entities.--The Secretary 
shall develop an application process and criteria for selecting 
eligible entities to enter into compacts under this Act, taking into 
consideration--
            (1) the purposes of this Act;
            (2) the economic development strategy of the eligible 
        entity;
            (3) the remoteness of the reservation or community to be 
        served by the eligible entity;
            (4) the general economic status of the eligible entity;
            (5) poverty rates; and
            (6) the service capacity of the eligible entity.
    (d) Assistance for Development of Compacts.--To the extent that 
funds are appropriated in advance to carry out this section, the 
Secretary may enter into contracts with, or make grants to, any 
eligible entity for the purposes of facilitating the development and 
implementation of a compact between the United States and the eligible 
entity.
    (e) Duration and Extension.--
            (1) Duration.--The term of an initial compact under this 
        section shall not exceed 5 years.
            (2) Subsequent compacts.--An eligible entity and the United 
        States may enter into 1 or more subsequent compacts in 
        accordance with this Act.
            (3) Extensions.--If a compact is approaching expiration or 
        has expired, the eligible entity that is a party to the compact 
        and the United States may renegotiate or extend the compact for 
        such number of terms as the parties may agree, with each term 
        not to exceed 10 years.
    (f) Elements.--In furtherance of the economic development strategy 
of the applicable eligible entity, each compact shall contain--
            (1) a description of the specific objectives for the 
        sustainable economic development and reduction of poverty that 
        the eligible entity and the United States expect to achieve 
        during the term of the compact;
            (2) a description of the respective roles and 
        responsibilities of the eligible entity and the United States 
        in the achievement of those objectives;
            (3) a list and description of regular benchmarks to measure 
        progress toward achieving those objectives;
            (4) an identification of the intended beneficiaries, 
        disaggregated by income level, gender, and age, to the maximum 
        extent practicable; and
            (5) a multiyear financial plan to guide the implementation 
        of the compact, including the estimated level of funding and 
        other contributions by the United States and the eligible 
        entity, proposed mechanisms to execute the plan, and periodic 
        assessments to determine whether the requirements of paragraphs 
        (1) through (4) are being met.
    (g) Suspension and Termination of Assistance.--
            (1) In general.--The Secretary may suspend or terminate 
        assistance, in whole or in part, for an eligible entity that 
        has entered into a compact with the United States if the 
        Secretary determines that--
                    (A) the eligible entity has failed to meet the 
                responsibilities of the eligible entity under the 
                compact; or
                    (B) the eligible entity has engaged in a pattern of 
                actions that is inconsistent with the purposes of this 
                Act.
            (2) Reinstatement.--The Secretary may reinstate assistance 
        for an eligible entity only if the Secretary determines that 
        the eligible entity has demonstrated a commitment to correcting 
        each condition for which assistance was suspended or terminated 
        under paragraph (1).

SEC. 6. PROGRAM ASSESSMENTS AND REPORTS.

    (a) Reports of Eligible Entities.--Not later than March 15, 2008, 
and annually thereafter, each eligible entity shall prepare and submit 
to the Secretary a written report describing the assistance provided to 
the eligible entity under this Act during the preceding fiscal year.
    (b) Report Contents.--A report required under subsection (a) shall 
include--
            (1) a description of the amount of obligations and 
        expenditures for assistance provided during the preceding 
        fiscal year;
            (2) a description of the programs and activities conducted 
        by the eligible entity in furtherance of the economic 
        development strategy of the eligible entity and the purposes of 
        this Act;
            (3) an assessment of the effectiveness of the assistance 
        provided and progress made by the eligible entity toward 
        achieving the economic development strategy of the eligible 
        entity and the purposes of this Act; and
            (4) such other information as the eligible entity considers 
        to be relevant, taking into consideration the purposes of this 
        Act.
    (c) Submission to Congress.--Not later than May 15, 2008, and 
annually thereafter, the Secretary shall submit the reports required 
under subsection (a), with such other information as the Secretary 
considers to be relevant, to--
            (1) the Committees on Energy and Commerce and Natural 
        Resources of the House of Representatives; and
            (2) the Committees on Indian Affairs, Commerce, Science, 
        and Transportation, and Energy and Natural Resources of the 
        Senate.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this Act $20,000,000 for each of fiscal years 2008 
        through 2012, to remain available until expended.
            (2) Unappropriated amounts.--Any funds authorized but not 
        appropriated for any fiscal year under paragraph (1) may be 
        appropriated for a subsequent fiscal year, subject to the 
        condition that the cumulative amount authorized to be 
        appropriated for any of fiscal years 2008 through 2012 shall 
        not exceed $100,000,000.
    (b) Administrative Funds.--Of the funds made available to carry out 
this Act, not more than 5 percent may be used by the Secretary for the 
administrative expenses of carrying out this and oversight of programs 
under this Act.

Summary: Foreign Aid Lessons for Domestic Economic Assistance Act of 2007 - Directs the Secretary of Commerce to establish and implement the Native American Millennium Challenge Demonstration Project through which federal economic development assistance may be provided for certain Native American communities. Authorizes the Secretary to provide such assistance to consortia of Alaska Native nonprofit organizations, Native Hawaiian community organizations, and other Indian tribes that enter into Native American Challenge Compacts. Requires such Compacts to establish a multiyear plan for achieving certain development objectives, including promoting economic growth and the elimination of poverty, strengthening good governance, entrepreneurship, and investment in Native American communities, and building the capacity of Native people to deal with rapid change and uncertainty due to climate change.