To condition security assistance and economic assistance to the Government of Egypt in order to advance United States national security interests in Egypt, including encouraging the advancement of political, economic, and religious freedom in Egypt.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Egypt Accountability and Democracy 
Promotion Act''.

SEC. 2. DECLARATION OF POLICY.

    The policy of the United States shall be to use its foreign 
assistance for Egypt, including the ``Foreign Military Financing'' 
program, to advance United States national security interests in Egypt, 
including encouraging the advancement of political, economic, and 
religious freedom in Egypt.

SEC. 3. LIMITATION ON SECURITY ASSISTANCE TO THE GOVERNMENT OF EGYPT.

    (a) Limitation.--Of the amounts available for assistance for Egypt 
under section 23 of the Arms Export Control Act (22 U.S.C. 2763; 
relating to the ``Foreign Military Financing'' program)--
            (1) 10 percent of that amount shall be withheld from the 
        Government of Egypt unless, not later than 30 days after the 
        enactment of this Act, the Secretary of State has made the 
        certification described in subsection (c);
            (2) 50 percent of that amount shall be withheld from the 
        Government of Egypt if a further period of 30 days has elapsed 
        immediately following the 30-day period described in paragraph 
        (1) without a certification described in subsection (c) being 
        in effect; and
            (3) 100 percent of that amount shall be withheld from the 
        Government of Egypt if a further period of 120 days has elapsed 
        immediately following the 30-day period described in paragraph 
        (2) without a certification described in subsection (c) being 
        in effect.
    (b) Report.--If the Secretary of State is unable to make the 
certification described in subsection (c) and applies the withholding 
of funds described in paragraph (1), (2), or (3) of subsection (a), as 
the case may be, the Secretary shall transmit to the appropriate 
congressional committees a report that contains the reasons therefor.
    (c) Certification.--A certification described in this subsection is 
a certification transmitted by the Secretary of State to the 
appropriate congressional committees that contains a determination of 
the Secretary that--
            (1)(A) the Government of Egypt is not directly or 
        indirectly controlled by or under the influence of a foreign 
        terrorist organization, its affiliates, or its supporters; and
            (B) no member, affiliate, or supporter of a foreign 
        terrorist organization serves in a policy-making position in a 
        ministry, agency, or instrumentality of the Government of 
        Egypt;
            (2) the Government of Egypt--
                    (A) has adopted and fully implemented legal reforms 
                that protect the political, economic, and religious 
                freedoms and human rights of all citizens and residents 
                of Egypt; and
                    (B) is not acting to restrict the political, 
                economic, or religious freedoms and human rights of the 
                citizens and residents of Egypt;
            (3) the Government of Egypt is fully implementing the 
        Israel-Egypt Peace Treaty; and
            (4) the Government of Egypt is taking concrete, verifiable 
        steps to detect and destroy the smuggling network and tunnels 
        between Egypt and the Gaza Strip and to crack down on violent 
        extremist groups and activities in the Sinai Peninsula.
    (d) Recertifications.--Not later than 90 days after the date on 
which the Secretary of State transmits to the appropriate congressional 
committees an initial certification under subsection (c), and every 6 
months thereafter--
            (1) the Secretary shall transmit to the appropriate 
        congressional committees a recertification that the 
        requirements contained in subsection (c) are continuing to be 
        met; or
            (2) if the Secretary is unable to make such a 
        recertification, the Secretary shall apply the withholding of 
        funds described in paragraph (1), (2), or (3) of subsection 
        (a), as the case may be, and the Secretary shall transmit to 
        the appropriate congressional committees a report that contains 
        the reasons therefor.
    (e) Waiver.--The Secretary of State may waive the limitation in 
subsection (a)(3) for one or more 90-day periods with respect to up to 
50 percent of the amount required to be withheld under such subsection 
if, for each such 90-day period, the Secretary determines and certifies 
to the appropriate congressional committees that it is in the national 
security interests of the United States to do so and transmits to the 
appropriate congressional committees a report with detailed reasoning 
for the determination and certification.
    (f) Transfer of Certain Interest for Egypt.--Any interest earned 
from amounts in an interest bearing account for Egypt to which funds 
made available under section 23 of the Arms Export Control Act (22 
U.S.C. 2763; relating to the ``Foreign Military Financing'' program) 
shall be--
            (1) transferred to and consolidated with amounts available 
        for assistance for the Middle East Partnership Initiative under 
        chapter 4 of part II of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2346 et seq.; relating to the ``Economic Support 
        Fund''); and
            (2) allocated for democracy and governance programs for 
        Egypt, including direct support for secular, democratic 
        nongovernmental organizations.
    (g) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State shall submit to the 
appropriate congressional committees a report that includes the 
following:
            (1) A description of the strategic objectives of the United 
        States regarding the provision of United States security 
        assistance to the Government of Egypt.
            (2) A description of biennial outlays of United States 
        security assistance to the Government of Egypt for the purposes 
        of strategic planning, training, provision of equipment, and 
        construction of facilities, including funding streams.
            (3) A description of vetting and end-user monitoring 
        systems in place by both Egypt and the United States for 
        defense articles and training provided by the United States, 
        including human rights vetting.
            (4) A description of actions that the Government of Egypt 
        is taking to--
                    (A) fully implement the Egypt-Israel peace treaty;
                    (B) detect and destroy the smuggling network and 
                tunnels between Egypt and the Gaza Strip and to crack 
                down on violent extremist groups and activities in the 
                Sinai Peninsula;
                    (C) repudiate, combat, and stop incitement to 
                violence against the United States and United States 
                citizens and prohibit the transmission within its 
                domains of satellite television or radio channels that 
                broadcast such incitement; and
                    (D) adopt and implement legal reforms that protect 
                the religious and democratic freedoms of all citizens 
                and residents of Egypt.
            (5) Recommendations, including with respect to required 
        resources and actions, to maximize the effectiveness of United 
        States security assistance provided to Egypt.
    (h) GAO Report.--Not later than 120 days after the date of the 
submission of the report required under subsection (f), the Comptroller 
General of the United States shall submit to the appropriate 
congressional committees a report that--
            (1) reviews and comments on the report required under 
        subsection (f); and
            (2) provides recommendations regarding additional actions 
        with respect to the provision of United States security 
        assistance to Egypt, if necessary.
    (i) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs of the House of 
        Representatives; and
            (2) the Committee on Foreign Relations of the Senate.

SEC. 4. LIMITATION ON ECONOMIC ASSISTANCE TO EGYPT.

    (a) Limitation.--Of the amounts available for assistance for Egypt 
under chapter 4 of part II of the Foreign Assistance Act of 1961 (22 
U.S.C. 2346 et seq.; relating to the ``Economic Support Fund''), none 
of that amount may be provided for direct or indirect assistance to the 
Government of Egypt unless a certification described in section 3(c) is 
in effect.
    (b) Reallocation.--During a period in which a certification 
described in section 3(c) is not in effect, amounts that may not be 
provided for direct or indirect assistance to the Government of Egypt 
pursuant to the limitation under subsection (a) shall be reallocated 
for democracy and governance programs for Egypt, including direct 
support for secular, democratic nongovernmental organizations, as well 
as programming and support for rule of law and human rights, good 
governance, political competition and consensus-building, and civil 
society.

SEC. 5. GOVERNMENT OF EGYPT DEFINED.

    In this Act, the term ``Government of Egypt'' means any person, 
agent, instrumentality, or official of, is affiliated with, or is 
serving as a representative of the Government of Egypt.

Summary: Egypt Accountability and Democracy Promotion Act - States that US policy shall be to use its foreign assistance for Egypt to advance US national security interests in Egypt, including encouraging the advancement of political, economic, and religious freedom in Egypt. Limits specified security and economic assistance to Egypt unless the Secretary of State certifies to Congress every six months that the Egyptian government: (1) is not controlled by or under the influence of a foreign terrorist organization, or that no supporter of a foreign terrorist organization serves in a policy-making position in the government. (2) has implemented legal reforms that protect the political, economic, and religious freedoms and human rights of all citizens and residents of Egypt, (3) is fully implementing the Israel-Egypt Peace Treaty. And (4) is taking verifiable steps to destroy the smuggling network and tunnels between Egypt and the Gaza Strip, and is cracking down on extremist groups in the Sinai Peninsula. Provides for a limited national security waiver of such restrictions. Sets forth reporting requirements.