27–855 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–486 

FOREIGN OPERATIONS, EXPORT FINANCING, AND 

RELATED PROGRAMS APPROPRIATIONS BILL, 2007 

JUNE 5, 2006.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. KOLBE, from the Committee on Appropriations, 

submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 5522] 

The Committee on Appropriations submits the following report in 

explanation of the accompanying bill making appropriations for 

Foreign Operations, Export Financing, and Related Programs, and 

for sundry independent agencies and corporations for the fiscal 

year ending September 30, 2007, and for other purposes. 

INDEX TO BILL AND REPORT 

Page number 

Bill Report 

Summary of the Bill ................................................................................... 1 2 

Committee Recommendations ................................................................... ........ 3 

Title I—Export and Investment Assistance: 2 5 

Export-Import Bank of the United States ........................................ 2 5 

Overseas Private Investment Corporation ........................................ 4 5 

Trade and Development Agency ........................................................ 6 6 

Title II—Bilateral Economic Assistance: 6 6 

Child Survival and Health Programs Fund ...................................... 7 7 

Development Assistance ..................................................................... 12 15 

International Disaster and Famine Assistance ................................ 13 24 

Transition Initiatives .......................................................................... 14 26 

Development Credit Authority ........................................................... 15 27 

Payment to the Foreign Service Retirement and Disability Fund 16 27 

Operating Expenses of the United States Agency for International 

Development (USAID) ..................................................................... 16 27 


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Page number 

Bill Report 

Capital Investment Fund ................................................................... 18 31 

Operating Expenses of the Agency for International Development, 

Office of the Inspector General ...................................................... 19 32 

Economic Support Fund ..................................................................... 19 32 

International Fund for Ireland .......................................................... 23 43 

Assistance for Eastern Europe and the Baltic States ...................... 23 43 

Assistance for the Independent States of the Former Soviet Union 25 45 

Trade Capacity Enhancement Fund .................................................. 28 48 

Independent Agencies: 29 50 

Inter-American Foundation ................................................................ 29 50 

African Development Foundation ...................................................... 29 51 

Peace Corps ......................................................................................... 30 51 

Millennium Challenge Corporation ................................................... 30 51 

Department of State: 32 53 

Global HIV/AIDS Initiative ................................................................ 32 53 

International Narcotics Control and Law Enforcement .................. 32 60 

Andean Counterdrug Initiative .......................................................... 34 62 

Migration and Refugee Assistance .................................................... 37 66 

Emergency Refugee and Migration Assistance Fund ...................... 38 68 

Nonproliferation, Anti-terrorism, Demining and Related Programs ................................................................................................ 38 68 

Conflict Response Fund ...................................................................... ........ 69 

Department of the Treasury: 40 70 

International Affairs Technical Assistance ....................................... 40 70 

Debt Restructuring ............................................................................. 40 70 

Title III—Military Assistance: 43 71 

International Military Education and Training ............................... 43 71 

Foreign Military Financing Program ................................................ 44 73 

Peacekeeping Operations .................................................................... 47 76 

Title IV—Multilateral Economic Assistance: 48 77 

Global Environment Facility .............................................................. 48 77 

International Development Association (IDA) .................................. 48 78 

Multilateral Investment Guarantee Agency ..................................... ........ 79 

Inter-American Investment Corporation ........................................... ........ 80 

Multilateral Investment Fund ........................................................... 48 80 

Asian Development Fund (ADF) ........................................................ 48 81 

African Development Bank ................................................................ 49 81 

African Development Fund (AFDF) ................................................... 49 81 

European Bank for Reconstruction and Development (EBRD) ....... ........ 81 

International Fund for Agricultural Development (IFAD) .............. 49 82 

International Organizations and Programs ...................................... 50 82 

Title V—General Provisions: 50 83 

House of Representatives Reporting Requirements ......................... 138 88 

OVERVIEW

The fiscal year 2007 budget request for the activities under the 

jurisdiction of the Subcommittee on Foreign Operations, Export Financing, and Related Programs is $23,687,369,000 in new discretionary budget authority. The Committee recommends a total of 

$21,299,260,000 in new discretionary budget authority, a decrease 

of $2,388,109,000 from the President’s request and an increase of 

$468,057,000 over the fiscal year 2006 enacted level, including enacted supplemental appropriations. 

The Committee’s recommendation, provided in this bill and detailed in the accompanying report, reflects the four priorities of the 

Committee: 

1. Oversight of the foreign assistance programs 


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2. Supporting our allies in the Global War on Terror 

3. Responding to the global HIV/AIDS pandemic 

4. Supporting innovative approaches to foreign assistance 

through the Millennium Challenge Corporation 

SUPPORT TO OUR ALLIES IN THE GLOBAL WAR ON TERROR

The Committee’s fiscal year 2007 recommendation includes a 

total of $2,650,740,000 for Economic Support Fund (ESF) programs 

and $4,454,900,000 for Foreign Military Financing (FMF) programs. 

The vast majority of the ESF and FMF programs support ongoing and new assistance for our allies in the War on Terror. These 

funds support traditional methods of providing United States taxpayer assistance in the form of programs, projects, and activities to 

improve quality of life, support of existing military systems such as 

radios and spare parts for aircraft and trucks, as well as the purchase of new systems such as aircraft and radar systems. 

EMERGENCY PLAN FOR AIDS RELIEF

The Committee recommends a total of $3,431,472,000 in this Act 

for Global HIV/AIDS and Tuberculosis, which is $751,642,000 

above the enacted level and the same as the request. Within the 

total, $2,772,500,000 is funded under the Global HIV/AIDS Initiative account, which is $797,450,000 above the enacted level and 

$121,500,000 below the request. Of the remaining funds, 

$626,621,000 is provided within the Child Survival and Health Programs Fund account, and $32,351,000 is provided from other accounts, such as the Economic Support Fund, and regional accounts 

for Eastern Europe and the former Soviet Union. 

Within the total, the recommendation includes $444,500,000 for 

a United States contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund), which is the same as the enacted level and $244,500,000 above the request. Within that 

amount, $200,000,000 is to be derived from the Child Survival and 

Health Programs Fund and $244,500,000 from the Global HIV/ 

AIDS Initiative account. Contributions to the Global Fund continue 

to be subject to the provisions in Public Law 108–25, including the 

‘‘matching funding’’ provision, and to additional provisions carried 

in prior years and contained in this Act. 

MILLENNIUM CHALLENGE CORPORATION

The President’s budget request includes $3,000,000,000 for the 

fourth year of funding for the Millennium Challenge Corporation 

(MCC). The Committee continues its strong support for the innovative approach of the MCC, and recognizes the improvements in 

management and performance that have taken place over the last 

fiscal year. The constraints of the 302(b) allocation do not provide 

the Committee with the flexibility to fully fund the President’s request for this important initiative. The Committee recommendation 

includes $2,000,000,000 for the MCC, an increase of $248,000,000 

from fiscal year 2006. The Committee provides this substantial increase in an effort to respond positively to the President’s proposal 

and to encourage the MCC’s continued development. 


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LATIN AMERICA: OVERVIEW

The Committee is disappointed that USAID has not implemented 

prior year Congressional direction urging that greater emphasis be 

provided for programs in Latin America. The Committee is concerned that the United States influence and interests in the region 

will suffer should resources decline. The Committee does not believe that this reflects the priorities of United States economic, 

trade, humanitarian and immigration policies with these neighboring countries. Therefore, the Committee has included a provision in title V of this Act directing assistance to Latin American 

nations from funds appropriated in title II of this Act at not less 

than that provided in fiscal year 2006. As part of this directive, the 

Committee has included report language under the heading ‘‘Development Assistance’’ directing USAID to provide for this region from 

that account, and from the Trade Capacity Enhancement Fund, no 

less than the amount provided from the fiscal year 2006 Development Assistance account. The allocation of all resources should be 

shaped by the following high priorities: improved labor rights and 

environmental capacity, basic education, child and maternal 

health, rural development, empowerment of the poor through private property rights, and opportunities for farmers to participate in 

the formal economy. Foreign assistance can facilitate the efforts of 

these countries to integrate into the global economy and leverage 

trade for development. Furthermore, such assistance can encourage 

Latin American countries to undertake the changes necessary to 

become eligible for a compact in subsequent years if such countries 

meet the eligibility requirements of the Millennium Challenge Corporation. 

MICROENTERPRISE

Microfinance is one of the great success stories of United States 

foreign assistance. It is a prime example of how our foreign aid can 

work cost-effectively to give those in need a chance to work their 

way out of poverty. In most developing countries, small, informally 

organized businesses—microenterprises—constitute the vast majority of business enterprises. Microenterprises are the source of employment and income for hundreds of millions of people in developing countries. To flourish, microenterprises need a supportive 

policy environment and growing markets, as well as capital and 

technical assistance. The Committee expects USAID’s programs to 

reach the largest possible number of microenterprises, whether 

through grants to private, nongovernmental organizations that onlend to microenterprises or by sponsoring economic policy reforms 

that directly stimulate such enterprises. The Committee directs the 

Director of Foreign Assistance, in consultation with the Director of 

Trade Capacity Enhancement, to allocate from the funds provided 

in title II of this Act not less than $225,000,000 for microenterprise 

programs. 


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TITLE I—EXPORT AND INVESTMENT ASSISTANCE 

EXPORT-IMPORT BANK OF THE UNITED STATES

INSPECTOR GENERAL

Fiscal year 2006 enacted level ........................................................... $990,000 

Fiscal year 2007 request .................................................................... 988,000 

Committee recommendation .............................................................. 988,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... ·2,000 

The Committee recommends $988,000 for the Inspector General 

of the Export-Import Bank of the United States, the same as the 

request and a decrease of $2,000 from the 2006 enacted level. 

SUBSIDY APPROPRIATION

Fiscal year 2006 enacted level ........................................................... $74,000,000 

Fiscal year 2007 request .................................................................... 26,382,000 

Committee recommendation .............................................................. 26,382,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... ·47,618,000 

The Committee recommends $26,382,000 for the Subsidy Appropriation of the Export-Import Bank of the United States, the same 

as the budget request and a decrease of $47,618,000 from the 2006 

enacted level. 

ADMINISTRATIVE EXPENSES

Fiscal year 2006 enacted level ........................................................... $72,468,000 

Fiscal year 2007 request .................................................................... 75,234,000 

Committee recommendation .............................................................. 75,234,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +2,766,000 

The Committee recommends $75,234,000 for the administrative 

expenses appropriation of the Export-Import Bank of the United 

States, the same as the request and an increase of $2,766,000 over 

the fiscal year 2006 enacted level. 

The Committee directs the President of the Export-Import Bank 

to report quarterly to the Committee on the level of authorizations, 

subsidy used, and subsidy balances from current and prior years. 

OVERSEAS PRIVATE INVESTMENT CORPORATION

NONCREDIT ACCOUNT

Fiscal year 2006 enacted level ........................................................... $41,851,000 

Fiscal year 2007 request .................................................................... 45,453,000 

Committee recommendation .............................................................. 45,453,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +3,602,000 

The Committee recommends $45,453,000 for the Noncredit Account of the Overseas Private Investment Corporation (OPIC) for 

administrative expenses, the same as the request and an increase 

of $3,602,000 over the 2006 enacted level. 

COORDINATION WITH OTHER UNITED STATES AGENCIES THAT OPERATE

OVERSEAS

The Committee commends OPIC for initiating coordination with 

other United States Government agencies that operate overseas. 


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The Committee urges OPIC to continue this outreach program and 

to closely coordinate with the Director of Foreign Assistance, the 

United States Agency for International Development, the Millennium Challenge Corporation, the Treasury Department and other 

agencies of the United States Government to ensure no duplication 

of effort with providing assistance. 

PROGRAM ACCOUNT

Fiscal year 2006 enacted level ........................................................... $20,073,000 

Fiscal year 2007 request .................................................................... 20,035,000 

Committee recommendation .............................................................. 20,035,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... ·38,000 

The Committee recommends $20,035,000 for the subsidy appropriation for OPIC’s direct and guaranteed loan credit programs, the 

same as the request and a decrease of $38,000 from the fiscal year 

2006 enacted level. 

The Committee continues prior year language required by the 

Federal Credit Reform Act and addressing representation expenses 

and availability of funds. 

TRADE AND DEVELOPMENT AGENCY

Fiscal year 2006 enacted level ........................................................... $50,391,000 

Fiscal year 2007 request .................................................................... 50,300,000 

Committee recommendation .............................................................. 50,300,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... ·91,000 

The Committee recommends $50,300,000 for the Trade and Development Agency (TDA), the same as the request and a decrease 

of $91,000 from the 2006 enacted level. 

PILOT PROJECT TO IMPROVE PORT SECURITY

The Committee encourages the TDA to consider a proposal for a 

port security demonstration in Vietnam. 

TITLE II—BILATERAL ECONOMIC ASSISTANCE 

Funds Appropriated to the President 

United States Agency for International Development 

STRUCTURE OF DEVELOPMENT ASSISTANCE ACCOUNTS

The Committee appropriates funding for longer-term development assistance programs managed by the United States Agency 

for International Development (USAID) in two accounts. As in previous fiscal years, the Act includes an account for child survival 

and health programs. It also includes a separate development assistance account for other program sectors, including economic 

growth, education, environment, and governance. Other accounts, 

such as the ‘‘Global HIV/AIDS Initiative’’, are largely implemented 

by USAID. 

Three existing regional accounts jointly managed by the Department of State and USAID are included elsewhere in title II. The 

Committee utilizes the regional accounts to fund most economic 

and political cooperation with Russia, the independent states of the 


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former Soviet Union, Central and Eastern European States, and 

several Andean countries. 

Beginning in fiscal year 2007, the Committee has included a new 

appropriation account entitled, ‘‘Trade Capacity Enhancement 

Fund.’’ This appropriation will be managed by a new Director of 

Trade Capacity Enhancement at USAID in support of trade capacity enhancement strategic goals. Previously, funding for trade capacity enhancement had been distributed throughout a variety of 

accounts in title II. 

Finally, authority is provided for the United States to make contributions from the Child Survival and Health Programs Fund to 

two international health funds: the Global Fund to Fight AIDS, Tuberculosis and Malaria (the ‘‘Global Fund’’) and The Global Alliance 

for Vaccines and Immunizations Fund (formerly the Vaccine Fund). 

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

[Including transfer of funds] 

Fiscal year 2006 enacted level ......................................................... $1,569,150,000 

Fiscal year 2006 emergency appropriation, P.L. 109–148 ............ 75,200,000 

Fiscal year 2006 emergency supplemental (House) ....................... 5,300,000 

Fiscal year 2007 request .................................................................. 1,433,000,000 

Committee recommendation ............................................................ 1,565,613,000 

Change from request ................................................................. +132,613,000 

Change from enacted level ....................................................... ·3,537,000 

The Committee recommends $1,565,613,000 for the ‘‘Child Survival and Health Programs Fund’’, an amount that is $132,613,000 

above the request and $3,537,000 below the amount enacted for fiscal year 2006. 

The Committee has made available a total of $3,431,472,000 in 

this Act for HIV/AIDS, and Tuberculosis (TB), of which 

$626,621,000 is funded through the Child Survival and Health 

(CSH) Programs Fund, $2,772,500,000 is funded under the ‘‘Global 

HIV/AIDS Initiative’’ account, and $32,351,000 is provided from 

other accounts, such as the Economic Support Fund, International 

Disaster Assistance, and regional accounts for Eastern Europe and 

the former Soviet Union. 

Allocation of Child Survival and Health Programs Fund 

Unless modifications are subsequently notified and agreed to by 

the Committees on Appropriations, fiscal year 2007 appropriations 

for the Child Survival and Health Programs Fund are deemed to 

be allocated as follows: 

GLOBAL HEALTH FUNDING

Category Allocation 

Child Survival and Health Programs Fund: 

Child Survival and Maternal Health ............................................ $356,400,000 

Vulnerable Children ....................................................................... 25,000,000 

HIV/AIDS (bilateral) ...................................................................... 346,621,000 

Global Fund to Fight AIDS, TB, and Malaria ............................. 200,000,000 

Reproductive Health/Voluntary Family Planning ....................... 350,000,000 

Other Infectious Diseases (including TB and Malaria) ............... 287,592,000 

Subtotal, Child Survival and Health Programs Fund .......... 1,565,613,000 

Other Global Health: 

Global HIV/AIDS Initiative ........................................................... 2,772,500,000 

Economic Support Fund ................................................................. 139,300,000 


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Category Allocation 

Regional Accounts .......................................................................... 60,600,000 

Total, Global Health Funding ......................................... 4,538,013,000 

A definition of program categories and their components can be found on pages 9 through 11 of House Report 107–142 and under 

the heading ‘‘Family Planning/Reproductive Health’’ on page 12 of 

Senate Report 107–58. The United States Agency for International 

Development has also issued guidance on this matter. The Committee is again including language that prohibits the use of certain funds in this account for non-project assistance, or 

cash grants, to governments. The provision of cash grants as general budget support for governments is no longer an appropriate 

development tool, given current funding constraints. To the extent 

that cash grants are necessary for countries in transition or for 

specific foreign policy goals, funds are available through the ‘‘Economic Support Fund’’. 

Child Survival and Maternal Health 

The Committee directs USAID to allocate $356,400,000 for child 

survival and maternal health in fiscal year 2007, $33,400,000 more 

than requested and the same as the enacted level. 

Micronutrients 

The Committee continues to support USAID efforts to reduce Vitamin A deficiency, a condition that is the cause of death for more 

than 2.8 million children annually. The Committee recommends 

not less than $29,700,000 from all accounts for USAID’s overall 

micronutrient program, including at least $19,800,000 for activities 

related to Vitamin A deficiency. The Committee understands that iodine deficiency disorder (IDD) 

is the leading preventable cause of mental retardation in children. 

The Committee recommends that USAID maintain support of at 

least $2,000,000 for the Kiwanis/UNICEF IDD partnership from 

the ‘‘Child Survival and Health Programs Fund’’ and at least 

$500,000 from Europe and Eurasia regional accounts. 

Polio eradication 

Since 1988, the number of polio cases has fallen from an estimated 350,000 to less than 2,000 in 2005. Polio has been eradicated in more than 200 countries. Yet, it still remains endemic in 

four countries and another five countries have reported ‘‘imported’’ 

cases in 2006. The global partnership to eradicate polio has had 

much success, but some of the most difficult work remains. Millions 

of young people are still at risk from this disease. The Committee 

urges USAID to continue to support the global polio eradication 

program at not less than the fiscal year 2006 level. 

Vaccines and immunization 

The Committee continues its support of the Global Alliance for 

Vaccines and Immunization (GAVI). Since its initiation five years 

ago, more than $1,400,000,000 has been committed to 71 countries 

to improve and expand their immunization programs for children. 

As a result, it is estimated that over one million premature childhood deaths were averted. The Committee recommends not less 

than $69,300,000 for the GAVI Fund (formerly, The Vaccine Fund) 


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in fiscal year 2007, which is the same as fiscal year 2006 and 

$34,182,000 above the request. 

Other activities 

The Committee is aware of a proposal from Gift of Life International to expand its programs to assist Iraqi children as well as 

from Operation Smile for a Global Standard of Care Initiative and 

encourages USAID to consider support for these efforts. 

The Committee also encourages USAID to support the effort of 

Medical Missions for Children to expand its Global Telemedicine 

and Teaching Network to include treatment sites in the Middle 

East, South Asia, and Africa. 

Vulnerable Children 

The Committee directs USAID to allocate $25,000,000 for displaced children and orphans and blind children in fiscal year 2007, 

$16,000,000 more than requested and $4,701,000 below the enacted 

level. As in previous years, the Committee addresses assistance for 

children affected by HIV/AIDS elsewhere in the bill. 

Childhood blindness 

The Committee remains concerned that one and a half million 

children are currently blind, and another seven million suffer from 

poor vision. The Committee is aware of the work done by Helen 

Keller International and other organizations such as CBMI to assist these children, who can often be helped through simple and inexpensive methods of prevention and low cost care. The Committee 

recommends not less than $1,800,000 for USAID’s childhood blindness program in fiscal year 2007. 

Other activities 

The Committee encourages USAID to continue and expand support for programs that provide children without parents the support and structure they need, such as through adoption or longterm mentoring. The Committee encourages USAID to consider an 

initiative of Kidsave International in Colombia to help children 

without parents develop such relationships. 

The Committee is aware of a proposal from the International 

Center to Heal Our Children (ICHOC) to expand its international 

training and observer program in Iraq, Afghanistan and The Gambia. The goal of the program is to foster, promote, and maintain the 

emotional health of children traumatized psychologically by acts of 

terrorism, violence and disasters. The Committee encourages 

USAID to give consideration to supporting this public/private partnership. 

HIV/AIDS 

The Committee directs USAID to allocate $346,621,000 for HIV/ 

AIDS from this account in fiscal year 2007. This is $21,621,000 

above the request and $121,000 above the enacted level. Additional 

language addressing United States bilateral HIV/AIDS funding is 

found under the ‘‘Global HIV/AIDS Initiative’’ heading. 

As in fiscal years 2005 and 2006, no funding for the ‘‘focus’’ countries is included in ‘‘Child Survival and Health Programs Fund’’ 

and funding for the United Nations Joint Programme on HIV/AIDS 


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(UNAIDS) is included in the Global HIV/AIDS Initiative account. 

The Committee has included $50,000,000 for the ‘‘non-focus’’ countries in the recommendation for the Global HIV/AIDS Initiative account and recognizes the formal process by which these funds are 

allocated to agencies to ensure that USAID funds are integrated 

within the overall policy and strategic direction of the President’s 

Emergency Plan for AIDS Relief (PEPFAR). 

Media 

The Committee understands that local and national media can 

provide an effective tool for combating HIV/AIDS. The Committee 

supports the USAID media programs in Kenya, Nigeria, Ethiopia 

and India. The Committee recommends that USAID, in collaboration with the Office of the Global HIV/AIDS Coordinator, at a minimum sustain its current media programs and consider expanding 

activities in India and to other countries in Africa. 

Regional programs 

The Committee acknowledges the work of the AIDS Responsibility Project in Latin America. The aim of the Project is to prevent 

the spread of HIV/AIDS by ending stigma and discrimination. 

Projects engage the business sector to establish business councils 

that commit to promoting HIV/AIDS education and prevention 

strategies in the workplace and to adopt policies that prohibit discrimination against those with HIV. The Committee urges USAID 

to expand the program to other countries in Latin America, such 

as Peru, Argentina, Bolivia, Ecuador, Guatemala, Honduras, and 

El Salvador. 

The Committee understands the difficulty of establishing regional solutions to challenges involving the delivery of safe and effective HIV/AIDS prevention and treatment services. The Committee urges the Office of the Global HIV/AIDS Coordinator and 

USAID to expand support for such regional solutions, including a 

proposal from TREAT Asia, a regional collaborative research, education, and training network in the Asia and Pacific region. TREAT 

Asia currently serves as the Secretariat for a number of USAIDsupported HIV prevention projects in the Mekong Delta. 

The Committee is aware of the interest of the Progressive United 

Action Association (PUAA) and the Khmer HIV/AIDS NGO Alliance (KHANA) in expanding their work addressing the needs of orphans and other vulnerable children affected by HIV/AIDS in Cambodia and encourages USAID to support their proposal. 

The Committee recognizes the rise in HIV infection in Central 

Asia and Eastern Europe from 30,000 to 1,600,000, and notes a 

link between an increase in production and traffic in heroin and a 

rise in HIV among injecting drug users in these regions. The Committee encourages the Coordinator, in collaboration with other donors, to maximize participation of injecting drug users in HIV prevention programs and to scale up and replicate successful HIV prevention interventions in Asia and Eastern Europe. 

Voluntary Contribution to the Global Fund To Fight AIDS, Tuberculosis and Malaria 

The President requested $200,000,000 for the Global Fund in 

this Act and an additional $100,000,000 for the Global Fund from 


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the Act providing appropriations for the Department of Health and 

Human Services. The Committee recommendation includes not less 

than $444,500,000 from this Act, including $200,000,000 from this 

account to support the Global Fund. Further information about the 

Committee’s recommendation is found under the heading ‘‘Global 

HIV/AIDS Initiative’’. 

The Committee notes with appreciation that USAID continues to 

be a key contributor of technical assistance to the Global Fund and 

has helped to establish and sustain Country Coordinating Mechanisms, monitor grants, and otherwise improve the functioning of 

the Global Fund. The Committee requests that USAID, in collaboration with the Global HIV/AIDS Coordinator, prepare and submit 

a report describing the support USAID has provided for the Global 

Fund in fiscal year 2006, the estimate for fiscal year 2007, and how 

such support is coordinated with the Global Fund and with other 

bilateral initiatives. 

The Committee notes that for fiscal year 2007 the bill language 

providing the technical assistance authority has been shifted from 

the Child Survival and Health Programs Fund account to the Global HIV/AIDS Initiative account. 

Other infectious diseases, including TB and malaria 

The Committee directs USAID to allocate $287,592,000 for other 

infectious diseases, including tuberculosis (TB) and malaria, 

$69,792,000 more than fiscal year 2006 and $94,408,000 below the 

request. 

Malaria 

The Committee’s recommendation includes $177,592,000 for malaria from this account. The Committee supports the allocation of 

an additional $1,450,000 from the Economic Support Fund as requested in the budget, and estimates that $63,830,000 of the recommended contribution to the Global Fund would benefit malaria 

programs. Overall, the Committee recommendation includes an estimated $242,872,000 from all accounts for malaria programs. 

Tuberculosis (TB) 

Each year, more than eight million people develop active TB, and 

at least two million die of the disease. The Committee’s recommendation includes $80,000,000 for the global prevention and 

control of TB from this account. The Committee supports the allocation of an additional $11,553,000 from other accounts, including 

regional accounts, as requested in the budget and estimates that 

an additional $89,389,000 of the recommended contribution to the 

Global Fund would benefit TB programs. Overall, the Committee 

recommendation includes an estimated $180,942,000 from all accounts for TB programs. 

The Global TB Drug Facility (GDF) supports expanded access to, 

and availability of, high-quality TB drugs to facilitate expanded 

treatment against the disease. The Committee encourages the increased cooperation between GDF and the Global Fund to Fight 

AIDS, TB and Malaria, and urges USAID to provide support to the 

GDF of not less than the level provided in fiscal year 2006. 


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Neglected diseases 

In fiscal year 2006, the Committee provided $14,800,000 to sup- port an initiative to test an integrated approach to the control of 

neglected diseases that affect millions of children in the developing 

world. The Committee has provided sufficient funds to continue 

this initiative at no less than the fiscal year 2006 level. 

Reproductive Health/Voluntary Family Planning 

The Committee recommends a total of $432,000,000 for reproductive health/voluntary family planning, $3,000,000 less than the fiscal year 2006 level. The Committee directs that not less than 

$350,000,0000 of this total be derived from the Child Survival and 

Health Programs Fund. 

Reproductive health/voluntary family planning restrictions 

The Committee has continued prior year language that requires that none of the funds appropriated in this Act, or any unobligated 

balances, be made available to any organization or program which, 

as determined by the President, supports and participates in the 

management of a program of coercive abortion or involuntary sterilization. The language also states that funds cannot be used to pay 

for the performance of abortions as a method of family planning or 

to motivate or coerce any person to practice abortion. Further, the 

language indicates that in order to reduce reliance on abortions in 

developing countries, population funds shall be available only to 

voluntary family planning projects that offer, either directly or 

through referral, information about access to a broad range of family planning methods and services. An additional provision requires 

that in awarding grants for natural family planning under section 

104 of the Foreign Assistance Act, no applicant shall be discriminated against because of such applicant’s religious or conscientious 

commitment to offer only natural family planning. The Committee also has continued prior year language that states that nothing in the Act is to alter any existing statutory prohibitions against abortion that are included under section 104 of 

the Foreign Assistance Act. Further, the Committee has continued 

prior year language which states that project service providers or 

referral agents cannot implement or be subject to quotas or other 

numerical targets of total number of births, number of family planning acceptors, or acceptors of a particular method of family planning. The Committee has continued prior year language requiring 

that information on condom use provided by programs supported 

by funds made available by this Act shall be medically accurate 

and shall include the public health benefits and failure rates of 

such use. 

Tiahrt Amendment violation 

The Committee notes that on May 2, 2006, the Committee was 

notified that the ‘‘Tiahrt Amendment’’ requirements (1) and (2)(B) 

were violated by one of the Agency’s family planning implementing 

partners. Furthermore, because of the seriousness of the violation 

the Agency requested the Regional Inspector General for Latin 

America and the Caribbean to investigate the violation in conjunction with the regularly-scheduled audit of the USAID/Guatemala 

family planning program. The Committee understands that when 


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the violation was discovered in June of 2005, the Agency immediately instructed the grantee to terminate the system of targets 

and bonuses that were the basis of the violation that began in 2002 

and that as of July 2005, the Agency confirmed that the contracts 

had established fixed monthly salaries and eliminated targets and 

bonuses. The Committee appreciates the diligence of the USAID 

Mission in Guatemala in seeking a rapid remedy from the grantee 

in question. However, the Committee notes that although USAID 

is required to report to Congress within 60 days after it determines 

a violation has occurred, it took the Mission nine months to notify 

USAID/Washington of the violation and another two months for 

USAID to notify the Committee. This, in the Committee’s view, is 

not acceptable. The Committee directs USAID and its missions to 

both investigate and remedy violations with dispatch and to ensure 

that all violations are reported in a timely fashion. The Committee 

also requests that upon completion of the Inspector General’s investigation that USAID report to the Committee on the findings and 

any further actions taken to ensure that requirements related to 

family planning are explicitly communicated to all implementing 

partners and that violations are quickly investigated, remedied and 

communicated to both Agency officials and the Congress. 

Research and Development 

Research and development (R&D) of products, including vaccines 

and therapies, is increasingly important for achieving critical 

health and development objectives. The Committee commends 

USAID for its recent report entitled ‘‘Health-Related Research and 

Development Activities at USAID,’’ which sets forth USAID’s strategy for using research funds and the plan for stimulating the development and introduction of key products to address diseases affecting the developing world and countries in transition. The report 

covers $119,374,000 in USAID supported research activities projected for fiscal year 2006. The balance, roughly $29,000,000, of fiscal year 2006 R&D funding is mainly research funded by USAID 

field missions that addresses local questions and needs. 

The Committee notes with appreciation the quality of the research plan. The Committee requests USAID, after consultation 

with the Office of the United States Global HIV/AIDS Coordinator, 

and other partners, to include abbreviated research plan information in its Congressional budget justification for fiscal year 2008, 

including the spending table found on page 57 of the May 2006 Report. The table should include funding by health issue and product 

for fiscal years 2006, 2007 and estimates for 2008. 

Malaria 

The Committee is concerned that malaria kills 2.7 million people 

every year. Seventy-five percent of these deaths are children in Africa under the age of five. The Committee encourages the development of a malaria program that addresses all aspects of the prevention and treatment of this disease. The Committee supports efforts initiated in fiscal year 2004 by USAID to increase its commitment to assist in the development of a malaria vaccine for Africa 

and other regions. During the past year malaria vaccine trials in 

Africa have proven to be effective first steps in this process. The 


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Committee recommends that for fiscal year 2007 USAID provide at 

least $5,000,000 to the Malaria Vaccine Initiative. 

The Committee also is aware of USAID’s ongoing work with the 

Medicines for Malaria Venture, a non-profit, public-private partnership created to replenish and then sustain the global pipeline of 

anti-malarial drugs, and recommends continued support at not less 

than the fiscal year 2006 enacted level. 

Microbicides 

The Committee recognizes the disproportional impact of HIV/ 

AIDS on women and supports methods of prevention that women 

can control. Recognizing that effective microbicides could be developed in five to seven years, the Committee supports continued 

USAID investment in microbicide development and clinical trial capacity. The Committee directs that not less than $45,000,000 

should be made available to support research and development of 

microbicides as a means of combating HIV/AIDS, of which 

$5,000,000 should be made available to the International Partnership for Microbicides. The Committee further recommends that 

USAID and the Office of the Global AIDS Coordinator have a plan 

to support product introduction, distribution and use once a safe 

and effective microbicide has been developed. 

HIV/AIDS vaccine 

Since 2001, USAID, partnering with other United States Government agencies, has supported applied research into all phases of 

HIV vaccine development. Funding has risen from $6,000,000 in 

fiscal year 2001 to $28,710,000 in fiscal year 2006. The International AIDS Vaccine Initiative (IAVI), a non-profit research organization dedicated to accelerating the development of a safe and effective HIV vaccine that will be accessible to the developing world, 

has been a key USAID partner in this endeavor. The Committee 

recommends that USAID continue the partnership with IAVI at 

not less than the fiscal year 2006 level. 

Health Care in Africa 

Obstetric fistula 

The Committee continues to be concerned about the debilitation 

and ostracism caused by obstetric fistula, which affects an estimated 3 million women in the developing world. This condition can 

often be prevented altogether by trained birth attendants and improved medical care. The Committee notes that USAID has rapidly 

increased its funding for fistula programs from their inception in 

fiscal year 2004. The Committee provides $7,000,000 for obstetric 

fistula and instructs USAID to consult with the Committee not 

later than 60 days following enactment of this Act on how these 

funds will be programmed. 

Ethiopia 

The Committee encourages USAID to give consideration to supporting proposals from the Ethiopian North American Health Professionals Association for the Safe Motherhood project in Awassa, 

Ethiopia and from the Fistula Foundation for the Addis Ababa Fistula Hospital. 


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Other 

The Committee recognizes the important work of the AMEC 

Health and Education Foundation in increasing access to health 

care in Zambia, the Democratic Republic of Congo, Rwanda, Burundi, and Republic of Congo—Brazzaville, and urges USAID to 

consider proposals for support of this work. 

The Committee understands the James Jordan Foundation has 

launched a public/private partnership to establish a women’s and 

children’s hospital in Nairobi, Kenya and encourages USAID to 

consider supporting this collaborative venture. 

DEVELOPMENT ASSISTANCE

[Including transfers of funds] 

Fiscal year 2006 enacted level ........................................................... $1,508,760,000 

Fiscal year 2007 request .................................................................... 1,282,000,000 

Committee recommendation .............................................................. 1,294,000,000 

Change from request ................................................................... +12,000,000 

Change from enacted level ......................................................... ·214,760,000 

The Committee recommends a total of $1,294,000,000 for development assistance for economic growth, trade and environment, a 

$12,000,000 increase to the request and a $214,760,000 decrease to 

the enacted level. Funding in this account includes worldwide activities for agriculture, rural development, literacy and basic education for children and adults, environment, energy, science and 

technology and other programs related to longer-term development. 

TRADE CAPACITY BUILDING

In order to better encourage and manage the resources devoted 

to trade capacity building, the Committee has created a new appropriation account and a new position, Director of Trade Capacity 

Enhancement. In creating the new Trade Capacity Enhancement 

Fund account, the Committee moved funds from a number of accounts, including $214,000,000 from the Development Assistance 

account. This amount is equal to the amount the Agency estimates 

it will spend in fiscal year 2006. The movement of trade capacity 

building funds to the new account explains for the majority of the 

decrease from the President’s request in this account. Adjusting for 

trade capacity funds in the fiscal year 2006 appropriation results 

in a comparable Development Assistance account of $1,294,760,000. 

Therefore, the Committee’s recommendation is only $760,000 below 

the ‘‘adjusted’’ fiscal year 2006 level. 

DEVELOPMENT ASSISTANCE FUNDING

With the creation of the new account and the movement of Development Assistance funds to that account, the funding assumptions included in the Committee’s recommendation for the remaining funds in this account are as follows: 

Economic Growth and Agriculture .................................................... $1,055,112,000 

Agriculture and Natural Resources ........................................... 530,195,000 

Economic Growth ........................................................................ 114,184,000 

Education and training ............................................................... 410,733,000 

Basic education .................................................................... [365,000,000] 

Higher Education ................................................................. [45,733,000] 

Democracy and Conflict Management .............................................. 238,888,000 


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HUMAN CAPACITY BUILDING: BASIC EDUCATION

Education is the foundation for sustained economic growth and 

the creation of democratic institutions in developing countries. For 

that reason, the Committee has been extremely supportive of increased funding for basic education, increasing it from 

$126,000,000 in fiscal year 2001 to $465,000,000 in fiscal year 

2006. This year, the Committee directs $365,000,000 for basic education in the Development Assistance account. The General Provisions section of the Bill directs a total of $550,000,000 from Title 

II of this bill for basic education. 

The Committee notes that, in response to a directive in Conference Report 109–265, USAID has provided $50,650,000 of the 

$65,000,000 in increases over the fiscal year 2005 level for basic 

education to support Fast Track Initiative-related programming in 

Ghana, Senegal, Zambia, and Honduras. The Committee supports 

the continuation of these efforts in fiscal year 2007, and directs 

USAID to provide $65,000,000 for these efforts after consultation 

with the Committees on Appropriations. 

The Committee again provides $15,000,000 to continue a pilot 

program aimed at increasing access to quality basic education in 

Africa through the reduction or elimination of school fees. The 

Committee notes that USAID has received a total of $30,000,000 

in fiscal years 2005 and 2006 for such an effort in Malawi and the 

Democratic Republic of the Congo, and directs USAID to program 

fiscal year 2007 funds for this purpose only after consultation with 

the Committees on Appropriations. 

The Committee supports the work of Alfalit International, an 

educational nongovernmental organization dedicated to promotion 

of literacy, basic education, preschool, health, nutrition and community development in Africa and Latin America. Alfalit’s proven 

record during the past four decades has helped significantly reduce 

child and adult illiteracy in the countries where it operates. Since 

2002, Alfalit and USAID have worked together successfully in a 

number of nations. The Committee understands that funding for 

current Alfalit programs will end at the end of fiscal year 2007 and 

encourages USAID to continue this program. 

The Committee directs the Agency to resume school feeding programs in Haiti. 

The Committee understands that the Caribbean American Mission for Education Research and Action has submitted a proposal 

to develop and implement a model of educational reform in Jamaica and urges USAID to consider the proposal. 

HUMAN CAPACITY BUILDING: WOMEN’S LEADERSHIP TRAINING

The Committee continues to believe a Women in Development 

(WID) office empowered to monitor, assess, and make recommendations regarding the quality of gender integration at USAID could 

be of great benefit to the agency. The Committee strongly recommends that the Office be funded at $15,000,000 in fiscal year 

2007. In addition, the Committee has included, again this year, bill 

language to mandate $15,000,000 for women’s leadership training 

and directs the Agency to report on the amounts it is spending for 

such purposes and precise projects under management. 


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GLOBAL ISSUES: HYDROPOWER

The Committee continues to recommend a renewed emphasis on 

hydropower and directs the Agency to continue a grant program of 

not less than $3,000,000 to promote the development of overseas 

markets for environmentally-friendly hydropower technology manufactured in the United States. The Committee recommends consideration of funding for a specialized non-governmental organization 

representing the United States hydropower industry to provide 

project development and implementation services. The Committee 

directs USAID to consult with the Committee on its plans for the 

allocation of these funds. As with other power and energy sectors, 

USAID has a key role in assisting foreign governments, international financial institutions, and the local private sector to establish necessary energy and investment framework and governance 

practices in emerging markets. 

GLOBAL ISSUES: ACCESS TO CLEAN WATER AND WATER MANAGEMENT

Competition for scarce fresh water is predicted to be a major 

source of international conflict during the twenty-first century, as 

it is now within the Middle East. In Africa, especially in communities severely impacted by HIV/AIDS, ready access to clean water 

is lacking, resulting in increasing rates of water-borne diseases and 

higher infant mortality rates. 

The Committee urges the President to direct not less than 

$50,000,000 from this Act to build wells in rural areas, and secure 

water delivery systems in urban areas, of African communities that 

lack access to fresh water. Within this level, the Committee directs 

in law $20,000,000 for programs in east Africa. 

The Committee also directs $5,000,000 for water infrastructure 

and clean water projects in the south of Lebanon. Funding should 

help support a variety of projects, including: development of modern irrigation schemes, domestic wastewater treatment plants, and 

sustainable fertilization programs to improve water quality deterioration for the south of Lebanon. 

GLOBAL ISSUES: BIODIVERSITY

The Committee applauds the accomplishments of USAID in integrating biodiversity and forest management in its economic and social development programs. The Committee directs USAID to provide not less than the requested level of $140,600,000 in fiscal year 

2007 for its biodiversity and related environment programs. Within 

that amount, the Committee urges USAID to support biodiversity 

efforts in biologically important regions in Ecuador, especially the 

Galapagos Marine Reserve. 

The Committee recommends $200,000 for projects in southern 

Africa that help protect the population of wild cheetah. Harvesting 

otherwise undesirable species of brush and processing them into 

fuel can prevent the ruinous encroachment of the brush into woodland savannah where cheetahs hunt for food. 

The Committee supports the USAID Parks in Peril program, a 

partnership with the Nature Conservancy, which has leveraged 

hundreds of millions of dollars in non-United States Government 

funds for conservation of imperiled ecosystems throughout Latin 

America. This successful program, first begun in 1990, has worked 


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in 17 Latin American countries and on more than 40 million acres, 

to protect areas and foster a network of local conservation organizations. The Committee understands that USAID has begun to 

identify a successor program and encourages the Agency to complete that process with all due speed. In the interim, the Committee directs USAID to provide $7,000,000 in fiscal year 2007 to 

continue the Parks in Peril program while it completes the process 

to continue this important program. As this process is ongoing, the 

Committee urges USAID to craft a competitive program in which 

the implementing organization minimizes the percentage of indirect costs. 

The Peregrine Fund continues to build a record of protecting 

birds of prey worldwide. The Committee recommends $500,000 for 

The Peregrine Fund’s work through the International Raptor Program, which will be matched by private contributions. 

The Committee remains concerned about environmental degradation along the United States/Mexico border. The Committee requests USAID to consider programs in Mexico that will help ameliorate border region pollution. 

GLOBAL ISSUES: PROPERTY RIGHTS

Property rights, sound regulation of commercial activity and 

other components of the rule of law are adversely affected by inefficient, lengthy and often corrupt systems of registering small business and land titles. The Committee endorses programs that promote property rights and create private real estate markets in selected countries where USAID is active in Latin America and the 

former Soviet bloc. The Committee directs USAID to continue to 

fully fund its cooperative agreement with the Institute for Liberty 

and Democracy and to expand the International Real Property 

Foundation Program into a world wide effort. 

ECONOMIC GROWTH: COLLABORATIVE RESEARCH SUPPORT PROGRAMS

The Committee recognizes the important contributions the Collaborative Research Support Programs (CRSPs) have made in the 

area of agricultural development and human capacity building. The 

Committee believes CRSPs are excellent investments and urges 

USAID to support efforts by CRSPs to expand their activities in Africa and South Asia. The Committee recommends USAID support 

the creation of a new CRSP to focus on water issues and expand 

its current horticulture assessment into a CRSP. The Committee 

strongly recommends USAID fund CRSPs in fiscal year 2007 at 

$31,000,000. 

ECONOMIC GROWTH: CREDIT UNIONS, COOPERATIVES AND

PARTNERSHIPS

The Committee recognizes the important role that cooperatives 

and credit unions play in overseas programs. The Committee recommends that priority be given to funding overseas cooperatives 

working in the areas of agriculture, financial systems, rural electric 

and telecommunications infrastructure, housing and health. Bill 

language is included to mandate $10,000,000 of Development Assistance funds for cooperative development programs within the Office of Private and Voluntary Cooperation. 


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LATIN AMERICA

The Committee has continually supported higher funding levels 

for Latin American and the Caribbean. The importance of this region and our relationship with its citizens, our neighbors, can not 

be understated. Funding levels allocated to Latin America and the 

Caribbean must reflect the region’s significance in terms of United 

States priorities for economic, trade, humanitarian and immigration policies with these neighboring countries. In fiscal year 2006, 

this region received 17 percent of the Development Assistance account. The Committee expects the Agency to provide for this region 

from both ‘‘Development Assistance’’ and ‘‘Trade Capacity Enhancement Fund’’ a combined total no less than the amount provided 

from the fiscal year 2006 Development Assistance account. 

The Committee urges USAID to engage with the World Council 

of Credit Unions to alleviate the usurious financial transactions related to the repatriation of earnings from immigrant workers, especially of Latin American origin. The Agency should suggest demonstration programs it could develop and implement to address this 

issue. 

The Committee urges USAID to consider support for the Target 

Mexico Program sponsored by the City of Kansas City. In particular the Committee is interested in the beneficial trade relationships developed with small and medium-sized companies. 

LATIN AMERICA AND THE CARIBBEAN: SCHOLARSHIP PROGRAM

The Committee strongly supports the work of the Cooperative 

Association of States for Scholarships (CASS) for its effective approaches to providing individuals with the skills that enable them 

to contribute effectively to the economic growth of their communities and nations. The Committee notes that the CASS program 

has offered technical education, job training, and leadership skills 

to young adults and leaders from communities of Central America 

and the Caribbean in fields such as agriculture, education, business, construction, environmental science, health care and technology training. The Committee also notes that the CASS program 

is undertaking new activities in Mexico in support of the Administration’s efforts to strengthen the United States-Mexico relationship, and believes the program’s long history in Haiti could contribute significantly to USAID efforts in that nation, particularly in 

the field of health care training. Recognizing the CASS program’s 

record of sustained success and the challenges facing a number of 

states in the region, the Committee strongly encourages USAID to 

enter into a new five-year cooperative agreement to maintain CASS 

operations at no less than the current level of funding. The Committee is aware of the interest in replicating the CASS program in 

other countries. 

SONORAN DESERT BORDERLAND WATERSHEDS

Recent impacts from prolonged drought, unsustainable groundwater pumping, waste discharge and conversion of the desert ecosystem have contributed to general riparian stress and watershed 

deterioration on both sides of the Arizona-Sonora border. The Committee acknowledges the important environmental work of the 

USAID Mexico Mission, and recommends funding from within MisVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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sion resources to expand the Mission’s watershed management 

strategic element to target the Sonoran Desert borderlands region. 

AMERICAN SCHOOLS AND HOSPITALS ABROAD

The Committee provides up to $20,000,000 for the American 

Schools and Hospitals Abroad (ASHA) program in fiscal year 2007. 

The Committee further expects that support will be continued, as 

new resources are needed, for traditional recipients in the Middle 

East. The Committee expects USAID to keep it well informed regarding institutions which have received ASHA funding in previous 

years, but which continue to have significant unexpended balances. 

Within the amount provided, the Committee urges USAID to consider a proposal from the George Washington Academy in Casablanca, Morocco. In addition, funds should be made available for 

other deserving institutions in all geographical regions, especially 

in sub-Saharan Africa. 

The Committee notes that innovative medical technology such as 

haptic medical simulation can help train medical personnel in 

medically underserved developing countries. Such technology can 

provide a safe alternative to practicing on human subjects for a variety of procedures, such as intravenous therapy and endoscopy, 

and should be considered for use where appropriate. 

DAIRY DEVELOPMENT

The Committee continues its strong support for dairy industry 

development as an effective economic development tool. The Committee urges USAID to obligate new funding for dairy industry development project activities at a minimum of $10,000,000 in fiscal 

year 2007 to strengthen the agency’s economic growth, rural development and trade initiatives. The Committee particularly urges 

USAID to use no less than $5,000,000 of this amount to fund new 

activities in countries not previously engaged in dairy development. 

The program has assisted producers, cooperatives, processors and 

industry associations in recipient countries to increase incomes, 

create jobs and improve the nutritional status of the population. 

While the Committee encourages the use of creative program mechanisms, it is important that dairy programs under this provision 

address both United States dairy industry needs as well as developmental goals. 

TORTURE TREATMENT CENTERS

The Torture Victims Relief Act of 1998 states that assistance to 

foreign treatment centers ‘‘shall be provided in the form of grants 

to treatment centers and programs in foreign countries that are 

carrying out projects or activities specifically designed to treat victims of torture for the physical and psychological effects of the torture.’’ The Committee urges USAID to ensure that this program 

complies with the congressional authorization. By so doing, USAID 

will be helping to ensure the growth of indigenous institutions providing culturally appropriate care to their torture victims and seeking to prevent and eventually eliminate the practice of torture in 

their country. The Committee recommends that USAID devote 

$12,000,000 for this program in fiscal year 2007. The Committee 


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requests that USAID report on implementation of these recommendations not later than 60 days of enactment of this Act. 

LIBERIA

The Committee recommendation includes $29,499,000 for Liberia, the same as the request. 

COLLABORATION WITH COMMUNITY AND TECHNICAL COLLEGES

The Committee is aware of the urgent need for education 

throughout the continent of Africa, and that this need can be addressed through the incentives created with foreign investment. 

Specifically, the Committee is aware of the potential for business 

groups and community and technical colleges to collaborate and 

provide training and skills to African entrepreneurs in concert with 

established business relationships. The Louisville, Kentucky collaboration in the nation of Ghana, known as EconVillage, is a good 

example. The Committee encourages USAID to look at more comprehensive collaborations between the business community and 

technical assistance providers, such as community and technical 

colleges, to encourage other African nations to broaden educational 

opportunities as well as basic economic development. 

UNITED STATES UNIVERSITY SUPPORT FOR DEVELOPING COUNTRIES

The Committee continues to receive numerous requests to fund 

specific activities at or through American institutions of higher 

education. The Committee strongly supports activities that advance 

international development and United States foreign policy goals. 

The Committee has reviewed the concepts proposed for funding, 

and recommends that USAID and/or the Department of State (as 

appropriate for the proposed project) actively consider proposals 

submitted by the organizations listed below. 

Unless a proposal demonstrates a unique, innovative, or proprietary capability, or demonstrates special considerations that justify 

limited or non-competitive treatment, the Committee expects that 

competitive procedures will be applied with regard to the proposals 

on the list that follows. The Committee also expects USAID to give 

priority to proposals that have technical merit, realistic budgets, 

and achievable objectives. 

No later than March 1, 2007, the Administrator of USAID shall 

submit a report to the Committee on the status of each activity 

identified below. Such report shall include: (1) the status of a funding proposal by the organization associated with each activity; (2) 

the degree to which the proposal is consistent with United States 

development assistance and foreign policy goals for the country or 

region in which the activity would take place; (3) the degree to 

which matching or other funds would be provided by the organization to complement the Federal contribution; (4) to the extent 

known at the time, any decision by USAID or the Department of 

State on funding the activity, including the proposed funding level; 

and (5) any other relevant information deemed important by 

USAID or the Department of State. The Committee also expects to 

receive a second report on the status of these proposals no later 

than September 1, 2007. In addition, the Committee requests that 

USAID identify an office or organization within the agency, or 


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within the Department of State if appropriate, to which inquiries 

can be directed on the status of these proposals. 

With the foregoing in mind, the Committee recommends the following proposals for USAID’s active consideration: 

A proposal by Alabama A&M University to develop textbooks 

and teaching materials in Ethiopia; 

A proposal by the University of Alabama to conduct a feasibility 

study to establish a Central American Food Export Trade Association at the University; 

A proposal by the University of Alaska-Fairbanks to conduct activities related to the International Polar Year, including workshops, public education and research in polar science; 

A proposal by the University of Alaska-Fairbanks to continue efforts in business development and examine missions to health and 

public works efforts in the Russian Far East; 

A project from the University of Arizona and Mexico’s Consejo 

Nacional de Ciencia Y Technologia to support a United States-Mexico binational optics program with the purpose of establishing a 

program to improve Mexico’s competitiveness; 

A proposal by the Associated Colleges of the South to teach critical languages and cultures, including: Chinese, Arabic, Farsi, Persian, Turkish and Urdu; 

A proposal by California State University Consortium for International Development (CSUCID) to, among other objectives, enhance training modules for agricultural systems for training overseas; 

Proposals by Loma Linda University, California, to expand its 

medical education and health care programs in developing countries, including the refurbishment of the Wazir Akbar Khan Hospital in Kabul, Afghanistan; 

A proposal by the University of California at San Diego’s Scripps 

Institute of Oceanography to assess the impact of air pollution and 

persistent brown haze in Asia; 

A proposal by the University of Miami for a Child Health Care 

Initiative in the Ukraine; 

A proposal by Spelman College, Institute for the Critical Study 

of Global Language, designed to increase the number of students 

who develop advanced proficiency in languages and knowledge 

about regions critical to U.S. national security, diplomacy, intelligence and business competitiveness; 

A proposal by Morehouse College, the Building Bridges Between 

African American and South African Emerging Global Leaders Program, to provide student/faculty exchanges with leading South African institutions of higher education and research; 

A proposal by Georgia State University, the University Business 

Education Partnership, to establish business education programs to 

serve the Ukraine and Georgia; 

A proposal by the University of Iowa for the Center for Digital 

Communication in Development and Education, to improve international educational opportunities through use of the University’s 

eGranary Digital Library; 

A proposal by Bowling Green State University, the International 

Democratic Education Institute, to develop distance learning curricula and exchanges in both civics and ethics; 


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A proposal by Bemidji State University to create a Central Asian 

Institute to facilitate cross-cultural understanding and enhance the 

education of citizens in Central Asia; 

A proposal by the University of Nebraska-Lincoln for a program 

of collaborative teaching and research in Zambia, with emphasis on 

HIV/AIDS research and agricultural development; 

A proposal by Rutgers University, Thomas Edison State College 

and the SAS Institute to jointly provide a program in non-profit 

business and government administration; 

Proposals by Monmouth University to establish an MBA degree 

program for Armenian graduate students, including internships opportunities; 

A proposal by the Monmouth University to establish a schoolbased social work initiative with Ghana University at Legon to increase primary school retention and to decrease human trafficking; 

A proposal by Oregon State University’s Program for Water Conflict Prevention and Resolution to provide specialized resources and 

skills to individuals that go beyond the traditional physical systems 

approach to water resources management; 

A proposal by the Pacem In Terris Institute at La Roche College, 

Pennsylvania, for the International Partners in Education Initiative; 

A proposal by Chestnut Hill College to establish a working relationship with the International Center for Education and Research 

Distance Learning Center in Ukraine; 

A proposal by the American University in Kosovo to educate future political and economic leaders; 

Proposals by the South Dakota School of Mines and Technology 

to provide educational opportunities for foreign students, particularly from developing nations, to provide engineering services to 

water and sanitation programs in India, to enhance its relationship 

with the University of Belgrade and to enhance its relationship 

with the Mongolia University of Science and Technology; 

A proposal coordinated by the Texas A&M University and other 

partnering universities for the Norman E. Borlaug International 

Science and Technology Fellows Program; 

A proposal by Texas A&M University and other Alabama and 

Texas institutions of higher learning, Aflatoxin Remediation for 

Human and Animal health, to expand research in the United 

States, Ghana and other cooperating countries to further refine the 

technology for remediating the effects of mycotoxins in food and 

feed; 

A proposal by Texas A&M University’s Center for the Study of 

Western Hemisphere Trade to study and promote research on 

globalization with special emphasis on the Western Hemisphere; 

A proposal by Texas State University, San Marcos to promote 

and facilitate trade with specific emphasis on small and mediumsized enterprises; 

A proposal by Highline Community College for a partnership program with several collages in South Africa and Namibia; 

A proposal by Washington State University to expand its program in Malawi dedicated to improving the economic self-sufficiency of Malawians; 


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A proposal by the Asian University for Women, Bangladesh, to 

continue its program to educate disadvantaged women from diverse 

backgrounds around Asia in a non-sectarian environment; 

A proposal by the American University of Armenia, affiliated 

with the University of California; 

A proposal by Eastern Michigan University and Wayne State 

University Consortium for a Language Information program to provide an authoritative, accessible source of languages throughout 

the world; 

A proposal by the Great Lakes Consortium for International 

Training and Development Center and its partner institutions, 

Bowling Green University, the University of Toledo and Lourdes 

College, to promote international and community partnerships 

around the world; 

A proposal by Brandeis University for an International Center 

for Democracy and Governance; 

A proposal by the John Joseph Moakley Center for Law, Justice, 

and Human Rights at Boston College to promote justice and 

human rights in several countries; 

A proposal by the John W. McCormack Graduate School of Policy 

Studies at the University of Massachusetts Boston to assist developing democracies with the development of legal systems and the 

rule of law; and 

A proposal by the New Jersey International Education Consortium to enhance civil society in the Middle East and South Asia. 

INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

Fiscal year 2006 enacted level ........................................................... $361,350,000 

Fiscal year 2006 emergency appropriation, P.L. 109–148 .............. 56,330,000 

Fiscal year 2006 emergency supplemental (House) ......................... 136,290,000 

Fiscal year 2007 request .................................................................... 348,800,000 

Committee recommendation .............................................................. 348,800,000 

Change from request ...................................................................... 0 

Change from enacted level ............................................................. ·12,550,000 

The Committee recommends a total of $348,800,000 for the International Disaster Assistance and Famine Assistance account, the 

same as the request and a $12,550,000 decrease from the enacted 

level, excluding emergency supplemental appropriations. 

The Committee encourages the Office of Foreign Disaster Assist- ance (OFDA) to coordinate with the Office of Conflict Response and 

Stabilization (CRS) at the Department of State as CRS develops its 

‘‘Civilian Response Corps for International Disasters’’. Any such 

Corps should take into account the existing capacity of OFDA to respond to both man-made and natural emergencies and not be duplicative. The Committee requests that OFDA consult with the 

Committee regarding opportunities to strengthen OFDA’s response 

capacity if the Civilian Response Corps is established including the 

development of a database of civilian responders. 

FAMINE PREVENTION AND RELIEF PILOT PROGRAM

The Committee’s recommendation includes $30,000,000 for famine prevention and relief, an increase of $10,000,000 over the fiscal 

year 2006 level and the fiscal year 2007 request. 

The Committee directs USAID to complete with the additional 

funding a pilot program designed to illustrate the relative advanVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00024 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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tages of purchasing local food commodities and shipping commodities from abroad. This pilot should be built upon a study, performed by USAID, to identify both benefits and drawbacks of local 

commodity purchase programs and strategies for maximizing the 

effectiveness of local purchases. 

This study should, at a minimum: 

1. Examine the cost effectiveness of food assistance delivery approaches, including local purchases; 

2. Identify opportunities to speed the provision of food to those 

in need; 

3. Recommend approaches to use integrated United States and 

multidonor assistance programs to reduce the need for emergency 

food programs over time; and 

4. Suggest opportunities for cooperation with United States farmers and food commodity transporters. 

The Office of the Director of Foreign Assistance should consult 

with the Committee as it designs the study and pilot program. The 

Committee expects this program to be completed in time to inform 

the fiscal year 2008 budget request. 

SUDAN

The Committee’s overall recommendation for Sudan in this bill 

includes the Administration’s request, $450,300,000. 

SUDAN 

Fiscal year 2007 

request Committee recommendation 

Darfur: 

International Disaster and Famine Assistance .................................................. $70,000,000 $70,000,000 

Transition Initiatives ........................................................................................... 2,500,000 2,500,000 

Migration and Refugee Assistance .................................................................... 45,000,000 45,000,000 

Economic Support Fund ...................................................................................... 20,000,000 20,000,000 

Subtotal, Darfur ......................................................................................... 137,500,000 137,500,000 

North/South 

Child Survival and Health Programs Fund ........................................................ 20,400,000 20,400,000 

Development Assistance ..................................................................................... 70,000,000 70,000,000 

Economic Support Fund ...................................................................................... 40,000,000 40,000,000 

International Disaster and Famine Assistance .................................................. 93,500,000 93,500,000 

Non-proliferation, Anti-terrorism, Demining and Related Programs ................. 4,100,000 4,100,000 

Migration and Refugee Assistance .................................................................... 28,000,000 28,000,000 

Transition Initiatives ........................................................................................... 5,500,000 5,500,000 

Peacekeeping Operations .................................................................................... 41,400,000 41,400,000 

International Military Education and Training ................................................... 100,000 100,000 

International Narcotics Control and Law Enforcement ...................................... 9,800,000 9,800,000 

Subtotal, North/South ................................................................................ 312,800,000 312,800,000 

Total Sudan ...................................................................................... 450,300,000 450,300,000 

The Committee recognizes that this budget request was formulated before the signing of the Darfur Peace Agreement of May, 

2006. The Committee expects that any required changes to the fiscal year 2007 budget request due to the signing of this agreement 

will be submitted to the Committee via budget amendment or other 

official communication. 

The Committee is gravely concerned by the length of time the 

Administration has taken to formulate and transmit the fiscal year 

2006 Sudan plan as required in House Report 107–152, submitted 


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26 

June 24, 2005. To date, the Committee has not received the submission. Sudan is now the largest United States taxpayer supported program in Africa, and this tardiness is extraordinary. 

The Committee directs that the Administration will update the 

first budget plan following enactment of this Act to include United 

States support to Darfur, including the Darfur Peace Agreement, 

and to continue to update quarterly the Sudan assistance plan. The 

Committee expects that the fiscal year 2008 request for Sudan will 

show a shift away from reliance on funds appropriated in this account and toward funds appropriated in the regular development 

assistance accounts. 

The Committee has again included a general provision, section 

569, conditioning funding to the government of Sudan on its support for stability in Darfur. The Committee has modified the section from previous years to facilitate implementation of the Darfur 

Peace Agreement and to enforce its ceasefire provisions. 

OFFICE OF MILITARY AFFAIRS

The Committee notes that USAID has requested funding for the 

Office of Military Affairs within the Bureau of Democracy, Conflict 

and Humanitarian Assistance. The office has as its primary responsibility the coordination of United States military and civilian 

interaction on joint humanitarian operations. While the Committee 

notes the importance of effective civilian-military coordination on 

humanitarian affairs, the Committee is concerned about any overlap or duplication with other components of the United States government, including the Office of the Coordinator for Reconstruction 

and Stabilization at the Department of State. The Committee is 

also concerned about potential perceptions of militarization of humanitarian assistance and notes that USAID has acheived effective 

coordination with the military in past joint humanaitarian operations without the establishment of a new office. The Committee 

directs that the Administrator of USAID report to the Committees 

on Appropriations, not later than 120 days following enactment of 

this Act, on the total costs and functions of the office, including any 

resources or staff provided by the Department of Defense and the 

Department of State, as well as any overlapping and duplicating 

roles with the Office of the Coordinator for Reconstruction and Stabilization. 

TRANSITION INITIATIVES

Fiscal year 2006 enacted level ........................................................... $39,600,000 

Fiscal year 2006 request .................................................................... 50,000,000 

Committee recommendation .............................................................. 40,000,000 

Change from request ................................................................... ·10,000,000 

Change from enacted level ......................................................... +400,000 

The Committee recommends a total of $40,000,000 for Transition 

Initiatives, a $10,000,000 decrease from the request and a $400,000 

increase to the enacted level. 

With respect to work in countries in transition, the Committee 

acknowledges the contributions of the International Crisis Group 

(ICG), which has conducted field-based, high-quality analysis of the 

causes of conflict in more than 40 countries around the world and 

recommends continued support for their work. The Committee reVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00026 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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quests that USAID report on a semi-annual basis the expenditures 

and specific use of OTI funds, including implementing organization. 

DEVELOPMENT CREDIT AUTHORITY

[Including transfer of funds] 

Program Account: 

Fiscal year 2006 enacted level (by transfer) .................................... ($20,790,000) 

Fiscal year 2007 request (by transfer) .............................................. (21,000,000) 

Committee recommendation (by transfer) ........................................ (21,000,000) 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +210,000 

Administrative Expenses: 

Fiscal year 2006 enacted level ........................................................... 7,920,000 

Fiscal year 2007 request .................................................................... 8,400,000 

Committee recommendation .............................................................. 8,400,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +480,000 

The Committee recommends a ceiling of $21,000,000, on the 

amount that may be transferred from bilateral economic assistance 

accounts for the subsidy cost of loan guarantees under the Development Credit Authority program. This is the same as the request 

and a $210,000 increase to the enacted level. 

The Committee has not provided the request of a $5,000,000 direct appropriation for the African Housing and Infrastructure Facility. Funds for that type of activity are more appropriately found 

in the Development Assistance account, where the USAID missions 

can utilize the transfer authority should the missions decide this 

is the best expenditure of their funds. 

The Committee recommends $8,400,000 for administrative expenses, the same as the budget request and a $480,000 increase to 

the enacted level. 

PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY

FUND

Fiscal year 2006 enacted level ........................................................... $41,700,000 

Fiscal year 2007 request .................................................................... 38,700,000 

Committee recommendation .............................................................. 38,700,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... ·3,000,000 

The Committee has provided the budget request for the mandatory payment to the Foreign Service Retirement and Disability 

Fund. 

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT

[including transfer of funds] 

Fiscal year 2006 enacted level ........................................................... $623,700,000 

Fiscal year 2007 request .................................................................... 678,826,000 

Committee recommendation .............................................................. 646,000,000 

Change from request ................................................................... ·32,826,000 

Change from enacted level ......................................................... +22,300,000 

The Committee recommends a total of $646,000,000 for Operating Expenses of the United States Agency for International Development, a $32,826,000 decrease from the request and a 

$22,300,000 increase above the enacted level. 


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The Committee has not funded the following amounts and items requested: ·$3,900,000 for the Foreign Service Modernization, performance 

based pay system. ·$6,600,000 for the Reconstruction and Stabilization Reserve. 

·$2,793,000 from the security request of $15,200,000. 

·$10,000,000 from the $61,900,000 request for Information 

Technology. ·$6,083,000 from the $32,400,000 request for ‘‘Other Agency 

Costs’’. ·$2,500,000 from the $10,300,000 request for Staff Training. 

·$950,000 at the Administrator’s discretion. 

USAID MANAGEMENT OF ADMINISTRATIVE COSTS

The Committee remains concerned about the use of the Oper- ating Expenses (OE) account. The Committee believes that cost efficiencies and improved effectiveness would stretch the ‘‘OE Dollar’’, allowing the OE appropriation to cover more of the activities 

currently funded in the program accounts. This could then have the 

effect of ‘‘freeing’’ program funds for more appropriate uses. The Committee understands that the Agency has developed a re- port to measure the efficiency with which each bureau and each individual mission uses its funds. Once again, the Committee suggests that the challenge is to provide incentives for more efficient 

management and then measure mission compliance. The Committee anxiously awaits the results of the Agency’s ‘‘shadow budget’’, which allows managers, not the central office, to control more 

of the budget. The expectation is that this will provide incentives 

to managers to make more efficient use of their funds. The Committee recognizes that some missions manage and use their funds more effectively than others. The first step in providing 

incentives for efficient management of administrative funds is to 

determine those factors which make one mission more effective 

than another. Does relative mission size or age contribute to effective management? Is location a factor? Do regional platforms contribute to better management? The Committee directs the Agency 

to study the concept of regionalizing mission administrative functions and report to it by September 15, 2006, on the estimated cost 

savings—if any—resulting from economies of scale. In addition, the 

report should include an analysis of administrative costs, both from 

OE and program dollars, by Mission and Bureau, with conclusions 

as to the factors that cause efficiencies, the potential for dollars 

saved, and a comparison of newer vs older missions, and smaller 

vs larger missions. Finally, the report should identify future actions to ‘‘institutionalize’’ the cost saving methods identified by the 

analysis. 

USAID DOMESTIC LEASING AUTHORITY

The Committee has included bill language to prohibit USAID 

from using appropriated funds to lease space domestically. The 

Committee has taken this drastic step in response to the Agency’s 

recent action to lease additional space in Washington, D.C., which 

resulted in a violation of the Anti-Deficiency Act, 31 U.S.C. 1341. 

On September 30, 2005, USAID entered into a five year agreement to lease space in an office building in downtown Washington, 


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D.C. USAID did not use the expertise of the General Services Administration (GSA) to negotiate the terms of this lease. Instead, the 

Agency relied on its special statutory domestic leasing authority. 

By executing a lease that did not condition future lease payments 

on the availability of appropriated funds, USAID violated the AntiDeficiency Act. The five year cost of this lease is estimated to be 

$18,000,000. Prior to signing the lease, USAID, which occupies approximately 600,000 square feet of office space in the Ronald 

Reagan Building with workstations for about 2,500 staff, requested 

approval from this Committee. However, in asserting an ‘‘immediate need’’ for space, the Agency overstated the current work load 

requirement by approximately 350 people. In addition, USAID’s request failed to take into account the Agency’s plan to move technical staff to the field and to redefine headquarters staffing requirements. 

In addition to the bill language, the Committee believes other remedial steps are required. The Committee directs USAID to adopt 

adequate internal leasing polices and controls and to submit 

monthly reports to the Committee on the status of the termination 

of the lease in question. These reports shall itemize all costs, by appropriation account, associated with the lease termination and include the status of the Agency efforts to adopt new leasing policies 

and controls. Further, the Agency is directed to utilize the expertise of the GSA to satisfy all future domestic leasing requirements. 

BUDGET JUSTIFICATION MATERIALS

The Committee expects USAID to provide budget justification 

materials in a timely fashion. To that end, the Committee directs 

that the Agency submit future detailed budget justification documents within one week of the President’s formal budget submission. The Committee found unacceptable the Agency’s delay in submitting the fiscal year 2007 budget, which arrived only days before 

the first scheduled appropriation hearing. The Committee expects 

future budget justifications to provide more detail by appropriation 

account, which is after all the legal framework for its appropriated 

budget. 

The additional account level detail should include the prior year, 

budget year and requested funds for each sector, program and area 

of special interest financed within that account. In addition the justification needs to make clear how activities differ by account for 

each sector, program and area funded by multiple accounts. The 

Agency’s justification for the OE appropriation must thoroughly explain and justify the increases from the prior year in each category 

it. Finally, the Agency is expected to consult with the Committee 

over the summer to ensure that the organization of the fiscal year 

2008 budget justification meets the needs of the Committee on Appropriations. 

The Administrator of the United States Agency for International 

Development shall report on an annual basis as part of the justification documents submitted to the Committees on Appropriations, on the gender composition of certain assistance programs. 

Such a report shall include, for all accounts administered by the 

USAID, gender disaggregated data on: 


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(1) Employees of enterprises that the United States Agency for International Development has employed as contractors 

and sub-contractors in post-conflict and post-crisis stabilization 

and reconstruction initiatives. Such information should include 

whether employees are United States nationals or residents of 

post-conflict and post-crisis countries; and (2) Participants in job training, trade capacity building and enterprise development programs funded by USAID or the Department of State. 

AVAILABILITY OF FUNDS

The Committee again includes a general provision on the Avail- ability of Funds. This provision provides an additional four years 

of authority beyond the date on which the availability of funds 

would otherwise expire, if such funds are initially obligated before 

the expiration of their availability for obligation contained in the 

Act. In other words, any funds obligated on the last day of availability remain available to the Agency for deobligation and reobligated over an additional four year period. This authority, which appears unique to the funds in this bill, provides a large amount of 

flexibility for the Agency. The Committee will begin to review more 

closely the Agency’s use of this authority and to that end, directs 

USAID to submit a report by September 15, 2006, which outlines 

the following: 1. the use of this authority (ie: the amount, fiscal 

year, and description of the original activity/program deobligated 

and the amount/s and new activity for which the funds were reobligated); 2. an explanation as to why this authority is needed, with 

specific examples of how it benefits the foreign assistance goals of 

the United States; and, 3. the impact of sunsetting this authority 

in two or three years. 

WORKFORCE MODEL

The Committee is encouraged by the Agency’s use of the work- force model, which is an important tool towards ‘‘rationalizing’’ 

staffing decisions. The model predicts future workload and staffing 

demands and attempts to identify workforce gaps and develop solutions to fill those gaps. The Committee expects the Agency to place 

greater emphasis on analyzing the proper mix between Headquarters vs. Overseas staff and direct hires vs. non-direct hires. 

The Committee also expects the Agency to increase its efforts to 

hire technical staff as it identifies critical needs. 

The Committee provides the request of $13,400,000 to hire 100 

additional United States direct hires and directs the Agency to report on use of these funds, including positions, locations, technical 

expertise associated with these 100 positions. 

The Committee understands that a one-for-one decrease in Personal Service Contractors (PSCs) for each of the 100 positions filled 

will not occur immediately. However, the Committee does expect to 

see a continual, steady decrease in the number of PSCs. The Committee directs the Agency to provide a quarterly workforce profile 

report. The Committee expects the total number of PSCs identified 

on the fiscal year 2007 end of year report to be at least 50 lower 

than that identified on the fiscal year 2006 end of year report. 

The Committee once again has included a general provision allowing USAID to use temporary Foreign Service Office (FSO) apVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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pointments overseas, funded by program accounts. This allows the 

Agency to employ FSOs responsible to the Administrator and the 

USAID management structure, rather than the current tendency to 

hire and rely on Personal Service Contractors (PSCs). The general 

provision continues to authorize up to 175 temporary FSO positions, an increase of 100 over the request and equal to last year. 

The Committee recognizes that the Agency may not have sufficient 

funds to hire up to 175 in fiscal year 2007, but it expects the Agency to take full advantage of this authority to the extent practicable. 

CAPITAL INVESTMENT FUND

Fiscal year 2006 enacted level ........................................................... $69,300,000 

Fiscal year 2007 request .................................................................... 131,800,000 

Committee recommendation .............................................................. 105,300,000 

Change from request ...................................................................... ·26,500,000 

Change from enacted level ............................................................. +36,000,000 

The Committee recommends a total of $105,300,000 for the Capital Investment Fund, a $26,500,000 decrease from the request and 

a $36,000,000 increase to the enacted level. In total, the Committee 

recommendation includes $89,000,000 for USAID participation in 

the Capital Security Cost-Sharing Program, under which all agencies with overseas staff operating under Chief of Mission authority 

will contribute toward the costs of constructing secure embassy 

compounds, $3,000,000 for constructing a new USAID Guatemala 

mission and $13,300,000 for Information Technology. All funds made available under the Capital Investment Fund, including the obligation of offsetting collections, and the capital appropriation in the Economic Support Fund, are subject to the regular notification procedures of the Committees on Appropriations. 

The Committee also has included bill language under Operating 

Expenses of the United States Agency for International Development that requires congressional notification before USAID commits to new overseas missions that will require additional capital 

investments. 

CAPITAL SECURITY COST-SHARING PROGRAM

The Committee notes that the President’s request includes a 107 

percent increase over fiscal year 2006 for this program. While the 

Committee supports the concept of Capital Security Cost-Sharing, 

such a large increase in one fiscal year is not sustainable. In future 

Congressional Budget Justifications, the Committee expects the 

Agency to provide greater detail on the criteria used to assess its 

contribution to the CSCS program and the amounts, by mission, 

assumed in the request. As with all budget justifications, an explanation of change from the prior year level should also be included. 

In order to continue progress in this area, the Committee has included bill language to provide $89,000,000, which is $10,500,000 

below the request. The Committee also has provided the full request of $3,000,000 for constructing a new building to relocate the 

USAID Guatemala mission to a secure office building. 

INFORMATION TECHNOLOGY

The Committee has not provided the requested funds for new initiatives nor provided increases for existing initiatives. It has provided $13,300,000 for Information Technology improvements, a 


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32 

$16,000,000 decrease from the request. Within that amount, the 

Committee recommends: 

$5,000,000 for the Joint Assistance Management System 

$5,400,000 for the Joint Financial Management System 

$2,900,000 for the President’s Management System 

The fiscal year 2007 request for this account did not include 

funding for either the Phoenix financial management system or 

new procurement system, as implementation is expected to be concluded in fiscal year 2006. The Operations and Maintenance for 

those systems is requested in the Operating Expenses account. 

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT, OFFICE OF THE INSPECTOR GENERAL

Fiscal year 2006 enacted level ........................................................... $35,640,000 

Fiscal year 2007 request .................................................................... 38,000,000 

Committee recommendation .............................................................. 39,000,000 

Change from request ................................................................... +1,000,000 

Change from enacted level ......................................................... +3,360,000 

The Committee recommends a total of $39,000,000 for the Office 

of the Inspector General of USAID, a $1,000,000 increase to the request and a $3,360,000 increase from the enacted level. The Committee again commends the Inspector General for his cooperation 

with the Committee in its oversight of USAID management. 

The Committee recommendation includes $3,500,000 for Inspector General Activities in Iraq, which is $1,000,000 more than requested by the President. In the past, funding for the IG activities 

in Iraq has been funded through Supplemental Appropriations. As 

funding for activities in Iraq becomes ‘‘normalized’’ through regular 

appropriation accounts, the Committee believes it is appropriate to 

fund the important work of the Inspector General through this account. The USAID programs and projects in Iraq have been increased by both the fiscal year 2006 supplemental appropriation 

bill and this bill. Therefore, to ensure proper use of and accounting 

for those funds, the Committee expects the Inspector General to allocate the additional $1,000,000 provided above the request to OIG 

activities in Iraq, at least half of which is for increased security 

costs. The Committee directs the Inspector General to submit by 

September 15, 2006, a plan on priority investigations and audits in 

Iraq and their implementation. 

Other Bilateral Economic Assistance 

ECONOMIC SUPPORT FUND

Fiscal year 2006 enacted level ........................................................... $2,607,660,000 

Fiscal year 2006 Emergency supplemental (House) ........................ 1,584,500,000 

Fiscal year 2007 Request ................................................................... 3,214,470,000 

Committee recommendation .............................................................. 2,650,740,000 

Change from request ................................................................... ·563,730,000 

Change from enacted level ......................................................... +43,080,000 

The Committee recommends a total of $2,650,740,000 for the 

Economic Support Fund (ESF), a $563,730,000 decrease from the 

request and a $43,080,000 increase to the enacted level, excluding 

emergency supplemental appropriations. 


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TRADE CAPACITY BUILDING

The Committee has not provided $140,000,000 in the ESF appropriation for Trade Capacity Building as requested. Instead, the 

Committee recommends providing these funds in a new 

$522,000,000 appropriation entitled: Trade Capacity Enhancement 

Fund. The Committee allows for transfers from that appropriation 

to the ESF appropriation to accomplish programs in support of 

trade capacity building. Additional information on this Fund is 

found in a latter part of this report. 

LIBERIA

The Committee recommends $164,305,000 for ESF programs in Africa, the same as the request and $27,805,000 over the 2006 enacted level. Within this amount, $40,000,000 is included for Liberia. 

The Committee recognizes the importance of conflict resolution as Liberia enters a new chapter in its history, and urges the State 

Department and USAID to consider a proposal from the Liberian 

Center for Mediation and Conflict Resolution to join in this effort. 

ISRAEL

The Committee recommends $120,000,000 for Israel ESF programs, the same as the request and a decrease of $117,600,000 

from the 2006 enacted level. 

The Committee again recommends language directing that these 

funds all be made available on a grant basis as a cash transfer to 

be disbursed within 30 days of enactment of this Act. 

EGYPT

The Committee recommends $455,000,000 for Egypt ESF programs, as requested and a decrease of $35,050,000 from the 2006 

enacted level. Within the amount provided for project assistance, 

not less than $50,000,000 shall be made available for democracy, 

governance and human rights programs and not less than 

$50,000,000 shall be used for education programs. 

The Committee recommends that not less than 50 percent of the 

funds provided for Egypt for democracy, governance, and human 

rights be provided through nongovernmental organizations for the 

purpose of strengthening Egyptian civil society organizations, enhancing their participation in the political process, and enhancing 

their ability to promote and monitor human rights. The Committee 

further recommends that not less than 50 percent of the funds provided for Egypt for education be used to improve access to basic 

education. The remainder of the funds provided for education shall 

be used to strengthen institutions of higher education, promote academic freedom, and fund educational and cultural exchange programs. 

The Committee recommends a new provision, Section 578(b), 

that rescinds funds previously appropriated but not yet expended 

funds provided for cash assistance. 

The Committee intends that these funds be drawn from amounts 

appropriated for Egypt during fiscal years 2003–2006 for the express purpose of transferring the funds as cash assistance as Egypt 

met certain ‘‘benchmarks’’ associated with financial sector reform. 


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To date, Egypt has implemented many of the reform proposals and 

the implementation of these proposals has had a significant positive impact on Egypt’s economy. However, some benchmarks have 

not been met and therefore funds have not yet been released by 

USAID. 

When the Government of Egypt completes additional benchmarks of the financial sector reform agreement of March 2005 and 

funds are needed by USAID to transfer to Egypt in accordance with 

the agreement, the Committee will consider accommodating that 

requirement at the appropriate time. 

The Committee strongly urges the Department of State and the 

Government of Egypt to continue working on democracy reforms 

and benchmark proposals for implementation at the earliest possible opportunity. 

RELIGIOUS FREEDOM IN EGYPT

The Committee remains concerned about the problems faced by 

Egypt’s Coptic Christian community and believes the Government 

of Egypt needs to do everything possible to provide full opportunity 

for Coptic Christians in employment and education. The Committee 

expects the Department of State to make every effort to reinforce 

the importance of actively enforcing the religious freedoms that 

are, in fact, provided for in the Egyptian Constitution. 

NON-MILITARY EXPORTS

The Committee strongly urges the President to ensure, in providing cash transfer assistance to Egypt and Israel, that the level 

of such assistance does not cause an adverse impact on the total 

level of non-military exports from the United States to each such 

country. 

ECONOMIC BOYCOTT OF ISRAEL

The Committee has once again included a provision (section 535) 

addressing the Arab League boycott of Israel. The Committee 

strongly opposes this boycott and believes that the Department of 

State must take strong action to combat this practice. 

JORDAN PROGRAMS

The Committee recommends $250,500,000 for ESF programs in 

Jordan, an increase of $5,500,000 over the request and the 2006 

enacted level. 

The Committee notes, with appreciation, Jordan’s strong support 

for the United States, most especially in the Global War on Terror. 

The Committee expresses its continued support for Jordan, a victim 

of terrorist attacks in late 2005. 

Furthermore, Jordan has played a leadership role in facilitating 

efforts to bring peace between Israelis and Palestinians. The Committee believes the amount provided for ESF assistance will help 

Jordan accommodate economic issues as it continues to implement 

economic reforms. 

MOROCCO PROGRAMS

The Committee recommends $15,000,000 for ESF programs in 

Morocco, a decrease of $3,000,000 from the request and $4,100,000 


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35 

over the 2006 current estimate. This reduction is taken without 

prejudice. 

WEST BANK AND GAZA PROGRAMS

The Committee includes no appropriation for ESF programs in 

the West Bank and Gaza territories, a decrease of $150,000,000 

from the request and the 2006 enacted level. 

IRAQ PROGRAMS

The Committee recommends $305,770,000 for ESF programs in 

Iraq, a decrease of $173,000,000 from the request and $245,380,000 

over the 2006 enacted level. This reduction is taken without prejudice. 

AFGHANISTAN PROGRAMS

The Committee recommends $510,770,000 for ESF programs in 

Afghanistan, a decrease of $99,230,000 from the request and 

$85,070,000 over the 2006 current estimate. The Committee has included language that limits the expenditure of these funds to not 

more than $225,000,000 until the Secretary of State certifies to the 

Committee on Appropriations, that the Government of Afghanistan 

at both the national and local level, is cooperating fully with 

United States funded eradication and interdiction efforts in Afghanistan. Understanding the certification may include sensitive or 

classified information the Department of State may submit the certification to the Committee in the form of a classified report. 

The Committee is greatly concerned that a few provincial governments are not fully supporting efforts to eradicate poppy growth 

and interdict the heroin byproduct of these poppies. Without full 

cooperation and support of the government, most especially the 

provincial governments, for eradication and interdiction programs, 

the Committee believes the illegal drug trade of Afghanistan will 

flourish. The Committee cannot condone increasing assistance for 

Afghanistan if the government is not willing to fully participate in 

ending the growth and trade of an illegal drug that tears apart the 

fabric of society and has the potential to undermine the legitimacy 

of the government. 

Within available funds, the Committee recommends up to 

$5,000,000 for USAID to continue its project designed for the refurbishment of the existing Wazir Akbar Kahn Hospital and the management of health care delivery in Kabul. The Committee understands that this hospital has been a tremendous success and is 

ably serving the residents of Kabul. 

In general, the Committee is opposed to a disproportionate implementation of the proposed reduction in spending levels that more 

negatively impacts projects in support of health, education, and 

women’s programs. The Committee expects the Director of Foreign 

Assistance to ensure the appropriate application of funds to these 

items of congressional interest. 

INDONESIA

The Committee recommends $70,000,000 for ESF programs in 

Indonesia, a decrease of $10,000,000 from the request and the 


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36 

same as the 2006 enacted level. This reduction is taken without 

prejudice. 

The Committee recognizes the tremendous accomplishments of 

the Government of Indonesia in its drive toward democracy. In 

2004, Indonesia held a successful series of elections that culminated in the direct democratic election of a new president. These 

elections and further government reforms that are being implemented, give the Committee confidence that Indonesia is an emerging success story in South East Asia. 

SOUTH ASIA REGIONAL

The Committee recommends $1,000,000 for ESF programs in the 

South Asia Regional program, a decrease of $1,000,000 from the request and same as the 2006 enacted level. 

EL SALVADOR PROGRAMS

The Committee recommends $6,000,000 for ESF programs in El 

Salvador, a $4,000,000 decrease from the request. There was no request and no appropriation provided in fiscal year 2006. 

MIDDLE EAST REGIONAL PROGRAMS

The need for fresh water is a reality for all parties in the Middle 

East. Fresh water is essential for economic development, agriculture, health, and improving the quality of life for everyone in 

the region. Therefore the Committee strongly supports the continued efforts of the International Arid Lands Consortium in addressing the critical issues of water, energy, and agriculture and land 

use in the Middle East and Central Asia, and urges USAID to 

make available $2,500,000 to the Consortium for this work. These 

funds are to be allocated from bilateral, centrally managed or regional programs either in this account or in other accounts funded 

by this Act. 

IRISH VISA PROGRAM

The Committee recommends funding for the Walsh Irish Visa 

program of $3,500,000, as requested. This program, authorized 

since 1998, assists young people who are residents of Northern Ireland and the border counties of Ireland with developing job skills 

and conflict resolution abilities. Eligible youth receive non-immigrant visas that enable them to work for up to three years in the 

United States. 

LEBANON PROGRAM

The Committee recommends $35,500,000 for Lebanon programs. 

The Committee directs that not less than $6,000,000 should be 

used for scholarships and other direct support of the American educational institutions in Lebanon. Providing an American education 

to the young people of Lebanon and the region makes a unique contribution to the long term development of political and economic 

stability in that country. Broadening understanding of American 

values in the Middle East is particularly important to the efforts 

of the United States to counter violence and terrorism. 


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MIDDLE EAST PARTNERSHIP INITIATIVE

The Committee recommends $75,000,000 for the Middle East 

Partnership Initiative (MEPI), a decrease of $45,000,000 from the 

request and a decrease of $24,000,000 from the 2006 current estimate. 

The Committee directs that within the funds provided for MEPI, 

up to $6,000,000 be set aside to establish a scholarship program to 

educate students from countries with significant Muslim populations at the American educational institutions in those countries. 

The American educational institutions are uniquely positioned to 

improve understanding and strengthen shared values with the 

Muslim world. The Committee notes the work of the Middle East 

Media Research Institute (MEMRI) in providing timely translations of Arabic, Farsi, and Turkish media, as well as original 

analysis of political, ideological, intellectual, social, cultural, and 

religious trends in the Middle East. The Committee urges support 

for the work of organizations which provide accurate translations 

and balanced analysis. 

EAST TIMOR

The Committee recommends $13,500,000 for programs in East 

Timor, as requested, to support income producing projects and 

other reconstruction activities. 

The Committee welcomes the report of East Timor’s Commission 

for Reception, Truth and Reconciliation and urges the Government 

of Indonesia, East Timor and other interested nations to examine, 

consider, and respond to recommendations made in the report. The 

Committee also welcomes the report of the U.N. Secretary General’s Commission of Experts to evaluate judicial processes for serious crimes committed in East Timor in 1999 and urges the Government of Indonesia to work to implement the report’s recommendations. 

TIBET

The Committee recommends not less than $4,000,000 in assistance for programs that preserve cultural traditions, and promote 

economic development and environmental conservation in Tibetan 

communities. 

The Committee is aware of the valuable assistance the Bridge 

Fund has provided to promote Tibetan-owned and operated businesses and educational, cultural and natural resource conservation 

projects in Tibet and recommends that $2,000,000 of these funds 

should be provided to the Bridge Fund. 

The Committee recommends that $250,000 be made available 

through a nongovernmental organization, such as the National Endowment for Democracy, for the purpose of providing training and 

education of Tibetans in democracy activities, and monitoring the 

human rights situation in Tibet. The Committee supports the use 

of a greater portion of the funds made available, for activities that 

have a primary impact inside Tibet, to the extent practicable. The 

Committee encourages USAID to work closely with the Office of 

the Special Coordinator on Tibetan Issues in carrying out these 

programs. 


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At the same time, the Committee encourages organizations involved in China rule of law programs to seek out opportunities to 

conduct programs that can improve the human rights situation and 

the administration of justice in Tibetan areas, including Tibetan 

areas outside the Tibetan Autonomous Region (TAR). 

CYPRUS

The Committee recommends $15,000,000 for Cyprus as requested 

only for educational and other bicommunal projects. These funds 

provide a basis for mutual cooperation and preparation for the two 

communities of Cyprus to live together harmoniously by increasing 

inter-communal contacts. These funds provide funding for Fulbright scholarships, the Bicommunal Support Program, the United 

Nations Office for Project Service, and other related activities. The 

Committee believes that the key to successful mutual cooperation 

is balanced economic growth throughout Cyprus. 

HUMAN RIGHTS AND DEMOCRACY FUND

The Committee recommends $27,000,000 for the Human Rights 

and Democracy Fund, a decrease of $8,000,000 from the request 

and the same as the level recommended in 2006. The Committee 

further recommends that $1,200,000 should be provided to support 

the Reagan/Fascell Democracy Fellows Program of the National 

Endowment for Democracy to enable activists, scholars, journalists, 

and practitioners from around the world to help make contributions 

to the strengthening of democracy in their respective countries. 

This program was authorized in section 104(a)(2)(B) of H.R. 3427 

as enacted into law as part of Public Law 106–113, and helps keep 

alive the legacy of our former President. 

DEMOCRATIC GOVERNANCE IN THE ARAB WORLD

The Committee recognizes the importance of efforts to promote 

democratic governance and civic participation in the Arab world, 

and commends the State Department for supporting ‘‘Street Law’’ 

in its creation of an Arab-language curriculum, Islam and Democracy: Toward Effective Citizenship. 

The Committee urges the State Department, through the Middle 

East Partnership Initiative, the Bureau of Democracy, Human 

Rights, and Labor, or another appropriate program, to provide 

$2,000,000 to establish a Global Center for Education about Democracy and Islam to adopt and disseminate the curriculum in various countries throughout the Arab world. 

CREATION OF JOB OPPORTUNITIES AND CAREER TRAINING

The Committee recognizes the valuable work of the Education for 

Employment (EFE) Foundation in creating job opportunities and 

providing career training to unemployed youth in the Middle East, 

North Africa, and throughout the Muslim world. The Committee 

believes that EFE’s work to build public-private sector partnerships 

to promote education reform and economic development contributes 

to efforts to achieve stability and prosperity in these regions. 


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ROLE OF TRADE UNIONS

The Committee recognizes the important role that trade unions play in promoting democracy, the rule of law, and sustainable economic development, and recommends that the United States Agency for International Development maintain a robust global program 

to support the development of democratic trade unions. 

IRAQ PROGRAMS—COMMUNITY ACTION PROGRAM

The Iraq Community Action Program (CAP), funded by USAID, is operating in Iraq and building community-based democracy. The 

CAP program has generated a network of more than 1,300 community associations across 17 governorates in Iraq and has trained 

over 17,000 community association members. This is a successful 

program for empowering communities to improve their lives. The 

Committee directs that $50,000,000 of the funds provided for Iraq 

programs, be used to support the CAP. 

AFGHAN WOMEN AND GIRLS

The Committee directs that $7,500,000 of the funds made available for Afghanistan be provided as grants to support training and 

equipment to improve the capacity of women-led Afghan nongovernmental organizations and to support the activities of such organizations. 

INDEPENDENT HUMAN RIGHTS COMMISSION

The Committee directs that $2,000,000 of the funds made available for Afghanistan be provided to the Afghan Independent 

Human Rights Commission and other Afghan human rights organizations. 

PAKISTAN PROGRAMS

The Committee recommends $300,000,000 for ESF programs in Pakistan, a decrease of $50,000,000 from the request and the same 

as the 2006 enacted level. This reduction shall be applied to the request designated as budgetary support. The Committee urges that within the amount provided, $10,00,000 be used for rural access, health and education needs in 

South and North Waziristan Provinces. The Committee directs the 

Director of Foreign Assistance to submit a report by May 15, 2007, 

which details the expenditure of the funds provided in 2006 and 

2007. This report should, at a minimum, address the programs, 

projects, and activities supported with these funds, and an analysis 

of the impact on access to health and education needs to these 

provinces. 

The Committee is concerned about what appears to be the Government of Pakistan’s increasing lack of respect for human rights, 

especially women’s rights and the lack of progress on improving 

democratic governance and rule of law. The level of violence and 

discrimination against women has not significantly abated and 

women’s groups and advocates who bring attention to abuses 

against women are often threatened by officials. 

Therefore, within the recommended funding level, the Committee 

directs that $10,000,000 be provided through local and international NGOs working on human rights, women’s empowerment 


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and justice sector reform issues in Pakistan. The Committee does 

not intend for these funds to detract from education and health 

programs in Pakistan. The Committee further directs the Secretary 

to report to the Congress not later than 180 days after enactment, 

on the following: (1) Steps taken by the Government of Pakistan to 

establish a transparent system of judicial appointments to the High 

Courts that expands accountability for such appointments; (2) An 

assessment whether and how the special anti-terrorism and accountability courts in Pakistan have been incorporated into the ordinary judiciary; (3) Steps taken by the Government of Pakistan to 

ensure that law enforcement and judicial processes at all levels respect international human rights, including the rights of women, 

and make efforts to mitigate traditional and religious practices imposed by tribal and village councils that are harmful to women; (4) 

Status of the establishment of an independent federal election commission; (5) An analysis of the data on incidences of unlawful arrests, detentions and other harassment of opposition leaders to determine if there has been a decline in such incidences over the past 

five years. 

COLOMBIA

The Committee has provided $135,000,000 for ESF programs in 

Colombia, with language allowing funds to be transferred to the 

Development Assistance (DA) appropriation as necessary to accomplish programs designed for specific assistance programs. 

This recommendation is based on the Committee’s view that the 

time has come to transition from assistance directed at counternarcotics programs, to assistance designed to develop and promote 

the stable democracy that Colombia has become. 

The Committee directs that these funds be allocated to USAID 

for continued support of ongoing programs. The Committee believes 

that for at least the first year of this transition, it would be beneficial to maintain established oversight of these programs. However, the Committee directs that as part of its overall strategy for 

assistance for Colombia, that the Office of the Director of Foreign 

Assistance complete a review of these programs and recommend as 

part of the fiscal year 2008 budget request, adequate assistance 

funds for Colombia. 

BURMA PROGRAMS

The Committee recommends $7,000,000 for ESF programs in 

Burma. These funds are critical to supporting democracy activities 

in Burma, programs along the Burma-Thailand border, activities of 

Burmese student groups and other organizations located outside 

Burma. 

BANGLADESH

The Committee recommends $5,000,000 for ESF programs in 

Bangladesh as requested. 

The Committee recognizes the steps taken by the Government of 

Bangladesh to combat terrorism and extremism and notes the challenges posed to the government by Islamic fundamentalism. However, the committee is troubled by the Government of Bangladesh 

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cate of religious freedom and interfaith dialogue who was recently 

released from prison after being held for eighteen months without 

due process of law. The Committee remains concerned about the 

sedition charges still facing Mr. Choudhury and the potential for 

a death sentence in the event of a conviction. 

INDONESIA HUMAN RIGHTS

The Committee remains concerned about the climate for human 

rights advocates and activists in Indonesia. While the Committee 

welcomes the conviction of one of those responsible for the poisoning death of human rights lawyer Munir Said Thalib in September 2004, the Committee notes that President Yudhoyono has 

failed to release the report of the Presidential fact-finding team investigating the assassination and emphasizes the need to fully investigate any past or present senior government or military officials implicated by that report. The Committee directs the Department of State, no later than 90 days after enactment of this Act, 

to report on the current climate for human rights defenders in Indonesia, including conditions of general safety, levels of threat and 

intimidation, and success in prosecution and punishment of serious 

crimes committed against human rights defenders. 

EDUCATIONAL INSTITUTIONS IN THE MIDDLE EAST

The Committee believes the four United States chartered educational institutions in Lebanon—Lebanese American University, 

American University of Beirut, International College, and American Community School—are critical components in broadening 

educational opportunities for Lebanese students. Given the importance of United States support for these institutions and the Committee’s intent to increase funding for these schools, the Committee 

is concerned about ASHA’s decision to reduce funding for the longstanding programs with these schools. The Committee believes 

ASHA should work with the Lebanese American University, American University in Beirut, International College and the American 

Community School to overcome any shortcomings in the application 

and implementation process to ensure adequate funding for these 

long-standing programs. 

CUBA PROGRAM

The Committee recognizes the work of the United States Agency 

for International Development (USAID) Cuba Program for its role 

in promoting democracy and strengthening civil society. The Committee recognizes the successes of the Cuba Program in promoting 

democracy and humanitarian assistance programs and urges 

USAID to continue to promote this program with its goals of freedom and democracy in Cuba. 

CONFLICT RESOLUTION AND RECONCILIATION PROGRAMS

The Committee recommends a total of $15,000,000 for Conflict 

Resolution and Reconciliation Programs. Within this amount, the 

Committee recommends that $6,000,000 be used to establish a new 

reconciliation program, the Middle East People-to People Coexistence Program. All funds for the Middle East People-to-People Coexistence Program shall be distributed through a competitive grant 


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program organized by the State Department. The Department of 

State shall develop application and evaluation procedures for selecting NGO entities for grants as well as for reviewing program 

accomplishments. 

The Committee recognizes the importance of conflict resolution 

and reconciliation programs as a tool for creating a climate of peace 

in regions of conflict. The Conflict Resolution and Reconciliation 

Programs bring together individuals of different ethnic, religious, 

and political backgrounds from areas of civil conflict and war. 

Within the $15,000,000 provided for these Programs, funding 

should be made available through an established process for organizations that provide such programming. 

The Committee recommends that the Department of State give 

active consideration to proposals provided by the following organizations and entities: 

Playing for Peace 

Seeds of Peace 

Tanenbaum Center for Inter-Religious Understanding 

One Voice 

Hand in Hand 

International Exchange 

Jerusalem International YMCA Project Children 

Interns for Peace 

With the establishment of the Middle East People-to-People Coexistence Program, the Committee recognizes that the historical 

application of funds for Conflict Resolution and Reconciliation Programs will change. Therefore, the Committee requests the Department of State devise an equitable funding distribution of these 

funds to ensure that the grant application and award process recognizes projects that fall into the category of Middle East Peopleto-People Coexistence Program and other areas of conflict. 

The Committee requests that the Department of State initiate an 

annual report on the status of applications and funding for these 

and other organizations supported through this program. Such report should be provided to the Committee not later than May 1 of 

each year. 

TRAFFICKING IN PERSONS PROGRAM

The Committee recommends $8,000,000 for the Trafficking in 

Persons program. 

TRADE CAPACITY BUILDING PROGRAM

The Committee recommends no appropriation for the Trade Capacity Building program, a $20,000,000 decrease from the request. 

These funds were instead appropriated in a new appropriation, the 

Trade Capacity Enhancement Fund (TCEF) addressed later in this 

report. 

ASIA-PACIFIC PARTNERSHIP PROGRAM

The Committee recommends no appropriation for the Asia-Pacific 

Partnership Program, a decrease of $26,000,000 from the request. 

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rial in time for careful examination. Therefore, the Committee will 

work with the Administration during the appropriations process to 

better understand the justification for this program. 

PARLIAMENTARY EXCHANGES

The Committee recommends $1,000,000 for the House Democracy 

Assistance Commission, an increase of $1,000,000 from the request 

and the same as the 2006 enacted level. 

The Committee notes that this program is not included in the fiscal year 2007 justification material and is therefore subject to the 

notification requirements of section 515. 

FOUNDATION FOR SECURITY AND SUSTAINABILITY

The Committee recommends that up to $3,000,000 be provided to 

continue regional stability, conflict management and mitigation efforts. The Committee continues to support the work of the Foundation for Environmental Security and Sustainability (FESS) to address critical United States national security interests in the context of regional instability arising from resource scarcity and management practices, natural hazards, and other environmental 

stresses. The Committee recognizes the continuing importance of 

FESS’s conflict management and mitigation efforts, in particular, 

FESS’s new initiative to develop a regional/global approach for extractive industries that promote stability and security in some of 

the most troubled areas of the world. 

INTERNATIONAL FUND FOR IRELAND

Fiscal year 2006 enacted level ........................................................... $13,365,000 

Fiscal year 2007 request .................................................................... 0 

Committee recommendation .............................................................. 10,800,000 

Change from request ................................................................... +10,800,000 

Change from enacted level ......................................................... ·2,565,000 

The Committee recommends a total of $10,800,000 for the International Fund for Ireland in support of the Anglo-Irish Accord, a 

$10,800,000 increase to the request and a $2,565,000 decrease from 

the enacted level. The Committee encourages the Fund to address 

the important issue of social reintegration, by promoting long-term 

development work and education. 

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

Fiscal year 2006 enacted level ........................................................... $357,390,000 

Fiscal year 2007 request .................................................................... 273,900,000 

Committee recommendation .............................................................. 227,900,000 

Change from request ................................................................... ·46,000,000 

Change from enacted level ......................................................... ·129,490,000 

The Committee recommends a total of $227,900,000 for Assistance for Eastern Europe and the Baltic States, a $46,000,000 decrease from the request and a $129,490,000 decrease from the enacted level. 

The Committee recommends no appropriation from this account 

for trade capacity building programs, resulting in a $41,300,000 reduction from the request. These funds are appropriated under 

‘‘Trade Capacity Enhancement Fund’’. Adjusting for this shift in 

appropriations, the recommendation for this account is $4,700,000 


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below the request and $88,190,000 below the fiscal year 2006 enacted level. 

The Committee notes that funds provided from this account shall 

be used for assistance and for related programs for Eastern Europe 

and the Baltic States. Programs which predominantly benefit other 

regions of the world shall not be funded from this account. The Committee has recommended the same bill language as in previous Acts that authorizes the President to withhold funds for 

economic revitalization for Bosnia if he determines that Bosnia is 

not in compliance with the Dayton Accord regarding the presence 

of foreign forces and has not terminated intelligence cooperation 

with Iranian officials. All funds are subject to the provisions of section 529 of this Act. 

The following table compares fiscal year 2006 funding for the programs covered by this account, as well as the President’s request for fiscal year 2007 and the Committee recommendation: 

ASSISTANCE TO EASTERN EUROPE AND THE BALTIC STATES 

Fiscal year 2006 

enacted 

Fiscal year 2007 

request 

Committee 

recommendation 

Albania ...................................................................................... $27,700,000 $20,000,000 $20,000,000 

Bosnia and Herzegovina ........................................................... 39,600,000 31,000,000 31,000,000 

Bulgaria .................................................................................... 19,800,000 0 0 

Croatia ...................................................................................... 14,900,000 0 0 

Kosovo ....................................................................................... 74,300,000 79,000,000 77,700,000 

Macedonia ................................................................................. 34,700,000 27,000,000 27,000,000 

Romania .................................................................................... 19,800,000 0 0 

Serbia and Montenegro ............................................................. 84,450,000 70,500,000 70,000,000 

Serbia ............................................................................... [69,300,000] [not specified] [60,000,000] 

Montenegro ....................................................................... [14,850,000] [not specified] [10,000,000] 

Regional .................................................................................... 42,500,000 46,400,000 43,500,000 

OSCE ................................................................................ [not specified] [28,500,000] [28,500,000] 

Southern ........................................................................... [not specified] [17,900,000] [15,000,000] 

Appropriated in Trade Capacity Enhancement Fund ............... .............................. .............................. [41,300,000] 

Total ........................................................................ 357,390,000 273,900,000 227,900,000 

MONTENEGRO

The Committee continues its strong support for the Republic of 

Montenegro. The Committee recommendation includes $10,000,000 

for Montenegro, a reduction of $4,850,000 below fiscal year 2006. 

The Committee expects the Department of State and USAID to 

consult with the Committee prior to the programming of funds for 

Montenegro for fiscal year 2007. 

REGIONAL PROGRAMS

The Committee recommendation includes $43,500,000 for regional programs. This category funds environmental infrastructure, 

independent media support, civil society and rule of law, health 

promotion and care, economic development and other programs. 

The Committee urges USAID to consider an application from Olive 

Branch International to support the programs of its Teen Rescue 

program in Estonia. 

RULE OF LAW

The Committee views efforts to promote the rule of law worldwide as a critical component of United States foreign policy. The 


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Committee strongly supports the public service projects initiated by 

the American Bar Association (ABA) to strengthen democracy 

through programs that promote the rule of law in transitional 

countries. These effective programs rely predominantly on the volunteer efforts of American lawyers and have achieved sustainable 

results. The Committee recommends continued funding through cooperative agreements for the ABA’s programs at a level comparable 

to the fiscal year 2006 level, taking into account the overall reduction in this account. The Committee notes that ABA should not rely 

upon United States funding to renovate or build facilities, but 

should instead use private financing as agreed in 2003. 

The ABA has expanded its legal reform efforts into Asia, Africa, 

Latin America and the Caribbean, and the Middle East, with programs in Jordan, Bahrain, Morocco, Iraq, Afghanistan, Rwanda, 

Kenya, Liberia, China, Indonesia, the Philippines, Ecuador, Costa 

Rica, and Mexico. The Committee recommends support for such 

programs from the appropriate accounts. The Committee continues 

to support the use of cooperative agreements for funding such programs. 

TRAINING AND EXCHANGES

The Committee directs USAID to extend the East Central European Scholarship Program (ECESP) cooperative agreement in both 

Albania and Macedonia during fiscal year 2007 and consult with 

the Committee not later than September 30, 2006, regarding future 

utilization of ECESP’s unique services. 

The Committee recommendation includes funding for the Russian, Eurasian, and East European Research and Training Program (Title VIII) comparable to the fiscal year 2006 level. The 

Committee also encourages the use of Title VIII funds to include 

comparative research and language training concerning Eurasian 

countries critical to the war against terrorism. The Committee expects the fiscal year 2008 budget request to shift funding for this 

program to accounts which focus on educational, research, and exchange activities. 

ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET

UNION

Fiscal year 2006 enacted level ........................................................... $508,860,000 

Fiscal year 2007 request .................................................................... 441,000,000 

Committee recommendation .............................................................. 371,280,000 

Change from request ................................................................... ·69,720,000 

Change from enacted level ......................................................... ·137,580,000 

The Committee recommends a total of $371,280,000 for the Independent States of the Former Soviet Union, a $69,720,000 decrease 

from the request and a $137,580,000 decrease from the enacted 

level. 

The Committee recommends no appropriation from this account 

for trade capacity building programs, resulting in a $64,200,000 reduction from the request. These funds are appropriated under 

‘‘Trade Capacity Enhancement Fund’’. Adjusting for this shift in 

appropriations, the recommendation for this account is $5,520,000 

below the request and $73,380,000 below the fiscal year 2006 enacted level. 


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The Committee notes that funds provided from this account shall 

be used for assistance and for related programs for states of the 

former Soviet Union. Programs which predominantly benefit other 

regions of the world shall not be funded from this account. The Committee continues in subsection (a) prior year language applying the provisions of section 498B(j) of the Foreign Assistance 

Act. A general provision (section 517) also includes long-standing 

language on human rights, and non-use of funds for enhancing 

military capacities, and providing all funds subject to separate notification. 

The following table compares fiscal year 2006 funding for the 

programs covered by this account, as well as the President’s request for fiscal year 2007 and the Committee recommendation: 

ASSISTANCE FOR THE STATES OF THE FORMER SOVIET UNION 

Fiscal year 2006 enacted Fiscal year 2007 

request 

Committee recommendation 

Europe and Eurasia: 

Armenia ............................................................................ $74,250,000 $50,000,000 $62,000,000 

Azerbaijan ........................................................................ 34,650,000 28,000,000 29,000,000 

Belarus ............................................................................. 11,880,000 10,000,000 10,000,000 

Georgia ............................................................................. 66,330,000 58,000,000 55,000,000 

Moldova ............................................................................ 18,810,000 16,000,000 15,000,000 

Russia .............................................................................. 79,200,000 58,000,000 58,000,000 

Ukraine ............................................................................. 83,160,000 85,000,000 80,000,000 

OSCE-Regional ................................................................. 0 12,000,000 12,000,000 

Regional FSA .................................................................... 42,570,000 29,430,000 24,480,000 

Subtotal, Europe and Eurasia ................................ 410,850,000 346,430,000 345,480,000 

South Asia: 

Kazakhstan ....................................................................... 24,750,000 19,000,000 19,000,000 

Kyrgyz Republic ................................................................ 24,750,000 32,000,000 29,000,000 

Tajikistan ......................................................................... 23,760,000 22,000,000 22,000,000 

Turkmenistan ................................................................... 4,950,000 5,000,000 5,000,000 

Uzbekistan ........................................................................ 19,800,000 15,000,000 15,000,000 

Central Asia-Regional ...................................................... 0 1,570,000 0 

Subtotal, South Asia ............................................... 98,010,000 94,570,000 90,000,000 

Trade Capacity Building transfer out ....................................... .............................. .............................. 64,200,000 

Total ................................................................................. 508,860,000 441,000,000 371,280,000 

CHILD SURVIVAL AND HEALTH

The Committee notes the strong support of the Administration 

for programs to address adverse maternal and environmental 

health conditions and the increasing incidence of TB/HIV in Russia, Ukraine, and the Central Asian Republics. As this account is 

phasing down, the Administration should be developing strategies 

to continue these important programs from other accounts. In order 

to demonstrate its support for these high priority activities, the 

Committee has included bill language allocating not less than 

$41,000,000 for health and child survival activities. The Committee 

notes that the Primary Health Care Initiative of the World Council 

of Hellenes is an important project, and the Committee urges 

USAID to continue robust support for this program in fiscal year 

2007. In addition, the Committee notes that the Firefly Children’s 

Network is working in Russia to help children with disabilities. 


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The Committee recognizes the contribution made by the Eurasian Medical Education Program of the American College of Physicians to the problems of HIV/AIDS and chronic disease in Russia. 

The Committee expects that funding afforded this program for its 

activities in western and eastern Russia in fiscal year 2007 will be 

comparable with that in fiscal year 2006. 

RUSSIA-IRAN

The Committee has carried for several years language restricting 

assistance for the government of Russia due to its support for the 

Iranian nuclear program. Russian cooperation with Iran has, at the 

minimum, contributed to Iran’s recently demonstrated uranium enrichment capability. In addition, Russia’s continued support for 

Iran’s ballistic missile capacity has directly contributed to increasing regional instability. The Committee expects the President to 

make this ongoing cooperation a central issue at the G8 Summit 

in St. Petersburg. The Committee continues its restrictions on 

funding for the Russian government again this year. 

SUPPORT OF PEACEFUL RESOLUTION OF SOUTH CAUCASUS CONFLICTS

The Committee continues its strong support for confidence-building measures among the parties to the Nagorno-Karabakh conflict. 

The Committee expects the State Department to use its authority 

under section 498B of the Foreign Assistance Act as necessary to 

carry out such programs. 

The Committee continues to be concerned about the plight of the 

victims of the Nagorno-Karabakh conflict, and recommends that up 

to $5,000,000 should be made available to address ongoing humanitarian needs in Nagorno-Karabakh. 

The Committee has included renewed authority for the President 

to provide humanitarian assistance to the region, notwithstanding 

the restrictions of section 907 of the FREEDOM Support Act. The 

bill language is unchanged from previous years. 

DEMOCRACY AND HUMAN RIGHTS

The Committee recognizes the excellent work of the Eurasia 

Foundation in promoting democratic change at the grass roots level 

throughout the independent states of the former Soviet Union. The 

Foundation has recently embarked on an initiative to create selfsustaining legacy foundations in several countries. The Committee 

recommends that the Foundation receive funding comparable to 

previous years. 

The Committee notes the many accomplishments of the Civilian 

Research and Development Foundation (CRDF), which has, for the 

last decade, helped to channel the research activities of weapons 

scientists in the Former Soviet Union (FSU) in constructive directions. The Committee recommends continued funding for CRDF 

from this account at a level comparable to fiscal year 2006 for activities which primarily benefit this region. CRDF is expanding its 

activities globally, including work with scientists and engineers 

from the Middle East, North Africa, and elsewhere outside the FSU 

region, and the Committee expects the Administration to fund 

these activities from the appropriate accounts. 


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The Committee recognizes the value of the work that the Moscow School of Political Studies has done to educate young Russian professionals and public servants on how to participate honestly and 

productively in running their own country. The School’s seminars 

and publications are an invaluable contribution to democracy-building in Russia, and the Committee directs the State Department to 

provide $500,000 in fiscal year 2007 to support its programs. 

UKRAINE

The Committee believes that the greatest hope for Ukrainian de- mocracy rests with realizing the economic aspirations of the 

Ukrainian people. The Committee thus supports the Administration’s emphasis on strengthening Ukrainian economic growth. However, the Committee is concerned with the amount of time 

that has passed since the March, 2006 elections without the formation of a new coalition government. The Committee strongly supports United States efforts to strengthen Ukraine’s democratic institutions and encourages the Office of the Director of Foreign Assistance to prioritize funding for such programs which are selected 

through a competitive process and are consistent with United 

States policy. The Committee notes that the Ukrainian Congress 

Committee of America and the U.S.-Ukraine Foundation have 

worked in this area. 

BELARUS

The Committee is deeply concerned with the increasingly repres- sive regime in Belarus and encourages the government of Belarus 

to return to the democratic community. The Committee supports 

the efforts of the State Department, USAID, and the European 

states to help the Belarusian people access accurate and timely information. 

AZERBAIJAN

The Committee is encouraged by the steps taken by the government of Azerbaijan toward a democratic state and appreciates the 

government of Azerbaijan’s support for the global war on terror. 

TRADE CAPACITY ENHANCEMENT FUND

Fiscal year 2006 enacted level ........................................................... ............................

Fiscal year 2007 request .................................................................... ............................

Committee recommendation .............................................................. $522,000,000 

Change from request ................................................................... +522,000,000 

Change from enacted .................................................................. +522,000,000 

DIRECTOR OF TRADE CAPACITY ENHANCEMENT AND TRADE CAPACITY

ENHANCEMENT FUND

The Committee recommends a provision (Sec. 586) that establishes a new office, the Director of Trade Capacity Enhancement, 

within the United States Agency for International Development 

(USAID). 

This new office would be responsible for implementing all of 

USAID’s trade capacity building programs, managing the implementation of all programs developed by the State Department for 

trade capacity building, monitoring applicability of the appropriations financed in title I and title IV of the Foreign Operations bill 


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for the enhancement of trade capacity, and coordinating the government-wide trade capacity building efforts. Most especially, the 

Director shall ensure that countries desirous of applying for, or enhancing existing, trade capacity building agreements are provided 

sufficient support from the United States through his efforts at 

building trade capacity. 

The term trade capacity enhancement is defined to mean the fol- lowing set of programs and activities: (1) Trade Facilitation assistance in lowering the costs of engaging in, or eliminating obstacles 

to international trade flows; (2) Human Resources and Labor 

Standards assistance to support the enforcement of labor standards 

and worker rights, development of trade unions and dispute resolution mechanisms, strategies for workforce development and worker 

training, and the elimination of child labor; (3) Physical Infrastructure Development assistance to establish trade-related telecoms, 

transport, ports, airports, power, water, and industrial zones; (4) 

Trade-Related Agricultural Development support for trade-related 

aspects of the agriculture and agribusiness sectors; (5) Environmental Sector Trade & Standards assistance to establish environmental standard or to promote environmental technology; (6) Governance/Transparency & Inter-Agency Coordination support for 

legal and institutional reform to improve governance and make 

policies more transparent, as well as assistance to help the different agencies of a host country government function more effectively in the trade policy arena; (7) Financial Sector Development 

& Good Governance support for financial sector work, monetary 

and fiscal policy, exchange rates, commodity markets, and capital 

markets; (8) Competition Policy & Foreign Investment support for 

the design and implementation of antitrust laws, as well as of laws 

and regulations related to investment and investor protections; (9) 

Services Trade Development: support to help developing countries 

and transition economies increase their flows of trade in services; 

(10) WTO Awareness, Accession and Agreements: assistance to 

help governments and private sector institutions benefit from membership in the WTO, or to understand fully the benefits of membership; assistance to help countries in the WTO Accession process 

meet the requirements of accession; and assistance that enables 

countries to better participate in, and benefit from, particular WTO 

Agreements. The Committee expects such assistance programs will 

address social and economic inequities and seek to ensure that the 

benefits of trade are accessible to all segments of society, particularly women and minority or marginalized communities. 

The Director of Foreign Assistance has communicated to the 

Committee that it is his intent that the United States Embassy 

personnel in overseas locations will be required, at the direction of 

the United States Ambassador to the country, to develop strategic 

goals and implementation plans for these goals. This office of the 

Director of Trade Capacity Enhancement would be responsible for 

ensuring that country strategic plans, as appropriate, include a 

trade capacity enhancement strategic goal and for monitoring the 

implementation plan for achieving this goal. 

In addition, the Committee recommends a new appropriation, the 

Trade Capacity Enhancement Fund. This $522,000,000 appropriation shall be managed by the Director of Trade Capacity Enhancement in support of trade capacity enhancement strategic goals. At 


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least $40,000,000 must be made available for implementing the 

Central American Free Trade Agreement (CAFTA), including supporting labor and environmental capacity building programs related to CAFTA, and at least $40,000,000 must be made available 

for implementing free trade agreements with the United States 

agreed to in 2006 and later. 

The Committee has provided authority for the Director to transfer funds as necessary to implement programs in the following appropriations as necessary to meet trade capacity enhancement strategic goals by country: Development Assistance, Economic Support 

Fund, Assistance for Eastern Europe and the Baltic States, Andean 

Counterdrug Initiative, and Assistance for the Independent States 

of the Former Soviet Union (FSA). 

For a number of years, Congress has provided assistance for 

trade capacity building by setting aside a total amount of funds 

from the Foreign Operations, Export Financing, and Related Programs appropriations bills. In fiscal year 2005, Congress set aside 

a total of $507,000,000, and in fiscal year 2006, Congress set aside 

a total of $522,000,000 for trade capacity building. 

According to USAID officials, this Congressional direction has 

been implemented through various appropriations included in the 

Foreign Operations bills. For fiscal year 2007, the Committee believes that the following amounts in the following appropriations 

accounts would be used to implement programs, projects and activities in support of the fiscal year 2007 trade capacity building efforts of the USAID and State Department. To ‘‘capitalize’’ the 

Trade Enhancement Fund in fiscal year 2007, the Committee has 

made the appropriate reductions in the amounts requested for 

these appropriations and moved this money to the Trade Capacity 

Enhancement Fund for management by the Director of Trade Capacity Enhancement: 

Development Assistance, $214,000,000 

Economic Support Fund, $140,000,000 

Assistance for Eastern Europe and the Baltic States, 

$41,300,000 

Assistance for the Independent States of the Fonner Soviet 

Union, $64,200,000 

Andean Counterdrug Initiative, $62,500,000 

INDEPENDENT AGENCIES 

INTER-AMERICAN FOUNDATION

Fiscal year 2006 enacted level ........................................................... $19,305,000 

Fiscal year 2007 request .................................................................... 19,268,000 

Committee recommendation .............................................................. 19,268,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... ·37,000 

The Committee recommends $19,268,000 for the Inter-American 

Foundation, the same as the request and $37,000 below the fiscal 

year 2006 level. 


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AFRICAN DEVELOPMENT FOUNDATION

Fiscal year 2006 enacted level ........................................................... $22,770,000 

Fiscal year 2007 request .................................................................... 22,726,000 

Committee recommendation .............................................................. 22,726,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... ·44,000 

The Committee recommends $22,726,000 for the African Development Foundation, the same as the request and $44,000 below the 

fiscal year 2006 level. 

The Committee continues to strongly support the African Development Foundation’s efforts to identify and leverage non-appropriated resources. The Committee requests the President of the 

Foundation to include this data in the congressional budget justification accompanying the fiscal year 2008 budget request. 

The Committee maintains bill language carried in prior years on 

investments authorized by the Foundation’s Board; interest earned; 

ability of Board to waive $250,000 cap on grants in exceptional circumstances; and requirement to report to the Committee if such 

authority is exercised. It also adds language requested in the budget to permit a project for which the Board has waived the $250,000 

cap to exceed the cap by up to $10,000 if the increase is due solely 

to foreign currency fluctuations. 

PEACE CORPS

Fiscal year 2006 enacted level ........................................................... $318,780,000 

Fiscal year 2007 request .................................................................... 336,700,000 

Committee recommendation .............................................................. 324,587,000 

Change from request ................................................................... ·12,113,000 

Change from enacted level ......................................................... +5,807,000 

The Committee recommends $324,587,000 for the Peace Corps, 

an amount that is $12,113,000 below the request and $5,807,000 

above the amount enacted for fiscal year 2006. 

The Committee again has included language permitting the 

Peace Corps Director to transfer up to $2,000,000 to establish an 

account to help mitigate the effects of currency exchange fluctuation. The Committee also expects the Peace Corps to transfer into 

this account net gains due to beneficial currency fluctuations when 

applicable. 

The Committee recommendation includes a new section (Section 

570), as requested in the budget, establishing a fund for the Peace 

Corps to provide separation pay for host country resident personal 

services contractors of the Peace Corps. The fund will be maintained by annual government contributions which are appropriated 

within this account. 

MILLENNIUM CHALLENGE CORPORATION

Fiscal year 2006 enacted level ........................................................... $1,752,300,000 

Fiscal year 2007 request .................................................................... 3,000,000,000 

Committee recommendation .............................................................. 2,000,000,000 

Change from request ................................................................... ·1,000,000,000 

Change from enacted level ......................................................... +247,700,000 

The Committee recommends a total of $2,000,000,000 for the 

Millennium Challenge Corporation (MCC), a $1,000,000,000 decrease from to the request and a $247,700,000 increase to the enacted level. 


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The recommended reduction solely reflects the constrained budgetary situation in fiscal year 2007, and more specifically the Committee’s allocation relative to the President’s request and the need 

to address funding increases for other Presidential initiatives. A 

funding limitation of $95,000,000 is set for administrative expenses. 

The Committee continues its strong support for the MCC and regards it as a significant step forward in the provision of accountable and transformative foreign assistance. The Committee notes 

the MCC’s early and frequent consultations regarding potential 

compact and threshold assistance and expects such consultations to 

continue in fiscal year 2007. 

THRESHOLD COUNTRIES

The Committee has again included a provision authorizing 10 

percent of funds for threshold country programs. The Committee 

notes that the MCC has determined that countries can be simultaneously eligible for Compacts and for threshold programs. The 

Committee recognizes that country eligibility may often be tenuous 

and in need of continued support. In cases where the MCC had initiated a threshold program with a country previously ineligible for 

an MCA compact, the Committee supports the continuation of the 

threshold program even if the country subsequently becomes eligible for a Compact. However, the Committee notes that the primary 

purpose of threshold assistance is to help countries ineligible for 

Compacts address the deficiencies which prevent them becoming eligible. The Committee expects the MCC to clarify its threshold program guidance to reflect the circumstances under which countries 

may be eligible for both categories of funding. 

MULTI-YEAR COMPACTS

The Committee includes once again a provision that requires the 

MCC to only enter into Compacts for which it has complete funding 

available from existing appropriations. The Committee will not 

allow the MCC to commit future Congresses to funding prior year 

Compacts. 

LOWER MIDDLE INCOME COUNTRIES

The Committee reiterates its support for the provisions under 

section 609(b)(2) of the Millennium Challenge Act of 2003 which requires lower middle income countries to make an incremental contribution relative to their national budget in support of the poverty 

reduction objectives of the compact. The Committee expects this information to be detailed in each appropriate Compact. 

COMPACTS WITH REGIONAL GOVERNMENTS

As in previous years, the Committee requires the MCC to consult 

with the Committee immediately upon determining that the national government of an eligible country is not an appropriate partner with which to negotiate Compacts, and that engagement with 

a regional or other sub-national entity is required. 


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COMPACT EXTENSION

The Committee notes that the development priorities of many 

Compact-eligible countries may include significant rural development programs. As a result, the MCC has received, and approved, 

proposals for complicated infrastructure and agricultural development projects. However, the five-year limitation on compact duration may have a dampening effect on the types of projects that the 

MCC can fund. 

The Committee requests that the MCC, if necessary, recommend 

to the appropriate authorizing committees legislative changes to 

address this problem. 

609(g) FUNDING

The Committee is concerned that the flexibilities of 609(g) may 

be misinterpreted by some Compact-eligible countries. Congress 

provided 609(g) authority as a last resort to overcome otherwise insurmountable obstacles to Compact development and implementation. The Committee directs the MCC to include in its country notification paperwork guidance on the 609(g) function. 

DEPARTMENT OF STATE 

GLOBAL HIV/AIDS INITIATIVE

Fiscal year 2006 enacted level ........................................................... $1,975,050,000 

Fiscal year 2007 request .................................................................... 2,894,000,000 

Committee recommendation .............................................................. 2,772,500,000 

Change from request ................................................................... ·121,500,000 

Change from enacted level ......................................................... +797,450,000 

The Committee appropriates $2,772,500,000 for the ‘‘Global HIV/ 

AIDS Initiative’’ account, $797,450,000 more than enacted in fiscal 

year 2006 and $121,500,000 less than requested by the President. 

As in the previous year, the Committee appropriates all funding for 

the fifteen focus countries in this account. 

This account is the primary source of funding for the Emergency 

Plan for AIDS Relief (PEPFAR). Amounts under Child Survival 

and Health Programs Fund, other accounts in this Act, and funding provided from other appropriations Acts are also included in 

PEPFAR. 

The Committee has included total Emergency Plan funding of 

$3,431,472,000 as outlined in the table below. This is $751,642,000 

above the enacted level and the same as the request. In addition 

to the amounts within this Act, the Committee notes that the 

President’s budget request includes another $589,958,000 within 

the Department of Health and Human Services and $10,000,000 

from the P.L. 480, Food for Peace Program, for global HIV/AIDS activities. The Committee also notes that it has included up to 

$444,500,000 for the United States contribution to the Global Fund 

to Fight AIDS, Tuberculosis and Malaria in this Act, $200,000,000 

within the Child Survival and Health Programs Fund and 

$244,500,000 within this account. This is $244,500,000 more than 

requested by the President. 


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GLOBAL HIV/AIDS FUNDING

Category Allocation 

Global HIV/AIDS Initiative Funds ................................................................................................................ $2,772,500,000 

CSHF—HIV/AIDS (bilateral) ........................................................................................................................ 426,621,000 

CSHF—Global Fund to Fight AIDS, TB, and Malaria ................................................................................ 200,000,000 

Other Accounts ........................................................................................................................................... 32,351,000 

Subtotal—Foreign Operations ........................................................................................................... 3,431,472,000 

HHS—Bilateral Programs (request) ........................................................................................................... 589,958,000 

P.L. 480 (request) ...................................................................................................................................... 10,000,000 

Total—Global HIV/AIDS ..................................................................................................................... 4,031,430,000 

Within the amounts outlined above, the recommendation includes $91,553,000 for TB programs. These amounts are more fully 

described under the heading ‘‘Child Survival and Health Programs 

Fund’’. In addition, it is estimated that $89,389,000 of the United 

States contribution to the Global Fund will support TB prevention 

and control programs and $63,830,000 will support malaria related 

activities. 

The Committee commends the United States Office of the Global 

AIDS Coordinator for its continued efforts at transparency. The 

Committee requests the Office of the Global AIDS Coordinator to 

continue to submit quarterly obligation and transfer reports as required in prior years. 

Non-focus countries 

The Committee again includes not less than $50,000,000 in this 

account for ‘‘non-focus’’ country programs. The Committee notes 

that information regarding the non-focus country programs receiving additional assistance in fiscal year 2007 was not incorporated 

into the Office of the Global AIDS Coordinator’s congressional 

budget justification for fiscal year 2007 as requested in last year’s 

Committee Report. Therefore, the Committee again requests that 

the Office of the Global AIDS Coordinator submit to the Committee 

within 60 days of enactment a list of the non-focus countries that 

will receive additional ‘‘Global HIV/AIDS Initiative’’ funding in fiscal year 2007. In addition, the Committee directs that the nonfocus country information be incorporated into congressional budget justification accompanying the fiscal year 2008 request. 

Voluntary contribution to the Global Fund To Fight AIDS, Tuberculosis and Malaria 

The fiscal year 2007 budget request for the United States contribution to the Global Fund To Fight AIDS, Tuberculosis and Malaria (Global Fund) totals $300,000,000. Of that amount, 

$200,000,000 is to be derived from this Act and $100,000,000 from 

the Act providing appropriations for the Department of Health and 

Human Services. The Committee recommendation includes up to 

$200,000,000 from the ‘‘Child Survival and Health Programs 

Fund’’, and $244,500,000 from this account, for a total of 

$444,500,000 for the United States contribution to the Global 

Fund. 


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This funding is subject to provisions in Public Law 108–25, including the ‘‘matching funding’’ provision, and to additional provisions contained in this Act. Any funding not released to the Global 

Fund due to the provisions in this Act or Public Law 108–25 should 

be used by the Office of the Global AIDS Coordinator for programs 

to strengthen the Global Fund and for bilateral activities, including 

additional funding to ‘‘non-focus’’ countries. The Committee expects 

the Office of the Global AIDS Coordinator to consult with the Committee on the use of such funds. 

The Committee is aware that the Global Fund’s Policy and Strat- egy Committee (PSC) is currently deliberating the Global Fund’s 

business model and structures. This process is intended to set the 

strategic course of the Global Fund from 2007–2010. The Committee strongly urges that the Global AIDS Coordinator (Coordinator) underscore to officials of the Global Fund the commitment 

of the United States to funding a performance-based, results-oriented, financing instrument to combat HIV/AIDS, tuberculosis, and 

malaria. The Committee remains concerned about efforts within 

the donor community to expand the mandate of the Global Fund 

to broader, general support for national Health Ministries or to 

alter its operating structure to become more of an implementing organization. Furthermore, the Committee directs the Coordinator to 

notify the Committee of any proposal and/or action that would 

move the Global Fund from project support to budget support, 

erode the Global Fund’s results-based disbursement structure, lesson the role of the technical review panel, or weaken the Comprehensive Funding Policy in order to fund new grant rounds. 

The Committee notes that in fiscal year 2005, the Coordinator 

exercised the five percent option to provide technical assistance to 

grants of the Global Fund. The Committee is pleased with the 

high-level of interagency coordination and cooperation that is guiding the use of these technical assistance resources. The Committee 

encourages the Coordinator to continue supporting the Global Fund 

and United States efforts to help establish and sustain Country Coordinating Mechanisms (CCM’s) and Principal Recipients, monitor 

grants, and otherwise improve the performance of Global Fund 

grants. The Committee also encourages the Global Fund Secretariat to accelerate initiatives to share grant performance information with technical partners, like the United States, and urges the 

Global Fund to complete its comprehensive ‘‘Early Alert and Response System.’’ The Committee again has included permissive authority for the Coordinator to use up to five percent of the funds 

made available in this Act for contribution to the Global Fund to 

provide technical assistance to Global Fund grants. The Committee 

directs that this funding should not be used to provide assistance 

for writing applications since other donors provide such assistance. 

Finally the Committee notes that for fiscal year 2007 the bill language providing this authority has been shifted from the Child Survival and Health Programs Fund account to the Global HIV/AIDS 

Initiative account. 

In fiscal year 2006, twenty percent of the United States contribution to the Global Fund was conditioned on certain steps the Global 

Fund needed to take to improve its efficiency, transparency, and 

accountability. The Committee has included a modified version of 

this provision for fiscal year 2007 (Section 525). The Committee 


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recognizes that the Global Fund Secretariat has taken several significant steps to improve its operations, especially the establishment of an independent Office of Inspector General. The Committee will continue to closely monitor the implementation of these 

decisions and urges the Office of the Global AIDS Coordinator to 

provide updates to the Committee on the development of the Global 

Fund’s Office of Inspector General, the implementation of the CCM 

guidelines, and coordination of technical assistance. 

In addition, the Committee notes with interest the Secretariat’s 

potential, as stated in the Executive Director’s report to the 13th 

Board Meeting, for listing on the Global Fund’s website the performance grades that grants receive for each disbursement, information not yet publicly available. The Committee also expresses its 

interest in the launch of the five-year evaluation process of the 

Global Fund under the guidance of the Technical Evaluation Reference Group. Finally, the Committee believes that the evaluation 

must focus on outcomes, not process indicators, and measure the 

country-level and global impact of financial decisions made by the 

Global Fund in the fight against the three diseases in order for 

both donor and recipient nations to adequately assess the efficacy 

of Global Fund activities and expenditures. 

Palliative care 

The Committee understands that in fiscal year 2005, the Emergency Plan committed $121,000,000 to support the delivery of palliative care to 1.7 million individuals suffering from HIV/AIDS. The 

Committee also understands that inadequate human capacity remains a major challenge to ensuring quality of care for people living with HIV/AIDS, with nurses and health care providers in very 

short supply in many PEPFAR countries. The Committee requests 

that the Coordinator be prepared to report on palliative care expenditures and activities, particularly steps taken to address shortages in both health care professionals and lay workers and volunteers, during the hearing on the fiscal year 2008 budget request. 

UNAIDS 

The Committee reiterates its commitment to ensuring coordination of all donor assistance for HIV/AIDS at the country level, and 

acknowledges the important role of UNAIDS in ensuring in-country 

coordination, capacity building, and monitoring and evaluation activities. These are critical functions which must be supported to 

keep pace with both the epidemic and the growing global response 

to it. The Committee expects that the Coordinator will provide 

funding to UNAIDS at not less than the amount requested. 

Microbicides 

The Committee is alarmed by the dramatic increase in HIV infections among girls and women, and notes that being female, married, and poor are often the most significant risk factors for acquiring HIV, particularly in sub-Saharan Africa. The Committee believes that this feminization of the HIV/AIDS pandemic justifies increasing support for research and development of prevention technologies that women can initiate and control, such as microbicides. 

The Committee urges the Coordinator to consider allocating additional PEPFAR funds to support the development of safe, effective 


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microbicides and to support clinical trials, including treatment for 

those who become infected during those trials. 

Orphans and vulnerable children 

The United States Leadership Against HIV/AIDS Tuberculosis, 

and Malaria Act of 2003, sets aside not less than 10 percent of 

PEPFAR funding for assistance to orphans and vulnerable children 

affected by HIV/AIDS. The Committee supports these critical programs and urges the Coordinator to ensure that the statutory mandate is met and that resources are directed to both build the longterm capacity of local organizations and communities to support 

and deliver services and the capacity of families to identify, locate, 

protect and care for orphans and vulnerable children affected by 

HIV/AIDS. 

Tuberculosis (TB) 

The Committee notes that TB is a leading killer of people with 

AIDS, and therefore recommends that the Global AIDS Coordinator, in concert with host country governments and other donors, 

work in focus countries toward: (1) expanding investment in TBHIV in order to increase TB treatment of co-infected individuals; 

(2) developing national strategies to offer TB patients counseling 

and testing for HIV, and screen and appropriately diagnose people 

living with HIV for TB; (3) ensuring national guidelines for the 

care and treatment of TB/HIV infected individuals are in place; and 

(4) coordinating with other donors and the WHO for technical support for TB-HIV programs to ensure collaboration of efforts. 

Gender-based violence follow-up 

The Committee understands that the Office of the Global AIDS 

Coordinator (OGAC) has placed an emphasis on ensuring that initiatives to address the relationship between HIV/AIDS and genderbased violence (GBV) are integrated into PEPFAR programs. The 

Committee commends the Coordinator for the establishment of the 

Gender Technical Working Group, which has the goal of improving 

the way in which PEPFAR addresses the complexities of gender 

within its programs. The Committee notes the importance of a wide 

range of interventions in addressing the relationship between HIV/ 

AIDS and GBV, including the provision of post-exposure prophylaxis (PEP) and psychosocial support services, addressing GBV-related issues in youth-targeted prevention programs, and programs 

aimed at increasing constructive male engagement in pregnancy 

and antenatal care. The Committee urges the Coordinator to undertake efforts to expand the availability of PEP to areas outside 

of urban centers, increase awareness of PEP availability among 

target populations in both urban and rural areas, and expand the 

integration of anti-GBV messages in programs aimed at adolescents. The Committee directs the Office of the Global AIDS Coordinator to report, not later than 120 days after enactment of this Act, 

on plans to achieve these objectives. 

Mother-to-child transmission 

The Committee continues to support expanding funding for programs to prevent mother-to-child transmission (MTCT) of HIV as 

an integral component of a comprehensive approach to fighting 


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HIV/AIDS. The Committee understands that to facilitate expansion 

and to provide more access to MTCT services and expanded care 

and treatment programs, infrastructure improvements and education and training of health care workers still are needed, as well 

as improved linkages between MTCT and comprehensive care and 

treatment services. The Committee urges the Coordinator to consider expanding access to MTCT services and encourage stronger 

linkages between MTCT and care and treatment programs. 

Pediatric HIV/AIDS treatment and prevention 

Children comprised an estimated 7 percent of ART patients in 

2005. However, they also represented an estimated 14 percent of 

new infections that year. As access to care and treatment programs 

expands globally, without an effective strategy for including pediatric populations, children are at serious risk of being left behind. 

The Committee commends the Coordinator for emphasizing the 

need to treat children in Emergency Plan programs. In an effort to 

keep pace with the number of new pediatric infections, the Committee requests that the Coordinator consider setting a goal of at 

least 15 percent of patients receiving treatment through the Emergency Plan be infants and children. The Committee further requests that the Coordinator be prepared to report on the Emergency Plan’s strategies for ensuring that treatment and care for 

children with HIV/AIDS is expanded, including the notion of setting numeric goals for serving this vulnerable population, during 

the hearing on the fiscal year 2008 budget request. 

Safe blood program 

The Committee remains concerned about the problem of unsafe 

or contaminated blood as a source of HIV infection in the developing world. According to the March 2006 Report on Blood Safety, 

submitted by the Office of the Global AIDS Coordinator, ‘‘substantial problems have been documented’’ across all components of safe 

blood programs in developing countries. Many hospitals in the developing world do not have effective or complete screening of blood, 

and as a result, there can be a risk of transfusion-transmitted infectious diseases. The prevalence of contaminated blood acutely impacts women requiring blood transfusions due to complications 

from pregnancy and childbirth, as well as children with life-threatening illnesses such as anemia. 

Worldwide the major risk is hepatitis followed by HIV, malaria 

and syphilis. The Committee recognizes that there are a wide array 

of challenges in order to achieve adequate capacity and sustainability to support blood transfusion services in developing countries, including adequate infrastructure (such as reliable electricity 

for refrigeration), staff recruitment and training, laboratory equipment, effective legislation/policy, and financial/management systems to support blood services. 

The Committee understands that the Emergency Plan currently 

supports the Ministries of Health or the government’s National 

Blood Transfusion Service (NBTS) in fourteen of the fifteen focus 

countries for the purpose of developing nationally directed regionalized blood systems. The Committee strongly supports these activities and the Emergency Plan’s goal of establishing high-quality, 

sustainable blood transfusion-safety programs in each country. The 


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Committee notes that the bill includes an over 40 percent increase 

in bilateral funding for focus countries and urges the Coordinator 

to increase significantly funding for safe blood programs over fiscal 

year 2006 levels. 

The Committee also recognizes that capacity building and infrastructure development are processes that require a period of years 

which realistically must be approached incrementally. In the Committee’s view, to achieve success in advancing blood safety requires 

a comprehensive and coordinated strategy among Ministries of 

Health, local communities, donors, and experts in blood transfusion. Therefore, the Committee requests that the Office of the 

United States Global AIDS Coordinator, working in coordination 

with other health sectors in USAID and HHS, and in consultation 

with WHO, other blood safety experts, and private foundations active in global health, develop and submit to the Committee a comprehensive, integrated multi-year strategic plan for PEPFAR focus 

countries to achieve the following: 

1. A sufficient supply of safe blood to meet the needs of the 

country; 

2. A continuous and adequate supply of voluntary non-remunerated blood donation from the safest possible donors from 

low risk populations; 

3. The universal testing of donated blood, including quality 

assured screening of all donated blood for infectious diseases; 

and 

4. The reduction of unnecessary transfusions; safe and rational blood utilization, and the use of alternatives to transfusions whenever possible. 

The pace and resource requirements of the plan should consider 

the other medical (e.g. mother-to-child transmission and safe medical injections) and non-medical prevention activities in PEPFAR 

countries and the impact of the strategic plan on maintaining a diversified prevention portfolio. The Committee further requests the 

Office of the Global AIDS Coordinator, working in coordination 

with the aforementioned agencies and non-governmental organizations, develop and submit to the Committee a comprehensive implementation strategy for non-focus countries that achieves standardized operation and controls of blood collection, adequate training, documentation, and assessment measures. The strategic plans 

for both focus and non-focus countries shall be submitted to the 

Committee no later than 180 days of enactment. 

Finally, the plan also should examine expenditure rates and factor them into the recommendations in order to ensure the timely 

obligation and expenditure of funds. 

The Committee also continues its support for the multi-country 

blood safety training program of Safe Blood for Africa begun in fiscal year 2006. The Committee recommends that the Coordinator, in 

consultation with USAID, consider increasing support for the program to $2,000,000 in fiscal year 2007. 

New Partners Initiative 

The Committee understands that the Coordinator launched in 

fiscal year 2006 a ‘‘New Partners Initiative’’ as part of the Emergency Plan. The initiative’s purpose is to increase the number of 

Emergency Plan partners by establishing a competitive grants 


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process for organizations with the desire and the ability to help implement PEPFAR objectives, but which may have little or no experience in working with the Federal Government. Additionally, the 

initiative is to develop indigenous capacity so affected countries can 

address HIV/AIDS on their own and decrease dependence on foreign organizations and foreign skills. The Committee is aware of 

the following proposals and urges the Coordinator to consider incorporating them as part of the New Partners Initiative in fiscal year 

2007: 

Lott Carey International, to expand services for displaced children and orphans in Africa, India, and Haiti; 

The Life Matters Media Center, California Institute of the Arts, 

to bring together expert animators and health care specialists to 

develop effective health care navigation programs for minority communities; 

A proposal to test the efficacy of point of use forward osmosis 

technology to provide single use portions of infant formula to children of HIV-infected mothers and to provide re-hydration therapy 

to victims of diarrhea disease; and 

The GRAIDS project, to design effective, culturally-relevant, communications methodologies to combat the spread of HIV/AIDS in 

PEPFAR countries through the use of visual media. 

The Committee expects that all grantees supported through the 

New Partners Initiative, including those mentioned above, will 

meet the Initiative’s eligibility criteria and be subject to the competitive review process. 

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

Fiscal year 2006 enacted level ........................................................... $472,428,000 

Fiscal year 2006 Emergency Supplemental (House-passed) ........... 107,700,000 

Fiscal year 2007 request .................................................................... 795,490,000 

Committee recommendation .............................................................. 703,600,000 

Change from request ................................................................... ·91,890,000 

Change from enacted level ......................................................... +231,172,000 

The Committee recommends $703,600,000 for ‘‘International 

Narcotics Control and Law Enforcement’’, a decrease of $91,890,000 

from the request and $231,172,000 above the fiscal year 2006 enacted level, excluding the emergency supplemental appropriations. 

A limitation of $33,484,000 is recommended for administrative expenses. 

NARCOTICS AND TERRORISM

Organized crime and terrorist groups throughout the world have 

long used narcotics as a means to generate revenues to support 

armed conflict and the means to spread turmoil. The Committee 

continues to support a strong United States counternarcotics assistance program in order to protect United States communities 

from the ravages of drugs, but increasingly to deny drug profits 

that are often used to finance terrorist activities. 

MEXICO

The Committee provides $40,000,000 for programs in Mexico, an 

increase of $1,000,000 from the request and $400,000 over the enacted level. 


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61 

The recommended increase should be used to strengthen Mexico’s 

northern border infrastructure, thereby improving the security of 

the United States while promoting the efficient flow of legal goods. 

The Committee is concerned about increasing instability along 

the Texas/Mexico border, including reports that members of drug 

cartels have crossed the border wearing Mexican military uniforms 

and carrying and firing assault weapons. The Committee requests 

that the Department of State consult with the Committee on the 

use of funds made available for Mexico under ‘‘International Narcotics Control and Law Enforcement’’ to ensure such funds are 

used only to support the fight against drug and weapon smuggling. 

The Committee directs the Department of State to work with the 

Department of Homeland Security to obtain reports of investigations into incursions and to make those available to the Committee. 

The Committee is pleased to note that the Administration’s fiscal 

year 2007 program for border and port security, seeks to expand 

its coverage of Mexico’s southern border to stem illegal trafficking 

of drugs, arms, cash, and people. The Committee is very supportive 

of these efforts. 

AFGHANISTAN COUNTERNARCOTICS

The Committee recommends $235,000,000 for counternarcotics 

programs in Afghanistan, $62,390,000 less than the request and 

$2,350,000 over the 2006 current estimate. The Committee fully 

supports the program, but limited resources prevented fully funding the Administration’s request. 

CUBA

The Committee has again included a general provision, section 

572, prohibiting counternarcotics assistance to the Government of 

Cuba. Full reporting and transparency by the Cuban Government 

and United States monitoring of the use of counternarcotics assistance in Cuba would be difficult if not impossible, according to the 

State Department, given Cuban general hostility toward the 

United States Government. Additionally, provision of assistance to 

the maritime drug interdiction force (the TGF) would, according to 

both Amnesty International and the State Department’s Country 

Reports on Human Rights Practices, violate section 551 of this Act, 

the so-called Leahy amendment. 

INTERNATIONAL DRUG DEMAND REDUCTION

The Committee recommends that within the funds provided for 

International Narcotics and Law Enforcement, that an additional 

$10,000,000 be provided for the drug demand reduction program. 

Such funding would be available to reduce worldwide drug abuse 

and the incidence of international HIV/AIDS through intravenous 

drug use. 

INTELLECTUAL PROPERTY

The Committee recommends $5,000,000 for programs to combat 

intellectual property piracy. 


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USAID LAW ENFORCEMENT ASSISTANCE TO INDIA

The Committee recognizes the importance of assisting law enforcement agencies within the Government of India with respect to 

disaster management and response, access to justice for women, 

and trafficking of persons. The Committee urges the Administrator 

of USAID to seek authority to support such programs if such authority does not currently exist. 

ANDEAN COUNTERDRUG INITIATIVE

Fiscal year 2006 level ......................................................................... $727,155,000 

Fiscal year 2007 request .................................................................... 721,500,000 

Committee recommendation .............................................................. 506,850,000 

Change from request ................................................................... ·$214,650,000 

Change from enacted level ......................................................... ·$220,305,000 

The Committee recommends $506,850,000 for the Andean 

Counterdrug Initiative, a $214,650,000 decrease to the request and 

a $220,305,000 decrease from the enacted level. The Andean 

Counterdrug Initiative is the continuation of the Administration’s 

multi-year counterdrug assistance efforts designed to sustain and 

expand programs initially funded by Plan Colombia in the fiscal 

year 2000 emergency supplemental appropriations Act. A limitation 

of $18,060,000 is recommended for administrative expenses for the 

Department of State and $7,800,000 for USAID. 

At first glance, the amount provided in this account would appear to be a significant reduction from prior years. In reality this 

is not the case, as the Committee has not reduced its commitment 

to the Andean Region, but rather has strengthened it in a number 

of ways. 

First, the Committee moved $62,500,000 from this account to the 

new Trade Capacity Enhancement Fund, an amount equal to the 

Administration’s estimates of what it will spend from this account 

on these types of activities in fiscal year 2006. Adjusting for the 

movement of the trade capacity funds in the fiscal year 2006 appropriation, results in a comparable ACI account of $664,655,000. In 

addition, bill language has been included to allow these funds to 

be transferred back to the originating account. 

Second, the Committee has initiated a restructuring of the ACI 

in order to begin ‘‘normalizing’’ our relationship with Colombia, a 

major strategic partner in the region. To begin this ‘‘normalization’’, the Committee has moved a total of $161,150,000 to be the 

‘‘Economic Support Fund’’ (ESF) and the ‘‘International Narcotics 

Control and Law Enforcement’’ (INCLE) accounts. Those funds, 

$135,000,000 in ESF and $26,150,000 in INCLE, are designated for 

Colombia. In total, for these four accounts (TCEF, ACI, ESF and 

INCLE) Colombia will receive approximately $545,200,000, a 

$48,859,000 increase over the prior year for activities once funded 

solely in the ACI account. 

The Committee notes the requirement in the bill that the Director of Foreign Assistance shall provide to the Committees on Appropriations not later than 45 days after the date of the enactment 

of this Act and prior to the initial obligation of funds appropriated 

under this heading, a report on the proposed uses of all funds 

under this heading on a country-by-country basis for each proposed 

program, project, or activity. 


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The Committee requests that the Director of Foreign Assistance 

submit to the Appropriations Committees a semi-annual report 

with respect to the Andean Counterdrug Initiative, including those 

funds for Colombia in ESF and INCLE. Each report shall include 

an accounting of all aircraft, vehicles, boats and lethal equipment 

(other than ammunition) transferred to the militaries or police of 

any nation with funds made available under this heading. Additionally, the Committee requires that the personnel cap and Plan 

Colombian reports as required in the fiscal year 2000 emergency 

supplemental also be submitted to the Committees on the Appropriations. 

COLOMBIA

Recognizing the strategic importance of Colombia, the Committee 

has taken the significant step to ‘‘restructure’’ the way it provides 

assistance to Colombia, for a number of reasons. First, the Committee has noted the successes of Plan Colombia and the measurable improvements that have resulted in the everyday lives of the 

Colombian people. Some have declared Colombia the ‘‘greatest success story in Latin America.’’ In fact, the Colombian Government’s 

success in combating the cultivation of drugs and in restoring democracy can be measured in may ways: 

• Coca eradication through spraying has gone from 47,000 

hectares the first year of Plan Colombia to 138,775 last year; 

• By regaining sovereignty over most of its air space, Colombia has decreased by 56 percent suspected drug trafficker 

flights; 

• Drug flow to the United States has dropped to 7 percent; 

• Kidnappings are down 51 percent and homicides 13 percent; 

• All 1098 Colombian municipalities have a permanent government presence; 

• Over 30,000 paramilitary have been demobilized; 

• 200,000 acres of legal crops have been planted and 64,000 

farm families have a ‘‘legal’’ farming option; 

• Unemployment has dropped from 20 percent to an estimated 11 percent; 

• In December, implementation of the Free Trade Agreement 

with the United States is expected to drop unemployment even 

more. 

Clearly, Colombia has made remarkable progress. The Committee believes it is time to fund assistance to Colombia through 

the same mechanisms used to fund other strategic partners. In a 

budget sense, that means providing funding for some of the activities, carried out by Plan Colombia, in the ESF and INCLE accounts. It is from these two accounts that the other United States 

strategic partners receive funding for similar activities. The Committee provides $135,000,000 in ESF, an amount $10,000,000 more 

than the enacted level, for Alternative Development and Institution 

Building in Colombia. These funds will help to strengthen the 

strong democratic presence needed to counter the negative effects 

of illicit activity; establish and strengthen social, institutional and 

economic preconditions necessary to promote economic growth; and 

support vulnerable groups and displaced persons. The Committee 


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64 

also provides $26,150,000 in INCLE to promote Rule of Law activities. 

It is important, however, to note that the Committee continues 

to provide significant funding for Colombia through this account. 

The Committee provides, through the ACI account, a total of 

$384,050,000 for Colombia, of which $313,850,000 is for Interdiction and Eradication activities. This is equal to the request. The 

Committee believes that it is important to maintain our efforts on 

this front. In addition, the Committee provides, within the ACI account, $70,200,000 for the Critical Flight Safety Program, which is 

an increase of $29,000,000 over the request. With this increase, the 

Committee has provided sufficient funding for the purchase of one 

Black Hawk helicopter, the conversion of two additional UH–1s to 

Huey IIs, and 1 flight simulator. The funds are for the purchase 

of the simulator and not intended for the design and construction 

of infrastructure to house the simulator. 

Now that Plan Colombia, conceived as a six year plan, has come to an end, the Committee remains concerned about the Administration’s follow up program. The Committee expects a follow up strategy to normalize funding for Colombia, similar to the approach 

used in this bill, and lead towards an eventual ‘‘nationalization’’ of 

the Colombian program. The Committee directs the Secretary of 

State, in consultation with the Secretary of Defense, to report to 

the Committee no later than 60 days after enactment of this Act 

on the future, multiyear strategy of the United States assistance 

program to Colombia. The strategy should include all aspects of 

current and future United States assistance. In addition, the Committee directs the Director of Foreign Assistance to carefully review 

all Colombian activities to determine the most appropriate appropriation account for funding. Specifically, the fiscal year 2008 Congressional Budget Justification should provide, as appropriate, 

funding for Alternative Development in the ‘‘Development Assistance’’ and the ‘‘Economic Support Fund’’ accounts and, as appropriate, funding for Interdiction/Eradication in the ‘‘Foreign Military 

Financing’’ or the ‘‘International Narcotics Control and Law Enforcement’’ accounts. 

The Committee again has extended the availability of funds provided for assistance for Colombia to support a unified campaign 

against narcotics trafficking, against activities by organizations 

designated as terrorist organizations, and to take actions to protect 

health and human welfare. The Committee directs the Secretary of 

State to consult with the Committee if the implementation of the 

expanded authorities changes from that described in the May 2003 

report to Congress. The Committee has retained language requiring consultation and notification before the obligation of funds for 

demobilization of paramilitaries. 

PERU

The Committee directs that not less than $109,000,000 from 

funds under this heading shall be available for Peru. The Committee does not accept the Administration’s request to reduce funding for Peru in the account by almost $9,000,000 from enacted levels. The Committee believes that there is a very real danger of increased coca production and of drug trafficking through Peru if 

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forts. This so called ‘‘balloon effect’’ can be seen in the increased 

number of hectares in coca production in Peru. 

The United States Government estimates that there are 38,000 

hectares of coca cultivation in Peru, including 4,000 hectares in 

new areas. There are reports that the coca farmers are becoming 

more violent and better organized and that terrorist organizations 

have openly identified with the coca growers. The Committee does 

not believe that now is the time to reduce our efforts in Peru. Of 

the funds provided for Peru in this account, $63,000,000 shall be 

available for Interdiction/Eradication and $46,000,000 for Alternative Development/Institution Building. The Committee urges USAID to consider extending its agree- ment with The Field Museum of Chicago on the Cordillera Azul 

National Park project in central Peru, at current funding levels 

after the original agreement period ends in 2007. The Committee 

understands that this alternative community development and conservation education project has already demonstrated effective use 

of ACI funds to prevent coca cultivation and urges the Agency to 

consider entering into similar agreements elsewhere in the region. 

BOLIVIA

The Committee is concerned by recent reports from Bolivia that would indicate a lessening of that country’s commitment to fighting 

drugs in the region. Because of those reports, the Committee has 

reduced the funds requested in this account for Bolivia to 

$51,000,000. Of this amount, the Committee directs that 

$20,000,000 shall be for Interdiction and Eradication, a reduction 

of $15,000,000 from the request and, $31,000,000 shall be for Alternative Development/Institution Building. The Committee has eliminated funding for Bolivia Critical Flight Safety. 

FUNDING BY COUNTRY AND ACTIVITY

From funds appropriated under this heading, the Committee directs the following amounts for each activity by country: 

Bolivia: 

Interdiction/Eradication .............................................................. $20,000,000 

Alter Dev/Inst.Building ............................................................... 31,000,000 

Critical Flight Safety .................................................................. 0 Colombia: 

Interdiction/Eradication .............................................................. 313,850,000 

Critical Flight Safety .................................................................. 70,200,000 Ecuador: 

Interdiction/Eradication .............................................................. 8,900,000 

Alter Dev/Inst. Building ............................................................. 8,400,000 

Peru: 

Interdiction/Eradication .............................................................. 63,000,000 

Alter Dev/Inst.Building ............................................................... 46,000,000 Brazil ................................................................................................... 4,000,000 

Panama ............................................................................................... 4,000,000 

Venezuela ............................................................................................ 0 

Guatemala ........................................................................................... 0 

Nicaragua ............................................................................................ 0 

Trade Capacity Enhancement Fund transfer out ............................ ·62,500,000 

HUMAN RIGHTS

The committee calls on the Department of State to ensure that 

all United States laws regarding human rights, including section 

551 of this Act, are strictly applied in Colombia and each of the AnVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00065 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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dean nations. The Committee again includes a general provision requiring that the Secretary of State certify that certain human 

rights conditions have been met before 25 percent of funds may be 

made available for assistance for the Colombian Armed Forces. 

The Committee urges the USAID to continue the Andean Coun- tries Cocoa Export Support Opportunity (ACCESO). This innovative, public-private partnership supports sustainable cocoa and tree 

crops development in Colombia, Peru, Bolivia and Ecuador. The 

Committee believes that the potential to restore a robust, sustainable cocoa economy to the region remains promising. 

MIGRATION AND REFUGEE ASSISTANCE

Fiscal year 2006 enacted level ........................................................... $783,090,000 

Fiscal year 2007 request .................................................................... 832,900,000 

Committee recommendation .............................................................. 750,206,000 

Change from request ................................................................... ·82,694,000 

Change from enacted level ......................................................... ·32,884,000 

The Committee recommends a total of $750,206,000 for Migration and Refugee Assistance, a $82,694,000 decrease from the request and a $32,884,000 decrease from the enacted level. A limitation of $23,000,000 is recommended for administrative expenses. 

The Committee’s recommendation includes not less than 

$548,000,000 for overseas assistance programs. 

IRAQ AND AFGHANISTAN PROGRAMS

The Committee supports the Administration’s request to normalize its Iraq and Afghanistan programs funded from this account 

and includes the President’s request for Iraq and Afghanistan in its 

recommendation. 

TIBETAN REFUGEES

The Committee recommends not less than $2,500,000 from this 

account for Tibetan refugees in Nepal and India. The Committee 

remains concerned about the situation of Tibetan refugees 

transiting through Nepal to resettlement in India, and in particular the recent decision by Nepal to close two Tibetan-run offices 

in Kathmandu that provide vital services to refugees. In light of recent events in Nepal, the Committee expects that the Government 

of Nepal will fulfill its commitment to provide safe passage to Tibetans fleeing repression in their homeland, and respect the rights 

of the legally resident Tibetan refugee community that lives in 

Nepal. 

GENDER-BASED VIOLENCE

Sexual exploitation and violence against women and girls is an 

ongoing problem among internally displaced and refugee populations. The Committee notes that despite stated Committee intent, 

the State Department has not scaled up resources and targeted 

funding for programs to address these issues in fiscal year 2006. 

The Committee asks again this year that the Department of State 

highly prioritize funding to address these critical issues. The Committee also expects that the Department will provide, not later 

than 120 days following enactment of this Act, a report on United 

States Government funding from this account during fiscal year 


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2006 and proposed increases in funding during fiscal year 2007, for 

programs that target gender-based violence. 

PROTECTION OF CHILDREN IN CONFLICT AND CRISIS

The Committee believes that the protection needs of women and 

children should be a priority for the Department of State, and directs the Secretary of State to be prepared to report to the Committee, not later than 120 days after enactment of the Act, on activities of the Government of the United States to protect children 

affected by humanitarian emergencies. The report shall include: an 

assessment of when and how the United States government incorporates the protection needs of children in its emergency response 

plan, including protection from physical harm, exploitation, rape, 

psychosocial distress, recruitment into armed groups, family separation, abuses related to forced displacement, and the denial of access to quality education; documentation on the role of quality education in the protection of children affected by humanitarian emergencies; guidelines and recommendations for ensuring that the 

United States and international response systems include good 

education services as a first line response during emergencies and 

the reconstruction period to ensure that the development and safety of children are protected. 

NORTH KOREA

Assistance for refugees from North Korea continues to be a high 

priority for the Committee. The Committee expects the State Department to continue its consultation with the Committee on how 

best to assist these refugees. 

RESETTLEMENT IN ISRAEL

The Committee recommendation includes $40,000,000 in this account to help humanitarian migrants from Ethiopia, the former Soviet Union, and other countries of distress resettle in Israel. Since 

1989, Israel has accepted more than one million such migrants. 

The Committee understands that Israel plans to bring all eligible 

humanitarian migrants in Ethiopia to Israel within the next three 

years, and expects the need for such funding to diminish after the 

initial influx of migrants. Consequently, the Committee expects 

funding for this program to be reduced by $5,000,000 in fiscal year 

2009, and to be reduced an additional $10,000,000 in fiscal year 

2010. 

MAGEN DAVID ADOM SOCIETY

The Committee is encouraged by positive steps that the International Committee of the Red Cross (ICRC) has taken to admit 

the Magen David Adom (MDA) Society of Israel to the International Red Cross and Red Crescent Movement. The Committee 

notes that a decision will be made in June, 2006, regarding the 

MDA’s admission into the Movement. Until that decision is made, 

the Committee is recommending a continuation of prior year bill 

language that would withhold the annual headquarters contribution made by the Department of State unless the MDA is given the 

opportunity to participate in the activities of the Movement. This 

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manitarian assistance programs that may be programmed through 

the ICRC using other funds provided in this and other accounts. It 

is only intended to affect the funding the United States provides 

on an annual basis to the ICRC bureaucracy in Geneva. 

UNITED NATIONS RELIEF AND WORKS AGENCY (UNRWA)

The election of Hamas to a leadership position in the Palestinian 

Legislative Council (PLC) has necessitated a reassessment of 

United States assistance to the Palestinian Territories. The Committee supports the Administration’s plan for increased humanitarian assistance to the Palestinian people, including through 

UNRWA. 

The Committee is aware of concerns that UNRWA’s internal accounting procedures and oversight mechanisms do not adequately 

ensure against misuse of funding. Oversight of UNRWA is performed at two levels. Internal oversight is the responsibility of an 

Audit Office reporting to the UNRWA Commissioner General. Additionally, every two years the United Nations Board of Auditors 

(BOA) provides an independent audit, which conforms to Generally 

Accepted Accounting Principles, of UNRWA’s financial statements. 

The Committee understands that an independent body with 

internationally-recognized expertise in auditing and oversight procedures, PricewaterhouseCoopers, is in the process of assessing 

UNRWA’s oversight and accounting procedures and policies as part 

of a broader review of United Nations oversight. 

The Committee requests that the State Department provide an 

update to Committees on Appropriations not later than June 30, 

2006 regarding this review, any recommendations contained therein, and the status of implementation for those recommendations. 

The Committee will address this issue again, if necessary, following 

this consultation. 

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE

FUND

Fiscal year 2006 enacted level ........................................................... $29,700,000 

Fiscal year 2007 request .................................................................... 55,000,000 

Committee recommendation .............................................................. 30,000,000 

Change from request ................................................................... ·25,000,000 

Change from enacted level ......................................................... +300,000 

The Committee recommends $30,000,000 for the Emergency Refugee and Migration Assistance Fund, a $25,000,000 decrease from 

the request and a $300,000 increase to the enacted level. The Committee does not include language requested by the President to 

waive the $100,000,000 cumulative limit on this account. 

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED

PROGRAMS

Fiscal year 2006 enacted level ........................................................... $405,999,000 

Fiscal year 2007 request .................................................................... 449,430,000 

Committee recommendation .............................................................. 425,010,000 

Change from request ................................................................... ·24,420,000 

Change from enacted level ......................................................... +19,011,000 

The Committee recommends a total appropriation of 

$425,010,000 for ‘‘Nonproliferation, Anti-terrorism, Demining and 


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69 

Related Programs’’, a decrease of $24,420,000 below the request 

and $19,011,000 over the fiscal year 2006 enacted level. 

The following table compares fiscal year 2006 funding for the 

programs covered by this account, as well as the President’s request for fiscal year 2007 and the Committee recommendation: 

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED PROGRAMS 

Fiscal year 2006 

enacted 

Fiscal year 2007 

request 

Committee 

recommendation 

Nonproliferation Programs: 

Nonproliferation and Disarmament Fund .................................... $37,125,000 $38,000,000 $38,000,000 

Export Control & Border Security ................................................. 42,966,000 45,050,000 44,000,000 

Science Centers/Nonproliferation of WMD ................................... 52,074,000 56,200,000 53,430,000 

IAEA Voluntary Contribution ......................................................... 49,500,000 50,000,000 50,000,000 

International Monitoring System .................................................. 14,207,000 19,800,000 16,800,000 

Subtotal Nonproliferation .................................................... 195,872,000 209,050,000 202,230,000 

Anti-Terrorism Programs: 

Anti-terrorism Assistance ............................................................ 122,265,000 135,600,000 125,500,000 

Terrorist Interdiction Program ...................................................... 5,445,000 11,800,000 8,000,000 

Counterterrorism Financing ......................................................... 7,425,000 9,080,000 9,080,000 

CT Engagement w/Allies .............................................................. 1,984,000 2,000,000 1,000,000 

Subtotal Anti-Terrorism ....................................................... 136,125,000 157,480,000 143,580,000 

Regional Stability and Humanitarian Assistance: 

Humanitarian Demining ............................................................... 55,449,000 64,300,000 60,600,000 

International Trust Fund .............................................................. 9,900,000 10,000,000 10,000,000 

Small Arms/Light Weapons Destruction ...................................... 8,663,000 8,600,000 8,600,000 

Subtotal Regional Stability/Humanitarian Assistance ....... 74,003,000 82,900,000 79,200,000 

Total .................................................................................... 406,000,000 449,430,000 425,010,000 

INTERNATIONAL TRUST FUND

The Committee recommends $10,000,000 for the International 

Trust Fund, as requested and the same as last year. The Committee recognizes the significance of the assistance provided by the 

Trust Fund for assistance to victims. However, overall budgetary 

constraints did not provide sufficient opportunity for the Committee to increase the requested funding level. 

CONFLICT RESPONSE FUND

Fiscal year 2006 enacted level ........................................................... $0 

Fiscal year 2007 Request ................................................................... 75,000,000 

Committee recommendation .............................................................. 0 

Change from request ................................................................... ·75,000,000 

Change from enacted level ......................................................... 0 

COMMITTEE RECOMMENDATION

The Committee recommendation includes no funding for the Conflict Response Fund, a decrease of $75,000,000 from the request 

and the same as the fiscal year 2006 enacted level. While the Committee recognizes the need for quick disbursement of funding for 

international crises, the Administration has for the past four years 

failed to provide, upon request, the necessary documentation detailing the proposed expenditure of these funds. In lieu of a comprehensive strategy, detailing how the Office of the Coordinator for 

Reconstruction and Stabilization will utilize these funds to respond 

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mittee believes it has no choice but to deny this request. The Committee urges the Administration to take into account the Committee’s view when formulating its fiscal year 2008 budget request. 

DEPARTMENT OF THE TREASURY 

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

Fiscal year 2006 enacted level ........................................................... $19,800,000 

Fiscal year 2007 request .................................................................... 23,700,000 

Committee recommendation .............................................................. 23,700,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +3,900,000 

The Committee recommends a total of $23,700,000 for international technical assistance by the Department of the Treasury, 

as requested and a $3,900,000 increase above the enacted level. In 

operation since 1991, Treasury’s Office of Technical Assistance provides expert fiscal and monetary policy advisors to developing and 

in transition countries. The Committee notes that in any given 

year, requests for assistance and expertise provided by the Office 

of Technical Assistance far exceed either the budget request or the 

Committee’s ability to fund. The Committee directs the Department to include more useful information in its future budget requests, including the countries, projects, project costs assumed in 

the request level, and an explanation of change from the prior year. 

The Committee directs the Office of Technical Assistance (OTA) to 

notify the Committee prior to the obligation of funds for the compensation or travel expenses of any individual who is not an employee of the Department of the Treasury. 

DEBT RESTRUCTURING

Fiscal year 2006 enacted level ........................................................... $64,350,000 

Fiscal year 2007 request .................................................................... 182,799,000 

Committee recommendation .............................................................. 20,000,000 

Change from request ................................................................... ·162,799,000 

Change from enacted level ......................................................... ·44,350,000 

The Committee recommends a total of $20,000,000 for international debt restructuring by the Department of the Treasury, a 

$162,799,000 decrease from the request and a $44,350,000 decrease 

from the enacted level. The Committee makes $20,000,000 under 

this heading available for the Tropical Forest Conservation Act 

(TFCA) programs and does not fund the enhanced HIPC initiative 

request. Funds in this account are subject to the regular notification procedures of the Committees on Appropriations. 

TROPICAL FOREST CONSERVATION ACT (TFCA)

Over the course of the life of this program, Congress has provided over $111,000,000. The Committee directs the Department to 

provide a report by December 15, 2006, on potential debt reduction/ 

restructuring initiatives for any unallocated balances remaining at 

the end of fiscal year 2006. The Committee expects the Department 

of the Treasury to consult with the Committee 15 days prior to the 

Treasury determination that additional countries are found eligible 

for TFCA. 


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CONGO

The Committee notes that all disbursed funds provided by the 

United States to the HIPC Trust Fund in fiscal year 2004, 

$74,600,000, were made available for debt relief for the Democratic 

Republic of the Congo (DRC). In addition, Treasury has provided, 

or has available to provide to the DRC, $124,000,000 from funds 

provided by Congress for bilateral HIPC debt reduction. Therefore, 

over a three year time frame, almost $200,000,000 has been provided by Congress for debt relief to the DRC. 

TITLE III—MILITARY ASSISTANCE 

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL MILITARY EDUCATION AND TRAINING

Fiscal year 2006 enacted level ........................................................... $85,877,000 

Fiscal year 2007 request .................................................................... 88,900,000 

Committee recommendation .............................................................. 88,000,000 

Change from request ................................................................... ·900,000 

Change from enacted .................................................................. +2,123,000 

The Committee recommends $88,000,000 for the International 

Military Education and Training (IMET) program which is 

$900,000 below the fiscal year 2007 requested level and $2,123,000 

above the 2006 enacted level. 

IMET is part of the overall United States security assistance program, and through it the United States Government provides training to predominantly military students from allied and friendly nations. The IMET program exposes students to the United States 

professional military establishment and the American way of life, 

including democratic values and rule of law, and respect for individual and human rights. In 1990, Congress directed the Department of Defense to establish a program within IMET—called Expanded-IMET or ‘‘E–IMET’’—focused on training foreign civilian 

and military officials in three areas: managing and administering 

military establishments and budgets; creating and maintaining effective military judicial systems and military codes of conduct, and 

fostering greater respect for the principle of civilian control of the 

military. 

UZBEKISTAN

The fiscal year 2007 budget includes $95,000 for IMET programs 

for Uzbekistan. The Committee remains concerned about ongoing 

turmoil in this country and therefore recommends no funding for 

IMET for Uzbekistan. 

NEPAL

The fiscal year 2007 budget request includes $790,000 for IMET 

programs for Nepal, an increase of $146,000 over the fiscal year 

2006 current estimate. The Committee recommends no funds for 

IMET programs for Nepal. 

The Committee is concerned that the recent democracy protests 

in Nepal may have been met with a disproportionate military response. The Committee understands that there is a potential conVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00071 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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cern that members of the military who may have been involved 

with this response could have been previous recipients of IMET. 

Therefore, the Committee believes the Department of State and 

the Department of Defense should review this potential concern before further implementing the fiscal year 2006 IMET program for 

Nepal. 

INDONESIA

The fiscal year 2007 budget request includes $1,285,000 for 

IMET programs for Indonesia, an increase of $493,000 over the fiscal year 2006 current estimate. 

The Committee notes that the increased funding request is not 

accompanied by an increase in the anticipated number of students. 

Therefore, the Committee does not recommend the increase in 

funding as requested. 

ARGENTINA PROGRAMS

The Committee recommends $1,135,000 for Argentina IMET programs, as requested and an increase of $46,000 over the enacted 

level. 

The Committee is aware that the Government of Argentina has 

not implemented Federal Court orders including two default judgments and daily sanctions rendered by the United States District 

Court of Northern Illinois. Should the Government of Argentina 

fail to comply with these court orders in a timely fashion, the Department of State, in consultation with the Department of Defense, 

should withhold funds provided for Argentina’s IMET program. 

EAST TIMOR

The fiscal year 2007 budget request includes $320,000 for IMET 

programs for East Timor, an increase of $23,000 over the fiscal 

year 2006 current estimate. 

The Committee is very concerned about the recent violence between the police and the military in Dili, the capital of East Timor. 

Therefore, the Committee recommendation does not include the 

$23,000 increase in funding for the IMET programs in East Timor. 

The Committee believes the Department of State and the Department of Defense should review these concerns before further implementing the fiscal year 2006 and the 2007 IMET programs for East 

Timor. 

UKRAINE

The fiscal year 2007 budget request includes $1,725,000 for 

IMET programs for Ukraine, an increase of $42,000 over the fiscal 

year 2006 current estimate. The Committee notes that the increased funding request is not accompanied by an increase in the 

anticipated number of students. Therefore, the Committee does not 

recommend the increase in funding as requested. 

GREECE

The Committee recognizes the country of Greece as a friend and 

ally and urges at least $2,000,000 in funding assistance for Greece 

from the funds appropriated under this heading. 


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RUSSIA

The fiscal year 2007 budget request includes $790,000 for IMET 

programs for Russia, an increase of $47,000 over the fiscal year 

2006 current estimate. The Committee notes that the increased 

funding request is not accompanied by an increase in the anticipated number of students. Therefore, the Committee does not recommend the increase in funding as requested. 

TUNISIA

The fiscal year 2007 budget request includes $1,975,000 for 

IMET programs for Tunisia, an increase of $119,000 over the fiscal 

year 2006 current estimate. The Committee notes that this increased funding request supports an additional 2 students, an average of $60,000 per student, approximately twice the previous average. Therefore, the Committee recommends a total of $1,881,000 

for IMET programs for Tunisia, an increase of $25,000 over the fiscal year 2006 current estimate. 

ARMENIA AND AZERBAIJAN

The Committee recommends IMET assistance levels of $790,000 

for each of the countries of Armenia and Azerbaijan. 

FOREIGN MILITARY FINANCING PROGRAM

Fiscal year 2006 enacted level ........................................................... $4,455,000,000 

Fiscal year 2007 request .................................................................... 4,550,900,000 

Committee recommendation .............................................................. 4,454,900,000 

Change from requested level ...................................................... ·96,000,000 

Change from 2006 enacted level ................................................ ·100,000 

The Committee recommends $4,454,900,000 for the Foreign Military Financing Program, which is $96,000,000 below the fiscal year 

2007 request and $100,000 below the fiscal year 2006 enacted level. 

The Foreign Military Financing (FMF) assistance program provides grants for the acquisition of United States defense equipment, services and training. The FMF program enables key allies 

and friendly nations to improve defensive capabilities, and fosters 

bilateral military relationships with the United States and interoperability with United States forces. 

ISRAEL

The Committee recommends a total FMF program of not less 

than $2,340,000,000 in grants for Israel, which shall be available 

within 30 days of enactment of this Act. Of this amount, approximately $1,447,400,000 is for continuation and maintenance of ongoing acquisition programs, $282,500,000 is for potential new acquisition programs, and $610,000,000 is for off shore procurement of 

military equipment. 

This recommendation is the same as the fiscal year 2007 budget 

request and $83,000,000 over the fiscal year 2006 enacted level. 

The level appropriated in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2006 (Public Law 

109–102), $2,280,000,000 was reduced by $23,000,000 with the application of Section 3801 of Public Law 109–148, resulting in a 

2006 enacted level of $2,257,000,000. 


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The Committee remains committed to helping Israel maintain security. Therefore, the Committee is convinced the United States 

must make every effort to carry out its long-standing policy of assisting our ally Israel to maintain its technological advantage. 

ISRAEL PROGRAMS

The Committee recommends that within the funds provided for 

FMF programs for Israel, that the Department of Defense and the 

Government of Israel consider the purchase of fast response boats. 

JORDAN

The Committee recommends a total FMF program of 

$216,000,000 for Jordan, an increase of $10,000,000 over the fiscal 

year 2007 request and $8,100,000 over the fiscal year 2006 enacted 

level. 

The Committee strongly supports the Administration’s efforts to 

improve Jordanian security. Under the leadership of King 

Abdullah, Jordan plays a critical role in supporting peace and security in the Middle East. 

The Committee is well aware that Jordan’s security requirements are extensive, particularly in the areas of ground force modernization and border security. 

The Committee recommendation includes $11,000,000 for enhancing border security in Jordan. 

EGYPT

The Committee recommends a total FMF program of 

$1,300,000,000 in grants for Egypt, which shall be transferred 

within 30 days of enactment of this Act. Of this amount, 

$1,102,900,000 is for continuation and maintenance of ongoing acquisition programs and $197,100,000 is for potential new acquisition programs. 

This recommendation is the same as the fiscal year 2007 budget 

request and $13,000,000 over the fiscal year 2006 enacted level. 

The level appropriated in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2006 (Public Law 

109–102), $1,300,000,000, was reduced by $13,000,000 with the application of Section 3801 of Public Law 109–148, resulting in a 

2006 enacted level of $1,287,000,000. 

The Committee is convinced that continued military cooperation 

between Egypt and the United States remains in the national security interests of both countries. However, the Committee believes 

that Egypt must initiate a significant modernization of its military 

structure to transform it to a modern, professional, and efficient 

military force. The Committee notes that U.S. military representatives from the U.S. Central Command (USCENTCOM) have been 

encouraging the Egyptian military to initiate programs designed to 

transform its military force but these programs have not yet been 

embraced by the Egyptians. The Committee strongly recommends 

that the Egyptian military work with the USCENTCOM to develop 

and implement programs that will lead to a more modern and professional Egyptian military. Furthermore, the Committee directs 

the Department of State, with submission of the fiscal year 2008 

budget request, include in the accompanying justification material 


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a list of the projects included in the request for such transformational efforts. 

PAKISTAN

The Committee recommends a total FMF program of 

$200,000,000 for Pakistan, a decrease of $100,000,000 from the fiscal year 2007 request and a decrease of $97,000,000 from the fiscal 

year 2006 enacted level. The Committees notes that Pakistan has 

been a reliable ally of the United States in the War on Terrorism 

and this reduction is not a reflection of a lessening of the Committee’s appreciation for Pakistan’s support. Rather, the intention of 

the reduction is to once again call into question what is clearly the 

Administration’s plan to incrementally finance Pakistan’s foreign 

military acquisition program. It has long been the position of the 

Committee on Appropriations that full funding of the acquisition of 

weapons systems provides budgetary accountability, transparency, 

and accuracy in determining taxpayer debt. 

The Committee directs the Department of State and the Department of Defense, to review the implementation of Pakistan’s fiscal 

year 2006 FMF program as well as the fiscal year 2007 program 

to ensure full funding of weapons systems acquisition. The fiscal 

year 2008 budget request shall be submitted with consideration 

given to the Committee’s concerns. 

LEBANON

The Committee recommends a total FMF program for Lebanon 

of $4,800,000, the same as the fiscal year 2007 request and 

$3,810,000 over the fiscal year 2006 enacted level. 

The Committee is encouraged that the United States is reaching 

out to the Lebanese government to assist with the purchase of 

spare parts, maintenance, and training for its military. However, 

the Committee is mindful that areas of the country, most particularly in the south, remain under the influence of both Syria and 

Iran. The Committee directs the Department of State to work closely with the Department of Defense to ensure that the FMF program for Lebanon supports equipment and training for the Lebanese military that will not support in any way terrorist groups that 

continue to operate in certain parts of the country. 

The Committee notes that it is in the national security interests 

of the United States to achieve a variety of goals in Lebanon, including the disarmament of all militias in Lebanon and the extension of Lebanese sovereignty throughout the country. The Committee directs the Secretary of State, in consultation with the Secretary of Defense, to submit a report to the Committee on Appropriations no later than 180 days after enactment of this Act, on 

progress made on advancing these goals and protecting Lebanon’s 

eastern border. 

INDONESIA

The Committee recommends a total FMF program for Indonesia 

of $4,500,000, a reduction of $2,000,000 from the fiscal year 2007 

request and $3,510,000 over the fiscal year 2006 enacted level. 

The Committee makes this recommendation mindful of continuing concern about the professionalism of the Indonesian miliVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00075 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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tary and strongly supports the efforts of the civilian authorities in 

Indonesia to promote the rule of law, including efforts to exert control over the Indonesian military forces (TNI). This $3,510,000 recommended increase over the 2006 enacted level, in no way signals 

decreased concern about the poor human rights record of the Indonesian military forces and is intended only as a sign of measured 

support for the continuing efforts of the civilian Government of Indonesia. 

The government of Indonesia is a strategic ally of the United States, especially in the continuing Global War on Terrorism and 

these funds will be used to purchase such things as spare parts 

and communications equipment. 

Included in the 2007 request is $500,000 for Defense Structure 

Reform Review and within the $4,500,000 appropriation recommended by the Committee, no less than $500,000 shall be provided for this Review. The Committee is encouraged and supportive 

of the efforts of United States military representatives of the U.S. 

Pacific Command (USPACOM) to work with the Indonesian military to transform its structure into a modern, professional and efficient military force. 

ROMANIA

The Committee recommends a total FMF program for Romania of $13,000,000, a reduction of $2,000,000 from the request and 

$130,000 over the fiscal year 2006 enacted level. 

ARMENIA AND AZERBAIJAN

The Committee recommends a FMF program of $3,500,000 for each of the countries of Armenia and Azerbaijan. 

ADMINISTRATIVE EXPENSES

The Committee recommends $42,500,000 for FMF administrative 

expenses, a decrease of $1,000,000 from the fiscal year 2007 request and $1,414,000 over the fiscal year 2006 enacted level. 

PEACEKEEPING OPERATIONS

Fiscal year 2006 enacted level ........................................................... $173,250,000 

Fiscal year 2006 emergency supplemental (House) ......................... 173,000,000 

Fiscal year 2007 request .................................................................... 200,500,000 

Committee recommendation .............................................................. 170,000,000 

Change from request ................................................................... ·30,500,000 

Change from enacted .................................................................. ·3,250,000 

The Committee recommends $170,000,000 for Peacekeeping Operations that are not funded through mechanisms of the United 

Nations, a $30,500,000 decrease from the request and a $3,250,000 

decrease to the enacted level, excluding emergency supplemental 

appropriations. 

Africa.—Within the amount provided, not less than $67,000,000 

is provided for programs in Africa, a $13,100,000 increase over the 

fiscal year 2006 level and $9,100,000 below the Administration’s request. The Committee recommendation includes funding for additional support to the new administration in Liberia and to the 

Comprehensive Peace Agreement in Sudan. This level does not include operations to be funded from the Global Peace Operations 

Initiative. 


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The Committee requests that the Department of State and 

USAID submit a report detailing the funding and operations of the 

Trans-Sahara Counter Terrorism Initiative. This report should describe how programs funded from this account are complemented 

by programs funded from USAID’s development accounts. Multinational Force Observers (MFO).—Within the amount provided, not less than $21,000,000, as requested, is for the MFO program to support, among other initiatives, the ongoing peace efforts 

in the Middle East. 

Global Peace Operations Initiative (GPOI).—In fiscal year 2005, 

the Group of Eight Nations launched a new collaboration, the Global Peace Operations Initiative (GPOI). The goal of this five-year 

program is to increase the capacity of countries to deploy to international peace support operations by training 75,000 peace support 

troops worldwide, increase the number of gendarme units 

deployable to international operations and facilitate deployments 

by providing equipment and transportation for these peacekeeping 

units. The Committee recommendation includes $82,000,000 for 

these efforts, a reduction of $20,600,000 below the request and 

$18,400,000 below the fiscal year 2006 level. 

The Committee expects the fiscal year 2008 budget request for 

GPOI to include a detailed summary of the achievements of GPOI 

to date and specific information linking the budget request to fiscal 

year 2008 performance objectives. The Administration may submit 

the achievement summary before the fiscal year 2008 budget request. 

In order for GPOI countries to be effective partners in multinational operations, their military leaders should be educated in 

the same core competencies and curriculum. The Committee 

strongly encourages the Secretary of State to consider sending 

GPOI participants to common educational programs in the United 

States, including the Naval Postgraduate School. 

The Committee recommendation does not include authorization 

for GPOI funds to be used notwithstanding section 660 of the Foreign Assistance Act. The Administration requested this authority to 

provide support to the Center of Excellence for Stability Police 

Units, a center in Italy at which GPOI partners can build a professional gendarme capacity. The Committee supports the proposed 

program and expects other G8 nations to support this program, or 

the Administration to use funding from other accounts with the 

necessary authority, such as ‘‘International Narcotics Control and 

Law Enforcement’’. 

TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE 

INTERNATIONAL FINANCIAL INSTITUTIONS

GLOBAL ENVIRONMENT FACILITY

Fiscal year 2006 enacted level ........................................................... $79,200,000 

Fiscal year 2007 request .................................................................... 56,250,000 

Committee recommendation .............................................................. 56,250,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... ·22,950,000 

The Committee recommends a total of $56,250,000 for the Global 

Environment Facility (GEF), administered by the World Bank, as 


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requested and a $22,950,000 decrease from the enacted level. It 

provides the Administration’s request, pending completion of negotiation on the GEF–4 replenishment. 

The Committee recognizes the reforms that the GEF has successfully adopted in the past year and encourages the GEF to implement a performance-based allocation framework GEF-wide by 2010 

and other commitments made during GEF–3. The allocation framework should be applied to all GEF focal areas. In addition, the 

Committee expects the GEF to implement fiduciary standards, 

such as hotlines and whistler blower protections and best-practices 

procurement policies. Once the GEF agrees to implement a system 

where governance, performance, and other measurable results are 

key determinants in how it distributes its grants, and after the 

GEF–4 negotiations are complete, the Committee may consider reviewing this recommendation. 

The Committee directs the Secretaries of the Treasury and State 

to report by December 15, 2006, on their consideration of transferring responsibility for the GEF from the Department of the Treasury to the Department of State. Any transfer of responsibility 

would have to continue the strong commitment to reforms, thus ensuring transparency so that American taxpayers know their funds 

are spent efficiently and effectively. Should the Secretaries’ consideration result in a recommendation to transfer oversight, the report 

should include a request for legislative changes required to implement the transfer. 

CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

Fiscal year 2006 enacted level ........................................................... $940,500,000 

Fiscal year 2007 request .................................................................... 950,000,000 

Committee recommendation .............................................................. 950,000,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +9,500,000 

The Committee recommends a total of $950,000,000 for the regularly scheduled United States contribution to the International Development Association (IDA) equal to the request and a $9,500,000 

increase to the enacted level. The recommended level is intended 

for the second of three payments under the fourteenth replenishment of IDA. 

GRANTS

The Committee is encouraged by the increase in the IDA’s award 

of grants between fiscal years 2004 and 2005 and expects that 

trend to continue in fiscal years 2006 and 2007. The Committee 

awaits with interest the July 1, 2006 implementation of the recently approved Multilateral Debt Relief Initiative. Although disappointed in the IDA’s low PART score rating for results/accountability, the Committee is encouraged that IDA’s new results measurement system will give it the necessary tools to track progress 

in meeting this objective. 

CONCERNS ABOUT THE MULTILATERAL DEVELOPMENT BANKS

AVAILABILITY OF INFORMATION

The Committee again requests copies of all annual reports and 

information about the basic functions of each institution as they beVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00078 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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come available, including the European Bank for Reconstruction 

and Development and the International Fund for Agricultural Development. Future and continued support for the banks cannot be 

guaranteed unless future requests are justified by the Department 

of the Treasury as well as the management of each individual institution. 

BUDGET SUPPORT

The Committee continues to be concerned about the recent trend 

of providing World Bank loans and grants through budget support 

in lieu of project level support. The Committee believes that providing assistance by means of budget support should be employed 

only as an emergency measure and, if excessive or frequent, can 

undermine the principle of encouraging countries to become fiscally 

responsible and good stewards of internal resources. Furthermore, 

it thwarts the Committee’s ability to effectively monitor implementation of foreign assistance to ensure effective expenditure of appropriated dollars. Future support for funding increases of the World 

Bank and the other MDBs cannot be guaranteed if the MDBs increase their reliance further on budget support. The Committee directs the Secretary of the Treasury to consult with the Committee 

before any changes in budget support ceilings are adopted by any 

of the MDBs. 

ANTICORRUPTION PROVISIONS

The Committee has been pleased at the level of transparency reforms that the Secretary of the Treasury has instigated at the multilateral development banks. Specifically these reforms have been 

key in the fight against corruption at all levels of the Bank’s operations. The Committee was encouraged by recent efforts by the 

Inter-American Development Bank and the Asian Development 

Bank to begin adopting these standard procedures. However, the 

Committee is dismayed to learn that the Department of the Treasury has yet to receive sufficient information from the World Bank 

to allow the Secretary to certify World Bank compliance with the 

Anti-corruption general provision included in the fiscal year 2006 

appropriations bill. The Committee has elected to rescind 20 percent of the fiscal year 2006 budget rather than repeat the fiscal 

year 2006 general provision. 

CONTRIBUTION TO THE MULTILATERAL INVESTMENT GUARANTEE

AGENCY

Fiscal year 2006 enacted level ........................................................... $1,287,000 

Fiscal year 2007 request .................................................................... 0 

Committee recommendation .............................................................. 0 

(Limitation on callable capital subscriptions) 

Fiscal year 2006 enacted level ........................................................... (8,127,000) 

Fiscal year 2007 request .................................................................... (0) 

Committee recommendation .............................................................. (0) 

The Committee has not provided funding for the Multilateral Investment Guaranty Agency (MIGA), as requested. The Administration has requested all scheduled annual commitments to the most 

recent capital increases. 


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CONTRIBUTION TO THE INTER-AMERICAN INVESTMENT CORPORATION

Fiscal year 2006 enacted level ........................................................... $1,725,000 

Fiscal year 2007 request .................................................................... 0 

Committee recommendation .............................................................. 0 

The Committee has not provided funding for the Inter-American Investment Corporation, as requested. The Administration has requested all scheduled annual commitments to the most recent capital increases. 

CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS

MULTILATERAL INVESTMENT FUND

Fiscal year 2006 enacted level ........................................................... $1,725,000 

Fiscal year 2007 request .................................................................... 25,000,000 

Committee recommendation .............................................................. 23,000,000 

Change from request ................................................................... ·2,000,000 

Change from enacted level ......................................................... +21,275,000 

The Committee recommends a total of $23,000,000 for the first 

of six installments of the MIF–II replenishment, a $2,000,000 decrease to the request and a $21,275,000 increase to the enacted 

level. The Committee understands the MIF–II replenishment negotiated by the Administration, and currently before Congress for authorization, is $150,000,000 over six years. The Committee is encouraged by the MIF’s progress in improving transparency and 

adopting reforms. The Committee notes that MIF’s plan to make 

public its Project Performance Monitoring Reports and Project 

Completion Reports is a first for a multilateral development institution. 

The Committee urges the Inter-American Development Bank Group, of which the Multilateral Investment Fund is a part, to 

study the feasibility of providing a revolving loan guarantee for 

small coffee farmers. A significant increase in the availability of revolving loan guarantees will stimulate the flow of capital to small 

farmer’s marketing cooperatives and thus enhance their effectiveness in increasing small farmer incomes through more efficient 

market participation. 

CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

Fiscal year 2006 enacted level ........................................................... $0 

Fiscal year 2007 request .................................................................... 23,750,000 

Committee recommendation .............................................................. 0 

Change from request ................................................................... ·23,750,000 

Change from enacted level ......................................................... 0 

The Committee does not include $23,750,000 requested for the 

Asian Development Fund. Although the budget requests these 

funds for the Asia-Pacific Partnership on Clean Development and 

the Climate, none of the budget material received by the Committee in support of the Asia-Pacific Partnership referenced these 

funds. The Committee understands that the Asian Development 

Bank Account has been used as a ‘‘placeholder’’ until the successful 

completion of the negotiations with the Global Environmental Facility on the GEF–4. The Committee does not choose to ‘‘hold’’ almost $25,000,000 in scarce resources awaiting the outcome of these 

negotiations. Should GEF–4 negotiations be completed in a timely 

fashion, with commitments to reform and transparency, the Committee may revisit the amount provided to the GEF. 


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CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

Fiscal year 2006 enacted level ........................................................... $99,000,000 

Fiscal year 2007 request .................................................................... 115,250,000 

Committee recommendation .............................................................. 115,250,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +16,250,000 

The Committee recommends a total of $115,250,000 for the Asian 

Development Fund, the concessional facility of the Asian Development Bank (AsDB), as requested and a $16,250,000 increase to the 

enacted level. The Committee recommends the full amount be 

made available for the second scheduled payment of four to the 

ninth replenishment of the Asian Development Fund. 

CONTRIBUTION TO THE AFRICAN DEVELOPMENT BANK

Fiscal year 2006 enacted level ........................................................... $3,602,000 

Fiscal year 2007 request .................................................................... 5,018,000 

Committee recommendation .............................................................. 5,018,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +1,416,000 

(Limitation on callable capital subscriptions) 

Fiscal year 2006 enacted level ........................................................... (88,334,000) 

Fiscal year 2007 request .................................................................... (78,621,847) 

Committee recommendation .............................................................. (78,621,847) 

The Committee recommends a total of $5,018,000, for the final 

of eight annual payments under the GCI–5 agreement, as requested, and a $1,416,000 increase to the enacted level. 

CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND

Fiscal year 2006 enacted level ........................................................... $134,343,000 

Fiscal year 2007 request .................................................................... 135,700,000 

Committee recommendation .............................................................. 135,700,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +1,357,000 

The Committee recommends a total of $135,700,000 for the 

concessional African Development Fund, as requested, and a 

$1,357,000 increase to the enacted level. This amount is for the second installment of a three-year commitment under the agreement 

for the tenth replenishment of AfDF. 

CONTRIBUTION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND

DEVELOPMENT

Fiscal year 2006 enacted level ........................................................... $1,006,000 

Fiscal year 2007 request .................................................................... 0 

Committee recommendation .............................................................. 0 

(Limitation on callable capital subscriptions) 

Fiscal year 2006 level ......................................................................... (2,250,000) 

Fiscal year 2007 request .................................................................... (0) 

Committee recommendation .............................................................. (0) 

The Committee has not provided funding for the European Bank 

for Reconstruction and Development, as requested. The United 

States has made all scheduled annual commitments to the most recent capital increases. 


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CONTRIBUTION TO THE INTERNATIONAL FUND FOR AGRICULTURAL

DEVELOPMENT

Fiscal year 2006 enacted level ........................................................... $14,850,000 

Fiscal year 2007 request .................................................................... 18,000,000 

Committee recommendation .............................................................. 18,000,000 

Change from request ................................................................... 0 

Change from enacted level ......................................................... +3,150,000 

The Committee recommends a total of $18,000,000 for the International Fund for Agricultural Development (IFAD), equal to the 

request and a $3,150,000 increase to the enacted level. This funds 

the first of three payments under the seventh replenishment. 

IFAD–7, which was concluded in December 2005, included a 

United States pledge of $54,000,000 over three years. 

INTERNATIONAL ORGANIZATIONS AND PROGRAMS

Fiscal year 2006 enacted level ........................................................... $326,163,000 

Fiscal year 2007 request .................................................................... 289,000,000 

Committee recommendation .............................................................. 327,570,000 

Change from request ................................................................... +38,750,000 

Change from enacted level ......................................................... +1,407,000 

The Committee has recommended a total of $327,570,000 for 

International Organizations and Programs, a $38,750,000 increase 

to the request and a $1,407,000 increase to the enacted level. The 

United Nations Population Fund (UNFPA) is discussed in section 

560. 

The Committee recommendation continues prior year bill language prohibiting the use of funds for the International Atomic Energy Agency (IAEA). Funding for IAEA is addressed elsewhere. 

The following table compares fiscal year 2006 funding for the 

programs covered by this account, as well as the President’s request for fiscal year 2007 and the Committee recommendation: 

INTERNATIONAL ORGANIZATIONS AND PROGRAMS

Fiscal year 2006 enacted Fiscal year 2007 

request 

Committee recommendation 

Center for Human Settlements ................................................. $149,000 $400,000 $300,000 

IMO Marine Security Programs ................................................. 396,000 400,000 396,000 

International Civil Aviation Organization ................................. 941,000 950,000 941,000 

International Conservation Programs ....................................... 5,890,000 5,906,000 5,890,000 

International Contributions for Scientific, Educational, and 

Cultural Activities ................................................................. 990,000 1,000,000 990,000 

International Development Law Association ............................. 0 300,000 100,000 

International Panel on Climate Change/UN Framework Convention on Climate Change ................................................. 5,940,000 5,320,000 5,320,000 

Montreal Protocol Multilateral Fund ......................................... 21,285,000 19,000,000 19,000,000 

OAS Development Assistance Programs ................................... 4,702,000 5,225,000 4,702,000 

OAS Fund for Strengthening Democracy .................................. 2,475,000 2,500,000 2,475,000 

Reserve to be Allocated ............................................................ 22,275,000 0 22,725,000 

UN Children’s Fund (UNICEF) ................................................... 125,730,000 123,000,000 127,000,000 

UN Democracy Fund (UNIDF) .................................................... 0 10,000,000 4,911,000 

UN Development Fund for Women ............................................ 3,218,000 950,000 3,250,000 

UN Development Program ......................................................... 108,900,000 94,500,000 109,000,000 

UN Environment Program ......................................................... 10,159,000 9,524,000 9,524,000 

UN Office for the Coordination of Humanitarian Affairs (UN 

OCHA) ................................................................................... 805,000 1,000,000 1,000,000 

UN Voluntary Fund for the Technical Cooperation in the Field 

of Human Rights .................................................................. 1,485,000 1,425,000 1,425,000 


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Fiscal year 2006 

enacted 

Fiscal year 2007 

request 

Committee 

recommendation 

UN Voluntary Fund for Victims of Torture ................................ 6,517,000 4,750,000 4,750,000 

UNIFEM Trust Fund ................................................................... 1,485,000 0 1,500,000 

World Meteorological Organization ........................................... 1,881,000 1,900,000 1,881,000 

World Trade Organization ......................................................... 940,000 950,000 940,000 

Total ................................................................................. 326,163,000 289,000,000 327,570,000 

UNITED NATIONS DEVELOPMENT PROGRAM

The Committee recommends a level not less than $109,000,000 

in International Organizations and Programs funding to support 

the United Nations Development Program (UNDP), $14,500,000 

more than the request and $100,000 more than provided in 2006. 

The fiscal year 2007 budget request included $24,500,000 for UNDP’s Democratic Governance Thematic Trust Fund and 

$20,000,000 for the Thematic Trust Fund for Crisis Prevention and 

Recovery. The Committee is greatly concerned that redirecting 

funding away from the core budget to thematic funds or country 

programs will indicate reduced support for UNDP’s valuable programs. The Committee includes $109,000,000 from this account for 

UNDP’s core budget. 

While the Committee commends UNDP for steps in recent years 

to undertake reforms, the Committee is aware of the Administration’s concerns that the method by which UNDP allocates some of 

its core funding may not always adequately provide incentives to 

recipient countries to make positive democratic and economic 

changes or otherwise reflect United States interests. The Committee requests the State Department to consult with the Committee not later than 180 days following enactment of this Act on 

recommended changes to the allocation process and the status of 

the State Department’s consultations with UNDP on their recommendations. The Committee will consider further changes in the 

fiscal year 2008 budget request, if necessary. 

UNITED NATIONS CHILDREN’S FUND

UNICEF is an essential partner of the United States in achieving child survival and health objectives, especially those in the 

areas of immunization, HIV/AIDS, and early childhood development. The Committee recommendation includes not less than 

$127,000,000 for a contribution to UNICEF. This does not preclude 

USAID from providing additional funding for specific UNICEF 

projects. 

UNITED NATIONS DEVELOPMENT FUND FOR WOMEN

The Committee supports a total of $4,750,000 for the United Nations Development Fund for Women (UNIFEM) including a 

$3,250,000 contribution to the Fund and a $1,500,000 contribution 

to the Trust Fund in Support of Actions to Eliminate Violence 

Against Women. 

TITLE V—GENERAL PROVISIONS 

The Committee recommends that 26 of the general provisions 

carried in the fiscal year 2006 Act be deleted. These provisions (secVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00083 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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tions 526, 570, 572, 578, 582, 585, 586, 587, 588, 589, 590, 591, 

592, 593, 594, 595, 596, 597, 598, 599, 599A, 599B, 599C, 599D, 

599F, and 599G) are either addressed elsewhere in permanent law, 

have been considered by the appropriate authorizing committee, or 

are no longer necessary. 

The Committee recommends the following new and revised general provisions: 

Sec. 511. ‘‘Availability of Funds’’ is modified by including funds 

appropriated in ‘‘International Military Education and Training’’ 

within the expiration flexibilities provided by this section. 

Sec. 515. ‘‘Reprogramming Notifications, and Transfer Guide- lines’’ is modified to include language in subsections (a) and (b). 

Subsection (a) forbids any funding being made available for programs specifically denied by Congress in this or prior Acts making 

appropriations for foreign operations, export financing, and related 

programs. The Committee notes that the report accompanying the 

bill is a further clarification of Committee intent. Programs, activities, and projects denied in this report as well as in the Act shall 

be included in the implementation of subsection (a). 

Subsection (b) forbids any funding to be used to start or terminate a program without prior notification of the Committees on Appropriations. Existing language is continued providing a waiver if 

failure to do so would provide a substantial risk to human health 

or welfare. 

Sec. 517. ‘‘Independent States of the Former Soviet Union’’ is 

modified by deleting ‘‘Kazakhstan’’ from the list of notification 

countries. 

Sec. 522. ‘‘Child Survival and Health Activities’’ is revised by removing a requirement for a Comptroller General audit, making a 

technical correction, and by reverting to prior year bill language on 

family planning/reproductive health spending. 

Sec. 523. ‘‘Afghanistan’’ is modified by changing a ‘‘shall’’ to a 

‘‘should’’. 

Sec. 525. ‘‘Global Fund to Fight AIDS, Tuberculosis, and Malaria’’ is modified by changing the name from ‘‘HIV/AIDS’’ and reverting to prior year bill language conditioning 25 percent of the 

funding for the Global Fund. 

Sec. 526. ‘‘Democracy Programs’’ is a new general provision that 

includes prior year bill language providing funding for democracy 

programs. 

Sec. 531. ‘‘Financial Market Assistance in Transition Countries’’ 

is modified to include $20,000,000 specifically for not-for-profit organizations and volunteers. The provision designates a minimum 

level of $40,000,000 to be provided for helping countries in transition build and improve capital markets and financial market systems. These funds should be allocated in accordance with the Secretary’s program for transformational diplomacy. Effective and efficient financial markets are vital cornerstones of economic development. Countries in transition need technical assistance building 

and developing stock exchanges, central banks, financial regulatory 

institutions and private financial intermediaries. The Committee 

strongly supports the work of not-for-profit organizations and volunteers with experience in the private sector in developing countries and designated not less than $20,000,000 for such organizations. The Committee also affirms the principle of rigorous competiVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00084 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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tive selection of proposals based on technical merit and cost-effectiveness. 

Sec. 534. ‘‘Special Authorities’’, is modified by deleting sub- sections (f), (1), and (m) of the fiscal year 2006 Act. Subsection (j) 

has been modified to include incentives for private enterprise development. Subsection (h) is a new subsection allowing equipment 

purchased for security of the Can

 ̃

o Limon pipeline to be used for 

other purposes. 

Sec. 538. This provision has altered the use of certain terminology and is referred to as, ‘‘Designated Funding Levels’’. The 

Committee has included a provision it has carried for a number of 

years, but altered the use of certain words. For purposes of this 

provision, and Section 537, the term ‘‘designated’’ means a specific 

amount identified in legislative language for a specific purpose or 

in support of a specific purpose. 

Sec. 549. ‘‘Haiti’’ is modified to delete section (a) of the fiscal year 

2006 Act and delete the word ‘‘Transitional’’. 

Sec. 554. ‘‘Cambodia’’ is modified by deleting all after the first 

subsection in the 2006 Act and by inserting prior year bill language 

instructing the Secretary of the Treasury. 

Sec. 559. ‘‘West Bank and Gaza Program’’ is modified to delete subsections (a) and (b), which reference funds appropriated under 

the heading ‘‘Economic Support Fund’’. No funds for the West Bank 

and Gaza Program are appropriated under that heading in this 

bill. 

Sec. 560. ‘‘Contributions to the United Nations Population Fund’’ 

is identical to section 560 of the fiscal year 2006 Act except for 

technical date changes and a change providing for $22,275,000 for 

United Nations Population Fund from ‘‘International Organizations 

and Programs’’ if permissible by law. 

Sec. 563. ‘‘Serbia’’ is modified by deleting the certification requirement regarding Radovan Karadzic. 

Sec. 567. ‘‘Basic Education’’ is modified by changing the dollar 

figure to $550,000,000. 

Sec. 568. ‘‘Reconciliation Programs’’ is modified by changing a 

‘‘shall’’ to a ‘‘should’’. 

Sec. 569. ‘‘Sudan’’ is modified by removing subsection (a) of the 

fiscal year 2006 Act, exempting support for the Darfur Peace 

Agreement from restrictions under this section, and updating the 

certification provision to include ceasefire commitments made in 

the Darfur Peace Agreement. 

Sec. 570. ‘‘Peace Corps Personal Services Contractors Separation 

Pay’’ is a new provision establishing a Treasury fund for severance 

pay of Peace Corps host country resident contractors. 

Sec. 571. ‘‘Excess Defense Articles for Central and South European Countries and Certain Other Countries’’ is modified by deleting ‘‘Uzbekistan’’. 

Sec. 572. ‘‘Cuba’’ is the same general provision as included in the 

House-Reported Foreign Operations, Export Financing and Related 

Programs Bill, 2006 and prohibits counternarcotics assistance in 

this Act to the Government of Cuba. 

Sec. 574. ‘‘Limitation on Economic Support Fund Assistance for 

Certain Foreign Governments That Are Parties to the International 

Criminal Court’’ is modified by deleting subsection (e) of the fiscal 

year 2006 Act. 


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Sec. 576. ‘‘Western Hemisphere’’ is modified by changing the name from ‘‘Central America’’ and adding a new subsection (d). Sec. 578. ‘‘Rescission’’ is a new general provision with two sub- sections. Subsection (a) rescinds $188,100,000 from funds appropriated in title IV of Public Law 109–102. Subsection (b) rescinds 

$200,000,000 from funds appropriated for cash assistance under 

the title ‘‘Economic Support Fund’’ in Public Law 109–102 and 

prior Acts making appropriations for foreign operations, export financing, and related programs. Sec. 579. ‘‘OPIC Transfer Authority’’ is modified to specify Iraq programs and to eliminate references to earmarks. Sec. 582. ‘‘IMF Hiring Ceilings’’ is a new provision. 

The Committee recognizes that a sound fiscal position is nec- essary for macroeconomic stability and poverty reduction. In this 

regard, the Committee is concerned that country authorities, in response to International Monetary Fund (IMF) efforts to promote 

prudent fiscal positions, may limit the hiring of new teachers and 

health workers, as well as the building of new schools and health 

facilities. The Committee directs the United States Executive Director to urge IMF management and staff to encourage governments to protect social spending on poor people while keeping overall budget spending within a level that does not undermine economic stability. 

Sec. 584. ‘‘Reporting Requirements’’ is changed to eliminate the 

reference to April 1, 2006. 

Sec. 586. ‘‘Office of the Director of Trade Capacity Enhancement’’ 

is a new provision establishing the Director at USAID. 

Sec. 587. ‘‘Enhancing Women’s Economic Opportunities’’ is a new 

provision to ensure developmental assistance projects and activities 

address and advance issues related to women’s economic empowerment. 

Sec. 588. A new provision is included which provides authorization for the United States participation in, and appropriations for, 

the United States contribution to the first replenishment of the resources of the Enterprise for the Americas Multilateral Investment 

Fund. 

PROVISIONS RETAINED FROM FISCAL YEAR 2006

The following general provisions from the fiscal year 2006 Act 

are retained in the fiscal year 2007 Act unchanged except for technical corrections, references to fiscal year 2006, and new section 

numbers where appropriate: 

Sec. 501. Compensation for United States Executive Directors to 

International Financial Institutions. 

Sec. 502. Restrictions on Voluntary Contributions to United Nations Agencies. 

Sec. 503. Limitation on Residence Expenses. 

Sec. 504. Unobligated Balances Report. 

Sec. 505. Limitation on Representational Allowances. 

Sec. 506. Prohibition on Taxation of United States Assistance. 

Sec. 507. Prohibition Against Direct Funding for Certain Countries. 

Sec. 508. Military Coups. 

Sec. 509. Transfers. 

Sec. 510. Commercial Leasing of Defense Articles. 


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Sec. 512. Limitation on Assistance to Countries in Default. 

Sec. 513. Commerce and Trade. 

Sec. 514. Surplus Commodities. 

Sec. 516. Limitation on Availability of Funds for International 

Organizations and Programs. 

Sec. 518. Prohibition on Funding for Abortions and Involuntary 

Sterilization. 

Sec. 519. Export Financing Transfer Authorities. 

Sec. 520. Special Notification Requirements. 

Sec. 521. Definition of Program, Project, and Activity. 

Sec. 524. Notification of Excess Defense Equipment. 

Sec. 527. Prohibition on Bilateral Assistance to Terrorist Countries. 

Sec. 528. Debt-For-Development. 

Sec. 529. Separate Accounts. 

Sec. 530. Enterprise Fund Restrictions. 

Sec. 532. Authorities for the Peace Corps, InterAmerican Foundation and African Development Foundation. 

Sec. 533. Impact on Jobs in the United States. 

Sec. 535. Arab League Boycott of Israel. 

Sec. 536. Eligibility for Assistance. 

Sec. 537. Reservations of Funds. 

Sec. 539. Prohibition on Publicity and Propaganda. 

Sec. 540. Prohibition of Payments to United Nations Members. 

Sec. 541. Nongovernmental Organizations—Documentation. 

Sec. 542. Prohibition on Assistance to Foreign Governments that 

Export Lethal Military Equipment to Countries Supporting International Terrorism. 

Sec. 543. Withholding of Assistance for Parking Fines Owed by 

Foreign Governments. 

Sec. 544. Limitation on Assistance for the PLO for the West 

Bank and Gaza. 

Sec. 545. War Crimes Tribunals Drawdown. 

Sec. 546. Landmines. 

Sec. 547. Restrictions Concerning the Palestinian Authority. 

Sec. 548. Prohibition of Payment of Certain Expenses. 

Sec. 550. Limitation on Assistance to the Palestinian Authority. 

Sec. 551. Limitation on Assistance to Security Forces. 

Sec. 552. Foreign Military Training Report. 

Sec. 553. Authorization Requirement. 

Sec. 555. Palestinian Statehood. 

Sec. 556. Colombia. 

Sec. 557. Illegal Armed Groups. 

Sec. 558. Prohibition on Assistance to the Palestinian Broadcasting Corporation. 

Sec. 561. War Criminals. 

Sec. 562. User Fees. 

Sec. 564. Community Based Police Assistance. 

Sec. 565. Special Debt Relief for the Poorest. 

Sec. 566. Authority to Engage in Debt Buybacks or sales. 

Sec. 573. Gender-Based Violence Training. 

Sec. 575. Tibet. 

Sec. 577. United States Agency for International Development 

Management. 


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Sec. 580. Limitation on Funds Relating to Attendance of Federal 

Employees at Conferences Occurring Outside the United States. 

Sec. 581. Limitation on Assistance to Foreign Countries that 

Refuse to Extradite to the United States Any Individual Accused 

in the United States of Killing a Law Enforcement Officer. 

Sec. 583. Governments that Have Failed to Permit Certain Extraditions. 

Sec. 585. Assistance for Demobilization and Disarmament of 

Former Irregular Combatants in Colombia. 

HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House 

of Representatives, the following is submitted describing the transfer of funds provided in the accompanying bill. 

Under ‘‘Child Survival and Health Programs’’ up to $6,000,000 

may be transferred to and merged with funds under the heading 

‘‘Operating Expenses of the United States Agency for International 

Development.’’ 

Under ‘‘Development Credit Authority’’ up to $21,000,000 is authorized to be transferred to the account from a variety of sources. 

In addition, $8,400,000 may be transferred to and merged with 

funds appropriated under the heading ‘‘Operating Expenses of the 

United States Agency for International Development’’. 

Under ‘‘Trade Capacity and Enhancement Fund’’ up to 

$522,000,000 may be transferred to and merged with funds under 

the headings ‘‘Development Assistance’’, ‘‘Economic Support Fund’’, 

‘‘Assistance for Eastern Europe and the Baltic States,’’ ‘‘Assistance 

for the Independent States of the Former Soviet Union,’’ and ‘‘Andean Counterdrug Initiative.’’ 

Under the ‘‘Economic Support Fund’’, $135,000,000 may be transferred to fund appropriated by the Act for ‘‘Development Assistance’’. 

Under ‘‘Peace Corps’’, not to exceed $2,000,000 may be transferred to the Foreign Currency Fluctuations Account to help mitigated exchange rate losses. 

Under section 579, ‘‘OPIC Transfer Authority’’, up to $30,000,000 

of funds under title II may be transferred to funds appropriated by 

this Act for the Overseas Private Investment Corporation Program 

Account. 

RESCISSIONS

Pursuant to clause 3(f)(2) of the rule XIII of the Rules of the 

House of Representatives, the following is submitted describing the 

rescissions recommended in the accompanying bill: 

Under ‘‘General Provisions’’ in title V, section 578(a) rescinds 

$188,100,000 from funds appropriated in title IV of Public Law 

109–102 under the heading ‘‘Funds Appropriated to the President, 

International Financial Institutions, Contribution to the International Development Association’’. Subsection (b) rescinds 

$200,000,000 from funds appropriated for cash assistance under 

the title ‘‘Economic Support Fund’’ in Public Law 109–102 and 


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prior Acts making appropriations for foreign operations, export financing, and related programs. 

RESCISSIONS RECOMMENDED IN THE BILL

Department or Activity Amounts 

Recommended for 

Rescission 

Funds Appropriated to the President, International Financial Institutions, Contribution to the International Development Association of Title IV of Public Law 109–102 ............................................ $188,100,000 

Economic Support Fund of Public Law 109–102 and prior Acts 

making appropriations for foreign operations, export financing, 

and related programs ......................................................................... $200,000,000 

CONSTITUTIONAL AUTHORITY

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives states that: 

Each report of a committee on a bill or joint resolution of 

a public character shall include a statement citing the specific powers granted to the Congress in the Constitution to 

enact the law proposed by the bill or joint resolution. 

The Committee on Appropriations bases its authority to report this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America which states: 

No money shall be drawn from the Treasury but in con- sequence of Appropriations made by law * * * 

Appropriations contained in this Act are made pursuant to this 

specific power granted by the Constitution. 

CHANGES IN THE APPLICATION OF EXISTING LAW

Pursuant to clause 3(f), rule XIII of the Rules of the House of 

Representatives, the following statements are submitted describing 

the effects of provisions in the accompanying bill which directly or 

indirectly change the application of existing law. Most of the language has been provided in previous measures including 

supplementals for the departments and agencies carried in the accompanying bill. 

1. The bill contains appropriations for a number of items for 

which authorizations for fiscal year 2007 have not yet been enacted. The bill allows funds appropriated in the bill to be obligated 

in the absence of a prior authorization of appropriations. 

2. The bill provides that a few of the appropriations shall remain 

available for obligation beyond the current fiscal year. In all cases 

it is deemed desirable to carry such language in order to provide 

for orderly administration of such programs and effective use of 

funds. 

3. The bill contains a number of general provisions and other 

language that have been carried in the bill in past years. 

4. Under ‘‘Export-Import Bank of the United States’’, authority 

is provided for Sections 1(a) and (b) of Public Law 103–428 to remain in effect until October 1, 2007. Under ‘‘Export-Import Bank 

of the United States, Subsidy Appropriations’’, funds are appropriated for the cost of direct loans, loan guarantees, insurance, and 

tied-aid grants. Such costs shall be as defined in section 502 of the 


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Congressional Budget Act of 1974 and may be used for the disbursement of direct loans, loan guarantees, and insurance and tiedaid grants obligated in fiscal years 2007, 2008, 2009, and 2010. 

These funds are available for obligation until September 30, 2025. 

Under ‘‘Export-Import Bank of the United States, Administrative 

Expenses’’, authority is provided to extend subsection (a) of section 

117 of the Export Enhancement Act of 1992 until October 1, 2007. 

5. Under ‘‘Overseas Private Investment Corporation, Program 

Account’’, funds are appropriated for the cost of direct and guaranteed loans, to be derived by transfer from the Overseas Private Investment Corporation Noncredit Account. Such costs shall be as defined in section 502 of the Congressional Budget Act of 1974 and 

may be used for direct loan and loan guaranty commitments incurred or made during fiscal years 2007, 2008, and 2009. These 

funds are available for obligation until 2014, 2015, and 2016, depending on the initial date of obligation. Authority is provided for 

OPIC to undertake programs in Iraq. 

6. Under ‘‘Child Survival and Health Programs Fund’’ language 

is provided that indicates how the funds should be allocated among 

various activities; not to exceed $350,000, in addition to funds otherwise available for such purposes, may be used to monitor and 

provide oversight of programs for displaced and orphaned children 

and victims of war; funds under the heading are authorized to be 

made available for a contribution to The GAVI Fund; and language 

is included that provides not less than $200,000,000, subject to 

matching contributions, for a contribution to the Global Fund to 

Fight AIDS, Tuberculosis and Malaria, which shall be expended at 

the minimum rate necessary to make timely payments for projects 

and activities. 

7. Under ‘‘Development Assistance’’, language is provided that indicates how the funds should be allocated among various activities, 

including $365,000,000 for basic education, $20,000,000 for drinking water supply projects in east Africa. Also, $15,000,000 shall be 

made available only for programs to improve women’s leadership 

capacity in recipient countries and $10,000,000 for the Office of Private and Voluntary Cooperation. 

8. Under ‘‘Transition Initiatives’’, authority is provided to utilize 

up to $15,000,000 of funds appropriated to carry out part I of the 

Foreign Assistance Act of 1961 in excess of funds appropriated 

under this heading. 

9. Under ‘‘Development Credit Authority’’, authorized transfers, 

when added to the funds transferred pursuant to the authority contained under this heading in Public Law 107–115, shall not exceed 

$21,000,000. Such costs shall be as defined in section 502 of the 

Congressional Budget Act of 1974. The Provisions of section 

107A(d) of the Foreign Assistance Act of 1961, as contained in section 306 of H.R. 1486 as reported by the House Committee on 

International Relations on May 9, 1997, shall be applicable to direct loans and loan guarantees. 

10. Under ‘‘Operating Expenses of the United States Agency for 

International Development’’, USAID is prohibited from entering 

into domestic leases, except when necessary for continuity of operations, and to terminate a lease executed on September 30, 2005. 

Language is included permitting the Secretary of State to utilize 

sections 610 and 109 of the Foreign Assistance Act to transfer 


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funds to this account from funds appropriated to carry out chapter 

1 of part I of that Act. 

11. Under ‘‘Capital Investment Fund’’, the Administrator of 

USAID is authorized to charge fair and reasonable rent in buildings constructed using funds appropriated under this heading, and 

such rental payments are designated as offsetting collections; and 

the assignment of employees or contractors to buildings is subject 

to the concurrence of the Administrator of USAID. Language is included that limits funding for implementing the Capital Security 

Cost Sharing Program to $89,000,000. 

12. Under ‘‘Economic Support Fund’’, not less than $120,000,000 

is made available only for Israel and is required to be disbursed as 

a cash grant within 30 days of enactment of this Act; and not less 

than $455,000,000 is made available only for Egypt of which not 

less than $135,000,000 shall be for project assistance, of which 

$50,000,000 is for democracy programs and not less than 

$50,000,000 is for education; $135,000,000 is available only for Colombia; $250,500,000 should be made available only for assistance 

for Jordan; not less than $35,500,000 should be available for Lebanon of which not less than $6,000,000 should be available for 

American educational institutions for scholarships and other programs; $1,000,000 is available for administrative expenses from 

funds available for Timor-Leste; funds may be spent for programs 

and activities for the Central Highlands of Vietnam; and not less 

than $15,000,000 should be available for Cyprus; prohibits any 

funding for West Bank and Gaza. 

13. Under ‘‘Assistance for the Independent States of the Former 

Soviet Union’’, limits to administrative expenses for programs 

under section 807 of Public Law 102–511 to 6 percent, and directs 

that not less than $41,000,000 should be made available for assistance for child survival and health activities. 

14. Under ‘‘African Development Foundation’’, funds made available to grantees may be invested for project purposes when authorized by the Board of Directors, instead of by the President as in 

current law; authorizes the limitation in section 505(a)(2) of 

$250,000 to be waived in exceptional circumstances, but only up to 

$10,000. 

15. Under ‘‘Peace Corps’’, permits the Director to transfer up to 

$2,000,000 to help mitigate exchange rate losses. 

16. Under ‘‘Millennium Challenge Corporation’’, language is included allowing up to 10 percent of funds for assistance to threshold countries but restricting the availability of funds until after the 

submission of a report describing the proposed implementation of 

the threshold program for fiscal year 2007. Section 605(e)(4) of the 

relevant authorization act is also applied to funds appropriated 

under this heading. Administrative expenses are limited to 

$95,000,000. Language is included requiring the MCC to fully fund 

compacts. 

17. Under ‘‘Global HIV/AIDS Initiative’’, not less than 

$244,500,000 is made available for a contribution to the Global 

Fund to Fight AIDS, Tuberculosis and Malaria, which shall be expended at the minimum rate necessary to make timely payments 

for projects and activities. Language is also included to provide up 

to five percent of the Global Fund contribution to be used for technical assistance related to the activities of the Global Fund. 


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18. Under ‘‘International Narcotics Control and Law Enforcement’’, the Department of State is given the authority to use section 608 of the Foreign Assistance Act of 1961 to provide excess 

property to a foreign country; provides not less than $16,250,000 

for International Law Enforcement Academies; provides 

$26,100,000 only for programs in Colombia; the account funds demand reduction programs at $10,000,000; and a limitation of 

$33,484,000 is placed on administrative expenses. 

19. Under ‘‘Andean Counterdrug Initiative’’, assistance for Colombia is made available consistent with the provisions authorizing 

and limiting such assistance as are contained in Public Law 107– 

206; section 482(b) of the Foreign Assistance Act is waived, subject 

to notification; the Secretary of State, in consultation with the Administrator of USAID, shall provide to the Committee 45 days after 

the date of enactment a report on the proposed uses of all funds 

under this heading on a country-by-country basis for each proposed 

program, project or activity; $85,400,000 apportioned directly to 

USAID; in addition, a limitation of $18,060,000 is placed on administrative expenses of the Department of State; requires a certification in order to provide assistance for the Bolivian military; and 

not more than $7,800,000 may be available for administrative expenses of the United States Agency for International Development. 

20. Under ‘‘Migration and Refugee Assistance’’, limits administrative expenses to $23,000,000; provides $40,000,000 to resettle 

humanitarian migrants to Israel; and conditions a headquarters 

contribution to the International Committee of the Red Cross on 

full participation of the Magen David Adom Society in the International Red Cross and Red Crescent Movement. 

21. Under ‘‘Nonproliferation, Anti-terrorism, Demining, and Related Programs’’, a limitation of $38,000,000 is placed on funding 

for the Nonproliferation and Disarmament Fund with authority to 

use such funds outside of the Independent States of the former Soviet Union and international organizations when it is in the national security interests of the United States to do so; conditions a 

contribution to the IAEA on a determination that Israel is not denied the right to participate in that Agency; administrative expenses for operation and management of the demining program are 

limited to $700,000; and extends availability of ‘‘Anti-terrorism Assistance’’ and ‘‘Export Control and Border Security’’ funding to 

2008. 

22. Under ‘‘International Affairs Technical Assistance’’, provides 

funds notwithstanding any other provision of law that restricts assistance to foreign countries. 

23. Under ‘‘Debt Restructuring’’ funds are provided for the cost 

of selling, reducing or canceling debts owed to the United States, 

of modifying concessional credit agreements with least developed 

countries, and of canceling amounts owed as a result of loans or 

guarantees; provides $20,000,000 to carry out part V of the Foreign 

Assistance Act of 1961; funds are provided for the Secretary of 

Treasury to pay the Heavily Indebted Poor Countries Trust Fund 

amounts for the benefits of countries that are eligible for debt reduction; provides that section 411 of the Agricultural Trade Development and Assistance Act of 1954 shall not apply to funds under 

this heading; denies funding for Sudan or Burma until a deterVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00092 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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mination that a democratically elected government has taken office. 

24. Under ‘‘International Military Education and Training’’, provides up to $3,000,000 available until expended. 

25. Under ‘‘Foreign Military Financing Program’’ not less than 

$2,340,000,000 is appropriated for Israel, of which not less than 

$610,000,000 shall be available for the procurement in Israel of defense articles and defense services and that all funds for Israel 

must be disbursed within 30 days of enactment of this Act; 

$1,300,000,000 shall be made available for grants only for Egypt; 

a limitation of $42,500,000 is provided for administrative expenses; 

$216,000,000 should be made available for Jordan; and a limitation 

of $359,000,000 from certain other funds may be obligated for expenses incurred pursuant to section 43(b) of the Arms Export Control Act. 

26. Under title IV, funds for a number of international financial 

institutions are made available for contributions; funds are made 

available for the United States share of the paid-in portion of the 

increase in capital stock of certain institutions; and limitations are 

placed on callable capital subscriptions. 

27. Under ‘‘General Provisions’’: 

Sec. 511, ‘‘Availability of Funds’’ is modified by including funds 

appropriated in ‘‘International Military Education and Training’’ 

within the expiration flexibilities provided by this section. 

Sec. 515, ‘‘Notification Requirements’’ is modified to include new 

language, subsections (a) and (b). Subsection (a) forbids any funding being made available for programs specifically denied by Congress in this or prior Acts making appropriations for foreign operations, export financing, and related programs. Subsection (b) forbids any funding to be used to start or terminate a program without prior notification of the Committees on Appropriations. Existing language is continued providing a waiver if failure to do so 

would provide a substantial risk to human health or welfare. 

Sec. 517, ‘‘Independent States of the Former Soviet Union’’ is 

modified by deleting ‘‘Kazakhstan’’ from the list of notification 

countries. 

Sec. 522, ‘‘Child Survival and Health Activities’’ is revised by removing a requirement for a Comptroller General audit, making a 

technical correction, and by reverting to prior year bill language on 

family planning/reproductive health spending. 

Sec. 523, ‘‘Afghanistan’’ is modified by changing a ‘‘shall’’ to a 

‘‘should’’. 

Sec. 525, ‘‘Global Fund to Fight AIDS, Tuberculosis, and Malaria’’ is modified by changing the name from ‘‘HIV/AIDS’’ and reverting to prior year bill language conditioning 25 percent of the 

funding for the Global Fund. 

Sec. 526, ‘‘Democracy Programs’’ is a new general provision that 

includes prior year bill language providing funding for democracy 

programs. 

Sec. 531, ‘‘Financial Market Assistance in Transition Countries’’ 

is modified to include $20,000,000 specifically for not-for-profit organizations and volunteers. The provision designates a minimum 

level of $40,000,000 to be provided for helping countries in transition build and improve capital markets and financial market systems. These funds should be allocated in accordance with the SecVerDate Aug 31 2005 03:13 Jun 06, 2006 Jkt 027855 PO 00000 Frm 00093 Fmt 6659 Sfmt 6602 E:\HR\OC\HR486.XXX HR486

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retary’s program for transformational diplomacy. Effective and efficient financial markets are vital cornerstones of economic development. Countries in transition need technical assistance building 

and developing stock exchanges, central banks, financial regulatory 

institutions and private financial intermediaries. The Committee 

strongly supports the work of not-for-profit organizations and volunteers with experience in the private sector in developing countries and designated not less than $20,000,000 for such organizations. The Committee also affirms the principle of rigorous competitive selection of proposals based on technical merit. 

Sec. 534, ‘‘Special Authorities’’, is modified by deleting subsections (f), (l), and (m) of the fiscal year 2006 Act. Subsection (j) 

has been modified to include incentives for private enterprise development. Subsection (h) is a new subsection allowing equipment 

purchased for security of the Cano Limon pipeline to be used for 

other purposes. 

Sec. 538, ‘‘Ceilings and Earmarks’’ has been renamed ‘‘Designated Funding Levels’’. 

Sec. 549, ‘‘Haiti’’ is modified to delete section (a) of the fiscal year 

2006 Act and delete the word ‘‘Transitional’’. 

Sec. 554, ‘‘Cambodia’’ is modified by deleting all after the first 

subsection in the 2006 Act and by inserting prior year bill language 

instructing the Secretary of the Treasury. 

Sec. 559, ‘‘West Bank and Gaza Program’’ is modified to deleted 

subsections (a) and (b), which reference funds appropriated under 

the heading ‘‘Economic Support Fund’’. No funds for the West Bank 

and Gaza Program are appropriated under that heading in this 

bill. 

Sec. 560, ‘‘Contributions to the United Nations Population Fund’’ 

is identical to section 560 of the fiscal year 2006 Act except for 

technical date changes and a change providing for $22,275,000 for 

United Nations Population Fund from ‘‘International Organizations 

and Programs’’ if permissible by law. 

Sec. 563, ‘‘Serbia’’ is modified by deleting the certification requirement regarding Radovan Karadzic. 

Sec. 567, ‘‘Basic Education’’ is modified by changing the figure to 

$550,000,000. 

Sec. 568, ‘‘Reconciliation Programs’’ is modified by changing a 

‘‘shall’’ to a ‘‘should’’. 

Sec. 569, ‘‘Sudan’’ is modified by removing subsection (a) of the 

fiscal year 2006 Act, exempting support for the Darfur Peace 

Agreement from restrictions under this section, and updating the 

certification provision to include ceasefire commitments made in 

the Darfur Peace Agreement. 

Sec. 570, ‘‘Peace Corps Personal Services Contractors Separation 

Pay’’ is a new provision establishing a Treasury fund for severance 

pay of Peace Corps host country resident contractors. 

Sec. 571, ‘‘Excess Defense Articles for Central and South European Countries and Certain Other Countries’’ is modified by deleting ‘‘Uzbekistan’’. 

Sec. 572, ‘‘Cuba’’ is the same general provision as included in the 

House-Reported Foreign Operations, Export Financing and Related 

Programs Bill, 2006 and prohibits counternarcotics assistance in 

this Act to the Government of Cuba. 


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Sec. 574, ‘‘Limitation on Economic Support Fund Assistance for 

Certain Foreign Governments That Are Parties to the International 

Criminal Court’’ is modified by deleting subsection (e) of the fiscal 

year 2006 Act. 

Sec. 576, ‘‘Western Hemisphere’’ is modified by changing the name from ‘‘Central America’’ and adding a new subsection (d). 

Sec. 578, ‘‘Rescission’’ is a new general provision with two sub- sections. Subsection (a) rescinds $188,100,000 from funds appropriated in title IV of Public Law 109–102. 

Subsection (b) rescinds $200,000,000 from funds appropriated for 

cash assistance under the title ‘‘Economic Support Fund’’ in Public 

Law 109–102 and prior Acts making appropriations for foreign operations, export financing, and related programs. 

Sec. 579, ‘‘OPIC Transfer Authority’’ is modified to specify Iraq 

programs and to eliminate references to earmarks. 

Sec. 582, ‘‘IMF Hiring Ceilings’’ is a new provision. The Committee recognizes that a sound fiscal position is necessary for macroeconomic stability and poverty reduction. In this regard, the 

Committee is concerned that country authorities, in response to 

International Monetary Fund (IMF) efforts to promote prudent fiscal positions, may limit the hiring of new teachers and health 

workers, as well as the building of new schools and health facilities. The Committee directs the United States Executive Director 

to urge IMF management and staff to encourage governments to 

protect social spending on poor people while keeping overall budget 

spending within a level that does not undermine economic stability. 

Sec. 584, ‘‘Reporting Requirements’’ is changed to eliminate the 

reference to April 1, 2006. 

Sec. 586, ‘‘Office of the Director of Trade Capacity Enhancement’’ 

is a new provision establishing the Director at USAID. 

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House 

of Representatives, the following table lists the appropriations in 

the accompanying bill which, in whole or in part, are not authorized by law: 


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Agency/Activity Last year authorized Authorization level Appropriations in last year of authorization Appropriations in the bil

Export/Import Bank Subsidy 

Appropriation.

2006 ........................................................... $100,000,000 ............................................. $74,000,000 ............................................... $26,382,000 

Export/Import Bank Administrative Expenses. 2006 ........................................................... $73,200,000 ............................................... $72,468,000 ............................................... $75,234,000 

Export/Import Bank Inspector 

General.

2006 ........................................................... $1,000,000 ................................................. $990,000 .................................................... $988,000 

Overseas Private Investment 

Corporation Administrative Expenses.

2003 ........................................................... Such sums as may be necessary .............. $39,626,000 ............................................... $45,453,000 

Overseas Private Investment 

Corporation Noncredit Account.

2003 ........................................................... Such sums as may be necessary .............. $23,844,000 ............................................... $20,035,000 

Child Survival and Health Programs Fund (see note 

below).

Population (1987); Health and Disease 

Prevention (1987); Child Survival Fund (1987).

Population ($290,000,000); Health and 

Disease Prevention ($180,000,000); Child Survival Fund ($75,000,000).

Population ($234,625,000); Health and 

Disease Prevention ($166,762,000); Child Survival Fund ($75,000,000).

$1,565,613,000 (includes $3

for Population). 

Development Assistance (see 

note below).

Agriculture; (1987) Education (1987); Energy and selected development activities (1987). Agriculture ($760,000,000); Education ($180,000,000); Energy and selected development activities ($207,000,000). Agriculture ($693,613,000); Education ($155,000,000); Energy and selected development activities ($149,990,000). $1,294,000,000 (includes: $3

for basic education; other difficult to determine due tdefinitions of programs sincthorized). 

International Disaster and 

Famine Assistance.

1987 ........................................................... $25,000,000 ............................................... $70,000,000 ............................................... $348,800,000 

Transition Initiatives ............... None (same authorities as International 

Disaster Assistance).

NA ............................................................... NA ............................................................... $40,000,000 

Development Credit Authority None ............................................................ NA ............................................................... NA ............................................................... $21,000,000 (by transfer). Development Credit Authority—administrative expenses. None ............................................................ NA ............................................................... NA ............................................................... $8,400,000 Payment to the Foreign Service Retirement and Disability Fund. None—mandatory program ........................ NA ............................................................... NA ............................................................... $38,700,000 Operating Expense of the 

United States Agency for International Development.

1987 ........................................................... $387,000,000 ............................................. $340,600,000 ............................................. $646,000,000 

Capital Investment Fund ........ None ............................................................ NA ............................................................... NA ............................................................... $105,300,000 


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Operating Expenses of the 

United States Agency for International Development—Inspector General.

1987 ........................................................... $21,750,000 ............................................... $21,000,000 ............................................... $39,000,000 

Economic Support Fund .......... 1987 ........................................................... $3,800,000,000 .......................................... $3,555,000,000 .......................................... $2,650,740,000 International Fund for Ireland 1988 ........................................................... $35,000,000 ............................................... $35,000,000 ............................................... $10,800,000 Assistance for Eastern Europe 

and the Baltic States (see note below).

None ............................................................ NA ............................................................... NA ............................................................... $227,900,000 

Assistance for the Independent States of the 

Former Soviet Union.

1993 ........................................................... $410,000,000 ............................................. $417,000,000 ............................................. $371,280,000 

Trade Capacity Enhancement 

Fund.

None ............................................................ NA ............................................................... NA ............................................................... $522,000,000 

Inter-American Foundation ..... 1993 ........................................................... $31,000,000 ............................................... $30,960,000 ............................................... $19,268,000 African Development Foundation. 1987 ........................................................... $3,872,000 ................................................. $6,500,000 ................................................. $22,726,000 Peace Corps ............................ 2003 ........................................................... $365,000,000 ............................................. $295,069,000 ............................................. $324,587,000 Millennium Challenge Corporation. 2005 ........................................................... Such sums as may be necessary .............. $1,488,000,000 .......................................... $2,000,000,000 

International Narcotics Control 

and Law Enforcement.

1994 ........................................................... $171,500,000 ............................................. $100,000,000 ............................................. $703,600,000 

Andean Counterdrug Initiative None ............................................................ NA ............................................................... NA ............................................................... $506,850,000 Migration and Refuge Assistance. 2003 ........................................................... $820,000,000 ............................................. $781,884,000 ............................................. $750,206,000 U.S. Emergency Refugee and 

Migration Assistance Fund (see note below).

1962 ........................................................... Such amounts as may be necessary ......... NA ............................................................... $30,000,000 

Nonproliferation, Anti-terrorism, Demining and Related Programs (see note 

below).

None ............................................................ NA ............................................................... NA ............................................................... $425,010,000 

International Affairs Technical 

Assistance.

1999 ........................................................... $5,000,000 ................................................. $1,500,000 ................................................. $23,700,000 

International Military Education and Training. 2003 ........................................................... $85,000,000 ............................................... $79,480,000 ............................................... $88,000,000 

Foreign Military Financing ...... 2003 ........................................................... $4,107,000,000 .......................................... $6,104,632,000 .......................................... $4,454,900,000 Peacekeeping Operations ........ 1999 ........................................................... $83,000,000 ............................................... $76,500,000 ............................................... $170,000,000 


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Agency/Activity Last year authorized Authorization level Appropriations in last year of authorization Appropriations in the bil

Multilateral Investment Fund 1997 ........................................................... $100,000,000 ............................................. $27,500,000 ............................................... $23,000,000 

Note: Programs recommended herein under ‘‘Child Survival and Health Programs Fund’’ and ‘‘Development Assistance’’ were last authorized under a different account structure than that recommended in this bill; the account 

cluded a number of functional accounts, as described above. Microenterprise programs were reauthorized in 2004, covering the period through 2009. In addition assistance for orphans and other vulnerable children and activities tims of torture are authorized through fiscal year 2007. Finally, safe water and sanitation programs are authorized indefinitely. 

Note: Programs recommended herein under ‘‘Support for Eastern Europe and the Baltic States’’ were last authorized in the Support for East European Democracy (SEED) Act of 1989; however, these funds were authorized for 

grams and not for the account as a whole. In fiscal year 1991, the first general appropriations act after enactment of the SEED Act included $369,675,000 for this account. 

Note: Funds for the United States Emergency Refugee and Migration Assistance Program (ERMA) are authorized in such amounts as may be necessary; however, appropriations which would result in a balance in the fund o

$100,000,000 are prohibited (22 U.S.C. 2601(c)) absent a waiver of this provision of law. 

Note: Programs recommended herein under ‘‘Nonproliferation, Anti-terrorism, Demining, and Related Programs’’ include some major programs for which authorizations of appropriations were provided for fiscal year 2002; these 

clude $73,000,000 authorized for antiterrorism assistance and $142,000,000 authorized for nonproliferation activities. In addition, some programs now in this account were previously in accounts which had authorizations of apprprior years. 

Note: The Tropical Forest Conservation Act of 1998 was reauthorized in 2004, including program authorization through 2007. 


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COMPARISON WITH BUDGET RESOLUTION

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives requires an explanation of compliance with section 

308(a)(1)(A) of the Congressional Budget and Impoundment Control 

Act of 1974. (Public Law 93–344), as amended, which requires that 

the report accompanying a bill providing new budget authority contain a statement detailing how the authority compares with the reports submitted under section 302 of the Act for the most recently 

agreed to concurrent resolution on the budget for the fiscal year 

from the Committee’s section 302(a) allocation. 

[In millions of dollars] 

302(b) allocation— This bill— 

Budget 

authority Outlays Budget authority Outlays 

Discretionary ........................................................................................................... 21,300 23,441 21,299 23,440 

Mandatory ............................................................................................................... 39 39 39 39 

FIVE-YEAR OUTLAY PROJECTIONS

In compliance with section 308(a)(1)(B) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93– 

344), as amended, the following table contains five-year projections, 

in millions of dollars, associated with the budget authority provided 

in the accompanying bill: 

Projection of outlays associated with the recommendation.

2007 .............................................................................................. 1$8,872 

2008 .............................................................................................. 6,594 

2009 .............................................................................................. 2,685 

2010 .............................................................................................. 1,557 

2011 and future years ................................................................. 1,395 1 Excludes outlays from prior-year budget authority. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding: 

The Committee on Appropriations considers program performance, including a program’s success in developing and attaining 

outcome-related goals and objectives, in developing funding recommendations. 

FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional 

Budget and Impoundment Control Act of 1974 (Public Law 93–44), 

as amended, the financial assistance to State and local governments is as follows: 

The amounts recommended in the accompanying bill contain no 

budget authority or budget outlays for State or local governments. 

COMPLIANCE WITH RULE XIII, CL. 3(e) (RAMSEYER RULE) 

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 


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100 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

INTER-AMERICAN DEVELOPMENT BANK ACT 

* * * * * * * 

SEC. 39. FIRST REPLENISHMENT OF THE RESOURCES OF THE ENTERPRISE FOR THE AMERICAS MULTILATERAL INVESTMENT 

FUND. 

(a) CONTRIBUTION AUTHORITY.— 

(1) IN GENERAL.—The Secretary of the Treasury may contribute on behalf of the United States $150,000,000 to the first 

replenishment of the resources of the Enterprise for the Americas Multilateral Investment Fund. 

(2) SUBJECT TO APPROPRIATIONS.—The authority provided by 

paragraph (1) may be exercised only to the extent and in the 

amounts provided for in advance in appropriations Acts. 

(b) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—For 

the United States contribution authorized by subsection (a), there 

are authorized to be appropriated not more than $150,000,000, 

without fiscal year limitation, for payment by the Secretary of 

Treasury. 


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ADDITIONAL VIEWS OF REPRESENTATIVE DAVID OBEY 

I am deeply disappointed that the Committee did not accept my 

amendment to condition $200 million of the funds for Egypt under 

Foreign Military Financing on the enactment of future legislation. 

My amendment would ultimately not have reduced overall assistance to Egypt but rather delayed a portion of it, thereby providing 

Congress with an opportunity to assess any efforts by Egypt to improve its record on human rights. My amendment was not offered 

out of anger at Egypt, it was offered out of concern. For over three 

decades, I have been a strong supporter of Egypt and have backed 

the over $60 billion in economic and military aid that the United 

States has provided to Egypt during my tenure in Congress. I continue to believe that Egypt plays an important and stabilizing role 

in the Middle East and is a strong ally of the United States. 

However, I am increasingly concerned that Egypt is headed in a 

direction domestically that puts at risk not only U.S. interests in 

the region but the very stability of Egypt. I am deeply troubled by 

the reversal in political freedoms and human rights over the past 

year. The continued imprisonment of Ayman Nour, a leading opposition candidate in the presidential elections, the crackdown on pro 

democracy protestors, the narrowing of judicial independence, extension of the emergency laws for an additional two years and the 

harassment of political parties and moderate opposition leaders 

have sent a chilling message throughout Egypt. Yet, as political 

choice and free speech through legitimate means are denied to the 

Egyptian people, the effect has been to strengthen the appeal of 

more extremist ideologies. If the United States and other allies in 

the region are not able to influence the current government in 

Egypt to open up the political system and allow greater participation now, any future transition from the current regime is more 

likely to result in chaos, violence and the growing power of more 

extremist political parties. 

By rejecting the amendment, I fear that the Committee sent a 

message to the government of Egypt that as long as Egypt continues to be of strategic importance to the United States, the issues 

of human rights and democracy will take a back seat; that shortterm geopolitical considerations will continue to take precedence 

over long-term stability and security interests. That message may 

suit the short-term interests of the United States, but it will prove 

disastrous in the long run to both our national interest and the values of political and civil decency for which we are supposed to 

stand. 

DAVID OBEY. 

fi 


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