I 

113TH CONGRESS 

1ST SESSION H. R. 1793 

To establish a framework for effective, transparent, and accountable United 

States foreign assistance, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2013 

Mr. CONNOLLY (for himself, Ms. BASS, and Mr. BLUMENAUER) introduced 

the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Oversight and Government 

Reform, Rules, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To establish a framework for effective, transparent, and accountable United States foreign assistance, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Global Partnerships Act of 2013’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 


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Sec. 2. Findings. 

Sec. 3. Statement of policy. 

Sec. 4. Principles of assistance. 

Sec. 5. Purposes of assistance. 

Sec. 6. Definitions. 

TITLE I—REDUCING GLOBAL POVERTY AND ALLEVIATING 

HUMAN SUFFERING 

Sec. 1001. Findings. 

Sec. 1002. Statement of policy. 

Sec. 1003. Encouragement of United States private and voluntary cooperation. 

Sec. 1004. Encouragement of United States business participation. 

Sec. 1005. Development partnerships fellows program. 

Subtitle A—Reducing Global Poverty 

Sec. 1011. Findings. 

Sec. 1012. Statement of policy. 

Sec. 1013. Principles of assistance. 

Sec. 1014. Goals of assistance. 

Sec. 1015. Development Support Funds. 

Sec. 1016. Innovation Fund. 

Sec. 1017. United States Strategy for Global Development. 

Sec. 1018. Country Development Cooperation Strategies. 

Sec. 1019. Sector strategies for development. 

Sec. 1020. Interagency Policy Committee on Global Development. 

Sec. 1021. Global Development Council. 

Sec. 1022. Development education. 

Sec. 1023. Definitions. 

CHAPTER 1—ACCELERATING ECONOMIC GROWTH

Sec. 1101. Findings and statement of policy. 

Sec. 1102. Goal and objectives. 

Sec. 1103. Global Strategy for Economic Growth. 

Sec. 1104. Assistance for economic growth. 

Sec. 1105. Fiscal and contract transparency. 

SUBCHAPTER A—MICROENTERPRISE DEVELOPMENT ASSISTANCE

Sec. 1111. Findings and statement of policy. 

Sec. 1112. Microenterprise Fund. 

Sec. 1113. Office of Microenterprise Development. 

Sec. 1114. Definitions. 

SUBCHAPTER B—SMALL AND MEDIUM ENTERPRISE DEVELOPMENT

Sec. 1121. Findings and statement of policy. 

Sec. 1122. Assistance for small and medium enterprises. 

Sec. 1123. Definition. 

SUBCHAPTER C—OTHER PROGRAMS

Sec. 1131. Development credit authority. 

Sec. 1132. Technical assistance for financial management. 

CHAPTER 2—PROMOTING FOOD SECURITY


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Sec. 1201. Findings and statement of policy. 

Sec. 1202. Goal and objectives. 

Sec. 1203. Global Strategy for Food Security. 

Sec. 1204. Assistance for promoting food security. 

Sec. 1205. Collaborative agricultural and nutrition research and innovation. 

Sec. 1206. Board for International Food and Agricultural Development. 

Sec. 1207. Assistance to international and regional organizations. 

Sec. 1208. Definitions. 

CHAPTER 3—ADVANCING HEALTH

Sec. 1301. Findings and statement of policy. 

Sec. 1302. Goal and objectives. 

Sec. 1303. Global health strategy. 

Sec. 1304. Assistance for health. 

Sec. 1305. Health principles and restrictions. 

SUBCHAPTER A—CHILD SURVIVAL AND MATERNAL HEALTH

Sec. 1311. Child survival. 

Sec. 1312. Maternal and newborn health. 

Sec. 1313. Assistance for orphans and other vulnerable children. 

SUBCHAPTER B—COMBATING DISEASE

Sec. 1321. Assistance to combat HIV/AIDS, tuberculosis, and malaria. 

Sec. 1322. Assistance to combat neglected tropical diseases. 

Sec. 1323. Assistance for disease prevention, control, and treatment. 

SUBCHAPTER C—FAMILY PLANNING AND REPRODUCTIVE HEALTH

Sec. 1331. Assistance for family planning and reproductive health. 

Sec. 1332. Reproductive health care in emergencies. 

CHAPTER 4—EXPANDING QUALITY EDUCATION

Sec. 1401. Findings and statement of policy. 

Sec. 1402. Goal and objectives. 

Sec. 1403. Global education strategy. 

Sec. 1404. Basic education assistance. 

Sec. 1405. Higher education partnerships. 

CHAPTER 5—PROTECTING AND RESTORING THE NATURAL ENVIRONMENT

Sec. 1501. Findings and statement of policy. 

Sec. 1502. Goal and objectives. 

Sec. 1503. Global conservation strategy. 

Sec. 1504. Assistance for environmental sustainability. 

Sec. 1505. Assistance for sustainable energy and natural resource management. 

Sec. 1506. Environmental restrictions. 

Sec. 1507. Environmental impact statements and assessments. 

Sec. 1508. Definitions. 

CHAPTER 6—IMPROVING ACCESS TO SAFE WATER, SANITATION, AND

HOUSING

Sec. 1601. Findings and statement of policy. 

Sec. 1602. Goal and objectives. 


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Sec. 1603. Global strategy for water, sanitation and housing. 

Sec. 1604. Assistance for water, sanitation and housing. 

Sec. 1605. Definitions. 

CHAPTER 7—FOSTERING GENDER EQUALITY

Sec. 1701. Findings and statement of policy. 

Sec. 1702. Goal and objectives. 

Sec. 1703. Global strategy for gender equality. 

Sec. 1704. Assistance for gender equality. 

Sec. 1705. Office of Gender Equality and Women’s Empowerment. 

Sec. 1706. Prevention of child marriage. 

Sec. 1707. Coordination of efforts to prevent child marriage. 

Sec. 1708. Definitions. 

CHAPTER 8—STRENGTHENING DEMOCRATIC GOVERNANCE

Sec. 1801. Findings and statement of policy. 

Sec. 1802. Goal and objectives. 

Sec. 1803. Assistance for democratic strengthening. 

Sec. 1804. Advisory Committee on Democracy Promotion. 

Sec. 1805. Foreign government approval and conditionality. 

Sec. 1806. Relationship to other laws. 

Sec. 1807. Prohibiting assistance to influence the outcome of elections. 

Sec. 1808. Protected speech. 

Subtitle B—Alleviating Human Suffering 

Sec. 1901. Findings and statement of policy. 

Sec. 1902. Goal and objectives. 

Sec. 1903. Humanitarian principles. 

Sec. 1904. International disaster assistance. 

Sec. 1905. Emergency Humanitarian Response Fund. 

Sec. 1906. Definitions. 

TITLE II—ADVANCING PEACE AND MITIGATING CONFLICT 

Sec. 2001. Findings and statement of policy. 

Sec. 2002. Definition. 

Subtitle A—General Authorities 

Sec. 2011. Peacekeeping. 

Sec. 2012. Transition initiatives. 

Sec. 2013. Limit on payment to United Nations and affiliated agencies. 

Sec. 2014. Complex Crisis, Stabilization, and Prevention Fund. 

Sec. 2015. Addressing violence against women and girls in humanitarian relief, 

peacekeeping, conflict, and post-conflict settings. 

Sec. 2016. Demining activities. 

Sec. 2017. Disarmament, demobilization, reintegration, and rehabilitation activities. 

Subtitle B—Strategies, Assessments, and Reports 

Sec. 2021. Regional conflict risk assessment and conflict mitigation strategy. 

Sec. 2022. Data on costs incurred in support of United Nations peacekeeping 

operations. 

Sec. 2023. Peace on Cyprus and in the Eastern Mediterranean. 


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Subtitle C—Organizations and Personnel 

Sec. 2031. Atrocities Prevention Board. 

Sec. 2032. Under Secretary for Civilian Security, Democracy, and Human 

Rights. 

Sec. 2033. Conflict and stabilization operations. 

Sec. 2034. Danger pay. 

Sec. 2035. Stability policing coordinator. 

Sec. 2036. Training in conflict management and mitigation. 

TITLE III—SUPPORTING HUMAN RIGHTS AND DEMOCRACY 

Subtitle A—General Provisions 

Sec. 3101. Findings and statement of policy. 

Sec. 3102. Country reports on human rights practices. 

Sec. 3103. Action plans for human rights and democracy. 

Sec. 3104. Human Rights and Democracy Fund. 

Sec. 3105. Role of Bureau of Democracy, Human Rights, and Labor. 

Sec. 3106. Discrimination related to sexual orientation. 

Sec. 3107. Personnel awards and incentives. 

Subtitle B—International Violence Against Women and Girls 

Sec. 3201. Statement of policy. 

Sec. 3202. Duties of the Secretary of State. 

Sec. 3203. Comprehensive international strategy to prevent and respond to violence against women and girls. 

Sec. 3204. Assistance to prevent and respond to violence against women and 

girls internationally. 

Sec. 3205. Definitions. 

Subtitle C—Rule of Law 

Sec. 3301. Findings. 

Sec. 3302. Global Rule of Law Policy Committee. 

Sec. 3303. Assistance for rule of law. 

Sec. 3304. Definition. 

Subtitle D—Child Protection 

Sec. 3401. Findings. 

Sec. 3402. Child Protection Compacts. 

Sec. 3403. Authorization of assistance. 

Sec. 3404. Suspension and termination of assistance. 

Sec. 3405. Congressional notification. 

Sec. 3406. Definitions. 

TITLE IV—BUILDING AND REINFORCING STRATEGIC 

PARTNERSHIPS 

Sec. 4001. Findings. 

Sec. 4002. Statement of policy. 

Sec. 4003. Goals of assistance. 

Subtitle A—Economic Support Fund 

Sec. 4101. Findings and statement of policy. 


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Sec. 4102. Goal and objectives. 

Sec. 4103. Economic Support Fund. 

Sec. 4104. Cash transfer assistance. 

Subtitle B—Security Partnerships 

CHAPTER 1—GENERAL AUTHORITIES

Sec. 4211. Authorization of assistance. 

Sec. 4212. Conditions of assistance. 

Sec. 4213. Prohibition for misuse of United States assistance. 

CHAPTER 2—DRAWDOWN AUTHORITY

Sec. 4221. Authorization of emergency assistance. 

Sec. 4222. Authorization of non-emergency assistance. 

Sec. 4223. Commercial transportation and related services. 

Sec. 4224. Report. 

CHAPTER 3—LOANS OF DEFENSE ARTICLES

Sec. 4231. Loan requirements. 

Sec. 4232. Cost of loans. 

CHAPTER 4—STOCKPILING OF DEFENSE ARTICLES

Sec. 4241. General authority. 

Sec. 4242. Value of defense articles. 

CHAPTER 5—FOREIGN MILITARY FINANCING

Sec. 4251. General authority. 

Sec. 4252. Rule of construction. 

Sec. 4253. Audits. 

Sec. 4254. Cash flow financing. 

CHAPTER 6—INTERNATIONAL MILITARY EDUCATION AND TRAINING

Sec. 4261. Purpose. 

Sec. 4262. Military education and training for foreign military and defense personnel. 

Sec. 4263. Military education and training for foreign civilian personnel. 

Sec. 4264. Locations of instruction. 

Sec. 4265. Reimbursement. 

Sec. 4266. Exchange of training and related support. 

CHAPTER 7—TRANSFER OF EXCESS DEFENSE ARTICLES

Sec. 4271. Transfer of excess defense articles. 

Sec. 4272. Terms of transfers. 

Sec. 4273. Advance notification to Congress for transfer of certain excess defense articles. 

Sec. 4274. Aggregate annual limitation. 

Sec. 4275. Restrictions and conditions on transfers of naval vessels. 

CHAPTER 8—COOPERATIVE PROJECT AGREEMENTS

Sec. 4281. Authority to enter into cooperative project agreements. 

Sec. 4282. Costs. 


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Sec. 4283. Charges. 

Sec. 4284. Certification. 

Sec. 4285. Authority in addition to other authorities. 

Subtitle C—Arms Sales and Related Assistance 

Sec. 4301. Control of arms exports and imports. 

CHAPTER 1—FOREIGN MILITARY SALES AND COOPERATION

Sec. 4311. General authority. 

Sec. 4312. Procurement for foreign military cash sales. 

Sec. 4313. Payments. 

Sec. 4314. Charges. 

Sec. 4315. Non-combat duties of United States personnel supporting foreign 

military sales. 

Sec. 4316. Public information. 

Sec. 4317. Standardization agreements. 

Sec. 4318. Quality assurance and related services. 

Sec. 4319. Restriction on sale of defense articles and defense services that 

would adversely affect United States combat readiness. 

Sec. 4320. Acquisition of foreign-United States origin defense articles. 

Sec. 4321. Return of defense articles. 

Sec. 4322. Sale of obsolete naval vessels. 

Sec. 4323. Annual estimate and justification for sales program. 

Sec. 4324. Sales to United States companies for incorporation into end items. 

Sec. 4325. Fiscal provisions relating to foreign military sales credits. 

CHAPTER 2—ARMS EXPORT CONTROLS

Sec. 4331. Licensing requirement for exporting or importing defense articles 

and defense services. 

Sec. 4332. Impact of military expenditures on development. 

Sec. 4333. Requirement for registration by exporters. 

Sec. 4334. Identification of all consignees and freight forwarders. 

Sec. 4335. Brokering activities. 

Sec. 4336. Foreign persons. 

Sec. 4337. Review of United States Munitions List. 

Sec. 4338. Licensing of missiles and missile equipment or technology. 

Sec. 4339. Special licensing authorization for certain exports to strategic 

United States allies. 

CHAPTER 3—LEASES OF DEFENSE ARTICLES

Sec. 4351. Leasing authority. 

Sec. 4352. Certification for leasing. 

Sec. 4353. Application of other provisions of law. 

Sec. 4354. Loan of materials, supplies, and equipment for research and development purposes. 

Sec. 4355. Special leasing authority. 

CHAPTER 4—RETRANSFERS OF UNITED STATES DEFENSE ARTICLES

Sec. 4361. Authority to approve retransfers. 

Sec. 4362. Demilitarization for retransfer of significant defense articles. 

Sec. 4363. Proceeds of sale of retransferred defense articles. 

Sec. 4364. Certification. 


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CHAPTER 5—ENFORCEMENT AND MONITORING OF ARMS SALES

Sec. 4371. General authority. 

Sec. 4372. Criminal and civil penalties. 

Sec. 4373. Identification of persons of concern. 

Sec. 4374. Standards to identify high-risk exports. 

Sec. 4375. Requirement of exporters to report shipment. 

Sec. 4376. End-use monitoring of defense articles and defense services. 

Sec. 4377. Fees of military sales agents and other payments. 

Sec. 4378. Prohibition on incentive payments. 

CHAPTER 6—CONGRESSIONAL REVIEW OF ARMS SALES

Sec. 4381. Reports on commercial and governmental military exports; congressional action. 

Sec. 4382. Congressional certification of sensitive foreign military sales and 

agreements. 

Sec. 4383. Upgrade or enhancement. 

Sec. 4384. Congressional review period and disapproval. 

Sec. 4385. National security waiver of congressional review of arms sales. 

Sec. 4386. Publication of arms sales notifications. 

Sec. 4387. Certification requirement relating to Israel’s qualitative military 

edge. 

CHAPTER 7—LANDMINES AND CLUSTER MUNITIONS

Sec. 4391. Landmines. 

Sec. 4392. Cluster munitions. 

Subtitle D—General Administrative and Miscellaneous Provisions 

Sec. 4401. General provisions. 

Sec. 4402. Administrative expenses. 

Sec. 4403. Detail of appropriate personnel. 

Sec. 4404. Rule of construction. 

Sec. 4405. Performance goals for processing of applications for licenses to export items on United States Munitions List. 

Sec. 4406. Availability of information on the status of license applications. 

Sec. 4407. Requirement to ensure adequate staff and resources for the Directorate of Defense Trade Controls of the Department of State. 

Sec. 4408. Overseas management of assistance and sales programs. 

Sec. 4409. Designation of major United States allies. 

Sec. 4410. Depleted uranium ammunition. 

Sec. 4411. Definitions. 

TITLE V—COUNTERING TRANSNATIONAL THREATS 

Subtitle A—Nonproliferation Authorities 

CHAPTER 1—NUCLEAR NONPROLIFERATION

Sec. 5111. Authorization of assistance to prohibit the proliferation of nuclear, 

chemical, and biological weapons. 

Sec. 5112. Education and training to enhance nonproliferation and export control capabilities. 

Sec. 5113. Opposition of withdrawal from Treaty on the Non-Proliferation of 

Nuclear Weapons. 

Sec. 5114. Matters relating to International Atomic Energy Agency. 


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Sec. 5115. Arms Control and Nonproliferation Scholarship Program. 

Sec. 5116. Arms Control and Nonproliferation Rotation Program. 

CHAPTER 2—MISSILE NONPROLIFERATION

Sec. 5121. Licensing. 

Sec. 5122. Denial of the transfer of missile equipment or technology by United 

States persons. 

Sec. 5123. Transfers of missile equipment or technology by foreign persons. 

Sec. 5124. Notification of admittance of MTCR adherents. 

Sec. 5125. Authority relating to MTCR adherents. 

Sec. 5126. Definitions. 

CHAPTER 3—CHEMICAL AND BIOLOGICAL NONPROLIFERATION

Sec. 5131. Sanctions against certain foreign persons. 

Subtitle B—Counter-Narcotics Authorities 

Sec. 5201. Findings. 

Sec. 5202. Statement of policy. 

Sec. 5203. Goal and objectives. 

Sec. 5204. General authorities. 

Sec. 5205. Authorization of Bureau of International Narcotics and Law Enforcement. 

Sec. 5206. Use of funds. 

Sec. 5207. Requirements relating to aircraft and other equipment. 

Sec. 5208. Restrictions. 

Sec. 5209. International counter-narcotics strategy. 

Sec. 5210. International narcotics control assistance report. 

Sec. 5211. Narcotics strategy evaluation. 

Subtitle C—Counter-Terrorism Authorities 

Sec. 5301. Purposes. 

Sec. 5302. Assistance to countries and multilateral organizations for counterterrorism activities. 

Sec. 5303. Counter-terrorism responsibilities of the Department of State. 

TITLE VI—SUSTAINING THE GLOBAL ENVIRONMENT 

Sec. 6001. Findings and statement of policy. 

Subtitle A—Debt-for-Nature Exchanges 

Sec. 6101. Findings and statement of policy. 

Sec. 6102. Definitions. 

Sec. 6103. Establishment of the Facility. 

Sec. 6104. Eligibility for benefits. 

Sec. 6105. Authority to engage in debt-for-nature swaps and debt buybacks. 

Sec. 6106. Reduction of debt owed to the United States as a result of 

concessional loans or credits under this Act and certain other 

provisions of law. 

Sec. 6107. Debt-for-Nature Agreement. 

Sec. 6108. Eligible activities. 

Sec. 6109. Debt-for-Nature Fund. 

Sec. 6110. Responsibilities to the Congress. 

Sec. 6111. General savings clause. 


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Subtitle B—Commercial Debt-for-Nature Exchanges 

Sec. 6201. Commercial debt-for-nature exchange defined. 

Sec. 6202. Authorization for commercial debt exchanges. 

Sec. 6203. Eligible projects. 

Sec. 6204. Eligible countries. 

Sec. 6205. Prohibition. 

TITLE VII—EXPANDING PROSPERITY THROUGH TRADE AND 

INVESTMENT 

Sec. 7001. Findings. 

Sec. 7002. Authority for coordination. 

Subtitle A—Overseas Private Investment Corporation 

Sec. 7101. Creation and purpose. 

Sec. 7102. Prohibitions and restrictions. 

Sec. 7103. Capital of the corporation. 

Sec. 7104. Organization and management. 

Sec. 7105. Investment Insurance and Other Programs. 

Sec. 7106. Issuing authority; direct loan authority; discharge of liabilities. 

Sec. 7107. Income and revenues. 

Sec. 7108. General provisions relating to insurance, guaranty, and financing 

program. 

Sec. 7109. General provisions and powers. 

Sec. 7110. Reports to the Congress. 

Sec. 7111. Definitions. 

Subtitle B—United States Trade and Development Agency 

Sec. 7201. United States Trade and Development Agency. 

Subtitle C—Enterprise Funds 

Sec. 7301. Findings. 

Sec. 7302. Purposes. 

Sec. 7303. Authority to designate enterprise funds. 

Sec. 7304. GAO reports. 

Sec. 7305. Operation provisions. 

Sec. 7306. Best practices and procedures. 

Sec. 7307. Experience of other enterprise funds. 

TITLE VIII—STRATEGIC PLANNING, MONITORING AND 

EVALUATION, AND REPORTING 

Subtitle A—Strategic Planning 

Sec. 8101. Quadrennial Diplomacy, Development, and Security Review. 

Sec. 8102. Comprehensive workforce and human resources strategy. 

Subtitle B—Monitoring and Evaluation 

Sec. 8201. Monitoring and evaluation of foreign assistance. 

Sec. 8202. Monitoring and evaluation of humanitarian assistance. 

Subtitle C—Reporting Requirements 

Sec. 8301. Transparency and accountability in budgeting. 


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Sec. 8302. Congressional budget justification. 

Sec. 8303. Report on allocation of assistance under this Act. 

Sec. 8304. Security assistance database. 

Sec. 8305. Classification of reports. 

Subtitle D—Congressional Notification Procedures 

Sec. 8401. Notification of program changes. 

Sec. 8402. Congressional notification parity. 

Sec. 8403. Presidential findings and determinations. 

TITLE IX—POLICY RESTRICTIONS AND SPECIAL AUTHORITIES 

Subtitle A—Policy Restrictions 

Sec. 9001. Definitions. 

CHAPTER 1—HUMAN RIGHTS

Sec. 9101. Prohibition on assistance to governments that engage in violations 

of human rights. 

Sec. 9102. Prohibition on assistance to certain human rights violators. 

Sec. 9103. Prohibition on assistance to governments following coups d’e ́tat. 

Sec. 9104. Prohibition on assistance to governments that prohibit or impede delivery of humanitarian assistance. 

Sec. 9105. Prohibition on use of funds to support or justify torture. 

Sec. 9106. Prohibition on assistance to governments engaged in intimidation 

and harassment against individuals in the United States. 

CHAPTER 2—NON-PROLIFERATION

Sec. 9201. Prohibition on assistance to governments that transfer nuclear enrichment equipment, materials, or technology. 

Sec. 9202. Prohibition on assistance to governments that transfer nuclear reprocessing equipment, materials, or technology or nuclear explosive devices. 

Sec. 9203. Security assistance to Pakistan. 

CHAPTER 3—NARCOTICS

Sec. 9301. Prohibition on assistance to drug traffickers. 

Sec. 9302. Prohibition on assistance to state sponsors of drug trafficking. 

Sec. 9303. Prohibition on reimbursements for drug crop eradications. 

CHAPTER 4—TERRORISM

SUBCHAPTER A—GENERAL PROVISIONS

Sec. 9401. Prohibition on assistance to state sponsors of terrorism. 

Sec. 9402. Prohibition on assistance to foreign governments supporting state 

sponsors of terrorism. 

Sec. 9403. Prohibition on transactions with state sponsors of terrorism. 

Sec. 9404. Transactions with countries not fully cooperating with United States 

counterterrorism efforts. 

Sec. 9405. Withholding of United States proportionate share for certain programs of international organizations. 

SUBCHAPTER B—MIDDLE EAST PROVISIONS


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Sec. 9411. Conditional contributions to certain international organizations. 

Sec. 9412. Limitation on assistance to the Palestinian Authority. 

Sec. 9413. Limitation on assistance for the West Bank and Gaza. 

CHAPTER 5—TRADE AND COMMERCE

Sec. 9501. Prohibition on assistance for exporting United States jobs. 

Sec. 9502. Prohibition on assistance to governments that expropriate United 

States property. 

Sec. 9503. Prohibition on assistance for compensation relating to expropriated 

or nationalized property. 

Sec. 9504. Prohibition on assistance to governments that refuse extradition requests. 

Sec. 9505. Prohibition on taxation of foreign assistance. 

Sec. 9506. Limitation on assistance to countries in default. 

Subtitle B—Policy Authorities 

Sec. 9601. Contingencies. 

Sec. 9602. Transfer between accounts. 

Sec. 9603. Special waiver authority. 

TITLE X—ORGANIZATION, MANAGEMENT, AND HUMAN 

RESOURCES 

Sec. 10001. Definitions. 

Subtitle A—Organization 

CHAPTER 1—EXERCISE AND COORDINATION OF FUNCTIONS

Sec. 10101. Delegations; regulations. 

Sec. 10102. Role of the Secretary of State. 

Sec. 10103. Role of the Chief of Mission. 

Sec. 10104. Office for Global Women’s Issues. 

Sec. 10105. Bureau for Energy Resources. 

Sec. 10106. Bureau of Oceans, Environment and Science. 

CHAPTER 2—UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

Sec. 10201. United States Agency for International Development. 

Sec. 10202. Role of the Administrator. 

Sec. 10203. Overseas missions. 

Sec. 10204. Chairman of OECD Development Assistance Committee. 

Sec. 10205. Transfer and consolidation of personnel and functions. 

Subtitle B—Management and Program Administration 

CHAPTER 1—OPERATING EXPENSES AND ADMINISTRATIVE AUTHORITIES

Sec. 10301. Operating expenses of the United States Agency for International 

Development. 

Sec. 10302. Authorized uses of funds. 

Sec. 10303. Operating expenses of the Office of the Inspector General. 

Sec. 10304. Administrative authorities of the Department of Defense. 

Sec. 10305. Working Capital Fund. 

Sec. 10306. Suspension and debarment. 

Sec. 10307. False claims and ineligible commodities. 


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Sec. 10308. Termination expenses. 

CHAPTER 2—ASSISTANCE AUTHORITIES AND PROGRAM EXPENSES

Sec. 10401. General assistance authorities. 

Sec. 10402. Authority to conduct reimbursable programs. 

Sec. 10403. Retention of interest. 

Sec. 10404. Marking and branding of economic and humanitarian assistance. 

Sec. 10405. Reductions in designated funds. 

Sec. 10406. Requirement for authorization of appropriations. 

Sec. 10407. Unexpended balances. 

Sec. 10408. Authority for extended period of availability of appropriations. 

Sec. 10409. Support for regional, international and nongovernmental organizations. 

Sec. 10410. Protection of patents and technical information. 

Sec. 10411. Private and voluntary organizations and cooperatives. 

CHAPTER 3—PROCUREMENT, DISPOSITION, TRANSPORTATION AND

VALUATION OF ARTICLES

Sec. 10501. Procurement standards and procedures. 

Sec. 10502. Local procurement. 

Sec. 10503. United States competitiveness. 

Sec. 10504. Small business. 

Sec. 10505. Allocation or transfer of funds and reimbursement among agencies. 

Sec. 10506. Retention and use of certain items and funds. 

Sec. 10507. Foreign and domestic excess property. 

Sec. 10508. Ocean freight differential. 

Sec. 10509. Use of aircraft for additional purposes. 

Sec. 10510. Streamlining and review of procurement process. 

Sec. 10511. Overseas procurement flexibility. 

Sec. 10512. Local guard contracts abroad. 

Sec. 10513. Authority to pay transportation costs. 

CHAPTER 4—USE OF FOREIGN CURRENCIES

Sec. 10601. Separate accounts for local currencies. 

Sec. 10602. Use of certain foreign currencies. 

Sec. 10603. Accounting and valuation of foreign currencies. 

Subtitle C—Human Resources 

CHAPTER 1—PERSONNEL AND BENEFITS

Sec. 10701. Employment of personnel. 

Sec. 10702. Experts and consultants. 

Sec. 10703. Prohibition of discrimination against Federal personnel. 

Sec. 10704. Foreign service limited appointments. 

Sec. 10705. Technical advisors. 

Sec. 10706. Personal services contractors for USAID. 

Sec. 10707. Personal services contractors for the Department of State. 

Sec. 10708. Hiring authority of Inspector General of the United States Agency 

for International Development. 

Sec. 10709. Public availability of consulting contracts. 

Sec. 10710. Senior Foreign Service requirement. 

Sec. 10711. Pay parity for criminal investigators. 


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CHAPTER 2—DETAILS, FELLOWSHIPS, AND EXCHANGES

Sec. 10801. Details to foreign governments and international organizations. 

Sec. 10802. Details to United States Government agencies. 

Sec. 10803. Science and technology fellowship programs. 

Sec. 10804. Foreign relations exchange programs. 

Sec. 10805. Guidelines for rotational assignments. 

CHAPTER 3—TRAINING AND PROFESSIONAL DEVELOPMENT

Sec. 10901. Training of Federal personnel. 

Sec. 10902. Career development. 

Sec. 10903. Language skills development. 

TITLE XI—AMENDMENTS AND REPEALS 

Subtitle A—Amendments 

Sec. 11101. Amendments relating to assistance to combat HIV/AIDS, tuberculosis, and malaria. 

Sec. 11102. Amendments to the Millennium Challenge Act of 2003. 

Sec. 11103. Amendments to the Migration and Refugee Assistance Act of 

1962. 

Sec. 11104. Amendments to the Fulbright-Hays Act. 

Sec. 11105. Amendments to the State Department Basic Authorities Act of 

1956. 

Subtitle B—Repeals 

Sec. 11201. Repeal of laws incorporated in this Act. 

Sec. 11202. Repeal of laws inconsistent with this Act. 

Sec. 11203. Repeal of obsolete provisions of law. 

Sec. 11204. Repeal of unnecessary reporting requirements. 

Subtitle C—Savings Provisions 

Sec. 11301. References to former authorities. 

Sec. 11302. Repeal of provisions amending other laws. 

Sec. 11303. Savings provisions. 

Sec. 11304. Effective date. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) In an increasingly interdependent world, the 

4 health, prosperity, freedom, and security of the peo5 ple of the United States are strengthened when the 

6 people of all countries can enjoy these same advan7 tages. 


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1 (2) The development of a healthier, more peace2 ful, democratic, just and prosperous world requires 

3 the sustained and substantial investment of United 

4 States human and financial resources in fostering 

5 international cooperation and in building the capac6 ity of other countries to meet the needs of their peo7 ple and to conduct themselves responsibly in the 

8 international system. 

9 (3) Foreign assistance is not only a reflection of 

10 the values, generosity, and goodwill of the people of 

11 the United States, but also an essential means for 

12 achieving United States foreign policy, economic, 

13 and national security objectives. 

14 SEC. 3. STATEMENT OF POLICY. 

15 It is the policy of the United States to help build and 

16 sustain an international community composed of states 

17 that meet basic human needs, resolve conflicts peacefully, 

18 respect fundamental freedoms, cooperate to address issues 

19 that transcend national boundaries, use wisely the world’s 

20 limited resources in a sustainable manner, and work to21 ward the achievement of economic well-being for all peo22 ple. 


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1 SEC. 4. PRINCIPLES OF ASSISTANCE. 

2 In order to maximize effectiveness and efficiency, 

3 United States foreign assistance should be carried out in 

4 accordance with the following principles: 

5 (1) Foreign assistance is not an end in itself. 

6 The purpose of foreign assistance is to create the 

7 conditions under which it is no longer needed. 

8 (2) United States foreign assistance should sup9 port the development of human, financial, organiza10 tional, and technical capacity of partner countries, 

11 both within government and among civil society, that 

12 is sustainable over the long term and leads to self13 reliance. 

14 (3) United States foreign assistance, regardless 

15 of type, purpose, or recipient, should respect human 

16 rights and democratic processes. 

17 (4) United States embassies and United States 

18 Agency for International Development missions in 

19 partner countries should be accorded a central role 

20 in planning, budgeting, and decisionmaking with re21 spect to United States foreign assistance to those 

22 countries. 

23 (5) United States foreign assistance programs 

24 should be carried out in collaboration with a wide 

25 variety of partners, including multilateral organiza26 tions, governments of partner countries at all levels, 


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1 intermediate representative institutions, and inter2 national, United States, and local civil society orga3 nizations. 

4 (6) Nonemergency United States foreign assist5 ance should be provided pursuant to well-coordinated 

6 strategies with specific goals and measurable objec7 tives, while preserving the flexibility to respond to 

8 rapidly changing situations. 

9 (7) Monitoring and evaluation of United States 

10 foreign assistance should be conducted systemati11 cally to ensure financial accountability, evaluate per12 formance, assess impact, determine lessons learned, 

13 disseminate findings, and identify steps for improve14 ment. 

15 (8) Because gender equality is essential to de16 mocracy, human rights and economic development, 

17 the needs, views, rights, roles, and resources of 

18 women should be taken into account in all stages of 

19 the foreign assistance process, including strategic 

20 planning, budgeting, design, implementation, moni21 toring, and evaluation. 

22 (9) Because natural resources and a healthy, 

23 functioning environment underpin sustainable eco24 nomic growth, health, and food security, the likely 

25 impact of United States foreign assistance policies 


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1 and programs upon the environment should be taken 

2 into account in all stages of the foreign assistance 

3 process. Effective action should be taken to mitigate 

4 any negative impacts and to ensure that all people 

5 enjoy the same degree of protection from environ6 mental and health hazards. 

7 (10) The United States Government should 

8 publish timely, detailed, and comprehensive informa9 tion on the budgeting, delivery, and expenditure of 

10 United States foreign assistance in order to enhance 

11 transparency and accountability for results and 

12 should encourage and facilitate similar transparency 

13 by the partner country regarding its national budg14 et, government contracts, and aid-related expendi15 tures. 

16 (11) United States foreign assistance should be 

17 conducted within a coherent and coordinated struc18 ture that establishes clear lines of authority, delin19 eates responsibilities, rationalizes functions, closes 

20 gaps, promotes policy consistency, and ensures civil21 ian leadership. 

22 (12) To ensure that United States foreign as23 sistance achieves its intended objectives and to maxi24 mize its impact, the United States Government 

25 should design and implement such assistance in 


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1 partnership with local stakeholders, including as ap2 propriate and feasible, governments, intermediate 

3 representative institutions, civil society organiza4 tions, and affected communities. 

5 (13) The success of United States foreign as6 sistance in meeting humanitarian, foreign policy, 

7 and national security objectives depends on the sus8 tained commitment of adequate and reliable budg9 etary resources as well as on the development, train10 ing, and maintenance of a diverse and experienced 

11 corps of professionals to design, manage, implement, 

12 and monitor such foreign assistance. 

13 SEC. 5. PURPOSES OF ASSISTANCE. 

14 United States foreign assistance under this Act shall 

15 be provided in accordance with the policy set forth in sec16 tion 3 and the principles set forth in section 4 to achieve 

17 the following interrelated and mutually reinforcing pur18 poses: 

19 (1) Reducing global poverty and alleviating 

20 human suffering. 

21 (2) Advancing peace and mitigating crises. 

22 (3) Supporting human rights and democracy. 

23 (4) Building and reinforcing strategic partner24 ships. 

25 (5) Countering transnational threats. 


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1 (6) Sustaining the global environment. 

2 (7) Expanding prosperity through trade and in3 vestment. 

4 SEC. 6. DEFINITIONS. 

5 Except as otherwise provided, in this Act: 

6 (1) ADMINISTRATOR.—The term ‘‘Adminis7 trator’’ means the Administrator of the United 

8 States Agency for International Development. 

9 (2) AGENCY OR USAID.—The term ‘‘Agency’’ or 

10 ‘‘USAID’’ means the United States Agency for 

11 International Development. 

12 (3) APPROPRIATE CONGRESSIONAL COMMIT13 TEES.—The term ‘‘appropriate congressional com14 mittees’’ means— 

15 (A) the Committee on Foreign Affairs and 

16 the Committee on Appropriations of the House 

17 of Representatives; and 

18 (B) the Committee on Foreign Relations 

19 and the Committee on Appropriations of the 

20 Senate. 

21 (4) BASIC HUMAN NEEDS.—The term ‘‘basic 

22 human needs’’ means the requirements for sus23 taining life, health, and human dignity. 

24 (5) CIVIL SOCIETY ORGANIZATION.—The term 

25 ‘‘civil society organization’’ means— 


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1 (A) a registered or unregistered nonprofit 

2 organization, independent of the government 

3 and state, including a private and voluntary or4 ganization, community or faith-based organiza5 tion, advocacy group, business or trade associa6 tion, cooperative, credit union, labor union, or 

7 philanthropic foundation; 

8 (B) an independent media, educational, or 

9 research institution; or 

10 (C) a private enterprise, including an 

11 international development firm, bank or other 

12 financial institution, or a business of any type. 

13 (6) COUNTRY.—The term ‘‘country’’ means the 

14 government, civil society, and intermediate rep15 resentative institutions of a state or specially admin16 istered area. 

17 (7) DEVELOPMENT ASSISTANCE.—The term 

18 ‘‘development assistance’’ means— 

19 (A) assistance under— 

20 (i) subtitle A of title I; 

21 (ii) the Millennium Challenge Act of 

22 2003 (22 U.S.C. 7701 et seq.); 

23 (iii) the United States Leadership 

24 Against HIV/AIDS, Tuberculosis, and Ma25 laria Act of 2003 (22 U.S.C. 7601 et seq.); 


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1 (iv) title V of the International Secu2 rity and Development Cooperation Act of 

3 1980 (22 U.S.C. 290h et seq.; relating to 

4 the African Development Foundation); or 

5 (v) section 401 of the Foreign Assist6 ance Act of 1969 (22 U.S.C. 290f; relating 

7 to the Inter-American Foundation); 

8 (B) official development assistance under 

9 any provision of law; and 

10 (C) reconstruction assistance under any 

11 provision of law. 

12 (8) ECONOMIC ASSISTANCE.—The term ‘‘eco13 nomic assistance’’ means foreign assistance, other 

14 than assistance under subtitle B or C of title IV. 

15 (9) FEDERAL AGENCY.—The term ‘‘Federal 

16 agency’’ has the meaning given the term Executive 

17 agency in section 105 of title 5, United States Code. 

18 (10) FOREIGN ASSISTANCE.—The term ‘‘foreign 

19 assistance’’ means any tangible or intangible item 

20 provided by the United States Government to a for21 eign country or international organization under this 

22 or any other Act, including any training, service, or 

23 technical advice, any item of real, personal, or mixed 

24 property, any agricultural commodity, any gift, loan, 

25 sale, credit, guarantee, or export subsidy, United 


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1 States dollars, and any currencies of any foreign 

2 country which are owned by the United States Gov3 ernment. 

4 (11) FUNDAMENTAL FREEDOMS.—The term 

5 ‘‘fundamental freedoms’’ means the freedoms of as6 sociation, assembly, expression, and religion. 

7 (12) GENOCIDE.—The term ‘‘genocide’’ means 

8 an offense as described in section 1091 of title 18, 

9 United States Code. 

10 (13) HUMANITARIAN ASSISTANCE.—The term 

11 ‘‘humanitarian assistance’’ means— 

12 (A) assistance under subtitle B of title I; 

13 (B) emergency food assistance under title 

14 II of the Agricultural Trade Development and 

15 Assistance Act of 1954 (Public Law 83–480); 

16 and 

17 (C) refugee and migration assistance under 

18 the Migration and Refugee Act of 1962. 

19 (14) INSTITUTION OF HIGHER EDUCATION.— 

20 The term ‘‘institution of higher education’’ has the 

21 meaning given such term under section 101 of the 

22 Higher Education Act of 1965 (20 U.S.C. 1001). 

23 (15) INTERMEDIATE REPRESENTATIVE INSTI24 TUTION.—The term ‘‘intermediate representative in25 stitution’’ means an organization with the mandate 


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1 to represent citizens in government and in political 

2 processes, such as a legislature, political party, advi3 sory commission, or municipal council. 

4 (16) INTERNATIONAL ORGANIZATION.—The 

5 term ‘‘international organization’’ means an inter6 national organization as defined in section 1 of the 

7 International Organizations Immunities Act (22 

8 U.S.C. 288). 

9 (17) MARGINALIZED GROUP.—The term 

10 ‘‘marginalized group’’— 

11 (A) means a group that is excluded by law, 

12 policy, or practice from participating on a full 

13 and equal basis in the political, economic, and 

14 social life of a country, including the enjoyment 

15 of all rights and freedoms; and 

16 (B) includes women, poor people, youth, 

17 refugees, displaced or stateless persons, persons 

18 belonging to racial, national, ethnic, religious or 

19 linguistic minorities, persons with disabilities, 

20 and persons discriminated against on the basis 

21 of their sexual orientation or gender identity. 

22 (18) MASS ATROCITIES.—The term ‘‘mass 

23 atrocities’’ includes war crimes, genocide or acts that 

24 may constitute genocide, and other crimes against 

25 humanity. 


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1 (19) MILITARY EDUCATION AND TRAINING.— 

2 The term ‘‘military education and training’’ includes 

3 formal or informal instruction of foreign students in 

4 the United States or overseas by officers or employ5 ees of the United States, contract technicians, con6 tractors (including instruction at civilian institu7 tions), or by correspondence courses, technical, edu8 cational, or informational publications and media of 

9 all kinds, training aids, orientation, and military ad10 vice to foreign military units and forces. 

11 (20) NOTWITHSTANDING, ETC.—The terms 

12 ‘‘notwithstanding any other provision of law’’ and 

13 ‘‘notwithstanding any provision of this or any other 

14 Act’’ shall not apply to title 31, United States Code, 

15 the Congressional Budget and Impoundment Control 

16 Act of 1974, or the Budget Enforcement Act of 

17 1990. 

18 (21) PARTNER COUNTRY.—The term ‘‘partner 

19 country’’ means a country that is receiving or is eli20 gible to receive foreign assistance. 

21 (22) PRIVATE AND VOLUNTARY ORGANIZA22 TION.—The term ‘‘private and voluntary organiza23 tion’’ means a nonprofit, nongovernmental organiza24 tion. 


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1 (23) PRIVATE PARTNER.—The term ‘‘private 

2 partner’’ means— 

3 (A) a non-United States Government enti4 ty that— 

5 (i) enters into a contract, as described 

6 in section 6303 of title 31, United States 

7 Code, with the United States Government; 

8 (ii) accepts a grant, as described in 

9 section 6304 of title 31, United States 

10 Code, from the United States Government; 

11 or 

12 (iii) enters into a cooperative agree13 ment, as described in section 6305 of title 

14 31, United States Code, with the United 

15 States Government, 

16 relating to the use by that entity of foreign as17 sistance; and 

18 (B) any subcontractor or subgrantee there19 of. 

20 (24) SECRETARY.—The term ‘‘Secretary’’ 

21 means the Secretary of State. 

22 (25) SECURITY ASSISTANCE.—The term ‘‘secu23 rity assistance’’ means foreign assistance under title 

24 IV or title V. 


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1 (26) UNITED STATES.—The term ‘‘United 

2 States’’, when used in the geographic sense, includes 

3 each State of the several States, the District of Co4 lumbia, the Commonwealth of Puerto Rico, Amer5 ican Samoa, Guam, the Commonwealth of the 

6 Northern Mariana Islands, the Virgin Islands of the 

7 United States, and any other territory or possession 

8 of the United States. 

9 (27) UNITED STATES ARMED FORCES.—The 

10 term ‘‘United States Armed Forces’’ means the 

11 Army, Navy, Air Force, Marine Corps, and Coast 

12 Guard. 

13 TITLE I—REDUCING GLOBAL 

14 POVERTY AND ALLEVIATING 

15 HUMAN SUFFERING 

16 SEC. 1001. FINDINGS. 

17 Congress finds the following: 

18 (1) The abject and dehumanizing conditions of 

19 extreme poverty, which affect more than a billion 

20 people around the world, are inimical to the achieve21 ment of a healthy, peaceful, democratic, just and 

22 prosperous world and an affront to shared human 

23 values. 

24 (2) A principal objective of United States for25 eign policy is reducing global poverty and its worst 


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1 physical manifestations through the encouragement 

2 and sustained support of the people of developing 

3 countries in their efforts to acquire the knowledge 

4 and resources essential to building the economic, po5 litical, and social institutions that will improve the 

6 quality of their lives. 

7 (3) Strengthening democratic governance and 

8 the political voice of poor and marginalized groups 

9 not only directly combats poverty but also helps 

10 build responsive, accountable state institutions es11 sential to sustain the positive impact of foreign as12 sistance over the long-term. 

13 (4) United States efforts to reduce global pov14 erty and alleviate human suffering reflect the com15 passion and generosity of the American people, while 

16 also serving United States economic and national se17 curity interests. Poor and unstable countries make 

18 unreliable trading partners and weak markets for 

19 United States goods and services. Violent extremism 

20 that threatens United States national security flour21 ishes where democratic governance is weak, justice is 

22 uncertain, and legal avenues for change are in short 

23 supply. 

24 (5) Complementing the long-term objective of 

25 reducing global poverty, the humanitarian concern 


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1 and tradition of the people of the United States de2 mands a commitment to saving lives and alleviating 

3 human suffering resulting from natural and human4 caused disasters, and to taking effective action to 

5 prevent, prepare for, and mitigate such disasters. 

6 (6) Pursuit of these interrelated objectives re7 quires that development and humanitarian concerns 

8 be fully reflected throughout United States foreign 

9 policy, and that resources for these purposes be ade10 quately and reliably budgeted and effectively and ef11 ficiently utilized. 

12 (7) In order to achieve United States foreign 

13 policy and national security objectives, the United 

14 States should act in concert with other countries and 

15 multilateral institutions to mobilize adequate re16 sources from public and private sources for poverty 

17 reduction and humanitarian relief. 

18 SEC. 1002. STATEMENT OF POLICY. 

19 It is the policy of the United States to undertake best 

20 efforts to— 

21 (1) reduce global poverty, including by estab22 lishing and meeting, in cooperation with govern23 ments of developing countries, other public and pri24 vate donors, multilateral institutions, nongovern25 mental organizations, businesses, and affected comVerDate Mar 15 2010 22:23 Apr 26, 2013 Jkt 029200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793

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1 munities, international targets for the reduction of 

2 poverty; and 

3 (2) prevent, prepare for, mitigate, and respond 

4 to humanitarian crises wherever such crises may 

5 occur. 

6 SEC. 1003. ENCOURAGEMENT OF UNITED STATES PRIVATE 

7 AND VOLUNTARY COOPERATION. 

8 (a) FINDINGS.—Congress finds the following: 

9 (1) The sustained participation of United 

10 States private and voluntary organizations, commu11 nity and faith-based organizations, charitable foun12 dations, labor unions, cooperatives, and credit unions 

13 in international development and humanitarian re14 lief, rehabilitation, and reconstruction significantly 

15 reduces poverty and alleviates human suffering 

16 through— 

17 (A) application of accumulated expertise in 

18 the discipline of development; 

19 (B) provision of social services in under20 served communities; 

21 (C) building the capacity of local organiza22 tions to operate with maximum effectiveness, 

23 thereby strengthening civil society and advanc24 ing self-reliance; 


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1 (D) establishing long-term partnerships 

2 with and between local communities, civil soci3 ety organizations and governments of devel4 oping countries at all levels, thus helping to 

5 strengthen accountability, reduce corruption, 

6 build capable institutions, and sustain progress; 

7 (E) empowering marginalized groups 

8 through access to information and a leadership 

9 role in decisionmaking processes; and 

10 (F) serving as a voice for the poor and 

11 bringing best practices and lessons learned to 

12 bear on policymaking processes in the United 

13 States and worldwide. 

14 (2) Such organizations, foundations, unions, 

15 and cooperatives, by mobilizing private United 

16 States financial and human resources, reflect the 

17 values and goodwill of the people of the United 

18 States and embody the American spirit of self-help. 

19 (3) Advocacy groups and organizations that 

20 represent American political, legal, academic and 

21 business life have developed long-standing relation22 ships with their overseas counterparts, helping to 

23 build people-to-people networks that strengthen civil 

24 society, protect human rights, support democratic 


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1 institutions and foster a policy environment condu2 cive to economic development. 

3 (4) Similarly, the sustained participation of 

4 United States educational and research institutions 

5 in building the scientific, educational, and service ca6 pacities of developing countries is vital to the eco7 nomic and social development of those countries, and 

8 at the same time strengthens the faculty and pro9 grams available to United States students. 

10 (5) Because of their ability to attract and lever11 age private contributions, the entities described in 

12 paragraphs (1) through (4) are extremely cost-effec13 tive partners for providing foreign assistance. 

14 (6) Because such entities, often using their own 

15 resources, develop and maintain long-term and inde16 pendent relationships with their counterparts in for17 eign countries, they provide great expertise in pro18 gram implementation, an important source of knowl19 edge about local needs, attitudes, customs, and con20 ditions, and a critical means for building trust and 

21 goodwill with local communities. 

22 (b) STATEMENT OF POLICY.—It is the policy of the 

23 United States to— 

24 (1) encourage and facilitate, as appropriate, 

25 international activities of United States private and 


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1 voluntary organizations, community and faith-based 

2 organizations, charitable foundations, labor unions, 

3 cooperatives, credit unions, and educational and re4 search institutions in furtherance of the goals of this 

5 title; 

6 (2) co-design, co-fund, and co-manage projects 

7 and strategies with such entities to meet jointly 

8 agreed development objectives; 

9 (3) strengthen the capacity of such entities, 

10 without compromising their private and independent 

11 nature, to undertake effective international assist12 ance efforts; and 

13 (4) streamline and simplify the process by 

14 which such entities may compete for resources made 

15 available under this title. 

16 SEC. 1004. ENCOURAGEMENT OF UNITED STATES BUSINESS 

17 PARTICIPATION. 

18 (a) FINDINGS.—Congress finds the following: 

19 (1) United States businesses, including inter20 national development firms, are significant contribu21 tors to humanitarian relief and broad-based eco22 nomic growth in developing countries, through— 

23 (A) the donation of financial resources, 

24 technology, goods, and services; 


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1 (B) the sharing of training, technical, 

2 managerial, and business skills; 

3 (C) the investment of capital and the de4 velopment of trade relationships; 

5 (D) the establishment and maintenance of 

6 partnerships with the governments of devel7 oping countries, local communities, and civil so8 ciety organizations; 

9 (E) partnering with local businesses and 

10 entrepreneurs; 

11 (F) the expansion of job opportunities in 

12 impoverished communities; and 

13 (G) the encouragement of private sector 

14 development and of the legal and institutional 

15 framework to support such development. 

16 (2) Such businesses are often staffed by individ17 uals with a strong commitment to and knowledge of 

18 developing countries, many of whom have served 

19 overseas, and who bring American values, know-how, 

20 and spirit of innovation. 

21 (3) While some United States businesses have 

22 a long history of engagement with international de23 velopment, bringing extensive experience, strong 

24 local ties and a proven track record of achievement, 


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1 many others seek to establish first-time partnerships 

2 and new joint ventures. 

3 (4) By leveraging contributions of United 

4 States businesses and facilitating public-private 

5 partnerships, the United States Government can 

6 maximize the impact of its efforts to improve social 

7 and economic conditions in developing countries. 

8 (b) STATEMENT OF POLICY.—It is the policy of the 

9 United States to— 

10 (1) encourage and facilitate, to the maximum 

11 extent practicable, participation by United States 

12 businesses in achieving the purposes of this title; 

13 (2) promote awareness by United States busi14 nesses, including small businesses, of opportunities 

15 to promote economic growth and expand markets in 

16 developing countries; 

17 (3) facilitate partnerships between United 

18 States business and international and local non19 governmental organizations, including private and 

20 voluntary organizations, community and faith-based 

21 organizations, charitable foundations, labor unions, 

22 cooperatives, credit unions, and educational and re23 search institutions, to reduce poverty and alleviate 

24 human suffering; 


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1 (4) build strategic alliances with United States 

2 businesses, drawing on their unique assets and expe3 rience, to solve complex problems in developing coun4 tries; and 

5 (5) co-design, co-fund, and co-manage projects 

6 and strategies with United States business partners 

7 to meet jointly agreed development objectives. 

8 SEC. 1005. DEVELOPMENT PARTNERSHIPS FELLOWS PRO9 GRAM. 

10 (a) IN GENERAL.—The Administrator is authorized 

11 and encouraged to establish a program of exchanges to 

12 strengthen individual and institutional capacity, share 

13 knowledge and best practices, build partnering skills and 

14 develop networks through professional exchanges between 

15 the Agency and the private sector, including businesses 

16 and nonprofit institutions. 

17 (b) STRATEGIC FOCUS.—The exchanges authorized 

18 under subsection (a) should be designed to fill gaps and 

19 build capacity in areas of critical need, as determined by 

20 the Administrator and the private sector entity. 

21 (c) COMPETITIVE AWARDS.—The process for select22 ing individuals for the exchanges authorized under sub23 section (a) should be open and competitive, while offering 

24 opportunities to individuals with varying levels of profes25 sional experience. 


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1 (d) STATUS OF EMPLOYMENT.—Notwithstanding 

2 any other provision of law, during the period of ex3 change— 

4 (1) each participating individual (hereinafter re5 ferred to as a ‘‘Fellow’’) shall continue to receive his 

6 or her salary, benefits, and rights of employment 

7 from the Agency or private sector entity, as the case 

8 may be; and 

9 (2) in the case of a Fellow who is an employee 

10 of a private sector entity and is working at the 

11 Agency, the Fellow shall not be considered to be a 

12 Federal employee of the Agency, except for purposes 

13 of obtaining necessary access to buildings, office 

14 supplies, equipment and facilities. 

15 (e) PARITY IN EXCHANGE.—The Administrator shall 

16 ensure that the total number of Fellows who are employees 

17 of the Agency and are working at private sector entities 

18 is substantially equivalent to the total number of Fellows 

19 who are employees of private sector entities and are work20 ing at the Agency. 

21 (f) OTHER COSTS AND EXPENSES.—The Adminis22 trator shall prescribe policies and procedures regarding 

23 costs and expenses for Fellows other than policies and pro24 cedures regarding salaries and benefits. 


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1 (g) TERM OF SERVICE.—The Administrator shall de2 termine appropriate lengths of service for Fellows, except 

3 that such service may not exceed a period of 2 years. 

4 Subtitle A—Reducing Global 

5 Poverty 

6 SEC. 1011. FINDINGS. 

7 Congress finds the following: 

8 (1) The goal of international development is to 

9 improve the quality of life for all people while pre10 serving that opportunity for future generations. 

11 (2) Successful economic development includes 

12 the eradication of extreme poverty and its worst 

13 physical manifestations. 

14 (3) Abuses of power, failure to respect human 

15 rights, exclusion of and discrimination against soci16 etal groups, and unchecked violence, particularly 

17 against women and girls, are impediments to eco18 nomic development. 

19 (4) While each country must marshal its own 

20 economic and human resources in order to build and 

21 maintain the political, social, and economic institu22 tions necessary to reduce poverty and improve the 

23 quality of life for its people, the magnitude of the 

24 need far exceeds the resources of most developing 

25 countries. 


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1 (5) The United States has acknowledged a col2 lective responsibility for, as well as a national inter3 est in, the reduction of global poverty through the 

4 promotion of long-term development that is 

5 participatory, equitable, self-reliant, and environ6 mentally sustainable. 

7 (6) A human rights-based approach that fo8 cuses on empowering women and girls has been 

9 shown to maximize development outcomes. 

10 (7) Development is a long-term process that re11 quires sustained attention and resources. Foreign 

12 assistance to achieve short-term political objectives 

13 or meet emergency humanitarian needs should not 

14 come at the expense of efforts to address the root 

15 causes of poverty and human suffering. 

16 SEC. 1012. STATEMENT OF POLICY. 

17 It is the policy of the United States to reduce global 

18 poverty by helping poor people in developing countries to 

19 participate in a process of self-sustaining, equitable, and 

20 environmentally sound economic growth through produc21 tive work and to influence decisions that shape their lives, 

22 with the goal of increasing their incomes and their access 

23 to public services that will enable them to satisfy their 

24 basic needs, exercise their rights, and lead lives of decency, 

25 dignity, and hope. 


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1 SEC. 1013. PRINCIPLES OF ASSISTANCE. 

2 In order to maximize the reduction of global poverty, 

3 assistance under this subtitle should be carried out in ac4 cordance with the following principles: 

5 (1) Development is primarily the responsibility 

6 of the people of developing countries themselves. As7 sistance should be used in support of, rather than 

8 substitution for, the self-help efforts that are essen9 tial to successful economic development. 

10 (2) Assistance should be demand-driven and de11 signed to support partner country ownership by re12 specting the development goals chosen through an 

13 open and inclusive process in the partner country. 

14 (3) The United States Government should work 

15 to broaden country-level policy dialogue on develop16 ment by promoting an open and inclusive process for 

17 choosing development goals, and by increasing the 

18 capacity of all stakeholders to participate meaning19 fully in that process. 

20 (4) Persons affected by conflict or disaster—in21 cluding refugees, stateless persons, and internally 

22 displaced persons, particularly those in protracted 

23 situations—are among the world’s most vulnerable 

24 to poverty, exclusion, exploitation and other abuses. 

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1 munities and countries where they reside, these pop2 ulations often lack access to development resources 

3 and programs. Such populations, as well as other 

4 marginalized groups, must be explicitly included in 

5 country development programs and national develop6 ment strategies. 

7 (5) Assistance should be concentrated in coun8 tries that have the greatest need for outside assist9 ance and that will make the most effective use of 

10 such assistance in achieving the purposes of this 

11 subtitle. 

12 (6) Program selection and design should be 

13 linked to results, by using performance frameworks 

14 and indicators that are included in or consistent 

15 with a developing country’s national development 

16 strategy, where possible, and by strengthening the 

17 country’s capacity and demand for results-based 

18 management. 

19 (7) When partner country systems are trans20 parent, accountable and effective, the United States 

21 Government should use such systems for delivering 

22 assistance. Where use of such systems is not fea23 sible, the United States should establish additional 

24 safeguards and measures in ways that strengthen 

25 rather than undermine country systems. 


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1 (8) Even in countries where there is a strong 

2 and capable state, civil society should be included in 

3 the planning, design, management, delivery, moni4 toring and evaluation of foreign assistance. 

5 (9) Assistance should focus on building the self6 sufficiency of developing countries by upgrading 

7 human, technical, and institutional capacity, both in8 side and outside government, to effectively plan, 

9 manage, implement, monitor, and evaluate budgets, 

10 policies, and programs in a transparent and account11 able manner that supports development objectives. 

12 (10) The United States Government should 

13 take all appropriate steps to harmonize its planning, 

14 funding, conditionality, disbursement, monitoring, 

15 evaluation, and reporting with governments of devel16 oping countries and with other donors, including 

17 multilateral institutions, in order to simplify and re18 duce the administrative burdens, achieve a more ef19 fective division of labor that builds on donors’ com20 parative advantages, and improve accountability for 

21 results. 

22 (11) In consultation with Congress and in con23 junction with the Interagency Policy Committee on 

24 Global Development established under section 1020, 

25 the Administrator should engage in strategic and 


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1 budgetary planning over a 3- to 5-year period that 

2 will enable the disbursement of assistance in a more 

3 timely and predictable manner. 

4 (12) Personnel and management systems of the 

5 Agency should incorporate incentives for innovation 

6 and experimentation, with tolerance of reasonable 

7 risk-taking and training on risk-management. 

8 (13) Poverty reduction efforts should promote a 

9 policy environment and legal framework that is con10 ducive to broad-based and sustainable economic 

11 growth, including— 

12 (A) respect for the rule of law; 

13 (B) fair, accessible, and timely administra14 tion of justice; 

15 (C) representative and accountable institu16 tions of governance; 

17 (D) protection of human rights and funda18 mental freedoms; 

19 (E) mechanisms of accountability and 

20 transparency; 

21 (F) security of person, property and invest22 ments; 

23 (G) enforcement of contracts and intellec24 tual property rights; 


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1 (H) encouragement of private enterprise, 

2 free markets and labor rights; and 

3 (I) a vibrant and informed civil society. 

4 (14) An effective United States strategy to pro5 mote global poverty reduction and contribute to 

6 broad-based, sustainable economic growth must in7 corporate all United States policies having an impact 

8 on development, which include foreign assistance, 

9 debt relief, trade, agriculture, migration and remit10 tances, environmental protection, technology trans11 fer, and arms sales. 

12 (15) Assistance should be provided in a manner 

13 that is flexible enough to adapt to the unique needs 

14 and capabilities of specific developing countries and 

15 changing situations on the ground, while remaining 

16 transparent and predictable enough to allow devel17 oping countries and other partners to plan and 

18 budget efficiently. 

19 (16) Assistance should give priority to under20 takings that will directly improve the lives of the 

21 poorest, most vulnerable and marginalized groups, 

22 and strengthen their capacity to participate in the 

23 political, economic, and social development of their 

24 countries. 


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1 (17) Investments in research, the fostering of 

2 innovation and the application of technology are es3 sential to expanding the impact and effectiveness of 

4 development policies and programs. To ensure that 

5 such research, innovation and technology are appro6 priately harnessed, development assistance policies 

7 and programs should promote data collection and 

8 rigorous analysis, evidence-based decisionmaking, a 

9 culture of learning, a mechanism for scaling up suc10 cessful methods and activities, and a process for 

11 sharing best practices. 

12 (18) Gender equality is a matter of funda13 mental human rights, as well as being essential to 

14 the reduction of poverty and to the health, education 

15 and well-being of families and communities. Assist16 ance should encourage and promote the full partici17 pation of women and girls in the decisions that af18 fect their lives, elevate the role of women in their so19 cieties, ensure that women are fully integrated into 

20 United States policies and programs, afford women 

21 opportunities to support themselves and their fami22 lies, equip and empower women to serve as leaders 

23 and as agents of transformation, and protect women 

24 and girls against discrimination and violence. 


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1 (19) Assistance should promote the wise and ef2 ficient use of natural resources to ensure stable eco3 nomic growth and a healthy environment in which to 

4 live, learn, and work. 

5 (20) Policies and programs carried out under 

6 this subtitle should promote, protect, and ensure the 

7 full and equal enjoyment of all human rights and 

8 fundamental freedoms by all persons with disabil9 ities, respect their inherent dignity, and encourage 

10 their full and effective participation in society on an 

11 equal basis with others. 

12 (21) International and United Nations-affiliated 

13 agencies and multilateral development institutions 

14 are essential components of United States poverty 

15 reduction efforts. The United States Government 

16 should recognize the comparative advantages of such 

17 institutions, particularly with respect to investments 

18 in capital-intensive projects and in countries and re19 gions where the United States does not have a large 

20 physical presence, while supporting reforms to make 

21 such institutions more accountable, responsive, and 

22 representative. In addition to direct financial con23 tributions, the United States Government should 

24 provide technical and logistical assistance to such in25 stitutions as appropriate. 


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1 (22) Private investment and philanthropy and 

2 individual remittances are increasingly important 

3 sources of development resources. The United States 

4 Government should help to link the United States 

5 private sector with appropriate local partners, to en6 courage private investment in economic and social 

7 development programs to which the United States 

8 lends support, and to ensure complementarity be9 tween public and private development efforts. 

10 (23) Assistance should be planned and utilized 

11 to encourage regional cooperation among developing 

12 countries in the solution of common problems and 

13 the development of shared resources. 

14 SEC. 1014. GOALS OF ASSISTANCE. 

15 In order to reduce poverty in developing countries, 

16 assistance under this subtitle shall be designed to further 

17 the following goals: 

18 (1) Accelerating economic growth. 

19 (2) Promoting food security. 

20 (3) Advancing health. 

21 (4) Expanding quality education. 

22 (5) Protecting and restoring the natural envi23 ronment. 

24 (6) Improving access to safe water, sanitation, 

25 and housing. 


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1 (7) Fostering gender equality. 

2 (8) Strengthening democratic governance. 

3 SEC. 1015. DEVELOPMENT SUPPORT FUNDS. 

4 (a) AUTHORIZATION OF ASSISTANCE.— 

5 (1) IN GENERAL.—The Administrator is au6 thorized to provide assistance, on such terms and 

7 conditions as the Administrator may determine, to 

8 developing countries, in accordance with the policy 

9 described in section 1012 and the principles de10 scribed in section 1013, to further the goals de11 scribed in section 1014. 

12 (2) COUNTRY STRATEGIES.—The annual con13 gressional budget justification submitted under sec14 tion 8302 shall specify the amount of funds to be 

15 made available to prepare and carry out Country 

16 Development Cooperation Strategies under section 

17 1018. 

18 (3) AVAILABILITY.—Funds made available 

19 under this section for a fiscal year are authorized to 

20 remain available until expended. 

21 (4) DESIGNATION OF FUNDS.—Assistance au22 thorized under this subsection shall be known as 

23 ‘‘Development Support Funds’’. 


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1 (b) SUSTAINABILITY AND LOCAL PROCUREMENT.— 

2 In providing assistance authorized under subsection (a), 

3 the Administrator— 

4 (1) shall, to the maximum extent feasible, em5 phasize the development of local capacity and the es6 tablishment of sustainable institutions in the partner 

7 country; and 

8 (2) should, to the extent feasible and if cost-ef9 fective, procure required goods and services in the 

10 partner country, or, if local procurement is not fea11 sible or cost-effective, in another developing country 

12 in the same region. 

13 (c) FACTORS.—In determining the amount of assist14 ance to be provided for each country the Administrator 

15 shall take into account the following factors: 

16 (1) The absolute number and proportion of peo17 ple in such country living in poverty. 

18 (2) The country’s ranking on the Human De19 velopment Index or other similar measures of living 

20 standards and overall well-being. 

21 (3) The country’s per capita income. 

22 (4) The availability of domestic resources for 

23 development within such country. 

24 (5) The availability of resources from other do25 nors and investors in such country. 


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1 (6) The extent to which there is a political, so2 cial, and economic environment in such country that 

3 will enable funds to be used effectively and account4 ably to achieve lasting results. 

5 (7) The performance record of the country in 

6 reducing poverty and responsibly using foreign as7 sistance, if any, in the previous three to five-year pe8 riod. 

9 (8) The country’s demonstrated commitment to 

10 its own development, including investments in its 

11 people. 

12 (9) Any other factors that the Administrator 

13 determines to be appropriate. 

14 (d) CRITERIA AND METHODOLOGY.— 

15 (1) ESTABLISHMENT.—The Administrator shall 

16 establish the criteria and methodology for deter17 mining the amount of assistance to be provided for 

18 each country under subsection (a). Such criteria and 

19 methodology shall— 

20 (A) be based on the factors listed in sub21 section (c); 

22 (B) use, to the maximum extent possible, 

23 objective and quantifiable indicators; and 


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1 (C) ensure that an appropriate proportion 

2 of funds are made available for each geographic 

3 region of the world. 

4 (2) CONGRESSIONAL CONSULTATION.—The Ad5 ministrator shall consult with the appropriate con6 gressional committees on the criteria and method7 ology, including indicators, established pursuant to 

8 paragraph (1). 

9 (3) PUBLIC AVAILABILITY.—The criteria and 

10 methodology, including indicators, established pursu11 ant to paragraph (1) shall be made publicly available 

12 on the Internet website of the Agency. 

13 (4) ANNUAL BUDGET SUBMISSION.—For each 

14 fiscal year, the Administrator shall include in the 

15 congressional budget justification submitted under 

16 section 8302 the rankings of each country according 

17 to the criteria and methodology established pursuant 

18 to paragraph (1). 

19 (e) FULL FUNDING OF PROJECTS AND ACTIVI20 TIES.— 

21 (1) IN GENERAL.—Subject to paragraph (2), 

22 funds may be obligated to carry out a Country De23 velopment Cooperation Strategy under section 1018 

24 or a sector strategy for development transmitted 

25 under section 1019 only pursuant to an agreement 


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1 for a project or activity that constitutes an obliga2 tion of the full estimated amount of foreign assist3 ance for the life of such project or activity. 

4 (2) RULES OF CONSTRUCTION.—For purposes 

5 of this section— 

6 (A) an obligation includes any sub-obliga7 tion of funds initially obligated under a Stra8 tegic Objective Agreement or other similar 

9 agreement; 

10 (B) an agreement includes any grant, co11 operative agreement, or contract entered into by 

12 the United States Government or a partner 

13 country with funds made available to carry out 

14 this subtitle; and 

15 (C) funds, in addition to those obligated 

16 pursuant to subsection (a), may be obligated for 

17 a project or activity if the Administrator deter18 mines, on a case-by-case basis, and reports such 

19 determination to the appropriate congressional 

20 committees, that an additional obligation of 

21 funds is necessary in order to enable the Ad22 ministrator to meet development objectives that 

23 could otherwise not be met absent such addi24 tional obligation. 


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1 (3) OUTLAYS AND EXPENDITURES.—The re2 quirement in paragraph (1) shall not be construed to 

3 require outlays or expenditures for a project or ac4 tivity which does not meet all applicable conditions 

5 relating to performance, accountability, and eligi6 bility. 

7 SEC. 1016. INNOVATION FUND. 

8 (a) ESTABLISHMENT.—The Administrator is author9 ized to establish a fund to support innovative projects and 

10 evidence-based solutions that may be tested, replicated, 

11 and scaled up in partner countries to significantly improve 

12 development outcomes. 

13 (b) FUNDING.—The Administrator is authorized— 

14 (1) to transfer to the fund up to $50,000,000 

15 of amounts made available for a fiscal year under 

16 section 1015, which may be used notwithstanding 

17 any other provision of law; and 

18 (2) to accept contributions to the fund from 

19 foundations, corporations, and educational and non20 governmental organizations. 

21 (c) DOCUMENTATION.—A detailed description of all 

22 obligations and expenditures from the fund shall be made 

23 publicly available on the Internet website of the Agency, 

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1 tions, and intended purposes, at the time the obligation 

2 or expenditure is made. 

3 (d) LESSONS LEARNED.—Each project supported by 

4 the fund shall be independently evaluated, and the results 

5 and lessons learned shall be made publicly available on the 

6 Internet website of the Agency. 

7 SEC. 1017. UNITED STATES STRATEGY FOR GLOBAL DEVEL8 OPMENT. 

9 (a) IN GENERAL.—Under the direction of the Presi10 dent, and consistent with the results of the Quadrennial 

11 Diplomacy, Development, and Security Review, the Inter12 agency Policy Committee on Global Development estab13 lished under section 1020 shall prepare on a quadrennial 

14 basis a comprehensive strategy to further the United 

15 States foreign policy objective of promoting global develop16 ment. Such strategy shall be known as the ‘‘United States 

17 Strategy for Global Development’’. 

18 (b) ELEMENTS.—The strategy required under sub19 section (a) shall— 

20 (1) establish clear and specific goals and objec21 tives for United States policies and programs to ad22 vance global development that are consistent with 

23 the principles of section 1013, internationally agreed 

24 development goals, and developing country priorities; 


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1 (2) explain how such goals and objectives are 

2 informed by and will be coordinated with inter3 nationally agreed goals, developing country strate4 gies, and the programs of other bilateral and multi5 lateral donors; 

6 (3) identify major policy changes and key prior7 ities for assistance that will be necessary to achieve 

8 such goals and objectives; 

9 (4) provide evidence and data to support the 

10 proposed strategy and demonstrate how it would im11 prove development effectiveness; 

12 (5) define the respective roles of each Federal 

13 agency in carrying out the strategy; 

14 (6) outline a process to enhance coordination 

15 among each such agency to ensure policy and pro16 gram coherence; 

17 (7) review and improve mechanisms for con18 sulting with other development stakeholders; 

19 (8) describe how crosscutting themes such as 

20 gender equality, human rights, environment, and 

21 conflict prevention will be integrated throughout the 

22 strategy; 

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1 tion and changing situations on the ground and to 

2 reflect best practices and lessons learned; 

3 (10) estimate the requirements for human and 

4 financial resources and overseas infrastructure to 

5 carry out the strategy over the subsequent 4-year 

6 period; and 

7 (11) include a plan, budget, and timetable for 

8 implementing the strategy, including any legislative 

9 requests and Executive orders to be issued. 

10 (c) CONSULTATION.—In preparing the strategy re11 quired under subsection (a), the Interagency Policy Com12 mittee on Global Development established under section 

13 1020 shall consult with the appropriate congressional com14 mittees and relevant stakeholders. 

15 (d) TRANSMISSION TO CONGRESS.— 

16 (1) IN GENERAL.—Not later than 180 days 

17 after the date of the enactment of this Act and every 

18 four years thereafter, the President shall transmit to 

19 the appropriate congressional committees a copy of 

20 the strategy required under subsection (a). 

21 (2) AVAILABILITY TO PUBLIC.—The strategy 

22 transmitted under paragraph (1) shall be published 

23 on the Internet at the time of transmission to the 

24 appropriate congressional committees. 


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1 SEC. 1018. COUNTRY DEVELOPMENT COOPERATION STRAT2 EGIES. 

3 (a) IN GENERAL.—Every 3 to 5 years, the Mission 

4 Director of the Agency in each country described in sub5 section (b) shall prepare a strategy for United States poli6 cies and programs relating to development in such coun7 try. Such strategy shall be known as the ‘‘Country Devel8 opment Cooperation Strategy’’. 

9 (b) COUNTRY DESCRIBED.—A country described in 

10 this subsection is a country in which— 

11 (1) there is a full Agency mission; and 

12 (2) significant violent conflict is neither ongoing 

13 nor likely. 

14 (c) ELEMENTS.—Each strategy required under sub15 section (a) shall be consistent with the principles of section 

16 1013 and shall contain the following elements: 

17 (1) An overview of the country’s own develop18 ment strategy and national sectoral plans, as re19 flected in its Poverty Reduction Strategy Paper or 

20 other official documents. 

21 (2) An analysis of the process by which the 

22 country established its development strategy, includ23 ing the extent to which the strategy reflects the 

24 input of marginalized groups and affected commu25 nities. 


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1 (3) An assessment of current gaps between re2 lief and development programming, the country’s 

3 vulnerability to a natural or human-caused disaster 

4 and to the outbreak of violent conflict, and the steps 

5 being taken to close current programming gaps and 

6 to prevent, prepare for, or mitigate such a disaster 

7 or conflict. 

8 (4) An assessment of the country’s vulnerability 

9 to climate change, and the special challenges such 

10 change is likely to pose. 

11 (5) An assessment of the progress the country 

12 has made toward meeting its development goals and 

13 of the results of foreign assistance in the previous 3 

14 to 5 years. 

15 (6) An analysis of the major obstacles and chal16 lenges to achievement of the country’s development 

17 strategy, or in cases in which there is no strategy or 

18 the strategy is deeply flawed, the obstacles and chal19 lenges to achievement of internationally agreed de20 velopment goals in the country. 

21 (7) A description of the specific ways in which 

22 the United States can most effectively invest in the 

23 country’s development, including a review of the 

24 roles of the various donors and the areas of United 

25 States comparative advantage. 


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1 (8) A description of the roles of each partici2 pating Federal agency in carrying out the strategy. 

3 (9) A description of the consultative mecha4 nisms used in developing the strategy and the stake5 holders consulted. 

6 (10) A description of the mechanisms by which 

7 United States Government policies and programs re8 lating to development will be harmonized with the 

9 country’s development strategy and assistance from 

10 other donors. 

11 (11) A description of the linkages between the 

12 strategy and relevant sector strategies for develop13 ment, including any assistance to be provided for the 

14 country pursuant to a sector strategy. 

15 (12) An evaluation of the risks and tradeoffs 

16 contained in the approach recommended in the strat17 egy. 

18 (13) Specific, measurable goals and objectives 

19 for development assistance to the country over the 

20 next 3 to 5 years, including a list of indicators to 

21 be used in assessing impact, which to the maximum 

22 extent practicable shall reflect the country’s develop23 ment strategy, shall be gender-disaggregated, and 

24 shall emphasize the reduction of extreme poverty. 


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1 (14) The total amount of development assist2 ance requested for the country over the period of the 

3 strategy, and the estimated amount that would be 

4 devoted to each goal and objective for such assist5 ance. 

6 (15) A description of the types of projects and 

7 activities to be supported in pursuit of each goal and 

8 objective for such assistance. 

9 (16) A description of the likely types of part10 ners for each type of project or activity, which to the 

11 maximum extent practicable shall utilize and 

12 strengthen local procurement and delivery systems. 

13 (17) A description of the personnel resources 

14 needed to implement the strategy, and any bureau15 cratic, logistical, or infrastructural impediments to 

16 deploying such resources. 

17 (18) A description of how development assist18 ance will build local capacity, strengthen country 

19 ownership, improve country systems, advance demo20 cratic governance, and reflect country priorities. 

21 (19) A plan and budget for monitoring the per22 formance and evaluating the impact of development 

23 assistance, which to the maximum extent practicable 

24 shall utilize and strengthen local monitoring and 


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1 evaluation systems, and shall include data on a sex2 disaggregated basis. 

3 (20) A description of how development assist4 ance will help to promote regional cooperation and 

5 integration. 

6 (d) CONSULTATION.—In preparing the strategy re7 quired under subsection (a), the Mission Director shall 

8 consult with a wide range of relevant stakeholders to en9 sure that the strategy is appropriate to local needs and 

10 conditions and incorporates the views of the partner coun11 try. 

12 (e) REVIEW AND COORDINATION.— 

13 (1) BY ADMINISTRATOR.—Each strategy pre14 pared under subsection (a) shall be submitted to the 

15 Administrator for review and approval. 

16 (2) BY IPC.—Each strategy reviewed and ap17 proved under paragraph (1) shall be transmitted to 

18 the Interagency Policy Committee on Global Devel19 opment established under section 1020 to ensure co20 ordination with the United States Global Develop21 ment Strategy and all other United States policies 

22 and programs relating to the partner country. 

23 (f) TRANSMISSION.— 


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1 (1) TO CONGRESS.—Each strategy prepared 

2 under subsection (a) shall be transmitted to the ap3 propriate congressional committees. 

4 (2) TO PARTNER COUNTRY.—Each strategy 

5 prepared under subsection (a) shall be officially 

6 transmitted to the government of the partner coun7 try at the same time it is transmitted to the appro8 priate congressional committees under paragraph 

9 (1). 

10 (3) PUBLIC AVAILABILITY.—Each strategy pre11 pared under subsection (a) shall be published on the 

12 Internet website of the Agency not later than 3 days 

13 after it is transmitted to the government of the part14 ner country under paragraph (2). 

15 (4) REVISIONS.— 

16 (A) IN GENERAL.—A strategy prepared 

17 under subsection (a) may be revised at any 

18 time, but any significant revision to such strat19 egy shall be subject to the same consultation, 

20 review, and transmission requirements that are 

21 applicable to a strategy prepared under sub22 section (a). 

23 (B) DEFINITION.—In this paragraph, the 

24 term ‘‘significant revision’’ means a change— 

25 (i) to a goal, objective, or indicator; 


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1 (ii) of more than 20 percent in— 

2 (I) the amounts to be provided 

3 for a goal or objective; or 

4 (II) the number of personnel re5 quired; or 

6 (iii) in the general nature of the 

7 projects or activities to be supported. 

8 (g) IMPLEMENTATION.—None of the funds made 

9 available under section 1015 may be used to carry out a 

10 strategy prepared under subsection (a) until at least 15 

11 days after the strategy is transmitted to the appropriate 

12 congressional committees under subsection (f)(1). 

13 SEC. 1019. SECTOR STRATEGIES FOR DEVELOPMENT. 

14 (a) IN GENERAL.—Every 4 years, the Administrator 

15 shall prepare, consistent with the results of the Quadren16 nial Diplomacy, Development, and Security Review pre17 pared under section 8101 and the United States Strategy 

18 for Global Development prepared under section 1017, in19 dividual strategies for achieving each of the goals of assist20 ance described in paragraphs (1) through (8) of section 

21 1014. 

22 (b) ELEMENTS.—Each strategy required under sub23 section (a) shall include— 


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1 (1) specific objectives for the next 4-year pe2 riod, including indicators and other measurements of 

3 success; 

4 (2) a description of how such objectives relate 

5 to, are informed by, and will be coordinated with the 

6 development goals and relevant sectoral plans of 

7 partner countries, as well as with those of other bi8 lateral and multilateral donors; 

9 (3) a description of the roles of each Federal 

10 agency in carrying out the strategy, and the mecha11 nisms for coordination; 

12 (4) a description of policies and programs need13 ed to achieve such objectives, and the proportion of 

14 resources to be provided to such policies and pro15 grams; 

16 (5) a description of the ways in which research, 

17 innovation, and technology will be deployed in sup18 port of such objectives; 

19 (6) a list of priority countries, regions, and in20 tended beneficiaries on which resources would be fo21 cused; 

22 (7) a description of the gender considerations 

23 taken into account, the role of women and girls as 

24 participants and beneficiaries of the strategy, and 

25 the impact the strategy will have on gender equality; 


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1 (8) a description of how the policies, programs, 

2 objectives and priorities have been informed by, and 

3 will respond to, conflict strategies and assessments 

4 issued pursuant to section 2021; 

5 (9) an analysis of the key opportunities and 

6 challenges for achieving favorable results in the next 

7 4-year period; 

8 (10) a mechanism for ensuring that policies and 

9 programs undertaken pursuant to the strategy in10 form and are informed by, build upon, contribute to, 

11 and otherwise advance policies and programs pursu12 ant to each of the other sector strategies required 

13 under this section; 

14 (11) the amounts devoted to similar purposes in 

15 the previous 4-year period, the results achieved and 

16 the lessons learned; and 

17 (12) the requirements for human and financial 

18 resources and overseas infrastructure to carry out 

19 the strategy over the next 4-year period. 

20 (c) CONSULTATION.—In preparing each strategy re21 quired under subsection (a), the Administrator shall con22 sult with the appropriate congressional committees and a 

23 wide range of relevant stakeholders to ensure that the 

24 strategy is appropriate to local needs and conditions and 

25 incorporates the views of partner countries. 


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1 (d) REVIEW AND COORDINATION.—Each strategy 

2 prepared under subsection (a) shall be transmitted to the 

3 Interagency Policy Committee on Global Development es4 tablished under section 1020 to ensure coordination with 

5 the United States Global Development Strategy and all 

6 other United States policies and programs pertaining to 

7 that sector. 

8 (e) TRANSMISSION TO CONGRESS.— 

9 (1) SCHEDULE.—At the time of transmission of 

10 the United States Strategy for Global Development 

11 pursuant to section 1017, the Administrator shall 

12 transmit to the appropriate congressional commit13 tees a schedule for the completion within the next 2 

14 years of an initial strategy for each of the goals de15 scribed in section 1014. 

16 (2) REGULAR TRANSMISSION.—Each strategy 

17 prepared under subsection (a) shall be transmitted 

18 to the appropriate congressional committees. 

19 (3) PUBLIC AVAILABILITY.—Each strategy pre20 pared under subsection (a) shall be published on the 

21 Internet website of the Agency not later than 3 days 

22 after it is transmitted to the appropriate congres23 sional committees. 

24 (4) REVISIONS.— 


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1 (A) IN GENERAL.—A strategy prepared 

2 under subsection (a) and transmitted pursuant 

3 to paragraph (2) may be revised at any time, 

4 but any significant revision to such strategy 

5 shall be subject to the same consultation, re6 view, and transmission requirements that are 

7 applicable to a strategy prepared under sub8 section (a). 

9 (B) DEFINITION.—In this paragraph, the 

10 term ‘‘significant revision’’ means a change— 

11 (i) to a goal, objective, or indicator; 

12 (ii) in the general nature of the poli13 cies and programs to be supported; 

14 (iii) in the priority countries, regions, 

15 or intended beneficiaries; or 

16 (iv) of more than 10 percent of the 

17 proportion of resources to be provided to a 

18 policy or program. 

19 (f) IMPLEMENTATION.—None of the funds made 

20 available under section 1015 may be used to carry out a 

21 strategy prepared under subsection (a) until at least 15 

22 days after the strategy is transmitted to the appropriate 

23 congressional committees pursuant to subsection (e). 


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1 SEC. 1020. INTERAGENCY POLICY COMMITTEE ON GLOBAL 

2 DEVELOPMENT. 

3 (a) ESTABLISHMENT.—The President shall establish 

4 an Interagency Policy Committee on Global Development 

5 (in this section referred to as the ‘‘Committee’’) to coordi6 nate United States budgets, policies, and programs affect7 ing international development. 

8 (b) MEMBERSHIP.—The Committee shall be com9 posed of the Administrator and a senior representative of 

10 each Federal agency with policies or programs signifi11 cantly affecting international development. 

12 (c) CHAIRPERSON.—The Administrator shall serve as 

13 the Chairperson of the Committee. 

14 (d) MEETINGS.— 

15 (1) REGULAR MEETINGS.—Meetings of the 

16 Committee shall be held not less often than quar17 terly. 

18 (2) ADDITIONAL MEETINGS.—In addition to its 

19 regular meetings, the Committee shall meet subject 

20 to the call of the Chairperson. 

21 (e) SUBORDINATE UNITS.—The Committee may es22 tablish such subordinate units as it determines necessary. 

23 (f) DUTIES.—The Committee shall— 

24 (1) advise the President with respect to the co25 ordination of United States budgets, policies, and 

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1 cluding programs of bilateral and multilateral devel2 opment assistance; 

3 (2) promote policy consistency and coherence, 

4 and minimize program gaps and duplication; 

5 (3) prepare, on a quadrennial basis, a com6 prehensive strategy to further the United States for7 eign policy objective of reducing global poverty, as 

8 described in section 1017; 

9 (4) review, upon completion, Country Develop10 ment Cooperation Strategies required under section 

11 1018, and ensure that such strategies are coordi12 nated with the United States Strategy for Global 

13 Development and all other United States policies 

14 and programs relating to the partner country; 

15 (5) review, upon completion, the sector strate16 gies for development prepared under section 1019, 

17 and ensure that such strategies are coordinated with 

18 the United States Strategy for Global Development 

19 and all other United States policies and programs 

20 relating to that sector; 

21 (6) monitor and evaluate the results and impact 

22 of the development policies and programs carried out 

23 by each Federal agency; 

24 (7) facilitate coordination, cooperation, and in25 formation sharing among Federal agencies; and 


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1 (8) define and rationalize the role of each Fed2 eral agency in carrying out development policies and 

3 programs. 

4 (g) STAFFING.— 

5 (1) IN GENERAL.—The Administrator shall pro6 vide administrative and staff support to the Com7 mittee. 

8 (2) OTHER AGENCIES.—The head of a Federal 

9 agency represented on the Committee may tempo10 rarily assign, upon the request of the Chairperson, 

11 one or more employees from the agency to the staff 

12 of the Committee. 

13 SEC. 1021. GLOBAL DEVELOPMENT COUNCIL. 

14 (a) POLICY.—To help protect national security and 

15 further United States economic, humanitarian, and stra16 tegic interests in the world, it is the policy of the United 

17 States Government to promote and elevate development as 

18 a core pillar of United States power and chart a course 

19 for development, diplomacy, and defense to reinforce and 

20 complement one another. The successful pursuit of devel21 opment is essential to advancing United States national 

22 security objectives: security, prosperity, respect for uni23 versal values, and a just and sustainable international 

24 order. The effectiveness of this development policy will de25 pend in large measure on how the United States engages 


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1 with partners, beneficiaries of development assistance, and 

2 stakeholders. The United States will use evidence-based 

3 decisionmaking in all areas of United States development 

4 policy and programs, and will foster development expertise 

5 and learning worldwide. 

6 (b) ESTABLISHMENT.— 

7 (1) IN GENERAL.—The President shall establish 

8 a Global Development Council (in this section re9 ferred to as the ‘‘Council’’) to advise and support 

10 the President in furtherance of the policy set out in 

11 subsection (a). 

12 (2) LOCATED WITHIN AGENCY.—The Council 

13 shall be established for administrative purposes with14 in the Agency, subject to the foreign policy and 

15 budgetary guidance of the Secretary. 

16 (c) MEMBERSHIP.— 

17 (1) IN GENERAL.—The Council shall be com18 posed of the following: 

19 (A) Not more than 12 individuals from 

20 outside the United States Government ap21 pointed by the President. Such members may 

22 serve as representatives of a variety of sectors, 

23 including, among others, institutions of higher 

24 education, non-profit and philanthropic organi25 zations, civil society, and private industry. 


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1 (B) The Secretary of State, the Secretary 

2 of the Treasury, the Secretary of Defense, the 

3 Administrator of the United States Agency for 

4 International Development, and the Chief Exec5 utive Officer of the Millennium Challenge Cor6 poration, who— 

7 (i) shall serve as non-voting members 

8 of the Council; and 

9 (ii) may designate, to perform the 

10 Council functions of the member, a senior11 level official who is part of the member’s 

12 department, agency, or office, and who is 

13 a full-time officer or employee of the Fed14 eral Government. 

15 (2) CHAIR AND VICE CHAIR.—The President 

16 shall designate a member of the Council to serve as 

17 Chair and another member to serve as Vice Chair. 

18 The Chair shall convene and preside at meetings of 

19 the Council, determine meeting agendas, and direct 

20 its work. The Vice Chair shall perform the duties of 

21 the Chair in the absence of the Chair and shall per22 form such other functions as the Chair may assign. 

23 (3) TERMS.—The term of office of a member 

24 appointed by the President from outside the United 

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1 ber shall be eligible for reappointment and may con2 tinue to serve after the expiration of such term until 

3 the President appoints a successor. A member ap4 pointed to fill a vacancy shall serve only for the un5 expired term of such vacancy. 

6 (d) FUNCTIONS.—The Council shall meet regularly 

7 and shall— 

8 (1) inform the policy and practice of United 

9 States global development policy and programs by 

10 providing advice to the President and other senior 

11 officials on issues including— 

12 (A) innovative, scalable approaches to de13 velopment with proven demonstrable impact, 

14 particularly on sustainable economic growth 

15 and good governance; 

16 (B) areas for enhanced collaboration be17 tween the United States Government and public 

18 and private sectors to advance development pol19 icy; 

20 (C) best practices for and effectiveness of 

21 research and development in low and middle in22 come economies; and 

23 (D) long-term solutions to issues central to 

24 strategic planning for United States develop25 ment efforts; 


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1 (2) support new and existing public-private 

2 partnerships by— 

3 (A) identifying key areas for enhanced col4 laboration and any barriers to collaboration; 

5 and 

6 (B) recommending concrete efforts that 

7 the private and public sectors together can take 

8 to promote economic development priorities and 

9 initiatives; and 

10 (3) increase awareness and action in support of 

11 development by soliciting public input on current 

12 and emerging issues in the field of global develop13 ment as well as bringing to the President’s attention 

14 concerns and ideas that would inform policy options. 

15 (e) ADMINISTRATION AND RELATED MATTERS.— 

16 (1) IN GENERAL.—The heads of executive de17 partments and agencies shall assist and provide in18 formation to the Council, consistent with applicable 

19 law, as may be necessary to carry out the functions 

20 of the Council. 

21 (2) FUNDING AND ADMINISTRATIVE SUP22 PORT.—Funding and administrative support for the 

23 Council shall be provided by the Agency to the ex24 tent permitted by law and within existing appropria25 tions. 


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1 (3) EXECUTIVE DIRECTOR.—The Administrator 

2 shall appoint an Executive Director who shall be a 

3 Federal officer or employee of the Agency and serve 

4 as a liaison to the Administrator and the Executive 

5 Office of the President and consult with relevant 

6 Federal departments, agencies, and offices on mat7 ters and activities pertaining to the Council. 

8 (4) COMPENSATION; TRAVEL EXPENSES.—The 

9 members of the Council who are appointed from out10 side the Federal Government shall serve without 

11 compensation for their work on the Council. Mem12 bers of the Council may receive travel expenses, in13 cluding per diem in lieu of subsistence, in accord14 ance with applicable provisions under subchapter I 

15 of chapter 57 of title 5, United States Code. 

16 (5) To the extent as the Federal Advisory Com17 mittee Act applies to the Council, any functions of 

18 the President under such Act, except functions relat19 ing to reporting to Congress, shall be performed by 

20 the Administrator in accordance with the guidelines 

21 issued by the Administrator of General Services. 

22 (f) TERMINATION.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2), the Council shall terminate on the date 


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1 that is 2 years after the date of the enactment of 

2 this Act. 

3 (2) EXTENSION.—The Council may be extended 

4 by the President for additional two-year periods. 

5 (3) REPORT.—Prior to exercising the authority 

6 under paragraph (2) to extend the Council, the 

7 President shall submit to the appropriate congres8 sional committees a report on the activities of the 

9 Council during the previous two-year period. 

10 SEC. 1022. DEVELOPMENT EDUCATION. 

11 The Administrator is authorized to use up to 

12 $1,000,000 of amounts made available under section 1015 

13 in any fiscal year to support expansion and improvement 

14 of United States education about global poverty, the proc15 ess and challenges of international development, and the 

16 interdependence of the United States and developing coun17 tries. 

18 SEC. 1023. DEFINITIONS. 

19 In this subtitle: 

20 (1) AGRICULTURE.—The term ‘‘agriculture’’ 

21 means the science and practice of activities related 

22 to food, feed, livestock, or fiber production, proc23 essing, marketing, distribution, utilization, and 

24 trade, and encompasses the study and practice of 

25 family and consumer sciences, nutrition, food 


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1 sciences, forestry, wildlife, fisheries, aquaculture, 

2 floraculture, livestock management, veterinary medi3 cine, and other environmental and natural resource 

4 sciences. 

5 (2) AGRICULTURAL DEVELOPMENT.—The term 

6 ‘‘agricultural development’’ means methods to use 

7 agriculture as a basis for food security, family liveli8 hood, and economic growth by— 

9 (A) increasing the productivity of those in10 volved in the production of food, fuel, and fiber, 

11 including farmers, fishers, foresters, and pas12 toralists, particularly those that operate on a 

13 small scale; 

14 (B) linking producers to consumers 

15 through markets, including postharvest activi16 ties such as storage, processing, transport, and 

17 improving market efficiency; 

18 (C) supporting a legal, regulatory, and pol19 icy environment that is conducive to agricul20 tural investment and production; and 

21 (D) strengthening technical, financial, and 

22 business service providers that help food pro23 ducers grow their enterprises. 

24 (3) COUNTRY SYSTEMS.—The term ‘‘country 

25 systems’’ means the public financial management, 


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1 procurement, disbursement, and monitoring and 

2 evaluation systems of a country. 

3 (4) DEVELOPING COUNTRY.—The term ‘‘devel4 oping country’’ means a country or area that is on 

5 the List of Official Development Assistance Recipi6 ents of the Development Assistance Committee of 

7 the Organization for Economic Cooperation and De8 velopment. 

9 (5) DEVELOPMENT STAKEHOLDER.—The term 

10 ‘‘development stakeholder’’— 

11 (A) means an entity directly or indirectly 

12 affected by the success of efforts to reduce pov13 erty and promote self-sustaining, equitable, and 

14 environmentally sound economic growth in a 

15 partner country; and 

16 (B) includes— 

17 (i) national, regional, and local gov18 ernments and administering authorities, 

19 intermediate representative institutions, 

20 civil society organizations, and intended 

21 beneficiaries, including marginalized 

22 groups; 

23 (ii) Federal agencies, congressional 

24 committees, the Government Accountability 

25 Office, and private partners; and 


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1 (iii) bilateral, multilateral, and private 

2 donors. 

3 (6) FOOD SECURITY.—The term ‘‘food secu4 rity’’ means that all people at all times have both 

5 physical and economic access to sufficient food to 

6 meet their dietary needs for a healthy and active 

7 life. 

8 (7) RELEVANT STAKEHOLDER.—The term ‘‘rel9 evant stakeholder’’— 

10 (A) means a party that is— 

11 (i) directly or indirectly affected by a 

12 particular law, regulation, policy, process, 

13 program, project, or activity; or 

14 (ii) involved in the funding, design, 

15 implementation, auditing, or oversight 

16 thereof; and 

17 (B) includes— 

18 (i) national, regional, and local gov19 ernments and administering authorities, 

20 intermediate representative institutions, 

21 civil society organizations, and intended 

22 beneficiaries, including marginalized 

23 groups; 


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1 (ii) Federal agencies, congressional 

2 committees, the Government Accountability 

3 Office, and private partners; and 

4 (iii) bilateral, multilateral, and private 

5 donors. 

6 CHAPTER 1—ACCELERATING ECONOMIC 

7 GROWTH 

8 SEC. 1101. FINDINGS AND STATEMENT OF POLICY. 

9 (a) FINDINGS.—Congress finds the following: 

10 (1) Broad-based and sustainable economic 

11 growth is the most powerful engine for reducing pov12 erty, and is key to advancing human development. It 

13 is the surest way for countries to generate the re14 sources they need to address illiteracy, poor health, 

15 and other development challenges on their own. 

16 (2) By expanding incomes, economic growth 

17 helps families and individuals not only to meet their 

18 basic needs, but also to realize their unique capabili19 ties, exercise greater freedom in their lives, and 

20 achieve their full human potential. 

21 (3) Economic growth enables countries to offer 

22 better markets for United States goods and services 

23 and to become more effective partners with the 

24 United States in working toward a more stable, 

25 healthy, and prosperous world. 


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1 (4) Well-functioning, dynamic private markets 

2 promote economic activity and accelerate growth, 

3 providing increased incomes and employment. 

4 (5) To encourage entrepreneurship and private 

5 investment, developing countries must create a fa6 vorable legal, policy and regulatory environment; an 

7 efficient and accountable system of public financial 

8 management; fair, transparent and predictable en9 forcement of property rights and contracts; effective 

10 procedures for resolving economic disputes among 

11 firms and individuals; and rigorous efforts to stem 

12 bribery and corruption. 

13 (6) Even where markets are functioning well, 

14 differential access to education, technology, credit 

15 and other resources can cause economic benefits to 

16 be uneven. Expanding economic opportunity and ac17 cess to the tools that help citizens engage in the 

18 market economy enables the poor, women and other 

19 marginalized groups to participate in and contribute 

20 to economic growth. 

21 (7) An abundance of young people in a country 

22 with a weak economy and non-responsive govern23 ment can leave individuals frustrated by the lack of 

24 jobs and opportunities. But youth are also key 

25 human resources for growth and positive change. 


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1 When governments embrace policies that promote 

2 education, economic opportunities, the empowerment 

3 of women, and equitable access to resources, coun4 tries can capitalize on the productivity of a growing 

5 workforce to boost economic growth. 

6 (8) Expanding trade regionally and internation7 ally is critical for many of the smallest and poorest 

8 developing countries, where local demand is too weak 

9 to support large-scale expansion of production, em10 ployment, and incomes. Building trade capacity and 

11 removing trade barriers are essential to lasting eco12 nomic growth. 

13 (9) Heavy debt burdens, often accumulated 

14 under prior, undemocratic regimes, can undermine 

15 the ability of developing countries to invest in their 

16 people and make progress fighting poverty. 

17 (10) United States international trade and eco18 nomic policies are often formulated with little rec19 ognition or consideration of their impact on devel20 oping countries. More active participation by the 

21 Agency in interagency decisionmaking processes can 

22 help achieve greater balance among competing 

23 United States interests, ensuring that development 

24 is duly considered as a priority of United States for25 eign policy. 


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1 (b) STATEMENT OF POLICY.—It is the policy of the 

2 United States to work in cooperation with the inter3 national community to help partner countries achieve 

4 broad-based and sustainable economic growth that— 

5 (1) includes all major income groups, 

6 marginalized groups and women; 

7 (2) significantly reduces poverty; 

8 (3) uses natural resources responsibly; and 

9 (4) reduces dependence on foreign assistance. 

10 SEC. 1102. GOAL AND OBJECTIVES. 

11 (a) GOAL.—The goal of assistance under this chapter 

12 is to accelerate broad-based and sustainable economic 

13 growth. 

14 (b) OBJECTIVES.—In furtherance of the goal de15 scribed in subsection (a), assistance under this chapter 

16 shall be designed to help partner countries achieve the fol17 lowing objectives: 

18 (1) Increase income-generating opportunities. 

19 (2) Expand access to markets, capital, credit, 

20 land, and other productive resources. 

21 (3) Enhance productivity through education 

22 and training. 

23 (4) Improve the legal, regulatory and policy en24 vironment for business and trade. 


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1 (5) Build human and institutional capacity to 

2 compete in the global economy. 

3 SEC. 1103. GLOBAL STRATEGY FOR ECONOMIC GROWTH. 

4 (a) IN GENERAL.—The strategy required under sec5 tion 1019 with respect to accelerating economic growth 

6 shall be known as the ‘‘Global Strategy for Economic 

7 Growth’’. 

8 (b) CONTENTS.—The Global Strategy for Economic 

9 Growth shall include, in addition to the elements required 

10 under section 1019(b), plans for achieving the goal and 

11 objectives of section 1102. 

12 (c) GUIDELINES.—The Global Strategy for Economic 

13 Growth should— 

14 (1) specify the role of microfinance and micro15 enterprise development, including the resources to be 

16 devoted to promoting microenterprise; 

17 (2) identify United States policies relating to 

18 trade, agriculture, debt, and other matters that have 

19 an impact on economic growth in developing coun20 tries, and recommend changes that would enhance 

21 development objectives; 

22 (3) plan for long-term sustainability through 

23 linkages to regional and international markets and 

24 private investment; 


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1 (4) include mechanisms for increasing consulta2 tion, cooperation, and coordination with the private 

3 sector, in order to attract greater private sector par4 ticipation in development activities; 

5 (5) address the impact of remittances and iden6 tify ways that their development impact can be 

7 maximized; 

8 (6) recommend methods for reducing illicit out9 flows of natural resources and capital from devel10 oping countries; and 

11 (7) establish mechanisms for improving policy 

12 and program coordination among Federal agencies 

13 engaged in economic growth activities. 

14 SEC. 1104. ASSISTANCE FOR ECONOMIC GROWTH. 

15 (a) AUTHORIZATION.—The Administrator is author16 ized to use funds made available under section 1015 to 

17 further the goal and objectives of this chapter in partner 

18 countries. 

19 (b) ACTIVITIES.—Assistance authorized under sub20 section (a) shall include the following: 

21 (1) Expanding income generating opportunities 

22 for the poor, including women. 

23 (2) Enhancing the workforce by, among other 

24 things, providing job training and vocational skills 

25 appropriate to local needs and conditions. 


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1 (3) Improving access, particularly of women 

2 and the poor, to markets and productive resources, 

3 including credit and financial services, affordable 

4 and resource-conserving technologies, technical and 

5 market-related information, and property and inher6 itance rights. 

7 (4) Strengthening the legal, policy, and regu8 latory framework for broad-based and sustainable 

9 economic growth, including the protection of private 

10 property and intellectual property. 

11 (5) Supporting the development of cooperatives, 

12 credit unions, and labor unions. 

13 (6) Expanding local capacity and demand for 

14 collection and analysis of statistical information. 

15 (7) Promoting the development, reform or re16 structuring, as appropriate, of financial, monetary, 

17 fiscal and regulatory systems. 

18 (8) Building and strengthening institutional ca19 pacities to plan, analyze, implement, manage, mon20 itor and evaluate economic policies and programs. 

21 (9) Promoting sound financial management 

22 practices and budgetary policies, and reducing cor23 ruption, waste, fraud and abuse. 


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1 (10) Increasing private sector competitiveness, 

2 strengthening local and regional markets, building 

3 trade capacity, and expanding trade ties. 

4 (11) Promoting collaboration between public 

5 and private sector entities for the reduction of pov6 erty and its worst physical manifestations, and en7 couraging private sector investment in projects bene8 fitting the poor. 

9 (12) Facilitating the development of social safe10 ty nets, pension plans, insurance networks, and 

11 other mechanisms designed to improve income secu12 rity. 

13 (13) Protecting internationally recognized work14 er rights, especially with regard to child labor. 

15 (14) Developing and identifying analytical tools 

16 and methodologies to enable effective targeting and 

17 measurement of programs for women, the poor and 

18 very poor. 

19 (15) Increasing the transparency of budgets 

20 and procurement processes, and the effectiveness of 

21 oversight, monitoring, accountability and audit 

22 mechanisms. 

23 SEC. 1105. FISCAL AND CONTRACT TRANSPARENCY. 

24 (a) ESTABLISHMENT OF INTERNATIONAL STAND25 ARDS.—The United States Government should seek, in 


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1 appropriate multilateral fora, to establish voluntary inter2 national standards of fiscal and contract transparency, 

3 such as the public disclosure of budget documentation, in4 cluding receipts and expenditures by ministry, and govern5 ment contracts and licenses for natural resource extrac6 tion, including bidding and concession allocation practices. 

7 (b) PARTNERSHIPS FOR TRANSPARENCY.—The Ad8 ministrator is authorized to use funds made available 

9 under this chapter to support improvements to fiscal and 

10 contract transparency in partner countries. 

11 (c) REQUIREMENT.—The Administrator shall not 

12 provide direct government-to-government assistance under 

13 this Act for any government that fails to make its national 

14 budget publicly available on an annual basis. 

15 (d) DEFINITION.—In this section, the term ‘‘govern16 ment-to-government assistance’’ means assistance for a 

17 project or activity that is managed directly by a partner 

18 government entity using its own financial management 

19 and procurement systems. 

20 Subchapter A—Microenterprise Development 

21 Assistance 

22 SEC. 1111. FINDINGS AND STATEMENT OF POLICY. 

23 (a) FINDINGS.—Congress finds the following: 

24 (1) Access by women and the poor to financial 

25 and business development services is a vital factor in 


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1 reducing poverty and promoting sustainable eco2 nomic growth in developing countries. 

3 (2) Microfinance and microenterprise develop4 ment programs have demonstrated high impact and 

5 long-term sustainability because they build capacity 

6 for self-help among the poor, especially women, 

7 thereby broadening the base for and increasing the 

8 inclusiveness of economic growth. 

9 (3) In order to ensure that microenterprise pro10 grams promote the maximum financial inclusion of 

11 women, gender analysis should be integrated into 

12 microenterprise program design, implementation, 

13 monitoring and evaluation. 

14 (4) A comprehensive approach to microenter15 prise development includes support for the provision 

16 of credit, savings, insurance, education and training, 

17 technical assistance, business development, and 

18 other financial services to women, poor people, and 

19 other marginalized groups. 

20 (5) Microenterprise development and micro21 finance are particularly important to enhancing the 

22 livelihoods of refugees, displaced persons, and those 

23 affected by conflict, whose routine employment op24 portunities and access to productive resources have 

25 been reduced or disrupted. 


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1 (6) Microenterprise and microfinance activities 

2 should be thoroughly integrated into all aspects of 

3 development, especially including agriculture and 

4 health. 

5 (7) United States Government support for 

6 microfinance and microenterprise development 

7 should complement private initiatives in this area by 

8 focusing on those who lack access to formal financial 

9 services, and on countries and sectors that have been 

10 underserved by private capital flows. 

11 (8) United States Government funds should be 

12 used to catalyze and attract additional resources, in13 cluding private sector funds, investment funds, and 

14 the savings of the poor, such as through matching 

15 fund opportunities and challenge grants. 

16 (9) United States Government-supported micro17 finance lending should accept a higher level of risk 

18 than private lending in order to promote innovative 

19 products and methodologies and serve poorer and 

20 harder-to-reach populations. 

21 (10) United States Government support for mi22 croenterprise development and microfinance should 

23 build the capacity of local institutions in order to en24 able them to better meet the credit, savings, and 


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1 training needs of microfinance and microenterprise 

2 clients. 

3 (11) Microfinance and microenterprise activi4 ties, especially those benefitting the very poor, 

5 should be a significant component of development 

6 assistance. 

7 (b) STATEMENT OF POLICY.—It is the policy of the 

8 United States to promote a global strategy of financial in9 clusion for all, and especially the very poor and women, 

10 through support for microfinance and microenterprise de11 velopment in partner countries. 

12 SEC. 1112. MICROENTERPRISE FUND. 

13 (a) IN GENERAL.—The Administrator shall establish 

14 a centrally managed fund for microfinance and microen15 terprise development activities, to be known as the ‘‘Micro16 enterprise Fund’’. Assistance provided through the Micro17 enterprise Fund shall be in addition to assistance other18 wise made available for such purposes. 

19 (b) ACTIVITIES.—Assistance provided through the 

20 Microenterprise Fund shall be used to advance the policy 

21 described in section 1111(b), including through the fol22 lowing activities: 

23 (1) Expanding the availability of credit, savings 

24 and other financial and nonfinancial services to 

25 microfinance and microenterprise clients. 


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1 (2) Training, technical assistance and business 

2 development services for microenterprises. 

3 (3) Capacity-building for microfinance and mi4 croenterprise institutions. 

5 (4) Improving the legal and regulatory environ6 ment for microenterprise and for financial institu7 tions that serve the poor and very poor. 

8 (5) Developing new and innovative microfinance 

9 and microenterprise products and services. 

10 (6) Developing, identifying and testing tools 

11 that facilitate better targeting of programs to the 

12 very poor, women, and other disadvantaged groups. 

13 (7) Providing targeted core support for micro14 finance and microenterprise networks and other 

15 practitioners. 

16 (c) TARGETING OF ASSISTANCE.— 

17 (1) VERY POOR AND WOMEN.—At least 50 per18 cent of the assistance provided through the Microen19 terprise Fund shall be targeted to microenterprise 

20 clients who are very poor, and a significant propor21 tion of such assistance shall be targeted to women. 

22 (2) POVERTY ASSESSMENT TOOLS.—In tar23 geting assistance pursuant to paragraph (1), the Ad24 ministrator shall identify, field-test, and certify for 

25 use no fewer than two low-cost methods to assess 


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1 the poverty levels of incoming or prospective clients 

2 of microenterprise institutions, and shall require 

3 that all private partners use one of the certified 

4 methods. 

5 (d) PRIVATE PARTNERS.—Assistance provided 

6 through the Microenterprise Fund shall emphasize the use 

7 of private partners who— 

8 (1) match such assistance, to the greatest ex9 tent practicable, with non-United States Government 

10 resources, including funds from other donors, com11 mercial or concessional borrowing, participant sav12 ings, and program income; 

13 (2) maintain low overhead and administrative 

14 costs; 

15 (3) are highly technically competitive; 

16 (4) design their programs to meet the needs of 

17 women; 

18 (5) target their resources at the very poor; 

19 (6) design their programs for maximum finan20 cial sustainability; and 

21 (7) adopt robust client protection principles and 

22 incorporate them into their practices. 

23 SEC. 1113. OFFICE OF MICROENTERPRISE DEVELOPMENT. 

24 (a) ESTABLISHMENT.—There is established within 

25 the Agency an Office of Microenterprise Development 


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1 (hereafter in this section referred to as the ‘‘Office’’), 

2 which shall be headed by a Director who shall be ap3 pointed by the Administrator and who should possess tech4 nical expertise and ability to offer leadership in the field 

5 of microenterprise development. 

6 (b) RESPONSIBILITIES.—The Office shall be respon7 sible for— 

8 (1) administering the Microenterprise Fund es9 tablished under section 1112; 

10 (2) developing a comprehensive and coherent 

11 plan, which shall be made available to the public, for 

12 promoting financial inclusion for all through micro13 finance and microenterprise development programs; 

14 (3) ensuring that such plan is integrated into 

15 the Global Strategy for Economic Growth described 

16 in section 1103 and other country and sector strate17 gies for development, as appropriate; 

18 (4) advising and providing technical support to 

19 Agency missions regarding the design and implemen20 tation of microfinance and microenterprise develop21 ment programs, including through incorporation of 

22 such programs into Country Development Coopera23 tion Strategies; 

24 (5) setting performance goals and indicators to 

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1 opment activities benefit the very poor and women; 

2 and 

3 (6) collecting and disseminating detailed data to 

4 document the impact of microfinance and microen5 terprise development activities on the very poor and 

6 women. 

7 SEC. 1114. DEFINITIONS. 

8 In this subchapter: 

9 (1) MICROENTERPRISE.—The term ‘‘microen10 terprise’’ means a firm of 10 or fewer employees, in11 cluding unpaid workers, which is owned and oper12 ated by someone who is poor. 

13 (2) MICROFINANCE.—The term ‘‘microfinance’’ 

14 means activities to provide, or to increase the avail15 ability of, credit, savings, insurance, and other finan16 cial services to microenterprises. 

17 (3) VERY POOR.—The term ‘‘very poor’’ refers 

18 to individuals whose incomes are— 

19 (A) in the bottom 50 percent of those 

20 below the poverty line in their country of resi21 dence; or 

22 (B) below the World Bank international 

23 extreme poverty line. 


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1 Subchapter B—Small and Medium Enterprise 

2 Development 

3 SEC. 1121. FINDINGS AND STATEMENT OF POLICY. 

4 (a) FINDINGS.—Congress finds the following: 

5 (1) Small and medium enterprises (SMEs) are 

6 key drivers of competition, growth, and job creation, 

7 particularly in developing countries. They make up 

8 an estimated 90 percent of businesses and over 50 

9 percent of employment worldwide. 

10 (2) Access to financial services for SMEs re11 mains severely constrained in many emerging mar12 kets. 

13 (3) The global financial crisis created a financ14 ing gap that particularly affected SMEs, making it 

15 more difficult for these enterprises to find the cap16 ital to grow their businesses and create jobs. 

17 (4) Even as liquidity is restored to financial in18 stitutions, lending volumes remain depressed and 

19 SMEs still have limited access to financing. 

20 (5) The lack of agribusinesses in rural areas 

21 has contributed to the growth of urban slums and a 

22 burgeoning population of disaffected youth. 

23 (6) Increasing access to finance for SMEs is 

24 best achieved by increasing the depth and breadth of 


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1 local financial markets and boosting the competitive2 ness of the private financial sector. 

3 (7) Enabling growth—and ensuring that poor 

4 people can participate—requires an environment 

5 where people are able to start and grow businesses, 

6 as well as create more jobs. 

7 (b) STATEMENT OF POLICY.—It is the policy of the 

8 United States to encourage entrepreneurship and expand 

9 the formal sector in partner countries by— 

10 (1) building the capacity of SMEs; 

11 (2) increasing SME access to financial services, 

12 technology, training, and other resources; and 

13 (3) reducing the legal and bureaucratic hurdles 

14 to starting a business. 

15 SEC. 1122. ASSISTANCE FOR SMALL AND MEDIUM ENTER16 PRISES. 

17 The Administrator is authorized to use funds made 

18 available under this chapter for programs to encourage en19 trepreneurship and strengthen small and medium enter20 prises in partner countries, including: 

21 (1) Training in entrepreneurship, including 

22 basic business management, accounting, book23 keeping, marketing, risk management, and computer 

24 skills. 


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1 (2) Agriculture entrepreneurship training, par2 ticularly to increase employment opportunities in 

3 rural areas. 

4 (3) Establishing youth entrepreneurship pro5 grams in schools or through community partnerships 

6 with business and youth organizations to promote 

7 economic skills, ethics, integrity, and healthy life 

8 skills among youth. 

9 (4) Strengthening laws, regulations, and en10 forcement mechanisms to protect national and inter11 national intellectual property rights and to protect 

12 the people and industries of developing countries 

13 against imported counterfeit goods. 

14 (5) Combating anti-competitive, unethical, and 

15 corrupt practices. 

16 (6) Improving the technology and information 

17 resources of financial institutions and small and me18 dium enterprises. 

19 (7) Promoting the establishment of lending pro20 grams of financial institutions for small and medium 

21 enterprises. 

22 (8) Developing internal credit rating systems 

23 and credit assessment tools that improve the ability 

24 of financial institutions to evaluate risk. 


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1 (9) Programs specifically targeted to small and 

2 medium enterprises owned by women, youth, and 

3 displaced persons. 

4 SEC. 1123. DEFINITION. 

5 In this subchapter, the term ‘‘small and medium en6 terprise’’ means a corporation, sole proprietorship, part7 nership, or other legal entity that— 

8 (1) has its principal place of business in a part9 ner country; 

10 (2) is owned or controlled by persons who are 

11 citizens of such partner country; and 

12 (3) has fewer than 50 employees. 

13 Subchapter C—Other Programs 

14 SEC. 1131. DEVELOPMENT CREDIT AUTHORITY. 

15 (a) AUTHORIZATION OF CREDIT.— 

16 (1) IN GENERAL.—The Administrator is au17 thorized to provide direct loans, loan guarantees, 

18 and other investments involving the extension of 

19 credit to achieve any of the goals of this subtitle in 

20 cases in which— 

21 (A) the borrowers or activities are deter22 mined to be sufficiently creditworthy and do not 

23 otherwise have access to such credit; and 

24 (B) the use of credit authority is appro25 priate to the achievement of such goals. 


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1 (2) DESIGNATION.—Assistance authorized 

2 under this subsection shall be known as the ‘‘Devel3 opment Credit Authority’’. 

4 (b) PRIORITY ACTIVITIES.—To the maximum extent 

5 practicable, the Administrator shall give preference to pro6 viding assistance authorized under subsection (a) to pro7 mote— 

8 (1) the policy described in section 1111(b); 

9 (2) sustainable urban and environmental activi10 ties described in chapters 5 and 6; and 

11 (3) policy and institutional reforms in accord12 ance with the objectives of this chapter. 

13 (c) DEFAULT AND COMMODITY PROVISIONS.— 

14 (1) DEFAULT PROVISION.—For purposes of this 

15 Act, the default of a private sector recipient of as16 sistance provided under this section shall not be con17 sidered to be the default of the government of the 

18 country in which the private sector recipient is lo19 cated. 

20 (2) COMMODITY PROVISION.—Assistance may 

21 be provided under this section without regard to 

22 commodity restrictions (as such term is defined in 

23 section 10001). 

24 (d) TERMS AND CONDITIONS OF CREDIT ASSIST25 ANCE.— 


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1 (1) IN GENERAL.—Assistance provided under 

2 this section shall be offered on such terms and con3 ditions, including fees charged, as the Administrator 

4 may determine. 

5 (2) LIMITATION.—The principal amount of 

6 loans made or guaranteed under this section in any 

7 fiscal year, with respect to any single country or bor8 rower, may not exceed $100,000,000. 

9 (3) FRAUD AND MISREPRESENTATION.—No 

10 payment may be made under any guarantee issued 

11 under this section for any loss arising out of fraud 

12 or misrepresentation for which the party seeking 

13 payment is responsible. 

14 (e) FULL FAITH AND CREDIT.—All guarantees 

15 issued under this section shall constitute obligations, in 

16 accordance with the terms of such guarantees, of the 

17 United States of America and the full faith and credit of 

18 the United States of America is hereby pledged for the 

19 full payment and performance of such obligations to the 

20 extent of the guarantee. 

21 (f) CO-FINANCING AND RISK SHARING.— 

22 (1) IN GENERAL.—Assistance provided under 

23 this section shall be in the form of co-financing or 

24 risk sharing. 


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1 (2) REQUIREMENT.—Credit assistance may not 

2 be provided to a borrower under this section unless 

3 the Administrator determines that there are reason4 able prospects of repayment by such borrower. 

5 (3) ADDITIONAL REQUIREMENT.—The invest6 ment or risk of the United States in any one devel7 opment activity may not exceed 80 percent of the 

8 total outstanding investment or risk. 

9 (g) ELIGIBLE BORROWERS.— 

10 (1) IN GENERAL.—In order to be eligible to re11 ceive credit assistance under this section, a borrower 

12 shall be sufficiently credit worthy so that the esti13 mated costs (as defined in section 502(5) of the 

14 Federal Credit Reform Act of 1990) of the proposed 

15 credit assistance for the borrower does not exceed 30 

16 percent of the principal amount of credit assistance 

17 to be received. 

18 (2) ADDITIONAL REQUIREMENT.— 

19 (A) IN GENERAL.—With respect to the eli20 gibility of a foreign government as an eligible 

21 borrower under this section, the Administrator 

22 shall make a determination that the additional 

23 debt of the government will not exceed the debt 

24 repayment capacity of the government. 


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1 (B) CONSULTATION.—In making a deter2 mination under paragraph (A), the Adminis3 trator shall consult, as appropriate, with inter4 national financial institutions and other institu5 tions or agencies that assess debt service capac6 ity. 

7 (h) ASSESSMENT OF CREDIT RISK.— 

8 (1) IN GENERAL.—The Administrator shall use 

9 the Interagency Country Risk Assessment System 

10 (ICRAS) and the methodology approved by the Of11 fice of Management and Budget to assess the cost 

12 of risk credit assistance provided under this section 

13 to foreign governments. 

14 (2) CONSULTATION.—With respect to the provi15 sion of credit to nongovernmental organizations, the 

16 Administrator— 

17 (A) shall consult with appropriate private 

18 sector institutions, including large United 

19 States private sector debt rating agencies, prior 

20 to establishing the risk assessment standards 

21 and methodologies to be used; and 

22 (B) shall periodically consult with such in23 stitutions in reviewing the performance of such 

24 standards and methodologies. 


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1 (3) USE OF COST AND RISK ASSESSMENT DE2 TERMINATIONS OF PRIVATE SECTOR CO-FINANCING

3 ENTITIES.—In addition, if the anticipated share of 

4 financing attributable to public sector owned or con5 trolled entities, including the Agency, exceeds 49 

6 percent, the Administrator shall determine the cost 

7 (as defined in section 502(5) of the Federal Credit 

8 Reform Act of 1990) of such assistance by using the 

9 cost and risk assessment determinations of the pri10 vate sector co-financing entities. 

11 (i) RETENTION OF RECEIPTS COLLECTED.—Receipts 

12 collected pursuant to this section, and the Federal Credit 

13 Reform Act of 1990, in an amount not to exceed the 

14 amount appropriated for a fiscal year, shall be credited 

15 as offsetting collections for Development Support Funds, 

16 and shall be used to reduce, on a dollar-for-dollar basis, 

17 appropriations for that purpose. Amounts collected in a 

18 fiscal year in excess of obligations shall remain available 

19 until expended. 

20 SEC. 1132. TECHNICAL ASSISTANCE FOR FINANCIAL MAN21 AGEMENT. 

22 (a) ESTABLISHMENT OF PROGRAM.— 

23 (1) IN GENERAL.—The Secretary of the Treas24 ury, in consultation with the Secretary of State and 

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1 gram to provide technical assistance to foreign gov2 ernments and foreign central banks of partner coun3 tries. 

4 (2) ROLE OF SECRETARY OF STATE.—The Sec5 retary of State shall provide foreign policy guidance 

6 to the Secretary of the Treasury to ensure that the 

7 program established under this subsection is effec8 tively coordinated with United States foreign policy. 

9 (3) ROLE OF ADMINISTRATOR.—The Adminis10 trator shall provide development guidance to the 

11 Secretary of the Treasury to ensure that the pro12 gram established under this subsection is effectively 

13 coordinated with United States development policy 

14 and furthers the goals of this subtitle. 

15 (b) CONDUCT OF PROGRAM.— 

16 (1) IN GENERAL.—In carrying out the program 

17 established under subsection (a), the Secretary of 

18 the Treasury shall provide economic and financial 

19 technical assistance to foreign governments and for20 eign central banks of partner countries by providing 

21 advisers with appropriate expertise to advance the 

22 enactment of laws and establishment of administra23 tive procedures and institutions in such countries to 

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1 economic and fiscal stability, efficient resource allo2 cation, transparent and market-oriented processes 

3 and sustainable private sector growth. 

4 (2) ADDITIONAL REQUIREMENTS.—To the ex5 tent practicable, such technical assistance shall be 

6 designed to establish— 

7 (A) tax systems that are fair, objective, 

8 and efficiently gather sufficient revenues for 

9 governmental operations; 

10 (B) debt issuance and management pro11 grams that rely on market forces; 

12 (C) budget planning and implementation 

13 that permits responsible fiscal policy manage14 ment; 

15 (D) commercial banking sector develop16 ment that efficiently intermediates between sav17 ers and investors; and 

18 (E) financial law development and enforce19 ment to protect the integrity of financial sys20 tems, financial institutions, and government 

21 programs. 

22 (3) EMPHASIS ON ANTI-CORRUPTION.—Such 

23 technical assistance shall include elements designed 

24 to combat anti-competitive, unethical, and corrupt 

25 activities, including protection against actions that 


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1 may distort or inhibit transparency in market and 

2 trade mechanisms and, to the extent applicable, pri3 vatization procedures. 

4 (c) ADMINISTRATIVE REQUIREMENTS.—In carrying 

5 out the program established under subsection (a), the Sec6 retary of the Treasury shall— 

7 (1) in consultation with the Secretary of State 

8 and the Administrator, establish a methodology for 

9 identifying and selecting foreign governments and 

10 foreign central banks to receive assistance under the 

11 program; 

12 (2) prior to selecting a foreign government or 

13 foreign central bank to receive assistance under the 

14 program, receive the concurrence of the Secretary of 

15 State with respect to the selection of such govern16 ment or central bank and with respect to the cost 

17 of the assistance to such government or central 

18 bank; 

19 (3) consult with the heads of appropriate Fed20 eral agencies and international financial institutions 

21 to avoid duplicative efforts with respect to those for22 eign countries for which such agencies or organiza23 tions provide similar assistance; 


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1 (4) ensure that the program is consistent with 

2 the global, sector, and country strategies being im3 plemented by the Agency; and 

4 (5) establish and carry out a plan to monitor 

5 and evaluate the program, consistent with the re6 quirements of section 8201. 

7 (d) ADMINISTRATIVE AUTHORITIES.—The adminis8 trative authorities applicable to the Secretary of State 

9 with respect to funds made available under this Act shall 

10 also be applicable to the Secretary of the Treasury with 

11 respect to funds made available under this section. 

12 (e) ISSUANCE OF REGULATIONS.—The Secretary of 

13 the Treasury is authorized to issue such regulations with 

14 respect to personal service contractors as the Secretary de15 termines necessary to carry out this section. 

16 (f) RULE OF CONSTRUCTION.—Nothing in this sec17 tion shall be construed to infringe upon the powers or 

18 functions of the Secretary of State (including the powers 

19 or functions described in section 103 of the Omnibus Dip20 lomatic Security and Antiterrorism Act of 1986 (22 

21 U.S.C. 4802)) or of any chief of mission (including the 

22 powers or functions described in section 207 of the For23 eign Service Act of 1980 (22 U.S.C. 3927)). 

24 (g) TERMINATION OF ASSISTANCE.—The Secretary 

25 of the Treasury shall conclude assistance activities for a 


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1 recipient foreign government or foreign central bank 

2 under the program established under subsection (a) if the 

3 Secretary of the Treasury, after consultation with the ap4 propriate officers of the United States, determines that 

5 such assistance has resulted in the enactment of laws or 

6 the establishment of institutions in that country that pro7 mote fiscal stability and administrative procedures, effi8 cient resource allocation, transparent and market-oriented 

9 processes and private sector growth in a sustainable man10 ner. 

11 (h) DEFINITIONS.—In this section: 

12 (1) INTERNATIONAL FINANCIAL INSTITU13 TION.—The term ‘‘international financial institu14 tion’’ means the International Monetary Fund, the 

15 International Bank for Reconstruction and Develop16 ment, the International Development Association, 

17 the International Finance Corporation, the Multilat18 eral Investment Guarantee Agency, the Asian Devel19 opment Bank, the Asian Development Fund, the Af20 rican Development Bank, the African Development 

21 Fund, the Inter-American Development Bank, the 

22 Inter-American Investment Corporation, the Euro23 pean Bank for Reconstruction and Development, 

24 and the Bank for Economic Cooperation and Devel25 opment in the Middle East and North Africa. 


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1 (2) TECHNICAL ASSISTANCE.—The term ‘‘tech2 nical assistance’’ includes— 

3 (A) the provision of expert advisers to as4 sist foreign governments and foreign central 

5 banks for the purposes described in subsection 

6 (b)(1); 

7 (B) training in the partner country, the 

8 United States, or elsewhere for the purposes de9 scribed in subsection (b)(1); 

10 (C) grants of goods, services, or funds to 

11 foreign governments and foreign central banks 

12 for the purposes described in subsection (b)(1); 

13 (D) grants to United States or local non14 profit organizations to provide services or prod15 ucts which contribute to the provision of advice 

16 to foreign governments and foreign central 

17 banks; and 

18 (E) study tours for foreign officials in the 

19 United States or elsewhere for the purpose of 

20 providing technical information to such officials. 

21 (3) FOREIGN PARTICIPANT.—The term ‘‘foreign 

22 participant’’ means a national of a partner country 

23 who has been designated to participate in activities 

24 under the program established under subsection (a). 


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1 CHAPTER 2—PROMOTING FOOD 

2 SECURITY 

3 SEC. 1201. FINDINGS AND STATEMENT OF POLICY. 

4 (a) FINDINGS.—Congress finds the following: 

5 (1) Hunger robs the poor of a healthy and pro6 ductive life and stunts the mental and physical de7 velopment of the next generation. The persistence of 

8 widespread hunger and malnutrition constitutes an 

9 affront to shared moral values and humanitarian 

10 principles. 

11 (2) Food insecurity and chronic hunger are ex12 panding rapidly in developing countries, forcing mil13 lions of people into poverty, contributing to political 

14 and social instability, eroding economic growth, and 

15 undermining investments in basic education, health, 

16 environmental protection, and democratic institu17 tions. 

18 (3) Volatility and real increases in food prices, 

19 which are expected to grow as grain production fails 

20 to keep pace with rising demand, cause food insecu21 rity and hunger for poor people even when sufficient 

22 food is available on the market. 

23 (4) The changing global climate, as well as the 

24 degradation of land and water resources, threatens 

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1 wide but particularly for those already most vulner2 able: the millions of rural poor in developing coun3 tries. 

4 (5) The pressures on world food supplies and 

5 agricultural land use caused by population growth, 

6 rapid urbanization, energy, agricultural and trade 

7 policies in industrialized countries, water scarcity, 

8 and climate change require a global commitment to 

9 sustainable agriculture and the environment. 

10 (6) Lack of transparent regulations, incon11 sistent and unpredictable public policies in devel12 oping and developed countries, and unreliable mech13 anisms to enforce contracts between businesses serve 

14 to undermine development goals, deter private in15 vestment, and limit the ability of agricultural pro16 ducers and businesses to access capital. This situa17 tion reduces the incentives for agricultural producers 

18 to increase the quantity, quality, and value of their 

19 agricultural production. 

20 (7) Reducing chronic hunger is essential to 

21 build a foundation for investments in health, edu22 cation and economic growth. It is critical to the se23 curity and productivity of individuals, families, com24 munities, and nations. 


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1 (8) Approximately three-quarters of people in 

2 developing countries live in rural areas, with the vast 

3 majority dependent on agriculture for their liveli4 hoods. Agricultural development is a proven engine 

5 of growth that reduces global hunger and poverty. 

6 (9) Women will be a pivotal force behind 

7 achieving a food secure world. In many developing 

8 countries, farming is done mostly by women. How9 ever, women only own 2 percent of land worldwide 

10 and often have limited access to agriculture inputs, 

11 loans, and opportunities to learn about improved 

12 techniques. When gains in income are controlled by 

13 women, they are more likely to be spent on food and 

14 children’s needs, thus amplifying the benefits of in15 vestments in women across families and generations. 

16 (10) The 1,000 days between a woman’s preg17 nancy and her child’s second birthday offer a unique 

18 window of opportunity to help families, communities, 

19 and countries break the cycle of poverty. Solutions 

20 to improve maternal and child nutrition in the 

21 1,000-day window are readily available, affordable, 

22 and cost-effective, including vitamins and minerals 

23 and good nutritional practices, such as 

24 breastfeeding. 


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1 (11) A comprehensive approach to long-term 

2 food security should encompass improvements in— 

3 (A) food availability, such that sufficient 

4 quantities of appropriate, necessary types of 

5 food are consistently available to all persons; 

6 (B) food access, such that individuals have 

7 adequate incomes or other resources to consist8 ently maintain an adequate diet, and food is al9 located equitably within households; 

10 (C) food utilization and consumption, such 

11 that people have the knowledge and basic sani12 tary conditions to choose, store, prepare and 

13 distribute food in a way that results in good nu14 trition for all family members; 

15 (D) stability, such that the ability to ac16 cess and utilize food remains stable and sus17 tained over time, regardless of adverse weather 

18 conditions, political instability, or economic fac19 tors; and 

20 (E) food quality and safety, such that food 

21 supplies provide adequate nutritional value, are 

22 free of contamination, and are fit for human 

23 consumption. 

24 (12) The greatest potential for significantly ex25 panding availability of food for people in rural areas 


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1 and augmenting world food production at relatively 

2 low cost lies in increasing the productivity of small 

3 farmers, who constitute a majority of the agricul4 tural producers in developing countries. 

5 (13) However, increasing the efficiency of agri6 cultural producers alone will not result in higher in7 comes and reduced hunger unless surplus harvest 

8 and products can be sold in well-functioning local, 

9 national, regional, or international markets. Develop10 ment of strong, integrated, local, national, and re11 gional agriculture and food markets will increase the 

12 availability of safe and nutritious food, decrease 

13 local prices, and expand economic growth. 

14 (14) The United States should emphasize poli15 cies and programs that assist developing countries to 

16 increase their national food security by improving 

17 their food policies and management and by strength18 ening national food reserves, with particular concern 

19 for the needs of the poor, through measures encour20 aging domestic production. 

21 (15) The long-term food security of developing 

22 countries requires that adequate legal and proce23 dural mechanisms are in place to protect local rights 

24 and the welfare of rural poor people who depend on 

25 agriculture for their livelihoods. 


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1 (16) While the United States cannot be ex2 pected to shoulder the majority of global investments 

3 in ending hunger and providing food security, the 

4 United States can and should lead the international 

5 community by demonstrating a sustained commit6 ment and a comprehensive approach to meeting 

7 international goals and targets for reducing hunger 

8 and undernutrition. 

9 (17) Partner countries should decide their 

10 needs, priorities, and strategies for agricultural de11 velopment and food security through an open, 

12 participatory and inclusive process that takes into 

13 account the needs and views of poor people, women, 

14 and other marginalized groups. International efforts 

15 to improve food security and nutritional status are 

16 not sustainable over the long term without robust 

17 leadership and ownership by partner countries. 

18 (18) Nongovernmental organizations and co19 operatives are particularly important for combating 

20 food insecurity and increasing the sustainability of 

21 public investments. Given their close ties to local 

22 communities, such organizations and cooperatives 

23 are often effective at ensuring that people who are 

24 very poor and vulnerable are consulted about and 

25 benefit from agricultural and nutrition programs. 


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1 (19) Educational and research institutions play 

2 a key role in developing the institutional capacity 

3 and human resources of developing countries, includ4 ing the establishment and strengthening of agricul5 tural research and extension services, the develop6 ment of networks for scientific collaboration, the dis7 semination of improved methods and technologies, 

8 and the training of students, teachers, researchers 

9 and practitioners. 

10 (20) With their convening authority and tech11 nical expertise, multilateral institutions play a cen12 tral role in efforts to enhance food security by pro13 viding emergency assistance, undertaking research 

14 and analysis, offering a platform for sector-wide in15 vestments in agriculture, and providing a significant 

16 portion of the external financing for investment 

17 projects and programs in developing countries. They 

18 are important not only to mobilizing and coordi19 nating donor country commitments, but also to pro20 moting global mutual accountability among donors, 

21 partner countries and other stakeholders. 

22 (21) Public sector investments alone, while im23 portant, are not sufficient to sustainably reduce pov24 erty and food insecurity. The private sector brings 

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1 logical resources, intellectual property, market ac2 cess, cutting-edge business practices, in-country net3 works, and other relevant experience. 

4 (b) STATEMENT OF POLICY.—It is the policy of the 

5 United States to recognize the human right to food and 

6 to work in cooperation with the international community 

7 to end hunger and achieve universal food security. 

8 SEC. 1202. GOAL AND OBJECTIVES. 

9 (a) GOAL.—The goal of assistance under this chapter 

10 is to sustainably reduce global hunger. 

11 (b) OBJECTIVES.—In furtherance of the goal of sub12 section (a), assistance under this chapter shall be designed 

13 to help partner countries achieve the following objectives: 

14 (1) Accelerating inclusive agriculture sector 

15 growth. 

16 (2) Improving nutritional status, especially of 

17 women and children and other vulnerable popu18 lations. 

19 (3) Increasing resilience in vulnerable rural 

20 communities. 

21 SEC. 1203. GLOBAL STRATEGY FOR FOOD SECURITY. 

22 (a) IN GENERAL.—The strategy required under sec23 tion 1019 with respect to food security shall be known as 

24 the ‘‘Global Strategy for Food Security’’. 


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1 (b) CONTENTS.—The Global Strategy for Food Secu2 rity shall include, in addition to the elements required 

3 under section 1019(b), plans for achieving the goal and 

4 objectives of section 1202. 

5 (c) GUIDELINES.—The Global Strategy for Food Se6 curity should— 

7 (1) address the root causes of hunger that limit 

8 the potential of millions of people; 

9 (2) reduce gender inequality and integrate gen10 der concerns; 

11 (3) promote climate-resistant and environ12 mentally sustainable agricultural development; 

13 (4) concentrate efforts and resources on core 

14 countries where the Rome Principles (as defined in 

15 section 1208) can best be realized; 

16 (5) be tailored to improving the nutritional sta17 tus of women, infants and children, particularly dur18 ing the 1,000 day critical window of opportunity be19 tween a woman’s pregnancy and her child’s second 

20 birthday, in which a set of proven nutrition interven21 tions can dramatically improve the child’s chances of 

22 surviving and living a healthy and prosperous life; 

23 (6) invest in country-owned plans that are de24 signed through an open, participatory, and inclusive 


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1 process and support results-based programs and 

2 partnerships; 

3 (7) strengthen strategic coordination to mobi4 lize and align the resources of diverse partners and 

5 stakeholders; 

6 (8) ensure a comprehensive approach that ac7 celerates inclusive agricultural-led growth and im8 proves nutrition, while also bridging humanitarian 

9 relief and sustainable development efforts; 

10 (9) leverage the benefits of multilateral institu11 tions so that priorities and approaches are aligned, 

12 investments are coordinated, and financial and tech13 nical assistance gaps are filled; and 

14 (10) deliver on sustained and accountable com15 mitments, using benchmarks and targets to measure 

16 progress toward shared goals, and hold the United 

17 States and other stakeholders publicly accountable 

18 for achieving results. 

19 SEC. 1204. ASSISTANCE FOR PROMOTING FOOD SECURITY. 

20 (a) AUTHORIZATION.—The Administrator is author21 ized to use funds made available under section 1015 to 

22 further the goal and objectives of this chapter. 

23 (b) ACTIVITIES.—Assistance authorized under sub24 section (a) shall include— 


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1 (1) sustainably improving agricultural produc2 tivity by— 

3 (A) increasing access to agricultural in4 puts, techniques, and technologies that are af5 fordable and environmentally responsible; 

6 (B) developing inputs, techniques, and 

7 technologies that are adapted to local condi8 tions; 

9 (C) expanding access to knowledge through 

10 agricultural extension; 

11 (D) strengthening property rights to land 

12 and other productive assets; 

13 (E) enhancing sustainability and resilience 

14 of production through sound environmental and 

15 natural resource management; 

16 (F) increasing access to dependable and af17 fordable financial and risk management serv18 ices; 

19 (G) strengthening agricultural producer or20 ganizations; and 

21 (H) strengthening regional harmonization 

22 and coordination; 

23 (2) expanding markets and trade by— 


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1 (A) increasing the quality and availability 

2 of market information for producers and enter3 prise owners; 

4 (B) improving post-harvest market infra5 structure; 

6 (C) improving access to business develop7 ment and financial services; 

8 (D) enhancing animal, plant and food safe9 ty; 

10 (E) reducing the time and cost of moving 

11 goods across borders; 

12 (F) creating an enabling policy environ13 ment for agribusiness growth and private in14 vestment, including transparent regulations, 

15 consistent and predictable public policies, and 

16 reliable contract enforcement mechanisms; 

17 (G) expanding access to larger and better 

18 functioning regional markets; and 

19 (H) supporting regional development cor20 ridors; 

21 (3) raising nutritional status by— 

22 (A) supporting community-based programs 

23 to deliver nutrition education; 

24 (B) improving diet quality and diversity, 

25 including in food assistance programs; 


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1 (C) expanding access to clean water and 

2 improved sanitation and promoting good hy3 giene practices; 

4 (D) expanding delivery of nutrition serv5 ices; and 

6 (E) facilitating supplementary and thera7 peutic feeding; 

8 (4) increasing resilience in vulnerable rural 

9 communities by— 

10 (A) mitigating risks associated with 

11 drought, natural disasters, and disease; 

12 (B) promoting secure access to land and 

13 natural resources; 

14 (C) expanding access to financial services, 

15 training, and technical assistance for micro16 enterprises and small businesses; 

17 (D) supporting effective delivery and im18 plementation of productive safety nets and so19 cial protection systems; 

20 (E) building capacity to manage risk 

21 through early warning systems, vulnerability as22 sessment and mapping, emergency response 

23 strategies, and micro-insurance; 


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1 (F) increasing the benefits of local and re2 gional food assistance procurement to 

3 smallholder farmers; and 

4 (G) adopting and delivering extension and 

5 financial services and improved technologies to 

6 very poor communities; and 

7 (5) supporting a participatory and inclusive 

8 process for determining needs, priorities, and strate9 gies and holding stakeholders accountable for results 

10 by— 

11 (A) expanding and facilitating the inclu12 sion of women, rural poor people, and other 

13 marginalized groups in decisionmaking; 

14 (B) building the capacity of the groups de15 scribed in subparagraph (A) to participate ef16 fectively in decisionmaking; 

17 (C) developing and enforcing legal protec18 tions for the rights and welfare of the groups 

19 described in subparagraph (A); 

20 (D) setting meaningful benchmarks and 

21 selecting appropriate indicators for the chosen 

22 strategies; 

23 (E) improving the quality and availability 

24 in partner countries of relevant data and anal25 ysis; and 


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1 (F) establishing and strengthening mecha2 nisms for monitoring programs, measuring 

3 progress, evaluating outcomes, disseminating 

4 findings, and integrating best practices and les5 sons learned. 

6 SEC. 1205. COLLABORATIVE AGRICULTURAL AND NUTRI7 TION RESEARCH AND INNOVATION. 

8 (a) PROGRAMS AUTHORIZED.—The Administrator is 

9 authorized to use funds made available under this chapter 

10 for collaborative agricultural and nutrition research and 

11 innovation programs, including— 

12 (1) advancing the institutional capacity and 

13 human resources of developing countries, including 

14 the establishment and strengthening of national ag15 ricultural research and extension systems; 

16 (2) conducting long-term collaborative research 

17 support programs with institutions of higher edu18 cation in developing countries, including the training 

19 of students, teachers, extension specialists, nutrition20 ists, and researchers; 

21 (3) developing a global network for scientific 

22 collaboration on agricultural development, trade, re23 search, and extension services; 

24 (4) broadly disseminating agricultural research 

25 in developing countries, in partnership with public 


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1 and private extension systems, cooperatives, and 

2 other civil society organizations; 

3 (5) expanding learning opportunities about ag4 riculture and nutrition for students, teachers, small5 scale food producers, school administrators, commu6 nity leaders, entrepreneurs, and the general public in 

7 developing countries through international intern8 ships and exchanges, graduate fellowships, faculty 

9 positions, and other means of education and exten10 sion, with a focus on reaching women food pro11 ducers; 

12 (6) incentivizing the development of new and in13 novative technology and methods to increase agricul14 tural productivity and improve nutritional status; 

15 (7) developing scalable and cost-effective pro16 grams for training the next generation of agricul17 tural researchers and research administrators in 

18 partner countries; 

19 (8) advancing women’s leadership in science 

20 and technology through proactive recruitment, men21 toring, and targeted research support; 

22 (9) formulating approaches to improving agri23 cultural and nutrition education and extension that 

24 is relevant to agricultural producers, their needs, 

25 and the local environment; 


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1 (10) creating platforms for improving national 

2 capacity to collect, develop, analyze, and disseminate 

3 agricultural, nutrition, and market data; and 

4 (11) developing mechanisms to hold research 

5 institutions accountable for delivering technologies to 

6 agricultural producers. 

7 (b) RESEARCH PRIORITIES.—In providing assistance 

8 for agricultural research under this section, the Adminis9 trator should give priority to research that— 

10 (1) is aimed at improving food security; 

11 (2) specifically addresses the nutritional needs 

12 of vulnerable populations; 

13 (3) is appropriate to local conditions and prac14 tices; 

15 (4) conserves the environment and natural re16 sources and adapts to and mitigates the impacts of 

17 climate change; and 

18 (5) builds local capacity. 

19 SEC. 1206. BOARD FOR INTERNATIONAL FOOD AND AGRI20 CULTURAL DEVELOPMENT. 

21 (a) ESTABLISHMENT.—There is established a Board 

22 for International Food and Agricultural Development 

23 (hereafter in this section referred to as the ‘‘Board’’). The 

24 Board shall report to the Administrator. 


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1 (b) PURPOSE.—The purpose of the Board is to advise 

2 and assist the Administrator regarding the design and ad3 ministration of assistance under section 1205. 

4 (c) DUTIES.—The duties of the Board shall include— 

5 (1) participating in the formulation of criteria 

6 for program design and project selection; 

7 (2) evaluating the qualifications of interested 

8 institutions of higher education and the dem9 onstrated commitment of such institutions to the 

10 purposes of this section; 

11 (3) recommending appropriate focus countries 

12 for programs carried out under this section; 

13 (4) assessing the impact of programs carried 

14 out under this section and making recommendations 

15 for improving the effectiveness of such programs; 

16 and 

17 (5) advising the Administrator on such issues 

18 as the Administrator may request. 

19 (d) MEMBERSHIP.— 

20 (1) NUMBER AND APPOINTMENT.—The Board 

21 shall be composed of at least 7 members, of whom— 

22 (A) not less than four members shall be 

23 representatives of institutions of higher edu24 cation; and 


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1 (B) not less than three members shall be 

2 representatives of United States nongovern3 mental organizations or consortia of such orga4 nizations devoted to agricultural research, edu5 cation, and development. 

6 (2) TERMS.— 

7 (A) IN GENERAL.—Subject to paragraph 

8 (2), the Administrator shall establish the term 

9 of membership for each member of the Board 

10 at the time of appointment. 

11 (B) LIMITATIONS.—A term of membership 

12 to the Board may not exceed two years and a 

13 member of the Board may serve not more than 

14 two consecutive terms during the tenure of an 

15 Administrator. 

16 (e) CHAIRPERSON AND VICE CHAIRPERSON.—The 

17 Chairperson and Vice Chairperson of the Board shall be 

18 designated by the Administrator at the time of appoint19 ment to the Board. 

20 (f) REPORT.— 

21 (1) IN GENERAL.—The Board shall submit to 

22 the Administrator on an annual basis a report that 

23 describes the activities of the Board during the pre24 ceding year and contains any other information that 

25 may be required by the Administrator. 


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1 (2) AVAILABILITY TO PUBLIC.—The Adminis2 trator shall make the report publicly available on the 

3 Internet website of the Agency. 

4 (g) MEETINGS.—The Board shall hold not less than 

5 3 meetings each year. 

6 (h) SUBORDINATE UNITS.—The Board may create 

7 such subordinate units as may be appropriate for the per8 formance of its duties. 

9 (i) EXPENSES.—The Administrator may, on a case10 by-case basis as the Administrator determines appro11 priate, reimburse members of the Board for expenses in12 curred in the performance of their duties (including per 

13 diem in lieu of subsistence while away from their homes 

14 or regular place of business). 

15 SEC. 1207. ASSISTANCE TO INTERNATIONAL AND REGIONAL 

16 ORGANIZATIONS. 

17 The Administrator is authorized to use funds made 

18 available under this chapter to build the long-term capac19 ity of international, regional, and sub-regional organiza20 tions engaged in agricultural research and development 

21 and food security activities, including— 

22 (1) the Food and Agricultural Organization; 

23 (2) the World Food Program; 

24 (3) the International Fund for Agricultural De25 velopment; 


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1 (4) the Global Agriculture and Food Security 

2 Program; and 

3 (5) the Consultative Group on International Ag4 ricultural Research. 

5 SEC. 1208. DEFINITIONS. 

6 In this chapter: 

7 (1) FOOD PRODUCERS.—The term ‘‘food pro8 ducers’’ includes farmers, pastoralists, fishers, and 

9 other persons who cultivate or harvest plants or 

10 raise animals (terrestrial or aquatic) for consump11 tion. 

12 (2) INSTITUTIONS OF HIGHER EDUCATION.— 

13 The term ‘‘institutions of higher education’’ 

14 means— 

15 (A) those colleges or universities in each 

16 State, territory, or possession of the United 

17 States, or the District of Columbia, now receiv18 ing, or which may hereafter receive, benefits 

19 under the Act of July 2, 1862 (known as the 

20 First Morrill Act), or the Act of August 30, 

21 1890 (known as the Second Morrill Act), which 

22 are commonly known as ‘‘land-grant’’ univer23 sities; 

24 (B) institutions now designated or which 

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1 leges under the Act of October 15, 1966 

2 (known as the National Sea Grant College and 

3 Program Act), which are commonly known as 

4 sea-grant colleges; 

5 (C) Native American land-grant colleges as 

6 authorized under the Equity in Educational 

7 Land-Grant Status Act of 1994 (7 U.S.C. 301 

8 note); and 

9 (D) other United States colleges and uni10 versities which— 

11 (i) have demonstrable capacity in 

12 teaching, research, and extension (includ13 ing outreach) activities in the agricultural 

14 sciences; and 

15 (ii) can contribute effectively to the 

16 advancement of the goal and objectives of 

17 this chapter. 

18 (3) ROME PRINCIPLES.—The term ‘‘Rome Prin19 ciples’’ means the Rome Principles for Sustainable 

20 Food Security, endorsed by 193 countries at the 

21 2009 World Summit on Food Security, which are as 

22 follows: 

23 (A) Invest in country-owned plans, aimed 

24 at channeling resources to well-designed and re25 sults-based programs and partnerships. 


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1 (B) Foster strategic coordination at na2 tional, regional and global level to improve gov3 ernance, promote better allocation of resources, 

4 avoid duplication of efforts and identify re5 sponse-gaps. 

6 (C) Strive for a comprehensive twin-track 

7 approach to food security that consists of— 

8 (i) direct action to immediately tackle 

9 hunger for the most vulnerable, and 

10 (ii) medium- and long-term sustain11 able agricultural, food security, nutrition 

12 and rural development programs to elimi13 nate the root causes of hunger and pov14 erty, including through the progressive re15 alization of the right to adequate food. 

16 (D) Ensure a strong role for the multilat17 eral system by sustained improvements in effi18 ciency, responsiveness, coordination and effec19 tiveness of multilateral institutions. 

20 (E) Ensure sustained and substantial com21 mitment by all partners to investment in agri22 culture and food security and nutrition, with 

23 provision of necessary resources in a timely and 

24 reliable fashion, aimed at multi-year plans and 

25 programs. 


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1 CHAPTER 3—ADVANCING HEALTH 

2 SEC. 1301. FINDINGS AND STATEMENT OF POLICY. 

3 (a) FINDINGS.—Congress finds the following: 

4 (1) Saving and enhancing lives through better 

5 health is a moral imperative that reflects funda6 mental humanitarian values. 

7 (2) Strategic investments in global health can 

8 spur progress in economic development, job creation, 

9 education, agricultural development, gender equity 

10 and political stability. 

11 (3) Because disease knows no national bounds 

12 and can breed hopelessness and despair, support for 

13 global health bolsters United States national secu14 rity. Such support also builds constructive partner15 ships with other governments, with multilateral in16 stitutions, between public and private enterprises, 

17 and from people to people. 

18 (4) United States global health programs 

19 should prioritize the poorest and most vulnerable 

20 segments of the world’s population, including 

21 women, newborns and children, persons with disabil22 ities, and marginalized communities, and should be 

23 designed with their participation wherever possible. 

24 (5) Research and innovation play a critical role 

25 in achieving health objectives worldwide, fostering 


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1 the development and introduction of new and im2 proved health products and practices and contrib3 uting to better policies. 

4 (6) For maximum effectiveness, global health 

5 programs must be closely integrated with efforts to 

6 advance nutrition, improve hygiene, and expand ac7 cess to clean water, sanitation, and housing. 

8 (7) To make health investments sustainable 

9 over the long term, the United States should help 

10 build the capacity of— 

11 (A) governments of partner countries to 

12 plan and budget responsibly, allocate and dis13 burse funds equitably, and provide reliable and 

14 cost-effective health care; and 

15 (B) civil society to participate in decision16 making, carry out activities and monitor service 

17 delivery. 

18 (8) In order to provide for sustainable financing 

19 of health care, developing countries must create 

20 strong economies and stable tax bases. 

21 (9) By setting clear goals and targets and iden22 tifying appropriate resources, a comprehensive, 

23 multiyear global health strategy can help to ensure 

24 policy focus and consistency, promote program inte25 gration, strengthen transparency and accountability, 


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1 build congressional and public support, and accel2 erate results. 

3 (10) Multilateral approaches offer a vital and 

4 necessary complement to bilateral programs. By 

5 pooling their resources and harmonizing priorities, 

6 the United States and multilateral organizations are 

7 better able to meet global challenges, mobilize effec8 tive leadership and extend the reach and impact of 

9 programs. 

10 (b) STATEMENT OF POLICY.—It is the policy of the 

11 United States to work in cooperation with the inter12 national community to save the greatest possible number 

13 of lives and to help countries develop their own capacity 

14 to improve the health of their own people. 

15 SEC. 1302. GOAL AND OBJECTIVES. 

16 (a) GOAL.—The goal of assistance under this chapter 

17 is to achieve sustained improvements in health status and 

18 health systems in partner countries. 

19 (b) OBJECTIVES.—In furtherance of the goal of sub20 section (a), assistance under this chapter shall be designed 

21 to help partner countries achieve the following objectives, 

22 including by strengthening health systems: 

23 (1) Saving the lives of mothers and children. 

24 (2) Protecting communities from disease, both 

25 infectious and noncommunicable. 


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1 (3) Creating an AIDS-free generation. 

2 (4) Preventing unintended pregnancies and im3 proving reproductive health. 

4 SEC. 1303. GLOBAL HEALTH STRATEGY. 

5 (a) IN GENERAL.—The strategy required under sec6 tion 1019 with respect to advancing health shall be known 

7 as the ‘‘Global Health Strategy’’. 

8 (b) CONTENTS.—The Global Health Strategy shall 

9 include, in addition to the elements required under section 

10 1019(b), plans for achieving the goal and objectives of sec11 tion 1302. 

12 (c) GUIDELINES.—The Global Health Strategy 

13 should— 

14 (1) focus on women, girls, and gender equality; 

15 (2) encourage country ownership and invest in 

16 country-led plans; 

17 (3) build sustainability through health systems 

18 strengthening; 

19 (4) strengthen and leverage key multilateral or20 ganizations, global health partnerships and private 

21 sector engagement; 

22 (5) increase impact through strategic coordina23 tion and integration, including with efforts in related 

24 areas such as nutrition, water, sanitation, and hy25 giene; 


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1 (6) promote learning and accountability 

2 through monitoring and evaluation; 

3 (7) accelerate results through research and in4 novation; 

5 (8) address the health-related challenges posed 

6 by climate change and other environmental trends; 

7 and 

8 (9) safeguard the rights and dignity of health 

9 workers and patients. 

10 SEC. 1304. ASSISTANCE FOR HEALTH. 

11 (a) AUTHORIZATION.—The Administrator is author12 ized to use funds made available under section 1015 to 

13 further the goal and objectives of this chapter in partner 

14 countries. 

15 (b) ACTIVITIES.—Assistance authorized under sub16 section (a) shall include— 

17 (1) supporting the development, implementa18 tion, monitoring and evaluation of a country’s na19 tional health strategy; 

20 (2) supporting the recruitment, training, man21 agement, retention, effectiveness and equitable dis22 tribution within each country of skilled health work23 ers; 

24 (3) facilitating the development of partnerships 

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1 stitutions, private corporations, nongovernmental or2 ganizations, multilateral institutions and other do3 nors, both public and private; 

4 (4) building the capacity of local nongovern5 mental organizations to participate effectively in the 

6 planning, implementation, monitoring and evaluation 

7 of health strategies and systems; 

8 (5) strengthening financial management, ac9 counting, auditing and reporting systems; 

10 (6) establishing surveillance systems to detect, 

11 identify, and respond to emerging health threats, in12 cluding monitoring the spread of disease among ani13 mal and plant populations; 

14 (7) identifying, preparing for and responding to 

15 health-related threats posed by climate change, pol16 lution and other environmental factors; 

17 (8) improving the quality and availability of 

18 health facilities at the national and local level; 

19 (9) establishing and strengthening procurement 

20 and supply chain management systems to safely, ef21 ficiently, and equitably distribute medical and lab22 oratory supplies; 

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1 curely track, compile and manage data, with appro2 priate privacy safeguards; 

3 (11) supporting evidence-based public health 

4 education initiatives that teach healthy habits and 

5 behaviors, increase health literacy, and encourage 

6 better utilization of the health system; 

7 (12) building government capacity to coordinate 

8 and harmonize the delivery of health services pro9 vided by various donors; 

10 (13) developing and improving laboratory re11 search and testing capacity; and 

12 (14) promoting a legal, policy and regulatory 

13 framework conducive to the advancement of public 

14 health and sustainable health care financing. 

15 (c) PROGRAMS.—Assistance under this chapter in16 cludes programs— 

17 (1) for child survival and maternal health, as 

18 described in subchapter A; 

19 (2) to combat disease, as described in sub20 chapter B; 

21 (3) for family planning and reproductive health, 

22 as described in subchapter C; and 

23 (4) for research, innovation and development of 

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1 vance global health and the objectives of this chap2 ter. 

3 SEC. 1305. HEALTH PRINCIPLES AND RESTRICTIONS. 

4 (a) PRINCIPLES.—Funds made available to carry out 

5 this chapter shall be provided in accordance with the fol6 lowing principles: 

7 (1) Patients shall be provided with evidence8 based, high-quality, courteous care that upholds 

9 internationally recognized human rights and protects 

10 human dignity. 

11 (2) Patients shall have their privacy respected 

12 and the confidentiality of their medical information 

13 protected to the maximum extent practicable, with 

14 free access to their own health records. 

15 (3) Patients shall be provided with accurate 

16 health information and quality care on an equitable 

17 basis, without discrimination of any kind, coercion 

18 or violence, and in a manner that prevents and re19 duces stigma. 

20 (4) Patients shall have the right to make their 

21 own decisions about their health, and shall be pro22 vided with relevant, current, medically accurate and 

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1 ment and any costs involved, except in emergency 

2 situations where the patient lacks decisionmaking 

3 capacity and the need for an intervention is urgent, 

4 or where there is an imminent risk to public health. 

5 (5) Patients and individuals participating in 

6 biomedical research and experimental treatments 

7 shall do so on a strictly voluntary basis, with valid 

8 informed consent processes in place, and shall be 

9 fully advised of potential risks and benefits. 

10 (b) RESTRICTIONS.—None of the funds made avail11 able to carry out this title may be used— 

12 (1) to coerce any person to undergo an abor13 tion; 

14 (2) for the performance of involuntary steriliza15 tion as a method of family planning; or 

16 (3) to coerce any person to undergo steriliza17 tion. 

18 (c) DEFINITIONS.—In this section— 

19 (1) the term ‘‘all available treatments’’ means 

20 all treatments that are legally available in the part21 ner country; and 

22 (2) the term ‘‘patients’’ includes the legal 

23 guardians of minors and persons who are incapaci24 tated. 


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1 Subchapter A—Child Survival and Maternal 

2 Health 

3 SEC. 1311. CHILD SURVIVAL. 

4 The Administrator is authorized, notwithstanding 

5 any other provision of law except for this chapter, to use 

6 funds made available under this chapter for programs to 

7 reduce child mortality, including the following: 

8 (1) Increasing access to and utilization of ap9 propriate interventions to treat life-threatening 

10 childhood illnesses, such as polio, measles, diarrhea, 

11 and respiratory infections. 

12 (2) Improving child and maternal nutrition, in13 cluding the delivery of iron, folic acid, zinc, vitamin 

14 A, iodine, and other key micronutrients and 

15 macronutrients. 

16 (3) Preventing the spread of childhood disease 

17 and improving child nutrition by expanding access to 

18 clean water, improving sanitation, and promoting 

19 good hygiene practices. 

20 (4) Reducing household dangers, including ex21 posure to environmental toxins and indoor smoke 

22 from cooking fires. 

23 (5) Strengthening early childhood development, 

24 including through early nutrition, parenting pro25 grams and early education. 


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1 (6) Enhancing the quality, availability and sus2 tainability of key child health interventions by im3 proving health care systems, building local capacity, 

4 and promoting positive health policies. 

5 SEC. 1312. MATERNAL AND NEWBORN HEALTH. 

6 The Administrator is authorized, notwithstanding 

7 any other provision of law except for this chapter, to use 

8 funds made available under this chapter for programs to 

9 reduce the mortality of, and improve the health of, moth10 ers and newborns, including the following: 

11 (1) Strengthening preparation for childbirth 

12 through education, antenatal care, access to skilled 

13 birth attendants, preventing, detecting, and treating 

14 infections, and planning for transport. 

15 (2) Improving maternal and child nutritional 

16 status through dietary improvements, nutrition edu17 cation and appropriate micronutrient interventions. 

18 (3) Actively discouraging, preventing and re19 sponding to harmful behaviors, such as gender-based 

20 violence, child marriage and female genital cutting. 

21 (4) Promoting safe delivery, birth spacing, and 

22 postpartum care, including recognition, referral, and 

23 treatment of maternal and newborn complications. 


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1 (5) Promoting healthy practices such as 

2 breastfeeding, proper rest, good hygiene, and nutri3 tion. 

4 (6) Preventing and responding to long-term dis5 ability as a result of pregnancy and birth, including 

6 obstetric fistula and anemia. 

7 (7) Improving long-term capacity and systems 

8 of local institutions to provide quality maternal 

9 health care. 

10 SEC. 1313. ASSISTANCE FOR ORPHANS AND OTHER VUL11 NERABLE CHILDREN. 

12 The Administrator is authorized to use funds made 

13 available under this chapter to provide basic care and serv14 ices for orphans and other vulnerable children, including: 

15 (1) Enabling community-based organizations to 

16 provide basic care for orphans and other vulnerable 

17 children. 

18 (2) Providing school feeding, including the pur19 chase of local or regional foodstuffs where appro20 priate. 

21 (3) Increasing primary school enrollment 

22 through the elimination of school fees, where appro23 priate, or other barriers to education while ensuring 

24 that adequate resources exist for teacher training 

25 and infrastructure. 


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1 (4) Providing employment training and related 

2 services for orphans and other vulnerable children 

3 who are of legal working age. 

4 (5) Protecting and promoting the legal and in5 heritance rights of orphans, other vulnerable chil6 dren, and widows, and addressing discrimination 

7 they often face. 

8 (6) Providing culturally appropriate psycho9 social support to orphans and other vulnerable chil10 dren. 

11 (7) Treating orphans and other vulnerable chil12 dren with HIV/AIDS through the provision of phar13 maceuticals, the recruitment and training of individ14 uals to provide pediatric treatment, and the pur15 chase of pediatric-specific technologies. 

16 (8) Improving the capacity of foreign govern17 ment agencies and nongovernmental organizations to 

18 prevent child abandonment and provide permanent 

19 homes through family reunification, guardianship 

20 and adoptions, consistent with the Hague Conven21 tion on the Protection of Children and Co-operation 

22 in Respect of Inter-Country Adoption. 

23 (9) Increasing access to adequate housing and 

24 reliable, safe drinking water, sanitation, and hygiene 

25 education and supplies. 


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1 (10) Integrating gender to ensure the unique 

2 needs of girl and boy orphans and vulnerable chil3 dren are met. 

4 Subchapter B—Combating Disease 

5 SEC. 1321. ASSISTANCE TO COMBAT HIV/AIDS, TUBER6 CULOSIS, AND MALARIA. 

7 (a) FINDINGS.—Congress finds that— 

8 (1) the global HIV/AIDS pandemic poses a hu9 manitarian, economic and security crisis of unprece10 dented magnitude that requires urgent and sus11 tained attention; 

12 (2) worldwide, women of childbearing age ac13 count for more than half of people living with HIV/ 

14 AIDS; 

15 (3) tuberculosis is the leading killer of people 

16 with HIV/AIDS, and the spread of drug resistant 

17 tuberculosis presents a persistent public health 

18 threat to the United States; 

19 (4) malaria imposes an enormous burden on the 

20 social and economic development of poor countries, 

21 can be prevented through cost-effective means, and 

22 can be cured if promptly diagnosed and adequately 

23 treated; 

24 (5) the creation of the United States Presi25 dent’s Emergency Plan for AIDS Relief (PEPFAR) 


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1 in 2003 was the largest commitment by any nation 

2 to combat a single disease, establishing and expand3 ing the infrastructure necessary to deliver preven4 tion, care, and treatment services in low-resource 

5 settings; 

6 (6) due to PEPFAR and multilateral initiatives 

7 such as the Global Fund to Fight AIDS, Tuber8 culosis and Malaria, significant strides have been 

9 made in preventing new cases of disease, treating af10 fected persons, training health care workers, and 

11 educating families and communities; and 

12 (7) to be most sustainable and have the great13 est positive impact, programs to combat HIV/AIDS, 

14 tuberculosis and malaria should be coordinated and 

15 integrated with other global health and health-re16 lated programs, including maternal and child health, 

17 family planning and reproductive health, nutrition, 

18 and water, sanitation, and hygiene. 

19 (b) AUTHORIZATION.—The President is authorized to 

20 use funds made available under this chapter to— 

21 (1) carry out the United States Leadership 

22 Against HIV/AIDS, Tuberculosis, and Malaria Act 

23 of 2003 (Public Law 108–25), as amended by this 

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1 ership Against HIV/AIDS, Tuberculosis, and Ma2 laria Reauthorization Act of 2008 (Public Law 110– 

3 293), the Global AIDS and Tuberculosis Relief Act 

4 of 2000 (Public Law 106–264), and the Inter5 national Malaria Control Act of 2000 (Public Law 

6 106–570); and 

7 (2) contribute to the Global Fund to Fight 

8 AIDS, Tuberculosis and Malaria and the GAVI Alli9 ance. 

10 (c) OTHER LAWS SUPERSEDED.—The President may 

11 exercise the authority of subsection (b) notwithstanding 

12 any other provision of law, except the United States Lead13 ership Against HIV/AIDS, Tuberculosis, and Malaria Act 

14 of 2003 (Public Law 108–25), as amended by this Act. 

15 (d) COORDINATION.—Assistance provided under the 

16 authorities of this section or the United States Leadership 

17 Against HIV/AIDS, Tuberculosis, and Malaria Act of 

18 2003 (Public Law 108–25) shall be coordinated with all 

19 other health-related programs under this chapter and 

20 chapter 6, and shall be included in the Global Health 

21 Strategy required under section 1303. 

22 SEC. 1322. ASSISTANCE TO COMBAT NEGLECTED TROPICAL 

23 DISEASES. 

24 (a) FINDINGS.—Congress finds that— 


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1 (1) more than 1,000,000,000 people worldwide 

2 suffer from one or more painful, debilitating tropical 

3 diseases, which disproportionately impact poor and 

4 rural populations, cause severe sickness and dis5 ability, compromise mental and physical develop6 ment, contribute to childhood malnutrition, reduce 

7 school enrollment, and hinder economic productivity; 

8 (2) many of these neglected tropical diseases 

9 (NTDs) can be controlled and treated by providing 

10 safe and effective drug treatments, improving access 

11 to clean water and improved sanitation, and pro12 moting good hygiene practices for individuals in af13 fected communities; and 

14 (3) an integrated approach to controlling NTDs 

15 will address a root cause of poverty that affects a 

16 significant proportion of the world’s population. 

17 (b) AUTHORIZATION.—The Administrator is author18 ized to use funds made available under this chapter for 

19 the prevention, treatment, control, and elimination of, and 

20 research on, neglected tropical diseases. 

21 SEC. 1323. ASSISTANCE FOR DISEASE PREVENTION, CON22 TROL, AND TREATMENT. 

23 (a) FINDINGS.—Congress finds that— 

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1 tating illness in the countries where new strains 

2 originate, but can quickly spread around the world; 

3 (2) the development and spread of antimicrobial 

4 resistance threatens to undermine global efforts to 

5 control tuberculosis and other bacterial diseases; 

6 (3) developing countries are undergoing a rapid 

7 epidemiological transition from infectious diseases 

8 such as diarrhea and pneumonia to noncommu9 nicable diseases such as cardiovascular disease, can10 cer and diabetes, which threatens to overwhelm their 

11 strapped health systems and cripple their fragile 

12 economies; 

13 (4) mental health is an important but fre14 quently overlooked or stigmatized aspect of health 

15 that requires effective and compassionate treatment 

16 and care; 

17 (5) improvement in the capacity of developing 

18 countries to obtain and use good quality data for 

19 surveillance and effective response to emerging 

20 health threats helps to protect the health of United 

21 States citizens as well as that of local populations; 

22 and 

23 (6) disease-focused interventions are most effec24 tive when they— 

25 (A) reflect an evidence-based approach; 


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1 (B) are integrated across health programs 

2 through a common delivery platform; and 

3 (C) support increased collaboration and co4 ordination among country-level stakeholders, in5 cluding partner country governments, other 

6 public and private donors, and international 

7 and nongovernmental organizations. 

8 (b) AUTHORIZATION.—The Administrator is author9 ized to use funds made available under this chapter to pro10 vide assistance for the prevention, treatment, control, and 

11 elimination of, and research on, infectious and noncommu12 nicable diseases in partner countries. 

13 Subchapter C—Family Planning and 

14 Reproductive Health 

15 SEC. 1331. ASSISTANCE FOR FAMILY PLANNING AND RE16 PRODUCTIVE HEALTH. 

17 (a) FINDINGS.—Congress finds that— 

18 (1) reproductive health care is essential to re19 ducing poverty, improving living standards and pro20 tecting human dignity; 

21 (2) throughout much of the world, the lack of 

22 access by women, particularly poor women, to repro23 ductive health care contributes to death and suf24 fering, limits women’s ability to make decisions that 


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1 affect their lives, and undermines the efforts of fam2 ilies to lift themselves out of poverty; 

3 (3) access to reproductive health care, including 

4 voluntary family planning, has a direct and impor5 tant impact on child mortality, especially infant mor6 tality; 

7 (4) closely spaced and ill-timed pregnancies and 

8 births contribute to high infant mortality rates, and 

9 when mothers die as a result of giving birth, their 

10 surviving infants have a greater risk of mortality 

11 and poor health status; 

12 (5) in many developing countries where there 

13 are few hospitals, few doctors, and poor transpor14 tation systems, and where women are not highly val15 ued, complications of labor often result in death of 

16 the mother; 

17 (6) lack of availability of emergency obstetric 

18 care, along with delays in seeking medical attention, 

19 in reaching a medical facility, and in receiving med20 ical care once arriving at a facility, contribute to the 

21 development of obstetric fistula, increasing the risk 

22 of death for both mother and child; 

23 (7) voluntary family planning allows women and 

24 couples to freely choose the number, timing and 


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1 spacing of pregnancies, giving families and individ2 uals greater control over their lives; 

3 (8) young people are particularly at risk of en4 gaging in unsafe sexual practices, and should be pro5 vided with clear and evidence-based information to 

6 help them make informed decisions about their sex7 ual and reproductive health and human rights, in8 cluding their right to be free from all forms of vio9 lence, coercion and discrimination; 

10 (9) practices such as child marriage and female 

11 genital cutting can harm the health of young people 

12 and deprive them of their dignity and human rights. 

13 Reproductive health care can play an important role 

14 in educating people about the dangers of these prac15 tices, and is often the entry point for identification 

16 of gender-based violence and sexual abuse; 

17 (10) integrating reproductive health care, in18 cluding voluntary family planning, with HIV preven19 tion programs is critical to combating HIV/AIDS, 

20 and can assist in decreasing the stigma associated 

21 with a seropositive HIV status; 

22 (11) integration of reproductive health care 

23 with other health-care and related social services in24 creases the effectiveness and efficiency of the health 


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1 system and meets people’s needs for accessible, ac2 ceptable, convenient, client-centered care; 

3 (12) international goals and targets for reduc4 ing poverty and improving maternal health require a 

5 significant investment in family planning and repro6 ductive health care; 

7 (13) international partnerships are required to 

8 provide adequate financing for family planning and 

9 reproductive health care; 

10 (14) cooperating with multilateral and bilateral 

11 donors and the private sector can make commodities 

12 such as antiretrovirals, maternal health equipment, 

13 and contraceptive supplies more accessible for hard14 to-reach populations; and 

15 (15) by investing in reproductive health care, 

16 including voluntary family planning, the United 

17 States can improve maternal and child health, lower 

18 HIV infection rates, reduce poverty and hunger, ad19 vance girls’ education, promote gender equality, 

20 broaden civic participation in the development proc21 ess, and slow the depletion of natural resources. 

22 (b) AUTHORIZATION.—The Administrator is author23 ized to use funds made available under this chapter for 

24 reproductive health care programs, including voluntary 

25 family planning, in partner countries. 


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1 SEC. 1332. REPRODUCTIVE HEALTH CARE IN EMER2 GENCIES. 

3 The Administrator is authorized to use funds made 

4 available under this subchapter and under subtitle B for 

5 programs to provide reproductive health care during hu6 manitarian emergencies and complex crises, including: 

7 (1) Life-saving priority activities set out in the 

8 Sphere Project’s Humanitarian Charter and Min9 imum Standards in Disaster Response. 

10 (2) Preventing sexual violence and providing 

11 medical care and psychosocial services to survivors 

12 of sexual violence. 

13 (3) Voluntary family planning for the duration 

14 of displacement. 

15 CHAPTER 4—EXPANDING QUALITY 

16 EDUCATION 

17 SEC. 1401. FINDINGS AND STATEMENT OF POLICY. 

18 (a) FINDINGS.—Congress finds the following: 

19 (1) Education is a basic human right, indispen20 sable for human capacity development and poverty 

21 eradication. 

22 (2) Basic education is fundamental to develop23 ment. No country has reached sustained economic 

24 growth without achieving near universal primary 

25 education. 


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1 (3) Quality education reduces poverty and in2 equity, lays the foundation for sound governance, 

3 civic participation, and strong institutions, and 

4 equips people with the knowledge, skills, and self-re5 liance they need to increase income and expand op6 portunities for employment. 

7 (4) While developing countries bear the ulti8 mate responsibility for educating their children, the 

9 United States and others donors can and should do 

10 more to help developing countries address their edu11 cation needs. 

12 (5) Investing in girls’ education delivers sub13 stantial returns not only in educational attainment 

14 but also in increasing women’s and household in15 comes, delaying the start of sexual activity, reducing 

16 infant mortality, increasing women’s political partici17 pation, spurring economic growth, and delaying mar18 riage. 

19 (6) Lack of access to adequate housing, safe 

20 drinking water close to home, and to private latrines 

21 near home and at school significantly impact girls’ 

22 attendance and retention at school. 

23 (7) Education can help to protect children in 

24 conflict situations from physical harm, exploitation, 


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1 and sexual abuse, as well as to avoid the recruitment 

2 of children into armed groups and gangs. 

3 (8) The large number of children who are not 

4 enrolled in school or who receive a poor quality edu5 cation not only results in a loss of human potential, 

6 but undermines stability and progress within com7 munities and across nations. 

8 (9) Expanded access to primary and secondary 

9 education will increase the need for qualified teach10 ers, and the demand for quality colleges and univer11 sities. 

12 (10) Exchange programs which bring citizens of 

13 developing countries to the United States for train14 ing, while helpful in expanding individual opportuni15 ties for growth, will not by themselves reach enough 

16 students and scholars to have a transformational ef17 fect on the economies and human resources of devel18 oping countries. 

19 (11) Partnerships between educational institu20 tions in the United States and developing countries 

21 are an important means for sharing knowledge, ex22 perience and lessons learned for the benefit of all 

23 students. 

24 (12) Resources to expand global education will 

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1 parent, increase coordination among governments, 

2 private sector and civil society, support national 

3 plans and hold all stakeholders accountable. 

4 (b) STATEMENT OF POLICY.—It is the policy of the 

5 United States to work in cooperation with the inter6 national community to achieve quality universal basic edu7 cation. 

8 SEC. 1402. GOAL AND OBJECTIVES. 

9 (a) GOAL.—The goal of assistance under this chapter 

10 is to increase access to quality education in partner coun11 tries. 

12 (b) OBJECTIVES.—In furtherance of the goal of sub13 section (a), assistance under this chapter shall be designed 

14 to help partner countries achieve the following objectives: 

15 (1) Expanding access to basic education for all 

16 children, particularly marginalized and vulnerable 

17 groups. 

18 (2) Improving the quality of basic education. 

19 (3) Raising adult literacy, especially for women. 

20 (4) Reducing gender disparities in primary and 

21 secondary education. 

22 (5) Strengthening higher education partner23 ships and networks. 


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1 SEC. 1403. GLOBAL EDUCATION STRATEGY. 

2 (a) IN GENERAL.—The strategy required under sec3 tion 1019 with respect to expanding education shall be 

4 known as the ‘‘Global Education Strategy’’. 

5 (b) CONTENTS.—The Global Education Strategy 

6 shall include, in addition to the elements required under 

7 section 1019(b), plans for achieving the goal and objec8 tives of section 1402. 

9 (c) GUIDELINES.—The Global Education Strategy 

10 should— 

11 (1) contribute to meeting internationally agreed 

12 education goals and targets; 

13 (2) be directly responsive to partner country 

14 needs, capacity, and commitment, strengthen part15 ner countries’ educational systems, and be coordi16 nated, where possible, with national education plans; 

17 (3) pay particular attention to expanding edu18 cational opportunities for marginalized and vulner19 able groups, including girls, children affected by or 

20 emerging from armed conflict or humanitarian cri21 ses, disabled children, children in remote or rural 

22 areas, religious or ethnic minorities, indigenous peo23 ples, orphans and children impacted by HIV/AIDS, 

24 child laborers, and victims of trafficking; 

25 (4) identify ways to reduce the adverse impact 

26 of HIV/AIDS on education systems; 


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1 (5) address the challenges posed by large num2 bers of out-of-school, unemployed youth; 

3 (6) encourage and integrate contributions of 

4 strategic direction and financial resources from local 

5 and international private sector and civil society or6 ganizations, including organizations that represent 

7 teachers, students, and parents, interested in sup8 porting quality universal basic education efforts; 

9 (7) outline plans for ensuring a transition and 

10 continuity of educational activities in countries af11 fected by or emerging from armed conflict or hu12 manitarian crises; 

13 (8) expand public-private partnerships in order 

14 to leverage resources; 

15 (9) promote gender equity and improve edu16 cational opportunities for women and girls, and 

17 strive to ensure safe schools, equal access, workforce 

18 opportunities, leadership role development, and the 

19 preservation of dignity and respect; 

20 (10) explain how basic education, higher edu21 cation, vocational and technical education, literacy 

22 instruction, and other formal and nonformal training 

23 will be integrated with other activities under this 

24 title; and 


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1 (11) address the problem of financing edu2 cation. 

3 SEC. 1404. BASIC EDUCATION ASSISTANCE. 

4 (a) AUTHORIZATION.—The Administrator is author5 ized to use funds made available under section 1015 for 

6 basic education in accordance with the goal and objectives 

7 of this chapter. 

8 (b) ACTIVITIES.—Assistance authorized under sub9 section (a) shall include— 

10 (1) increasing the supply of trained quality 

11 teachers, and building systems for the continuing 

12 support, training and professional development of all 

13 educators; 

14 (2) developing and implementing effective, rel15 evant curricula; 

16 (3) building the institutional capacity of a coun17 try to manage basic education systems and measure 

18 results; 

19 (4) increasing parent and community involve20 ment in schools; 

21 (5) providing learning materials; 

22 (6) working with communities to achieve equity 

23 in schools and address gender norms to build sup24 port for girls’ education; 


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1 (7) promoting the development and effective use 

2 of systems for data collection, monitoring and eval3 uation of student-learning outcomes; 

4 (8) improving and expanding educational infra5 structure; 

6 (9) reducing or eliminating fees for tuition, uni7 forms and school materials, as well as other barriers 

8 to school attendance, for poor and marginalized chil9 dren; 

10 (10) improving young children’s capacity to 

11 learn through early childhood development pro12 grams; 

13 (11) supporting interventions that increase 

14 school attendance and performance, such as scholar15 ships, school lunch, school health, and water and 

16 sanitation programs; 

17 (12) ensuring that schools are not incubators 

18 for violent extremism; 

19 (13) providing life skills training and civic edu20 cation, including on human rights, gender equity, 

21 and conflict resolution; 

22 (14) making schools safe and secure places for 

23 learning, free of violence, harassment, exploitation, 

24 or intimidation; 


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1 (15) increasing access to education, improving 

2 learning outcomes and increasing educational oppor3 tunities for the most disadvantaged populations; 

4 (16) ensuring continuation or reestablishment 

5 of educational programs and the provision of safe 

6 spaces for children in areas of armed conflict or hu7 manitarian crisis; 

8 (17) increasing the relevance of formal edu9 cation systems to the needs of the poor and to dis10 affected youth, through reform of curricula, teaching 

11 materials, and teaching methods, and improved 

12 teacher training; 

13 (18) expanding vocational and entrepreneurship 

14 skills and opportunities, especially for out-of-school 

15 youth, in close linkage with the private sector and in 

16 response to market needs; 

17 (19) supporting multilateral coordination and 

18 financing initiatives for education; and 

19 (20) promoting the value of education and in20 creasing community and family awareness of the 

21 positive impact of education. 

22 (c) DEFINITION.—In this chapter, the term ‘‘basic 

23 education’’ means an education, generally consisting of 

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1 cation, secondary education, literacy and numeracy train2 ing, and life-skills training that prepares an individual to 

3 be an active, productive member of society and the work4 force. 

5 SEC. 1405. HIGHER EDUCATION PARTNERSHIPS. 

6 (a) FINDINGS.—Congress finds that— 

7 (1) basic and higher education are interrelated 

8 and together play a critical role in reducing poverty, 

9 promoting economic growth, strengthening democ10 racy, stemming corruption, alleviating ethnic ten11 sions, and enhancing stability; 

12 (2) higher education institutions foster critical 

13 thinking, scientific discovery, entrepreneurship and 

14 innovation in local communities as well as at the na15 tional and international level; 

16 (3) higher education is essential for developing 

17 human capacity to create the next generation of po18 litical, professional and business leadership, build an 

19 effective and accountable civil service, improve the 

20 quality and availability of social services, and 

21 strengthen the rule of law; 

22 (4) partnerships between institutions of higher 

23 education in the United States and developing coun24 tries can— 


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1 (A) increase the quality and availability of, 

2 and access to, higher education for secondary 

3 school graduates; 

4 (B) support the professional development 

5 of faculty and staff, strengthen institutional 

6 and financial management, and streamline ad7 ministrative procedures; 

8 (C) expand course offerings, academic re9 sources and research opportunities for students 

10 and faculty; 

11 (D) foster continuing professional relation12 ships that build international understanding 

13 and collaboration; and 

14 (E) facilitate the sharing of knowledge, the 

15 identification of common research interests and 

16 challenges, and the resolution of complex prob17 lems; and 

18 (5) partnerships between businesses and higher 

19 education institutions in developing countries can 

20 help to meet the significant and growing demand for 

21 business professionals within both the private and 

22 public sectors in developing countries. 

23 (b) STATEMENT OF POLICY.—It is the policy of the 

24 United States to encourage the expansion and strength25 ening of higher education in developing countries, through 


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1 partnerships with educational institutions, businesses, and 

2 nonprofit organizations in the United States. 

3 (c) AUTHORIZATION.—The Administrator is author4 ized to use assistance made available under this chapter 

5 to expand and strengthen institutions of higher education 

6 in developing countries through partnerships with— 

7 (1) institutions of higher education in the 

8 United States; 

9 (2) businesses in the United States; 

10 (3) nonprofit organizations with experience in 

11 the areas of academic institution-building and entre12 preneurial and managerial development; and 

13 (4) international organizations. 

14 (d) ACTIVITIES.—Assistance provided under sub15 section (c) shall include— 

16 (1) building the capacity of higher education in17 stitutions in partner countries; 

18 (2) developing academic programs and centers 

19 of excellence in areas critical to the partner coun20 try’s economic development; and 

21 (3) improving the quality and availability of, 

22 and access to, higher education for students in part23 ner countries. 


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1 CHAPTER 5—PROTECTING AND RESTOR2 ING THE NATURAL ENVIRONMENT 

3 SEC. 1501. FINDINGS AND STATEMENT OF POLICY. 

4 (a) FINDINGS.—Congress finds the following: 

5 (1) Sound natural resource management, 

6 healthy levels of species diversity, and functioning 

7 natural ecosystems are vital to sustainably reducing 

8 poverty in developing countries. 

9 (2) Natural ecosystems, when properly man10 aged, provide economic value to local communities in 

11 the form of water, food, medicine, energy, household 

12 products, tourism and trade, as well as contributing 

13 to the global common good. 

14 (3) Nature provides important services for 

15 human well-being. For example, forests, floodplains, 

16 and wetlands are a natural bulwark against cata17 strophic flooding and severe drought, and coral reefs 

18 and mangroves reduce the impact of large storms on 

19 coastal populations, thereby reducing damages from 

20 extreme weather and the need for disaster assist21 ance. 

22 (4) Natural ecosystems serve as a buffer be23 tween wildlife and human populations, minimizing 

24 the transmission of highly infectious diseases from 

25 animals to people. 


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1 (5) Many of the most commonly prescribed 

2 medicines in the United States are derived directly 

3 from natural compounds or patterned after them. 

4 The preservation of natural areas and wild species 

5 offers the world a rich source of potential cures and 

6 treatments for disease and pain. 

7 (6) The survival of many animal and plant spe8 cies is endangered by poaching and excessive har9 vesting, by the presence of toxic chemicals in water, 

10 air and soil, and by the destruction of habitats. 

11 (7) Degradation of land and water resources 

12 impedes efforts to improve agricultural productivity, 

13 which will be critical to feeding the world’s growing 

14 population and is a key engine of economic growth 

15 in developing countries. 

16 (8) The construction of dams and expansion in 

17 biofuel production in developing countries without 

18 the necessary environmental safeguards or consulta19 tion with the local populations threatens the sustain20 ability of aquatic ecosystems and the services they 

21 provide for purifying, storing, and delivering water. 

22 (9) The continuing and accelerating alteration, 

23 destruction, and loss of forests and other natural 

24 habitats in developing countries can result in— 

25 (A) shortages of fuel; 


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1 (B) loss of biologically productive wetlands; 

2 (C) siltation of lakes, reservoirs, and irri3 gation systems; 

4 (D) floods, soil erosion and landslides; 

5 (E) decimation and dislocation of indige6 nous peoples; 

7 (F) extinction of plant and animal species; 

8 (G) reduced capacity for food production; 

9 (H) loss of genetic resources; 

10 (I) desertification; 

11 (J) increased greenhouse gas emissions; 

12 and 

13 (K) destabilization of the earth’s climate. 

14 (10) Women often are especially vulnerable to 

15 the impact of natural resource degradation and cli16 mate change because they produce most of the food 

17 and collect most of the water and firewood in many 

18 countries. 

19 (11) Mismanagement and unregulated exploi20 tation of natural resources has fueled conflict and 

21 corruption in many developing countries. 

22 (12) Illicit trade in natural resources not only 

23 robs poor countries of valuable economic and envi24 ronmental resources, but often perpetrates political 

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1 ual violence and the use of children as soldiers, 

2 bonded labor and sex slaves. 

3 (13) Illegal logging, fishing, and mining in de4 veloping countries flood the international market 

5 with low-cost products that undercut the competi6 tiveness of responsible companies in the United 

7 States. 

8 (14) Economic growth generally raises energy 

9 consumption, and often results in increased emis10 sions of greenhouse gases as well as greater pollu11 tion of air, land, and water. 

12 (15) If current trends in the degradation of 

13 natural resources in developing countries continue, 

14 they will severely undermine the best efforts to meet 

15 basic human needs, to achieve sustained economic 

16 growth, and to prevent international tension and 

17 conflict. 

18 (16) Animals, including livestock, companion 

19 animals, and wildlife, are important to human eco20 nomic, environmental, and social development as well 

21 as to human quality of life. Animals and the people 

22 who depend upon them in developing countries will 

23 be particularly vulnerable to climate-related natural 

24 disasters unless adaptation and mitigation measures 

25 are utilized. 


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1 (17) The world faces enormous, urgent, and 

2 complex challenges in conserving and protecting nat3 ural resources while fostering economic development, 

4 requiring extensive and sustained cooperation be5 tween the United States, developing countries and 

6 the international community as a whole. 

7 (b) STATEMENT OF POLICY.—It is the policy of the 

8 United States to work in cooperation with the inter9 national community to reduce biodiversity loss and the 

10 degradation of natural ecosystems, adapt to and mitigate 

11 climate change, and integrate principles of environmental 

12 sustainability into policies and programs for international 

13 development. 

14 SEC. 1502. GOAL AND OBJECTIVES. 

15 (a) GOAL.—The goal of assistance under this chapter 

16 is to help partner countries maximize the environmental 

17 sustainability of their development policies and programs. 

18 (b) OBJECTIVES.—In furtherance of the goal de19 scribed in subsection (a), assistance under this chapter 

20 shall be designed to help partner countries achieve the fol21 lowing objectives: 

22 (1) Protecting and restoring natural eco23 systems. 

24 (2) Conserving biological diversity. 

25 (3) Mitigating and adapting to climate change. 


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1 (4) Reducing pollution of air, land and water. 

2 (5) Increasing energy efficiency. 

3 (6) Expanding access to clean, renewable en4 ergy sources and technologies. 

5 (7) Building capacity for sound natural re6 source management. 

7 (c) IMPLEMENTATION.—Assistance under this chap8 ter should be implemented in a manner that— 

9 (1) incorporates and aligns with partner coun10 try strategies, plans and priorities; 

11 (2) gives due regard to the rights and interests 

12 of local and forest-dependent communities, indige13 nous peoples, and marginalized and vulnerable social 

14 groups, and ensures their full and effective partici15 pation in all stages of program planning, implemen16 tation, and evaluation; and 

17 (3) promotes and integrates women’s empower18 ment and gender equality. 

19 SEC. 1503. GLOBAL CONSERVATION STRATEGY. 

20 (a) IN GENERAL.—The strategy required under sec21 tion 1019 with respect to protecting and restoring the nat22 ural environment shall be known as the ‘‘Global Conserva23 tion Strategy’’. 

24 (b) CONTENTS.—The Global Conservation Strategy 

25 shall include, in addition to the elements required under 


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1 section 1019(b), plans for achieving the goal and objec2 tives of section 1502. 

3 (c) GUIDELINES.—The Global Conservation Strategy 

4 should— 

5 (1) establish priority countries, regions or nat6 ural ecosystems for reducing environmental degrada7 tion; 

8 (2) identify the economic, health, and conflict9 prevention benefits to be achieved through imple10 mentation of the strategy; 

11 (3) establish policy guidance to link investments 

12 in specific conservation programs to the broader 

13 goals of reducing poverty and alleviating human suf14 fering, and to integrate environmental goals into 

15 country-based and sector-based strategies; 

16 (4) identify and improve United States policies 

17 that affect the conservation of critical natural re18 sources and biodiversity abroad; 

19 (5) seek to encourage and leverage participation 

20 from the private sector, other donor governments, 

21 governments of developing countries, international 

22 financial institutions, and other international organi23 zations to implement the strategy; 


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1 (6) address the anticipated effects of climate 

2 change on highly vulnerable communities and popu3 lations and on the achievement of key objectives; and 

4 (7) include a review of all executive orders and 

5 regulations that may have an impact on the strat6 egy. 

7 SEC. 1504. ASSISTANCE FOR ENVIRONMENTAL SUSTAIN8 ABILITY. 

9 (a) AUTHORIZATION.—The Administrator is author10 ized to use funds made available under section 1015 to 

11 further the goal and objectives of this chapter in partner 

12 countries. 

13 (b) ACTIVITIES.—Assistance provided under sub14 section (a) shall include the following: 

15 (1) PROTECTING AND RESTORING NATURAL

16 ECOSYSTEMS.— 

17 (A) Conserving, sustainably managing, and 

18 restoring natural ecosystems. 

19 (B) Establishing, restoring, protecting, and 

20 maintaining protected areas, parks and re21 serves. 

22 (C) Developing and improving governance 

23 structures, resource rights and responsibilities, 

24 and land use planning to reduce degradation, 


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1 destruction, and illegal use of natural eco2 systems. 

3 (D) Reducing greenhouse gas emissions 

4 from land use and land-use change, the destruc5 tion of wetlands and peatlands and forestry, in6 cluding deforestation and forest degradation 

7 and enhancement of forest carbon stocks. 

8 (E) Studying and assessing the economic 

9 value of natural ecosystems and their contribu10 tions to addressing poverty-related issues. 

11 (F) Developing alternatives and disincen12 tives to destructive farming, fishing, and for13 estry practices. 

14 (2) CONSERVING BIOLOGICAL DIVERSITY.— 

15 (A) Protecting and maintaining wildlife 

16 and plant habitats, both land and sea. 

17 (B) Developing sound wildlife management 

18 and plant conservation policies and programs at 

19 the local, national, and international levels. 

20 (C) Identifying, studying, and cataloging 

21 animal and plant species. 

22 (D) Establishing effective policies and reg23 ulations to reduce loss of biological diversity. 


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1 (E) Enacting and enforcing anti-poaching 

2 measures, including through alternative liveli3 hood opportunities. 

4 (F) Educating local communities, including 

5 civil society organizations, governments and in6 termediate representative institutions, about the 

7 importance and benefits of conserving biological 

8 diversity. 

9 (3) MITIGATING AND ADAPTING TO CLIMATE

10 CHANGE.— 

11 (A) Researching and assessing climato12 logical and socioeconomic factors to identify and 

13 prioritize vulnerable populations and natural 

14 ecosystems and likely impacts. 

15 (B) Developing national and regional cli16 mate change adaptation and mitigation plans. 

17 (C) Planning, financing and implementing 

18 adaptation programs and activities. 

19 (D) Increasing resilience to and prepared20 ness for climate change and its impacts among 

21 highly vulnerable communities and populations, 

22 including through capacity building. 

23 (E) Supporting the identification and 

24 adoption of appropriate renewable and efficient 

25 energy technologies. 


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1 (4) REDUCING POLLUTION OF AIR, LAND AND

2 WATER.— 

3 (A) Monitoring, regulating, and mitigating 

4 pollutants to air, land and water. 

5 (B) Designing, promoting and utilizing 

6 clean technologies and practices. 

7 (C) Increasing the quality, quantity, and 

8 transparency of data regarding the monitoring, 

9 regulation and mitigation of pollutants. 

10 (D) Developing public awareness cam11 paigns and promoting civic participation in en12 vironmental stewardship. 

13 SEC. 1505. ASSISTANCE FOR SUSTAINABLE ENERGY AND 

14 NATURAL RESOURCE MANAGEMENT. 

15 (a) FINDINGS.—Congress finds the following: 

16 (1) Access to energy is essential for economic 

17 growth, public health, clean water, sanitation, trans18 portation, communication, agricultural activities, and 

19 the overall progress of developing countries. 

20 (2) Many developing countries lack access to 

21 the financial resources and technology necessary to 

22 locate, explore, and develop indigenous natural re23 sources. 

24 (3) Black carbon contributes to pollution, 

25 health concerns, and significantly warms the Earth’s 


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1 climate system by absorbing radiation, converting it 

2 into heat, and releasing heat energy into the atmos3 phere. 

4 (4) Clean, efficient and renewable energy 

5 sources are vital to sustain economic growth and 

6 protect human health. 

7 (5) Energy must be accessible to the poor in 

8 order to ensure that basic human needs are met. 

9 (6) Title V of the Nuclear Non-Proliferation 

10 Act of 1978 (22 U.S.C. 3261 et seq.) requires the 

11 United States to work with developing countries in 

12 assessing and finding ways to meet their energy 

13 needs through alternatives to nuclear energy that 

14 are consistent with economic factors, material re15 sources, and environmental protection. 

16 (7) Proper management of natural resources 

17 can provide the basis for sustainable development 

18 while the mismanagement and unregulated exploi19 tation of natural resources has fueled conflict and 

20 corruption in many countries around the world. 

21 (b) AUTHORIZATION.—The Administrator is author22 ized to use funds made available under this chapter for 

23 programs to promote clean energy technologies, respon24 sible stewardship of natural resources, and reliable access 

25 by the poor to energy. 


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1 (c) ACTIVITIES.—Assistance authorized under sub2 section (b) shall include the following: 

3 (1) INCREASING ENERGY EFFICIENCY.— 

4 (A) Development of sound national energy 

5 and electricity plans. 

6 (B) Improving the efficiency of electricity 

7 transmission, distribution, and consumption. 

8 (C) Building local capacity to monitor and 

9 regulate the energy sector. 

10 (2) EXPANDING ACCESS TO CLEAN, RENEW11 ABLE ENERGY SOURCES AND TECHNOLOGIES.— 

12 (A) Improving the availability of renewable 

13 electricity generation from wind, solar, 

14 sustainably and locally produced biomass, geo15 thermal, marine, or hydrokinetic sources. 

16 (B) Expanding the deployment of low or 

17 zero emission technologies. 

18 (C) Increasing access to clean energy tech19 nologies, especially in rural areas. 

20 (D) Improving transportation system and 

21 vehicle efficiency. 

22 (E) Reducing black carbon emissions, in23 cluding through the use of clean cookstoves. 


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1 (F) Building local capacity to operate, 

2 maintain and improve clean energy tech3 nologies. 

4 (G) Mitigating the impacts of energy alter5 natives on natural resources and natural eco6 systems 

7 (3) BUILDING CAPACITY FOR SOUND NATURAL

8 RESOURCE MANAGEMENT.— 

9 (A) Enhancing the transparency of reve10 nues generated from natural resource extrac11 tion. 

12 (B) Improving the security of land tenure 

13 and property rights, especially for marginalized 

14 groups. 

15 (C) Building local capacity to assess, mon16 itor, and regulate access to natural resources 

17 and to evaluate the social and environmental ef18 fects of extraction. 

19 (D) Improving local capacity to assess the 

20 value of environmental services. 

21 SEC. 1506. ENVIRONMENTAL RESTRICTIONS. 

22 (a) RESTRICTION.—Assistance authorized under this 

23 subtitle shall not be provided for programs, projects, and 

24 activities that— 


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1 (1) introduce invasive and nonnative plant spe2 cies; 

3 (2) cause the destruction or degradation of ex4 isting natural ecosystems, natural parks, or similar 

5 protected areas; 

6 (3) result in or cause a loss of biological diver7 sity or adversely impact rare, threatened, or endan8 gered plant and animal species; 

9 (4) involve destructive farming, fishing, and for10 est harvesting practices such as slash and burn agri11 culture; or 

12 (5) provide for the construction of dams or 

13 other water control structures that flood natural eco14 systems. 

15 (b) WAIVER.—The Administrator may waive the re16 strictions contained in subsection (a) if the Administrator 

17 determines and reports to the appropriate congressional 

18 committees that— 

19 (1) the proposed program, project, or activity is 

20 vital to improving the livelihoods of the rural poor; 

21 (2) the proposed program will be conducted in 

22 an environmentally sound manner that supports sus23 tainable development; and 

24 (3) appropriate mitigation activities will be un25 dertaken. 


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1 SEC. 1507. ENVIRONMENTAL IMPACT STATEMENTS AND AS2 SESSMENTS. 

3 (a) IN GENERAL.—In implementing programs, 

4 projects, and activities under this subtitle, the Adminis5 trator shall take fully into account the impact of such pro6 grams and projects upon the environment and natural re7 sources of developing countries. 

8 (b) REQUIRED STATEMENTS AND ASSESSMENTS.— 

9 Subject to such procedures as the Administrator considers 

10 appropriate, the Administrator shall require that all agen11 cies and officials responsible for programs, projects, and 

12 activities under this subtitle prepare and take fully into 

13 account— 

14 (1) an environmental impact statement for any 

15 proposed program, project, or activity significantly 

16 affecting the environment of the global commons 

17 outside the jurisdiction of any country, the environ18 ment of the United States, or other aspects of the 

19 environment which the Administrator may specify; 

20 and 

21 (2) an environmental assessment of any pro22 posed program, project, or activity significantly af23 fecting the environment of any foreign country. 

24 (c) MATTERS TO BE INCLUDED.—Environmental 

25 impact statements and environmental assessments under26 taken pursuant to subsection (b) shall include— 


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1 (1) recommendations for possible alternatives 

2 and mitigation measures; 

3 (2) an estimate of greenhouse gas emissions at4 tributable to the program, project, or activity; and 

5 (3) a special review of any project that will emit 

6 more than 100,000 tons of carbon dioxide. 

7 (d) LOCAL TECHNICAL RESOURCES.—Environmental 

8 impact statements and environmental assessments under9 taken pursuant to paragraph (b) should, to the maximum 

10 extent feasible, use local technical resources. 

11 (e) EXCEPTIONS.—The Administrator may establish 

12 exceptions from the requirements of this section for emer13 gency conditions and for cases in which the Administrator 

14 determines that compliance with those requirements would 

15 be seriously detrimental to the foreign policy interests of 

16 the United States. 

17 (f) PUBLIC AVAILABILITY.— 

18 (1) IN THE UNITED STATES.—All environ19 mental impact statements and environmental assess20 ments shall be published on the Internet website of 

21 the Agency not later than 30 days following their 

22 completion, and may be accompanied by the Agen23 cy’s response to the findings therein. 

24 (2) IN AFFECTED COUNTRIES.—To the extent 

25 feasible, all environmental assessments shall be 


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1 translated into the local language(s) of the affected 

2 communities and made available to the partner gov3 ernment, local and international nongovernmental 

4 organizations, and affected communities. 

5 SEC. 1508. DEFINITIONS. 

6 In this chapter: 

7 (1) NATURAL ECOSYSTEM.—The term ‘‘natural 

8 ecosystem’’ means a dynamic set of living organisms, 

9 including plants, animals, and microorganisms inter10 acting among themselves and with the environment 

11 in which they live, and includes tropical forests, 

12 freshwater, coastal, estuarian and fisheries habitats, 

13 coral reefs, natural grasslands, and mangrove for14 ests. 

15 (2) GREENHOUSE GAS.—The term ‘‘greenhouse 

16 gas’’ means carbon dioxide, methane, nitrous oxide, 

17 sulfur hexafluoride, hydrofluorocarbons emitted from 

18 a chemical manufacturing process at an industrial 

19 stationary source, any perfluorocarbon, nitrogen 

20 trifluoride, any other anthropogenic gas designated 

21 as a greenhouse gas by the Administrator for pur22 poses of this chapter. 

23 (3) HIGHLY VULNERABLE COMMUNITIES AND

24 POPULATIONS.—The term ‘‘highly vulnerable com25 munities and populations’’ means communities and 


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1 populations that are at risk of substantial adverse 

2 impacts of climate change and have limited capacity 

3 to respond to such impacts, including impoverished 

4 communities, children, women, and indigenous peo5 ples. 

6 (4) MOST VULNERABLE DEVELOPING COUN7 TRIES.—The term ‘‘most vulnerable developing 

8 countries’’ means, as determined by the Adminis9 trator, developing countries that are at risk of sub10 stantial adverse impacts of climate change and have 

11 limited capacity to respond to such impacts, consid12 ering the approaches included in any international 

13 treaties and agreements. 

14 CHAPTER 6—IMPROVING ACCESS TO SAFE 

15 WATER, SANITATION, AND HOUSING 

16 SEC. 1601. FINDINGS AND STATEMENT OF POLICY. 

17 (a) FINDINGS.—Congress finds the following: 

18 (1) Clean water and sanitation are among the 

19 most powerful drivers for human development. They 

20 extend opportunity, enhance dignity, and help create 

21 a virtuous cycle of improving health and rising 

22 wealth. 

23 (2) Unsafe drinking water, inadequate sanita24 tion, and unsuitable and unhygienic living conditions 

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1 oping countries, particularly for infants and chil2 dren. 

3 (3) Diseases linked to unsafe water and poor 

4 sanitation, as well as the time and energy women 

5 often devote to collecting water, significantly reduce 

6 economic productivity in less developed countries 

7 and promote lifecycles of disadvantage. 

8 (4) Water scarcity has negative consequences 

9 for agricultural productivity and food security, and 

10 seriously threatens international ability to increase 

11 food production at the rate required to meet the 

12 needs of the world’s growing population. 

13 (5) The underlying cause of water scarcity in 

14 the large majority of cases is institutional and polit15 ical, and requires sustainable and effective water re16 source management. 

17 (6) Demand for water resources has contributed 

18 to armed conflict in many parts of the world, while 

19 conflict and civil strife often reduce access to clean 

20 water and sanitation for displaced persons and other 

21 innocent victims. 

22 (7) The continued degradation of watersheds 

23 threatens the benefits that healthy natural systems 

24 provide, and on which people rely. 


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1 (8) The effects of climate change are expected 

2 to produce severe consequences for water availability 

3 and resource management in many developing coun4 tries, which could result in severe and chronic water 

5 shortages. 

6 (9) Unsuitable and unhygienic living conditions 

7 can exact a heavy toll on human health and produc8 tivity. Adequate housing is often a precondition for 

9 the enjoyment of various civic and human rights, in10 cluding the rights to work, vote, obtain education, 

11 receive health care, and access other social services. 

12 (10) Rapid urbanization and future population 

13 growth are expected to exacerbate already limited 

14 access to water, as well as to adequate housing. 

15 (11) Approximately half the world’s population 

16 lives in cities, often in slums characterized by unsafe 

17 water, poor sanitation, lack of basic services, over18 crowding, inferior construction and insecure tenure. 

19 Because slum populations are growing rapidly, they 

20 require increased attention and better integrated 

21 programming. 

22 (12) Inadequate laws, policies and enforcement 

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1 trary, often supra-market rents, forced evictions, 

2 threats, and harassment. 

3 (13) Insecurity of tenure severely inhibits eco4 nomic development by undermining investment in5 centives and constraining the growth of credit mar6 kets, imperils the ability of families to achieve sus7 tainable livelihoods and assured access to housing, 

8 and often contributes to conflict over property 

9 rights. 

10 (14) Women are affected disproportionately by 

11 forced evictions and insecure tenure as a result of 

12 gender discrimination, often including gender-biased 

13 laws that define women as legal minors or otherwise 

14 prevent them from owning or leasing land, property, 

15 and housing, making them more vulnerable to pov16 erty, violence, and sexual abuse. 

17 (15) Expanding access to clean water, sanita18 tion, and housing is essential for reducing the global 

19 burden of disease, advancing economic and social de20 velopment, protecting basic human rights, and miti21 gating sources of conflict. 

22 (b) STATEMENT OF POLICY.—It is the policy of the 

23 United States to recognize the human right to water and 

24 adequate housing, and to work in cooperation with the 


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1 international community to ensure access to safe water, 

2 sanitation and adequate housing for all people. 

3 SEC. 1602. GOAL AND OBJECTIVES. 

4 (a) GOAL.—The goal of assistance under this chapter 

5 is to improve living conditions and basic human dignity 

6 for the world’s poorest people. 

7 (b) OBJECTIVES.—In furtherance of the goal of sub8 section (a), assistance under this chapter shall be designed 

9 to help partner countries achieve the following objectives: 

10 (1) Expanding access to sufficient, safe, and af11 fordable water for personal and domestic use. 

12 (2) Upgrading and expanding basic sanitation. 

13 (3) Increasing access to adequate housing. 

14 (4) Improving the management of water and re15 lated resources for greater sustainability. 

16 (5) Enhancing planning for sustainable urban 

17 development. 

18 SEC. 1603. GLOBAL STRATEGY FOR WATER, SANITATION 

19 AND HOUSING. 

20 (a) IN GENERAL.—The strategy required under sec21 tion 1019 with respect to improving access to safe water, 

22 sanitation, and housing shall be known as the ‘‘Global 

23 Water, Sanitation and Housing Strategy’’. 

24 (b) CONTENTS.—The Global Water, Sanitation and 

25 Housing Strategy shall include, in addition to the elements 


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1 required under section 1019(b), plans for achieving the 

2 goal and objectives of section 1602. 

3 (c) GUIDELINES.—The Global Water, Sanitation and 

4 Housing Strategy should— 

5 (1) include targets for providing, on a sustain6 able basis, first-time access to safe water, basic sani7 tation, and adequate housing; 

8 (2) prioritize improvements for the poorest peo9 ple living under the most inadequate conditions; 

10 (3) explain how policies and programs relating 

11 to water, sanitation and housing will be integrated 

12 with other policies and programs under this title; 

13 (4) explain how programs and policies under 

14 the strategy will contribute to meeting internation15 ally agreed targets relating to access to safe drink16 ing water and basic sanitation and improving the 

17 lives of slum dwellers; 

18 (5) maximize efficiency in water use and sus19 tainability of water supplies; 

20 (6) identify and promote best practices for mo21 bilizing and leveraging public-private partnerships; 

22 (7) address the effects of climate change on 

23 achieving the goal of this chapter; 


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1 (8) evaluate the impact of urbanization and 

2 general migration trends on water, sanitation, and 

3 housing; 

4 (9) utilize expertise within the United States 

5 Government by improving policy and program co6 ordination among relevant Federal agencies, includ7 ing the Department of State, the United States 

8 Agency for International Development, the Millen9 nium Challenge Corporation, the Centers for Disease 

10 Control and Prevention, the National Oceanic and 

11 Atmospheric Administration, the United States Geo12 logical Survey, and the Environmental Protection 

13 Agency; and 

14 (10) strengthen strategic coordination with, 

15 build on the expertise of, and encourage contribu16 tions from, a wide variety of stakeholders, including 

17 partner governments, the private sector and non18 governmental organizations. 

19 SEC. 1604. ASSISTANCE FOR WATER, SANITATION AND 

20 HOUSING. 

21 (a) AUTHORIZATION.—The Administrator is author22 ized to use funds made available under section 1015 to 

23 further the goal and objectives of this chapter in partner 

24 countries. 


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1 (b) ACTIVITIES.—Assistance authorized under sub2 section (a) shall include the following: 

3 (1) EXPANDING ACCESS TO CLEAN WATER AND

4 SANITATION.— 

5 (A) Assessing water, sanitation, and hy6 giene needs. 

7 (B) Developing additional, affordable, ac8 cessible, and reliable water supplies. 

9 (C) Expanding the coverage of existing 

10 water and sanitation systems to reach pre11 viously underserved populations. 

12 (D) Improving water and sanitation infra13 structure. 

14 (E) Increasing the safety, reliability, and 

15 sustainability of, and equity in access to, water 

16 supplies, sanitation infrastructure, and hygiene 

17 services. 

18 (F) Promoting more efficient and sustain19 able use of water supplies. 

20 (G) Fostering integrated river basin and 

21 watershed management. 

22 (H) Increasing awareness and use of 

23 healthy hygiene practices. 

24 (I) Building the capacity of partner coun25 tries to plan and manage water resources in an 


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1 efficient, transparent, inclusive and environ2 mentally sustainable manner. 

3 (J) Promoting international and regional 

4 cooperation to share technologies and best prac5 tices. 

6 (K) Mitigating conflict over water re7 sources. 

8 (L) Conducting research and developing 

9 technology to further the goal and objectives of 

10 this chapter. 

11 (2) EXPANDING ACCESS TO ADEQUATE HOUS12 ING.— 

13 (A) Assessing housing and infrastructure 

14 needs. 

15 (B) Upgrading existing housing to meet 

16 international humanitarian standards. 

17 (C) Incentivizing the construction of af18 fordable housing units. 

19 (D) Improving community infrastructure, 

20 such as sidewalks, drainage ditches, and public 

21 lighting. 

22 (E) Enhancing recognition and protection 

23 of legal rights to the ownership, lease and use 

24 of real property. 


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1 (F) Reducing gender and other discrimina2 tion in housing, property ownership, and munic3 ipal services. 

4 (G) Developing and enforcing reasonable 

5 housing and construction codes to protect low6 income residents and buyers. 

7 (H) Encouraging the development and ex8 pansion of commercially oriented housing mar9 kets in partner countries, including home mort10 gage and insurance markets and financing for 

11 municipal infrastructure. 

12 (I) Building the capacity of partner coun13 tries for improved urban planning and manage14 ment. 

15 SEC. 1605. DEFINITIONS. 

16 In this chapter— 

17 (1) the term ‘‘adequate housing’’ means hous18 ing that meets international humanitarian standards 

19 and includes— 

20 (A) legal security of tenure; 

21 (B) availability of services, materials, fa22 cilities, and infrastructure; 

23 (C) affordability; 

24 (D) habitability; 

25 (E) accessibility; 


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1 (F) location; and 

2 (G) cultural adequacy; and 

3 (2) the term ‘‘living conditions’’ means the ade4 quacy of water, sanitation, and housing for human 

5 habitation. 

6 CHAPTER 7—FOSTERING GENDER 

7 EQUALITY 

8 SEC. 1701. FINDINGS AND STATEMENT OF POLICY. 

9 (a) FINDINGS.—Congress finds the following: 

10 (1) Women and girls are the majority of the 

11 world’s poor, unschooled, unhealthy, and underfed. 

12 (2) Women around the world often work under 

13 substandard conditions, for longer hours, and with 

14 lower compensation, less income stability and fewer 

15 economic opportunities than men. 

16 (3) Women are often excluded by law or prac17 tice from participating fully and equally in the polit18 ical, economic, and social life of their country. 

19 (4) Women own significantly less land than 

20 men and experience numerous barriers to ownership. 

21 Access to land and property rights offers women 

22 greater economic opportunity and security, greater 

23 protection from physical harm, better access to 

24 health, education, and financial services, and im25 proved social status. 


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1 (5) Displaced, refugee, and stateless women and 

2 girls in humanitarian emergencies, conflict settings, 

3 and natural disasters are at extreme risk of violence, 

4 exploitation and intimidation. 

5 (6) Violence against women dramatically im6 pedes progress in meeting global health goals, in7 cluding efforts to reduce maternal mortality and re8 verse the spread of HIV/AIDS. 

9 (7) Ensuring that women have the ability to ef10 fectively plan families is one of the keys to expand11 ing their economic opportunities. Yet hundreds of 

12 millions of women lack access to affordable, effec13 tive, and appropriate contraceptive methods and re14 productive health care, putting them at greater risk 

15 of unintended pregnancies and serious health com16 plications. 

17 (8) Studies have shown that investments in 

18 women and girls have broad multiplier effects, par19 ticularly in the areas of health and education, which 

20 over the long run can significantly improve the fu21 ture of communities and countries. 

22 (9) Investments in women and girls can play a 

23 key role in reducing poverty, countering violent ex24 tremism, promoting stability, fostering tolerance and 


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1 reconciliation, and building strong and vibrant civil 

2 societies. 

3 (10) Increasing women’s access to economic op4 portunities is crucial to preventing and responding 

5 to domestic and sexual violence. 

6 (11) Fostering gender equality requires 

7 strengthening rules, practices, and institutions that 

8 protect the rights of women and men, girls and boys, 

9 as well as including them in the design, implementa10 tion, and monitoring of programs to reduce poverty 

11 and alleviate human suffering. 

12 (b) STATEMENT OF POLICY.—It is the policy of the 

13 United States to— 

14 (1) invest in women and girls in partner coun15 tries as a matter of justice and human rights as well 

16 as to promote sustainable development and achieve 

17 internationally agreed development goals; 

18 (2) include women and the organizations that 

19 represent them in the design, implementation, and 

20 monitoring of programs under this title; 

21 (3) mainstream into the design, implementa22 tion, and evaluation of policies and programs at all 

23 levels an understanding of the distinctive impact 

24 that such policies and programs may have on women 

25 and girls, men and boys; and 


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1 (4) promote equal opportunities for all people, 

2 regardless of sex, to achieve their personal potential 

3 and maximize their contributions to the development 

4 of their families, communities, and countries. 

5 SEC. 1702. GOAL AND OBJECTIVES. 

6 (a) GOAL.—The goal of assistance under this chapter 

7 is to promote women’s empowerment, gender equality, and 

8 gender integration. 

9 (b) OBJECTIVES.—In furtherance of the goal of sub10 section (a), assistance under this chapter shall be designed 

11 to help partner countries achieve the following objectives: 

12 (1) Increasing educational, economic, and polit13 ical opportunities for women and girls. 

14 (2) Building the capacity of women and girls to 

15 participate fully in decisions that affect their lives. 

16 (3) Reducing legal and social barriers to wom17 en’s participation in economic activity and political 

18 processes. 

19 (4) Expanding the collection of sex20 disaggregated data and the use of gender analysis. 

21 (5) Integrating gender considerations into all 

22 international development policies and programs, in23 cluding those carried out by all USAID bureaus, of24 fices, and missions. 


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1 SEC. 1703. GLOBAL STRATEGY FOR GENDER EQUALITY. 

2 (a) IN GENERAL.—The strategy required under sec3 tion 1019 with respect to fostering gender equality shall 

4 be known as the ‘‘Global Strategy for Gender Equality’’. 

5 (b) CONTENTS.—The Global Strategy for Gender 

6 Equality shall include, in addition to the elements required 

7 under section 1019(b), plans for achieving the goal and 

8 objectives in section 1702. 

9 (c) GUIDELINES.—The Global Strategy for Gender 

10 Equality should— 

11 (1) be coordinated and integrated with the com12 prehensive international strategy to prevent and re13 spond to violence against women and girls, as re14 quired under section 3203, and with each sector 

15 strategy of development, as described in section 

16 1019; 

17 (2) include plans for preventing child marriage; 

18 (3) address the ways in which the exclusion of, 

19 and discrimination against, women hinders economic 

20 growth and heightens the risks of conflict and insta21 bility; 

22 (4) discuss exclusionary and discriminatory 

23 practices that are particularly harmful for the 

24 achievement of United States development goals and 

25 identify the countries in which such practices occur; 


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1 (5) include plans for hiring, training, deploying 

2 and retaining a diverse USAID workforce with ap3 propriate expertise and responsibility for promoting 

4 women’s empowerment, gender equality and gender 

5 integration around the world; 

6 (6) establish policy and guidance for integrating 

7 gender considerations into all other international de8 velopment strategies and programs; 

9 (7) ensure that the goal and objectives of this 

10 chapter are reflected in the USAID’s procurement 

11 regulations and procedures; and 

12 (8) build accountability for gender integration 

13 into monitoring and evaluation systems. 

14 (d) PREPARATION.—The Global Strategy for Equal15 ity shall be prepared by the Director of the Office of Gen16 der Equality and Women’s Empowerment, in coordination 

17 with the Policy, Planning and Learning Bureau and the 

18 Ambassador-at-Large for Global Women’s Issues. 

19 SEC. 1704. ASSISTANCE FOR GENDER EQUALITY. 

20 (a) IN GENERAL.—The Administrator is authorized 

21 to use funds made available under section 1015 to further 

22 the goal and objectives of this chapter in partner coun23 tries. 

24 (b) ACTIVITIES.—Assistance authorized under sub25 section (a) shall include— 


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1 (1) integrating women into the political, social, 

2 and economic systems of partner countries; 

3 (2) developing laws, regulations, and policies 

4 that promote equal rights and prohibit discrimina5 tion in partner countries; 

6 (3) providing leadership and technical training 

7 that improves the capacity of women and girls in 

8 partner countries to participate fully in decisions 

9 that affect their lives; 

10 (4) enhancing the capacity of partner countries 

11 to undertake analysis of the specialized needs of 

12 women and girls in health, water, sanitation, hous13 ing, education, food, legal and financial services, and 

14 other sectors, and to develop policies and programs 

15 to meet those needs; 

16 (5) enhancing the capacity of partner countries 

17 to prevent and respond to violence against women 

18 and girls; and 

19 (6) research and innovation to improve the de20 sign, implementation, and monitoring and evaluation 

21 of United States foreign assistance for greater effec22 tiveness in promoting gender equality and reducing 

23 sexual and gender-based violence. 


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1 SEC. 1705. OFFICE OF GENDER EQUALITY AND WOMEN’S 

2 EMPOWERMENT. 

3 (a) ESTABLISHMENT.—There is established, within 

4 the United States Agency for International Development, 

5 an Office of Gender Equality and Women’s Empowerment 

6 (referred to in this section as the ‘‘Office’’). 

7 (b) DIRECTOR.—The Office shall be headed by a Di8 rector (referred to in this section as the ‘‘Director’’), who 

9 shall be highly qualified in matters relating to inter10 national development and gender integration. The Direc11 tor shall report directly to the Administrator and consult 

12 regularly with the Ambassador-at-Large for Global Wom13 en’s Issues. 

14 (c) DUTIES.—The Director shall— 

15 (1) advise the Administrator on matters relat16 ing to the advancement of women’s global develop17 ment; 

18 (2) lead and coordinate all efforts of the United 

19 States Agency for International Development to em20 power women and promote gender equality in devel21 oping countries, including efforts to prevent and re22 spond to gender-based violence; 

23 (3) direct the preparation of the Global Strat24 egy for Gender Equality under section 1703; 

25 (4) mainstream into the design, implementa26 tion, and evaluation of policies and programs at all 


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1 levels an understanding of the distinctive impact 

2 that such policies and programs may have on women 

3 and girls; 

4 (5) assist other bureaus, offices, and overseas 

5 missions in designing and revising strategies, pro6 grams, projects and activities to empower women 

7 and promote gender equality; 

8 (6) monitor and evaluate the impact on women 

9 and girls of programs carried out by USAID; and 

10 (7) disseminate information about lessons 

11 learned and best practices for advancing women’s 

12 global development throughout USAID and other 

13 relevant Federal agencies. 

14 SEC. 1706. PREVENTION OF CHILD MARRIAGE. 

15 (a) FINDINGS.—Congress finds the following: 

16 (1) Child marriage, also known as ‘‘forced mar17 riage’’ or ‘‘early marriage’’, is a harmful traditional 

18 practice that deprives girls of their dignity and 

19 human rights. 

20 (2) Child marriage as a traditional practice, as 

21 well as through coercion or force, is a violation of ar22 ticle 16 of the Universal Declaration of Human 

23 Rights, which states, ‘‘Marriage shall be entered into 

24 only with the free and full consent of intending 

25 spouses’’. 


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1 (3) Factors perpetuating child marriage include 

2 poverty, a lack of educational or employment oppor3 tunities for girls, parental concerns to ensure sexual 

4 relations within marriage, the dowry system, and the 

5 perceived lack of value of girls. 

6 (4) Child marriage has negative effects on the 

7 health of girls, including significantly increased risk 

8 of maternal death and morbidity, infant mortality 

9 and morbidity, obstetric fistula, and sexually trans10 mitted diseases, including HIV/AIDS. 

11 (5) Most countries with high rates of child mar12 riage have a legally established minimum age of 

13 marriage, yet child marriage persists due to strong 

14 traditional norms and the failure to enforce existing 

15 laws. 

16 (6) Investments in girls’ schooling, creating safe 

17 community spaces for girls, and programs to build 

18 skills for out-of-school girls are all effective and 

19 demonstrated strategies for preventing child mar20 riage by addressing conditions of poverty, low status, 

21 and social norms that contribute to child marriage. 

22 (b) STATEMENT OF POLICY.—It is the policy of the 

23 United States to seek the elimination of the practice of 

24 child marriage. 


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1 (c) AUTHORIZATION.—The Administrator is author2 ized to use funds made available under this chapter for 

3 programs to prevent the incidence of child marriage in 

4 partner countries through the promotion of educational, 

5 health, economic, social, and legal rights of girls and 

6 women. 

7 (d) PRIORITY.—In providing assistance authorized 

8 under subsection (c), the Administrator should give pri9 ority to— 

10 (1) areas or regions in developing countries in 

11 which 40 percent or more of girls under the age of 

12 18 are married; and 

13 (2) activities to— 

14 (A) expand and replicate existing commu15 nity-based programs that are successful in pre16 venting the incidence of child marriage; 

17 (B) establish pilot projects to prevent child 

18 marriage; and 

19 (C) share evaluations of successful pro20 grams, program designs, experiences, and les21 sons. 


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1 SEC. 1707. COORDINATION OF EFFORTS TO PREVENT 

2 CHILD MARRIAGE. 

3 (a) DESIGNATION.—The Administrator shall des4 ignate an official to lead and coordinate policies and pro5 grams of the Agency to prevent child marriage. 

6 (b) ADDITIONAL DUTIES.—In addition to the respon7 sibilities described in subsection (a), the official designated 

8 under subsection (a) shall— 

9 (1) ensure that efforts to prevent child mar10 riage are integrated into the relevant country and 

11 sector strategies prepared in accordance with sec12 tions 1018 and 1019; and 

13 (2) collect and disseminate information on— 

14 (A) best practices for preventing and re15 ducing the incidence of child marriage; 

16 (B) the incidence of child marriage in part17 ner countries where the practice of child mar18 riage is prevalent; and 

19 (C) the relationship between prevalence of 

20 child marriage and the achievement of develop21 ment goals. 

22 (c) CONSULTATION.—In carrying out the duties 

23 under this section, the official designated under subsection 

24 (a) shall consult with a wide range of relevant stake25 holders. 


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1 SEC. 1708. DEFINITIONS. 

2 In this chapter: 

3 (1) CHILD MARRIAGE.—The term ‘‘child mar4 riage’’ means the marriage of a girl or a boy who 

5 has not reached the minimum legal age for marriage 

6 in the country of residence, or where there is no 

7 such law, under the age of 18. 

8 (2) GENDER ANALYSIS.—The term ‘‘gender 

9 analysis’’ means the systematic examination of the 

10 different roles, rights, resources, constraints, and op11 portunities of men and women, boys and girls, in a 

12 society, economy, community or family. 

13 (3) GENDER EQUALITY.—The term ‘‘gender 

14 equality’’ means equal opportunities for all people, 

15 regardless of sex, to achieve their personal potential 

16 and maximize their contributions to the development 

17 of their families, communities, and countries. 

18 (4) GENDER INTEGRATION.—The term ‘‘gender 

19 integration’’ means incorporating gender analysis 

20 and the resulting recommendations in all policies, 

21 budgets, programming, and performance monitoring 

22 and evaluation. 

23 CHAPTER 8—STRENGTHENING 

24 DEMOCRATIC GOVERNANCE 

25 SEC. 1801. FINDINGS AND STATEMENT OF POLICY. 

26 (a) FINDINGS.—Congress finds the following: 


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1 (1) Democratic development, political pluralism, 

2 and respect for internationally recognized human 

3 rights are intrinsically linked to economic and social 

4 progress. Efforts to reduce poverty and promote 

5 broad-based economic growth are more effective and 

6 sustainable in a political environment in which fun7 damental freedoms and the rule of law are re8 spected, government institutions are broadly rep9 resentative, and corruption is held to a minimum. 

10 (2) Violent extremism that threatens United 

11 States national security flourishes where democratic 

12 governance is weak, justice uncertain, and legal ave13 nues for change in short supply. 

14 (3) Democracy can only be sustained in a soci15 ety in which the legitimacy of the government rests 

16 firmly on the expressed consent of the governed; the 

17 rights of all citizens, including minorities, are re18 spected and protected; and there is effective civilian 

19 control over the military and security forces. 

20 (4) There is a growing worldwide movement to21 ward more open, just and democratic societies. This 

22 trend is essential to achieving the United States ulti23 mate objective of worldwide respect for human rights 

24 and fundamental freedoms without distinction as to 

25 race, sex, language, religion, sexual orientation, or 


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1 gender identity. At the same time, this trend holds 

2 great promise for promoting the peace of the world 

3 and the foreign policy, security, and general welfare 

4 of the United States. 

5 (5) Preventing mass atrocities is a core national 

6 security interest and a core moral responsibility of 

7 the United States. Governmental engagement on 

8 atrocities too often arrives too late, when opportuni9 ties for prevention or low-cost, low-risk action have 

10 been missed. By helping partner countries to 

11 strengthen democratic institutions and practices and 

12 to manage diversity peacefully, responsibly and equi13 tably, USAID can address many of the structural 

14 conditions that give rise to mass atrocities. 

15 (6) Persons belonging to racial, ethnic, reli16 gious, and linguistic minorities, as well as lesbians, 

17 gays, bisexuals, and transgender individuals, and 

18 persons with disabilities are often subjected to dis19 crimination, harassment, exploitation, intimidation, 

20 and exclusion. United States policies and programs 

21 should seek to foster equal opportunity and equal ac22 cess to justice for all people, including marginalized 

23 groups. 

24 (7) Civil society organizations and activists 

25 worldwide contribute in unique and essential ways to 


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1 development as innovative agents of change and so2 cial transformation. In particular, such organizations 

3 have an important role to play in bringing the voices 

4 of the poor to influence government policies, and to 

5 hold governments and other powerful actors to ac6 count for their actions. A diverse, strong, and inde7 pendent civil society sector is critical for the sustain8 able reduction of poverty. 

9 (8) Democracy cannot be imposed from with10 out. However, the United States should encourage 

11 all states to meet their obligations under inter12 national law to uphold and protect human rights 

13 and fundamental freedoms, and should support the 

14 aspirations of those who seek through peaceful 

15 means to make their governments more democratic 

16 and accountable. 

17 (9) Democracy takes time to become firmly 

18 rooted in society and in the political system. While 

19 short-term interventions can be important and effec20 tive means for preventing abuses and opening win21 dows of opportunity, democratic development gen22 erally requires sustained effort and a comprehensive 

23 approach. 

24 (b) STATEMENT OF POLICY.—It is the policy of the 

25 United States to— 


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1 (1) support democratic aspirations and values, 

2 foster the spread of democratic institutions, and en3 courage universal respect for internationally recog4 nized human rights, including civil and political lib5 erties; 

6 (2) recognize that, to be successful, such sup7 port must not be defined narrowly in terms of par8 ties and elections and government institutional ca9 pacity building, but must include other, equally im10 portant, aspects of democratic development, includ11 ing— 

12 (A) independent and balanced media; 

13 (B) impartial and competent judicial proc14 esses that deliver access to justice; 

15 (C) respect for human rights and funda16 mental freedoms; and 

17 (D) a vibrant civil society that engages 

18 meaningfully with government; and 

19 (3) take into consideration a country’s commit20 ment to good governance, respect for the rule of law 

21 and protection of internationally recognized human 

22 rights in providing assistance under this subtitle. 


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1 SEC. 1802. GOAL AND OBJECTIVES. 

2 (a) GOAL.—The goal of assistance under this chapter 

3 is to strengthen democratic institutions and practices and 

4 promote human rights in partner countries. 

5 (b) OBJECTIVES.—In furtherance of the goal of sub6 section (a), assistance under this chapter shall be designed 

7 to help partner countries achieve the following objectives: 

8 (1) Improving government responsiveness, ac9 countability, transparency and effectiveness. 

10 (2) Increasing the capacity and participation of 

11 civil society. 

12 (3) Strengthening the observance of inter13 nationally recognized human rights and the rule of 

14 law. 

15 (4) Fostering political competition and con16 sensus-building. 

17 (5) Protecting and expanding democratic space 

18 for civil society organizations to operate. 

19 SEC. 1803. ASSISTANCE FOR DEMOCRATIC STRENGTH20 ENING. 

21 (a) IN GENERAL.—The Administrator is authorized 

22 to use funds made available under section 1015 to further 

23 the goal and objectives of this chapter in partner coun24 tries. 

25 (b) ACTIVITIES.—Assistance authorized under sub26 section (a) shall include support for the following: 


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1 (1) Conducting free, legitimate, credible, and 

2 fair national, state, and local elections. 

3 (2) Developing and strengthening open, demo4 cratic, peaceful and effective political parties. 

5 (3) Enhancing the responsiveness and effective6 ness of public administration. 

7 (4) Building professional, transparent and re8 sponsible legislatures. 

9 (5) Developing and strengthening free, inde10 pendent and professional media. 

11 (6) Fostering inclusive and transparent legisla12 tive and regulatory processes at all levels of govern13 ment. 

14 (7) Decentralization efforts and the develop15 ment of capable, representative local government in16 stitutions. 

17 (8) Strengthening civilian, democratic control 

18 over the military. 

19 (9) Combating corruption and promoting finan20 cial integrity. 

21 (10) Improving the independence, impartiality, 

22 transparency and competence of judicial officials and 

23 processes. 

24 (11) Revising and modernizing laws, constitu25 tions, and legal frameworks. 


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1 (12) Expanding access of crime victims and 

2 witnesses to legal information and services. 

3 (13) Promoting official recognition of, and re4 spect in practice for, internationally recognized 

5 human rights. 

6 (14) Supporting and assisting international and 

7 domestic courts and tribunals investigating and 

8 prosecuting instances of mass atrocities. 

9 (15) Rehabilitating victims of torture, including 

10 activities specifically designed to treat the physical 

11 and psychological effects of torture. 

12 (16) Preventing and responding to abuses such 

13 as human trafficking, sexual and gender-based vio14 lence, the conscription of children into armed forces, 

15 the use of child labor and the practice of child mar16 riage. 

17 (17) Strengthening the capacity of civil society 

18 organizations to participate effectively in public life 

19 and provide input into government decisions. 

20 (18) Increasing citizen awareness of rights and 

21 responsibilities, and encouraging greater participa22 tion in political processes. 

23 (19) Promoting tolerance, dialogue, and peace24 ful dispute resolution. 


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1 (20) Reducing the risk of mass atrocities 

2 through early warning and early action. 

3 (21) Fostering equal rights and equal opportu4 nities for marginalized groups. 

5 (22) Countering laws, regulations, policies, and 

6 practices that restrict civil space. 

7 (23) Expanding public access to information 

8 and communications, including through the Internet. 

9 (24) Implementing Action Plans for Human 

10 Rights and Democracy prepared pursuant to section 

11 3103. 

12 SEC. 1804. ADVISORY COMMITTEE ON DEMOCRACY PRO13 MOTION. 

14 (a) ESTABLISHMENT.—There is established an Advi15 sory Committee on Democracy Promotion (in this section 

16 referred to as the ‘‘Advisory Committee’’). The Advisory 

17 Committee shall report to the Secretary and the Adminis18 trator. 

19 (b) PURPOSE.—The purpose of the Advisory Com20 mittee is to review and make recommendations on how to 

21 improve United States Government efforts to promote de22 mocracy internationally. 

23 (c) DUTIES.—The duties of the Advisory Committee 

24 shall include consulting with, providing information to, 

25 and advising the Secretary and the Administrator on 


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1 issues relating to democracy promotion in the formulation 

2 and implementation of United States foreign policy and 

3 foreign assistance, including such matters as— 

4 (1) the means by which the United States Gov5 ernment should promote democracy, depending on 

6 circumstances in foreign countries; 

7 (2) the integration of democracy considerations 

8 into United States diplomatic and development ef9 forts; 

10 (3) the special challenges of setting indicators 

11 and measuring impact in the field of democracy and 

12 governance; 

13 (4) lessons learned and best practices in inter14 national democracy promotion; 

15 (5) the balance between strengthening civil soci16 ety and strengthening governance; 

17 (6) the application of principles of country own18 ership in undemocratic or democratic transition 

19 countries; 

20 (7) the application of marking and branding 

21 rules to democracy programs; 

22 (8) the consistency of democracy policies and 

23 programs across Federal agencies; and 

24 (9) the parameters for operating in undemo25 cratic and conflict settings. 


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1 (d) MEMBERSHIP.— 

2 (1) NUMBER AND APPOINTMENT.—The Advi3 sory Committee shall be composed of 8 individuals 

4 appointed by the Secretary and 7 individuals ap5 pointed by the Administrator who are experts in var6 ious aspects of the field of international democracy, 

7 human rights, and good governance. 

8 (2) TERMS.—Members of the Advisory Com9 mittee shall serve a term of 2 years, and may be ap10 pointed to consecutive terms. 

11 (3) INDIVIDUAL CAPACITY.—Members of the 

12 Advisory Committee shall serve in an individual, not 

13 a representative, capacity. 

14 (4) CHAIRPERSON AND VICE CHAIRPERSON.— 

15 The Chairperson of the Advisory Committee shall be 

16 designated by the Secretary, and the Vice Chair17 person of the Advisory Committee shall be des18 ignated by the Administrator, at the time of their 

19 appointment to the Advisory Committee. 

20 (e) REPORT.— 

21 (1) IN GENERAL.—The Advisory Committee 

22 shall submit to the Secretary and the Administrator 

23 on an annual basis a report that describes the activi24 ties of the Advisory Committee during the preceding 

25 year. 


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1 (2) AVAILABILITY TO PUBLIC.—The report re2 quired by paragraph (1) shall be made publicly 

3 available on the Internet. 

4 (f) MEETINGS.—The Advisory Committee shall hold 

5 not less than 4 meetings each year. 

6 (g) SUBCOMMITTEES.—The Advisory Committee may 

7 establish subcommittees and special task forces, as deter8 mined necessary by the Advisory Committee. Any such 

9 subcommittee or special task force shall meet subject to 

10 the call of the Chairperson of the subcommittee or special 

11 task force, as the case may be. 

12 SEC. 1805. FOREIGN GOVERNMENT APPROVAL AND CONDI13 TIONALITY. 

14 (a) FOREIGN GOVERNMENT APPROVAL.—The Ad15 ministrator shall not require the approval or agreement 

16 of a foreign government for— 

17 (1) specific programs, projects, or activities au18 thorized under this chapter; or 

19 (2) specific organizations carrying out assist20 ance authorized under this chapter. 

21 (b) FOREIGN GOVERNMENT CONDITIONALITY.—The 

22 Administrator shall not terminate assistance authorized 

23 under this chapter for a country pursuant to, or in order 

24 to conclude, an agreement to provide other forms of assist25 ance for such country. 


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1 SEC. 1806. RELATIONSHIP TO OTHER LAWS. 

2 Assistance authorized under this chapter to promote 

3 human rights, strengthen civil society, and foster a free 

4 and fair election, referendum, or vote may be made avail5 able notwithstanding any provision of law that restricts 

6 assistance to a foreign country. 

7 SEC. 1807. PROHIBITING ASSISTANCE TO INFLUENCE THE 

8 OUTCOME OF ELECTIONS. 

9 (a) IN GENERAL.—No assistance authorized under 

10 this chapter shall be used to influence the outcome of any 

11 elections in any country. 

12 (b) EXCEPTION.—The prohibition in subsection (a) 

13 shall not be construed to prohibit programs that make a 

14 good faith effort to assist all democratic parties with equi15 table levels of assistance. 

16 SEC. 1808. PROTECTED SPEECH. 

17 Notwithstanding any other provision of law, regula18 tion, or policy, in determining eligibility for assistance 

19 under this title, foreign nongovernmental organizations— 

20 (1) shall not be ineligible for such assistance 

21 solely on the basis of health or medical services, in22 cluding counseling and referral services, provided by 

23 such organizations with non-United States Govern24 ment funds, if such services— 

25 (A) do not violate the laws of the country 

26 in which they are being provided, and 


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1 (B) would not violate United States Fed2 eral law if provided in the United States; and 

3 (2) shall not be subject to requirements relating 

4 to the use of non-United States Government funds 

5 for advocacy and lobbying activities other than those 

6 that apply to United States nongovernmental organi7 zations receiving assistance under this title. 

8 Subtitle B—Alleviating Human 

9 Suffering 

10 SEC. 1901. FINDINGS AND STATEMENT OF POLICY. 

11 (a) FINDINGS.—Congress finds the following: 

12 (1) Natural disasters can temporarily over13 whelm the capacity of countries, regardless of wealth 

14 and technological advancement, to meet basic human 

15 needs and protect people from harm. Such disasters 

16 are likely to increase in number and severity along 

17 with the changes in the world’s climate, the degrada18 tion of the environment, and the expansion of the 

19 world’s population. 

20 (2) Conflict, weak and poor governance, corrup21 tion, and repression increase vulnerability to human22 itarian crisis, aggravate the impact of physical and 

23 environmental shocks, complicate the ability to re24 spond effectively, and lengthen the recovery period. 


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1 (3) Conflicts, human rights violations, and nat2 ural disasters often uproot people within their own 

3 countries. Forced to abandon their homes and liveli4 hoods, and without access to the rights and re5 sources available to those who cross an international 

6 border, these internally displaced persons are among 

7 the world’s most vulnerable and neglected people. 

8 (4) Persons affected by conflict are at greatly 

9 heightened risk of sexual and gender-based violence. 

10 Such risk can be mitigated through proper design 

11 and implementation of humanitarian programs, es12 pecially those relating to water and sanitation, 

13 health, shelter, food, education, energy, and liveli14 hoods, as well as through specific protection meas15 ures. 

16 (5) In protracted crises, humanitarian resources 

17 are often exhausted before the essential conditions 

18 are in place for long-term, sustainable development. 

19 In addition, lack of expertise and training, inad20 equate coordination, and unclear or narrow man21 dates often leave programming gaps. Coordinated 

22 action is required to address basic human needs at 

23 every stage of the transition, from emergency relief 

24 to recovery, rehabilitation, reconstruction, and devel25 opment. 


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1 (6) Continuity of educational activities for all 

2 children is an essential humanitarian need. Assist3 ance to countries affected by conflict or crisis should 

4 include formal and informal education services to en5 sure that children are able to continue their school6 ing and are protected from physical harm, psycho7 logical and social distress, recruitment into armed 

8 groups, family separation, and abuses related to 

9 their displacement. 

10 (7) Nongovernmental organizations play a lead11 ing role in humanitarian action, not only by deliv12 ering relief in underserved areas, but also by con13 tributing a significant proportion of the international 

14 resources, by developing effective and innovative 

15 techniques and methodologies, by maintaining long16 term relationships of trust with affected commu17 nities, by establishing reputations for independence, 

18 impartiality and neutrality, by integrating knowledge 

19 and expertise about local languages, customs, condi20 tions, and needs, by bridging the gaps between relief 

21 and development, and by advocating for those in 

22 greatest need. 

23 (8) The United Nations plays a central, unique, 

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1 filiated agencies have capabilities and expertise that 

2 far exceed the ability of any single donor to respond 

3 to humanitarian needs. The collective voice of these 

4 partners frequently enhances United States bilateral 

5 efforts and often plays a useful role in gaining ac6 cess and achieving results where United States influ7 ence might otherwise be limited. 

8 (9) Multilateralism allows the United States to 

9 leverage its humanitarian contributions as part of a 

10 wider international donor effort and helps ensure 

11 that United States efforts complement those of other 

12 donors. To be effective, United States engagement 

13 with multilateral humanitarian organizations re14 quires predictable funding and strong diplomatic en15 gagement in policy development and institutional 

16 management. 

17 (b) STATEMENT OF POLICY.—It is the policy of the 

18 United States to save lives, alleviate human suffering 

19 wherever possible, and protect vulnerable populations, tak20 ing action solely on the basis of need, without discrimina21 tion between or within affected populations, without re22 gard to diplomatic, economic, military, or other objectives 

23 of the United States, and without favoring any side in an 

24 armed conflict or other dispute. 


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1 SEC. 1902. GOAL AND OBJECTIVES. 

2 (a) GOAL.—The goal of assistance under this subtitle 

3 is to save lives, alleviate suffering, maintain human dig4 nity, and protect and uphold the rights of extremely vul5 nerable people. 

6 (b) OBJECTIVES.—In furtherance of the goal of sub7 section (a), assistance under this subtitle shall be designed 

8 to achieve the following objectives: 

9 (1) Provide quick and effective relief in the 

10 aftermath of disasters, whether natural or human11 caused. 

12 (2) Facilitate the transition to self-sufficiency 

13 and safe lives and livelihoods. 

14 (3) Protect civilians affected by conflict, dis15 aster, and displacement from physical harm, perse16 cution, exploitation, abuse, malnutrition and disease, 

17 family separation, gender-based violence, forcible re18 cruitment and other threats to human rights. 

19 (4) Build capacity to prevent and mitigate the 

20 effects of conflict, disasters, and displacement. 

21 SEC. 1903. HUMANITARIAN PRINCIPLES. 

22 (a) IN GENERAL.—United States humanitarian ac23 tion shall be carried out in accordance with the following 

24 principles: 


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1 (1) The central purpose of humanitarian action 

2 is to save lives, alleviate human suffering, and pro3 tect vulnerable population wherever possible. 

4 (2) Humanitarian action should be impartial, 

5 based solely on and in proportion to need, without 

6 discrimination between or within affected popu7 lations, and without regard to the political views, na8 tional origin, or religious affiliation of the bene9 ficiaries. 

10 (3) Humanitarian action should be neutral, 

11 without furthering a political or religious agenda or 

12 favoring any side in an armed conflict or other dis13 pute where such humanitarian action is carried out. 

14 (4) Humanitarian action should be independent, 

15 without regard to the political, economic, military, or 

16 other objectives that any actor may hold in relation 

17 to the affected areas and populations. 

18 (5) Humanitarian action should be undertaken 

19 in accordance with international human rights law, 

20 international humanitarian law, refugee law, and the 

21 United Nations Guiding Principles on Internal Dis22 placement. 

23 (6) Humanitarian action should meet inter24 national standards, using the SPHERE Minimum 

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1 Agency Standing Committee guidelines as bench2 marks, should be informed by the INEE Minimum 

3 Standards, and should promote the principles and 

4 practices of Good Humanitarian Donorship. 

5 (7) Protection of civilians affected by conflict, 

6 disaster, and displacement from physical harm, per7 secution, exploitation, abuse, malnutrition and dis8 ease, family separation, sexual and gender-based vio9 lence, forcible recruitment, and other threats to 

10 human rights is a core element of humanitarian ac11 tion. 

12 (8) Humanitarian action should be primarily ci13 vilian in nature. The Department of Defense should 

14 provide humanitarian assistance overseas only as a 

15 last resort when there is no comparable civilian al16 ternative and when the use of military or civil de17 fense assets can uniquely meet a critical humani18 tarian need. 

19 (9) When the military is required to support a 

20 humanitarian response, its participation should be 

21 subject to the overall leadership, coordination and 

22 policy guidance of civilian agencies, who must be 

23 provided the requisite resources and authorities to 

24 perform this leadership role. 


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1 (10) The United States should adopt, between 

2 the Department of State and USAID, a lead-agency 

3 approach with a clear division of leadership and re4 sponsibility for humanitarian response. Under the 

5 guidance of the President, the Secretary should lead 

6 for operations responding to political and security 

7 crises, while the Administrator should lead for oper8 ations in response to humanitarian crises resulting 

9 from large-scale natural or industrial disasters, fam10 ines, disease outbreaks, and other natural phe11 nomena. 

12 (11) Humanitarian action should be undertaken 

13 in a timely, flexible, and efficient manner on the 

14 basis of assessed needs. 

15 (12) In addition to providing funding for relief 

16 efforts, the United States should use its leverage to 

17 assist humanitarian agencies in obtaining secure, 

18 unfettered access to survivors in crisis situations. 

19 (13) To ensure impartiality, neutrality, inde20 pendence, and the appearance thereof, humanitarian 

21 action should be implemented by intergovernmental 

22 and nongovernmental international humanitarian or23 ganizations, in partnership with local communities, 

24 indigenous organizations, and affected governments 

25 whenever possible. 


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1 (14) Individuals affected by conflict, disaster, 

2 persecution, and displacement have the greatest 

3 stake in the performance of humanitarian programs 

4 and should, to the greatest possible extent, be in5 volved in the design, implementation, monitoring, 

6 and evaluation of such programs. 

7 (15) Humanitarian, reconstruction, and devel8 opment programs should be coordinated, planned, 

9 and funded to ensure continuity of life-sustaining 

10 services during transition phases. 

11 (16) Humanitarian, development, and other 

12 economic assistance programs should be designed 

13 with an eye toward reducing the risk and impact of 

14 future conflict and crisis and building resiliency 

15 among the most vulnerable populations. 

16 (17) United States humanitarian action should 

17 strive to ensure that refugees, internally displaced 

18 persons, and other conflict-affected individuals and 

19 communities are treated equally in the application of 

20 policy and the allocation of resources. 

21 (18) To promote learning, accountability, trans22 parency, and the efficient use of resources, the 

23 United States should support independent moni24 toring and evaluation of all humanitarian assistance. 

25 (b) DEFINITION.—In this section— 


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1 (1) the term ‘‘United States humanitarian ac2 tion’’ or ‘‘humanitarian action’’ means— 

3 (A) humanitarian assistance as defined in 

4 section 6; 

5 (B) assistance under any provision of law 

6 to save lives, alleviate human suffering, and 

7 protect vulnerable populations in an inter8 national disaster; and 

9 (C) diplomatic and military activities in 

10 support of the goal and objectives of this chap11 ter; and 

12 (2) the term ‘‘INEE Minimum Standards’’ 

13 means the standards for education developed by the 

14 Inter-Agency Network on Education in Emergencies 

15 for use in emergency response, emergency prepared16 ness, and humanitarian advocacy. 

17 SEC. 1904. INTERNATIONAL DISASTER ASSISTANCE. 

18 (a) AUTHORIZATION.—Notwithstanding any other 

19 provision of this or any other Act, the Administrator is 

20 authorized to provide assistance to any foreign country, 

21 international organization, or private voluntary organiza22 tion, on such terms and conditions as the Administrator 

23 may determine, for international disaster relief, recovery, 

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1 gency planning for, disasters and humanitarian crises 

2 abroad. 

3 (b) AVAILABILITY OF FUNDS.—Amounts made avail4 able under this section are authorized to remain available 

5 until expended. 

6 (c) REIMBURSEMENT AUTHORITY.—In addition to 

7 amounts otherwise available to carry out this section, up 

8 to $100,000,000 of amounts made available under subtitle 

9 A in any fiscal year may be obligated for the purposes 

10 of, and in accordance with the authorities of, this section. 

11 Amounts subsequently made available under this section 

12 may be used to reimburse any account under which obliga13 tions were incurred under this subsection. 

14 SEC. 1905. EMERGENCY HUMANITARIAN RESPONSE FUND. 

15 (a) AUTHORITY.—Whenever the Administrator deter16 mines it to be important to the national interest of the 

17 United States, the Administrator is authorized to provide, 

18 on such terms and conditions as the Administrator may 

19 determine, assistance under this section for the purpose 

20 of meeting unexpected urgent humanitarian and food as21 sistance needs, notwithstanding any other provision of law. 

22 (b) ESTABLISHMENT.—There is established a United 

23 States Emergency Humanitarian Response Fund to carry 

24 out the purposes of this section (in this section referred 

25 to as the ‘‘Fund’’). 


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1 (c) TRANSFER AUTHORITY; AVAILABILITY OF

2 FUNDS.—In addition to amounts otherwise available to 

3 carry out this section, the President is authorized to trans4 fer to the Fund from amounts made available under any 

5 other provision of this Act such sums as may be necessary 

6 to carry out the purposes of this section, except that the 

7 total amount in the Fund at any time shall not exceed 

8 $500,000,000. Amounts in the Fund are authorized to re9 main available until expended. 

10 (d) NOTIFICATION.—The President shall keep the ap11 propriate congressional committees currently informed of 

12 the use of funds and the exercise of functions authorized 

13 in this section. 

14 SEC. 1906. DEFINITIONS. 

15 In this subtitle: 

16 (1) DISASTER.—The term ‘‘disaster’’ means a 

17 human-caused or natural occurrence that causes loss 

18 of life, health, property, or livelihood, inflicting se19 vere destruction and distress. 

20 (2) INTERNATIONAL DISASTER RELIEF, RECOV21 ERY, AND RECONSTRUCTION.—The term ‘‘inter22 national disaster relief, recovery, and reconstruc23 tion’’ means— 

24 (A) disaster planning and preparedness, 

25 disaster risk reduction, and other actions to 


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1 mitigate death and destruction in the event of 

2 a disaster; 

3 (B) immediate actions intended to save 

4 lives, alleviate human suffering, and protect vul5 nerable populations during and after a disaster; 

6 (C) short-term measures to facilitate the 

7 transition to self-sufficiency and safe lives and 

8 livelihoods following a disaster; and 

9 (D) actions to begin to reconstitute basic 

10 services and facilities following a disaster. 

11 (3) PROTECT.—The terms ‘‘protect’’ and ‘‘pro12 tection’’— 

13 (A) mean all activities aimed at obtaining 

14 full respect for the rights of the individual in 

15 accordance with international human rights 

16 law, international humanitarian law, refugee 

17 law, and the United Nations Guiding Principles 

18 on Internal Displacement; and 

19 (B) include activities to prevent, reduce, or 

20 mitigate the impact of violence, coercion, depri21 vation, or abuse on individuals or groups during 

22 international disasters. 


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1 TITLE II—ADVANCING PEACE 

2 AND MITIGATING CONFLICT 

3 SEC. 2001. FINDINGS AND STATEMENT OF POLICY. 

4 (a) FINDINGS.—Congress finds the following: 

5 (1) Peacebuilding involves the full range of ap6 proaches, processes, and stages of transforming vio7 lent conflict into stable, peaceful relationships. 

8 (2) Because many of the greatest threats to 

9 United States national security have emerged from 

10 failed states, it is in the national security interest of 

11 the United States to support peacebuilding efforts to 

12 stabilize and secure fragile states and states under 

13 stress. 

14 (3) United States peacebuilding efforts are 

15 most effective when they are undertaken in coopera16 tion with the international community, and when 

17 they build local capacity to prevent and stop violence 

18 and mass atrocities. 

19 (4) In the event that prevention fails, the 

20 United States has an obligation to work both multi21 laterally and bilaterally to mobilize diplomatic, hu22 manitarian, financial, and when necessary and ap23 propriate, military resources to save lives and pro24 tect civilian populations. 


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1 (5) Civil society organizations, including inter2 national nongovernmental organizations and local 

3 community groups, play an important role in pro4 moting nonviolent conflict resolution, fostering har5 mony among religions, ethnic groups, communities, 

6 and factions, and facilitating second-track diplo7 macy. By coordinating with and working through 

8 such organizations, the United States can strength9 en the effectiveness of its peacebuilding programs. 

10 (b) STATEMENT OF POLICY.—It is the policy of the 

11 United States to promote civilian security and long-term 

12 sustainable, secure, and stable communities. 

13 SEC. 2002. DEFINITION. 

14 In this title, the term ‘‘peacebuilding’’ means activi15 ties to prevent armed conflict, prevent and respond to 

16 mass atrocities, stabilize weak and fragile states, protect 

17 civilians in conflict zones, mitigate crises, help countries 

18 to rebuild and recover after conflict, and support transi19 tions to peace, stability, and democracy. 

20 Subtitle A—General Authorities 

21 SEC. 2011. PEACEKEEPING. 

22 (a) STATEMENT OF POLICY.—It is the policy of the 

23 United States to employ a variety of unilateral, bilateral, 

24 and multilateral means to respond to international con25 flicts and crises, placing a high priority upon timely, preVerDate Mar 15 2010 22:23 Apr 26, 2013 Jkt 029200 PO 00000 Frm 00235 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793

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1 ventive diplomatic efforts and exercising a leadership role 

2 in promoting international efforts to end crises peacefully. 

3 (b) AUTHORIZATION.—The Secretary is authorized to 

4 provide assistance to foreign countries, international orga5 nizations, and regional arrangements, on such terms and 

6 conditions as the Secretary may determine, for peace7 keeping operations in furtherance of the national security 

8 interests of the United States. 

9 (c) REIMBURSEMENT.—Such assistance may include 

10 reimbursement for expenses incurred pursuant to section 

11 7 of the United Nations Participation Act of 1945 (22 

12 U.S.C. 287d–1), except that such reimbursements may 

13 not exceed $5,000,000 in any fiscal year unless a greater 

14 amount is specifically authorized by law. 

15 (d) DETERMINATION.—If the President determines 

16 that, as the result of an unforeseen emergency, the provi17 sion of assistance under this section in amounts in excess 

18 of amounts otherwise made available for such assistance 

19 is important to the national interests of the United States, 

20 the President may— 

21 (1) exercise the authority of section 9602 to 

22 transfer amounts made available to carry out section 

23 4103 for use under this section without regard to 

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1 ferred in any fiscal year may not exceed 

2 $15,000,000; and 

3 (2) in the event the President also determines 

4 that such unforeseen emergency requires the imme5 diate provision of assistance under this section, di6 rect the drawdown of commodities and services from 

7 the inventory and resources of any agency of the 

8 United States Government of an aggregate value not 

9 to exceed $25,000,000 in any fiscal year. 

10 SEC. 2012. TRANSITION INITIATIVES. 

11 (a) AUTHORIZATION.—The Administrator is author12 ized to provide, notwithstanding any other provision of 

13 law, assistance to support the transition to peace, democ14 racy, and sustainable development of a country or region 

15 that is at risk of, in, or in transition from, conflict or civil 

16 strife. 

17 (b) USE OF FUNDS.—Assistance under this section 

18 includes support for the following: 

19 (1) Developing or strengthening democratic in20 stitutions and processes. 

21 (2) Short-term economic and political stabiliza22 tion. 

23 (3) Reconstructing or revitalizing basic infra24 structure. 


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1 (4) Fostering reconciliation and the peaceful 

2 resolution of conflict. 

3 (c) TRANSFER AUTHORITY.—If the Secretary deter4 mines that it is important to the national interests of the 

5 United States to provide transition assistance in excess of 

6 amounts appropriated or otherwise made available under 

7 this section, up to $25,000,000 of the funds made avail8 able under this Act may be used for purposes of this sec9 tion and under the authorities applicable to funds made 

10 available under this section. 

11 (d) NOTIFICATION.— 

12 (1) BY ADMINISTRATOR.—The Administrator 

13 shall notify the appropriate congressional committees 

14 not less than 5 days before beginning a new pro15 gram of assistance under this section. 

16 (2) BY SECRETARY.—The Secretary shall notify 

17 the appropriate congressional committee not less 

18 than 5 days before making a transfer pursuant to 

19 subsection (c). 

20 SEC. 2013. LIMIT ON PAYMENT TO UNITED NATIONS AND 

21 AFFILIATED AGENCIES. 

22 Section 404(b) of the Foreign Relations Authoriza23 tion Act, Fiscal Years 1994 and 1995 (Public Law 103– 

24 236; 22 U.S.C. 287e note) is amended— 


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1 (1) by striking ‘‘CONTRIBUTIONS.—’’ and all 

2 that follows through ‘‘Funds authorized’’ and insert3 ing ‘‘CONTRIBUTIONS.—Funds authorized’’; and 

4 (2) by striking paragraph (2). 

5 SEC. 2014. COMPLEX CRISIS, STABILIZATION, AND PREVEN6 TION FUND. 

7 (a) ESTABLISHMENT OF FUND.— 

8 (1) IN GENERAL.—The Secretary is authorized 

9 to establish a fund, to be known as the ‘‘Complex 

10 Crisis, Stabilization, and Prevention Fund’’ (referred 

11 to in this section as the ‘‘Fund’’), to provide assist12 ance to a country or region designated by the Sec13 retary as a country at risk of, in, or in transition 

14 from, conflict or civil strife and for other purposes 

15 authorized in this section. 

16 (2) CONGRESSIONAL NOTIFICATION.—The Sec17 retary shall notify the appropriate congressional 

18 committees at least five days in advance of an obli19 gation of funds under this section. 

20 (3) WAIVER.—The requirement for notification 

21 under paragraph (2) may be waived if— 

22 (A) failure to do so would pose a substan23 tial risk to human health or welfare; 


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1 (B) the appropriate congressional commit2 tees are notified not later than three days after 

3 an obligation of funds; and 

4 (C) such notification contains an expla5 nation of the emergency circumstances necessi6 tating such waiver. 

7 (4) PURPOSE OF ASSISTANCE.—Assistance may 

8 be provided under this section for the following pur9 poses: 

10 (A) Fostering reconstruction or stabiliza11 tion. 

12 (B) Mitigating or responding to emerging 

13 or unforeseen complex crises, including urgent 

14 political, social, or economic challenges that 

15 threaten stability. 

16 (C) Addressing systemic and immediate 

17 causes of crises and conflict. 

18 (D) Undertaking preventive measures to 

19 reduce the risk of crises and conflict and their 

20 impact on vulnerable populations. 

21 (b) LIMITATION.—The Secretary shall ensure that 

22 assistance provided under this section is not used for— 

23 (1) assistance of a military nature or for a mili24 tary purpose; or 


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1 (2) participation by an officer or employee of 

2 the United States in a foreign police action. 

3 (c) CONFLICT PREVENTION.—Not less than 25 per4 cent of amounts made available to carry out this section 

5 shall be used to support programs and activities to prevent 

6 an outbreak or escalation of violence in a country at risk 

7 of, in, or in transition from, conflict or civil strife. 

8 (d) TRANSFER.— 

9 (1) IN GENERAL.—The President may transfer 

10 up to $500,000,000 of amounts made available 

11 under any other provision of law to be used to imple12 ment the purposes of this section. 

13 (2) ADDITIONAL AMOUNTS.—Notwithstanding 

14 any other provision of law, up to $5,000,000 or five 

15 percent, whichever is less, of any amounts that are 

16 specifically designated by this or any other Act for 

17 particular programs or activities may be transferred 

18 to carry out the purposes of this section. 

19 (e) RELATIONSHIP TO OTHER LAWS.—Assistance 

20 provided from the Fund may be made available notwith21 standing any other provision of law. 


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1 SEC. 2015. ADDRESSING VIOLENCE AGAINST WOMEN AND 

2 GIRLS IN HUMANITARIAN RELIEF, PEACE3 KEEPING, CONFLICT, AND POST-CONFLICT 

4 SETTINGS. 

5 (a) ACTIVITIES OF THE DEPARTMENT OF STATE AND

6 AGENCY.— 

7 (1) DUTIES.—The Secretary and the Adminis8 trator are authorized to— 

9 (A) provide assistance to programs carried 

10 out by international organizations, international 

11 and local nongovernmental organizations, and 

12 governments, as appropriate, that— 

13 (i) prevent and respond to violence 

14 against women and girls in humanitarian 

15 relief, in a country or region at risk of, in, 

16 or in transition from, conflict or civil strife; 

17 (ii) build the capacity of humanitarian 

18 organizations and government authorities, 

19 as appropriate, to address the special pro20 tection needs of women and children; 

21 (iii) support efforts to provide imme22 diate assistance to survivors of violence 

23 and reintegrate such individuals through 

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1 tion and reunification, medical assistance, 

2 and economic opportunity programs; and 

3 (iv) provide legal services for women 

4 and girls who are victims of violence; 

5 (B) work to incorporate activities to pre6 vent and respond to violence against women 

7 and girls internationally into any multilateral or 

8 bilateral disarmament, demobilization, rehabili9 tation, and reintegration efforts by— 

10 (i) providing protection and suitable 

11 separate facilities in demobilization and 

12 transit centers for women and girls for13 merly involved in, or associated with, fight14 ing forces; 

15 (ii) ensuring equitable reintegration 

16 activities and opportunities for such 

17 women and girls, including access to 

18 schooling, vocational training, employment, 

19 and childcare; 

20 (iii) providing essential medical care 

21 and psychosocial support for such women 

22 and girls who are victims of violence; and 

23 (iv) incorporating prevention and re24 sponse to violence against women and girls 

25 into programs for former combatants; 


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1 (C) designate and deploy specialists in vio2 lence against women and girls, as appropriate, 

3 as an integral part of the Agency’s Disaster As4 sistance Response Teams to ensure the integra5 tion of prevention and response to violence 

6 against women and girls internationally in 

7 strategies and programming; and 

8 (D) strive to ensure that all private part9 ners and others carrying out humanitarian re10 lief in a country or region at risk of, in, or in 

11 transition from conflict or civil strife— 

12 (i) train all humanitarian workers in 

13 preventing and responding to violence 

14 against women and girls, including in the 

15 use of mechanisms to report violence 

16 against women and girls; 

17 (ii) conduct appropriate public out18 reach to make known to the host commu19 nity the mechanisms to report violence 

20 against women and girls; and 

21 (iii) promptly and appropriately re22 spond to reports of violence against women 

23 and girls and treat survivors in accordance 

24 with best practices regarding confiden25 tiality. 


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1 (b) COORDINATION OF UNITED STATES GOVERN2 MENT EFFORTS.—The Secretary of Defense and the At3 torney General shall coordinate with the Secretary of 

4 State and the Administrator when carrying out programs 

5 relevant to the purposes of this section. 

6 (c) ENHANCING UNITED STATES LEADERSHIP AND

7 ADVOCACY IN THE UNITED NATIONS.— 

8 (1) STRENGTHENING UNITED NATIONS PROCE9 DURES.—The Secretary, in consultation with the 

10 Administrator and the United States Permanent 

11 Representative to the United Nations, is authorized 

12 to promote United Nations efforts to— 

13 (A) develop and implement appropriate 

14 training programs for peacekeeping and human15 itarian personnel in prevention and response to 

16 violence against women and girls internation17 ally; 

18 (B) meet staffing goals for women military 

19 and police peacekeepers, including all-women 

20 teams and units; 

21 (C) enhance the deployment of civilian 

22 women at all levels to serve in peacekeeping 

23 missions, including through innovative staffing 

24 formulas; 


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1 (D) institute effective protection mecha2 nisms in and around United Nations-managed 

3 refugee and internally displaced persons camps; 

4 (E) implement a zero tolerance policy for 

5 sexual exploitation and abuse in United Nations 

6 peacekeeping and humanitarian operations; 

7 (F) support countries that contribute 

8 troops and police in— 

9 (i) taking appropriate actions to pre10 vent violence and abuse; 

11 (ii) providing materials for pre-deploy12 ment and in-theater awareness training; 

13 and 

14 (iii) taking other actions to promote 

15 full accountability in cases of abusive con16 duct involving the personnel of such coun17 tries; 

18 (G) continue to expand appropriate mecha19 nisms to permit individuals to safely bring to 

20 the attention of United Nations peacekeeping 

21 commanders and heads of humanitarian mis22 sions allegations of violence against women and 

23 girls internationally; and 

24 (H) ensure the capacity of the United Na25 tions Office of Internal Oversight to investigate 


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1 in a timely and efficient manner all credible al2 legations of violence against women and girls 

3 internationally, while protecting the whistle4 blower. 

5 (d) EMERGENCY RESPONSE TO VIOLENCE AGAINST

6 WOMEN AND GIRLS.— 

7 (1) EMERGENCY RESPONSE.—Not later than 45 

8 days after receiving a credible report of serious or 

9 widespread incidents of violence against women and 

10 girls in a situation of armed conflict or civil strife, 

11 the Secretary and the Administrator shall, in con12 sultation with relevant stakeholders, identify and im13 plement emergency response measures. 

14 (2) CONSULTATION.—For the purposes of para15 graph (1), the term ‘‘relevant stakeholders’’ in16 cludes, as appropriate— 

17 (A) affected populations; 

18 (B) international, multilateral, and non19 governmental organizations operating in the af20 fected area; 

21 (C) the government of the country in 

22 which the violence is occurring; 

23 (D) governments in the region in which the 

24 violence is occurring; and 

25 (E) donor governments. 


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1 (3) CONGRESSIONAL BRIEFINGS.—The Sec2 retary shall brief the appropriate congressional com3 mittees not less than quarterly on the status of inci4 dents of violence against women and girls in situa5 tions of armed conflict or civil strife, emergency re6 sponse measures taken, and consultations with rel7 evant stakeholders. 

8 SEC. 2016. DEMINING ACTIVITIES. 

9 (a) IN GENERAL.—The Secretary is authorized, not10 withstanding any other provision of law, to provide assist11 ance to foreign countries for demining activities, includ12 ing— 

13 (1) clearance of unexploded ordinance; 

14 (2) the destruction of small arms; and 

15 (3) related activities. 

16 (b) SPECIAL AUTHORITY.—Subject to such terms 

17 and conditions as the Secretary may prescribe, the Sec18 retary is authorized to make grants of demining equip19 ment to foreign countries and international organizations, 

20 for the purposes identified in this section. 

21 SEC. 2017. DISARMAMENT, DEMOBILIZATION, REINTEGRA22 TION, AND REHABILITATION ACTIVITIES. 

23 (a) IN GENERAL.—The Secretary, in coordination 

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1 mobilization, reintegration, and rehabilitation of former 

2 combatants. 

3 (b) COORDINATION.—The programs referred to in 

4 subsection (a) shall be coordinated, as appropriate, with 

5 international nongovernmental organizations and the gov6 ernment of the country in which any such program is car7 ried out. 

8 Subtitle B—Strategies, 

9 Assessments, and Reports 

10 SEC. 2021. REGIONAL CONFLICT RISK ASSESSMENT AND 

11 CONFLICT MITIGATION STRATEGY. 

12 (a) FINDINGS.—Congress finds the following: 

13 (1) Armed conflict and civil strife often stem 

14 from dynamics that transcend traditional state bor15 ders and require cross-border and regional ap16 proaches. 

17 (2) United States diplomacy is often conducted 

18 on a bilateral, state-centric basis that fails to ad19 dress problems comprehensively or to identify and 

20 assess the full range of issues and opportunities. 

21 (3) A comprehensive approach towards conflict 

22 prevention is required, incorporating cross border 

23 and regional dynamics and non-state actors. 

24 (b) CONFLICT ASSESSMENT.—The Secretary, acting 

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1 racy, and Human Rights and in consultation with the Ad2 ministrator, shall be responsible for ensuring that an an3 nual regional conflict risk assessment is conducted for 

4 each geographic region represented by an Assistant Sec5 retary. Each assessment shall include the following: 

6 (1) An identification of ongoing violent conflicts 

7 in the region. 

8 (2) An evaluation of the potential for outbreaks 

9 of violent conflict in the region. 

10 (3) A list of those conflicts determined to be at 

11 high risk of outbreak of escalation. 

12 (4) A description of new opportunities and chal13 lenges for conflict mitigation in the region. 

14 (c) CONFLICT MITIGATION STRATEGY.—For each 

15 conflict identified in subsection (b)(3), the relevant office 

16 or diplomatic or consular post of the Department of State, 

17 in consultation with the relevant office or overseas mission 

18 of the Agency, shall develop a conflict mitigation strategy. 

19 Such strategy shall include the following elements: 

20 (1) An analysis of the key drivers of potential 

21 conflict. 

22 (2) An analysis of the impact of current United 

23 States policies and programs on the drivers referred 

24 to in paragraph (1). 


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1 (3) Specific objectives in mitigating conflict for 

2 the next 1- to 3-year period, including indicators and 

3 other measurements of progress. 

4 (4) A plan for ensuring that basic human needs 

5 are met and civilians are protected during the period 

6 of the strategy. 

7 (5) A description of policies and programs 

8 needed to achieve the objectives identified in para9 graph (3). 

10 (6) A description of how such policies and pro11 grams will be coordinated with the policies and pro12 grams of local partners and the international com13 munity. 

14 (7) A description of the roles of each Federal 

15 agency in carrying out the conflict mitigation strat16 egy, and the mechanisms for interagency coordina17 tion. 

18 (8) The requirements for human and financial 

19 resources to carry out the conflict mitigation strat20 egy over the next 1- to 3-year period. 

21 (d) CONSULTATION.—In preparing each conflict miti22 gation strategy required under subsection (c), the relevant 

23 office or diplomatic or consular post of the Department 

24 of State shall consult with a wide range of local stake25 holders, including civil society organizations. 


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1 (e) TRANSMISSION TO CONGRESS.—Each conflict 

2 mitigation strategy required under subsection (c) shall be 

3 transmitted to the appropriate congressional committees. 

4 SEC. 2022. DATA ON COSTS INCURRED IN SUPPORT OF 

5 UNITED NATIONS PEACEKEEPING OPER6 ATIONS. 

7 (a) QUARTERLY REPORTS.—The Secretary of De8 fense shall submit, on a quarterly basis, to the Committee 

9 on Armed Services of the House of Representatives, the 

10 Committee on Armed Services of the Senate, the Com11 mittee on Foreign Affairs of the House of Representatives, 

12 and the Committee on Foreign Relations of the Senate 

13 a report setting forth all costs (including incremental 

14 costs) incurred by the Department of Defense during the 

15 preceding quarter in implementing or supporting resolu16 tions of the United Nations Security Council, including 

17 any such resolution calling for international sanctions, 

18 international peacekeeping operations, or humanitarian 

19 missions undertaken by the Department of Defense. Each 

20 quarterly report shall include an aggregate of all such De21 partment of Defense costs by operation or mission. 

22 (b) UNITED STATES COSTS.—The President shall 

23 annually transmit to the Secretary General of the United 

24 Nations the information required under subsection (a). 


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1 (c) UNITED NATIONS MEMBER STATE COSTS.—The 

2 President shall direct the permanent representative of the 

3 United States to the United Nations to request that the 

4 United Nations compile and publish information con5 cerning costs incurred by United Nations Member States 

6 in support of the resolutions described in subsection (a). 

7 SEC. 2023. PEACE ON CYPRUS AND IN THE EASTERN MEDI8 TERRANEAN. 

9 (a) POLICY AND PRINCIPLES.—United States policy 

10 regarding Cyprus, Greece, and Turkey shall be directed 

11 toward the maintenance of a stable and peaceful atmos12 phere in the Eastern Mediterranean region and shall 

13 therefore be governed by the following principles: 

14 (1) The United States shall actively support the 

15 resolution of differences through negotiations and 

16 internationally established peaceful procedures, shall 

17 encourage all parties to avoid provocative actions, 

18 and shall strongly oppose any attempt to resolve dis19 putes through force or threat of force. 

20 (2) The United States will accord full support 

21 and high priority to efforts, particularly those of the 

22 United Nations, to bring about a prompt, peaceful 

23 settlement on Cyprus. 

24 (3) All defense articles provided by the United 

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1 gion will be used only in accordance with the re2 quirements of this Act and the agreements under 

3 which those defense articles were provided. 

4 (4) The United States will provide security as5 sistance for Greece and Turkey only when providing 

6 that assistance is intended solely for defensive pur7 poses, including when necessary to enable the recipi8 ent country to fulfill its responsibilities as a member 

9 of the North Atlantic Treaty Organization, and shall 

10 be designed to ensure that the present balance of 

11 military strength among countries of the region, in12 cluding between Greece and Turkey, is preserved. 

13 Nothing in this paragraph shall be construed to pro14 hibit the transfer of defense articles to Greece or 

15 Turkey for legitimate self defense or to enable 

16 Greece or Turkey to fulfill their North Atlantic 

17 Treaty Organization obligations. 

18 (5) The United States shall use its influence to 

19 ensure the continuation of the ceasefire on Cyprus 

20 until an equitable negotiated settlement is reached. 

21 (6) The United States shall use its influence to 

22 achieve the withdrawal of Turkish military forces 

23 from Cyprus in the context of a solution to the Cy24 prus problem. 

25 (b) QUARTERLY REPORT.— 


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1 (1) REVIEW.—Because progress toward a Cy2 prus settlement is a high priority of United States 

3 policy in the Eastern Mediterranean, the President 

4 and the Congress shall continually review that 

5 progress and shall determine United States policy in 

6 the region accordingly. 

7 (2) REPORT.—To facilitate such a review the 

8 President shall, not later than 90 days after the date 

9 of the enactment of this Act and at the end of each 

10 succeeding 90-day period, transmit to the Committee 

11 on Foreign Affairs of the House of Representatives 

12 and the Committee on Foreign Relations of the Sen13 ate a report on progress made toward the conclusion 

14 of a negotiated solution of the Cyprus problem. Such 

15 transmissions shall include any relevant reports pre16 pared by the Secretary General of the United Na17 tions for the Security Council. 

18 (c) CERTIFICATION.—In order to ensure that United 

19 States assistance is provided consistent with the policies 

20 established in this section, the President shall, whenever 

21 transmitting a certification pursuant to section 4382 for 

22 Greece or Turkey, include in that certification a full expla23 nation of how such assistance will be consistent with the 

24 policy and principles set forth in subsection (a). 


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1 (d) PROHIBITION ON TRANSFER OF MILITARY

2 EQUIPMENT TO CYPRUS.— 

3 (1) IN GENERAL.—Any agreement for the sale 

4 or provision of any article on the United States Mu5 nitions List (established pursuant to section 4301) 

6 entered into by the United States after the date of 

7 the enactment of this Act shall expressly state that 

8 the article is being provided by the United States 

9 only with the understanding that it will not be trans10 ferred to Cyprus or otherwise used to further the 

11 severance or division of Cyprus. 

12 (2) REPORT.—The President shall submit to 

13 Congress a report on any substantial evidence that 

14 equipment provided under any such agreement has 

15 been used in a manner inconsistent with the pur16 poses of this subsection. 

17 Subtitle C—Organizations and 

18 Personnel 

19 SEC. 2031. ATROCITIES PREVENTION BOARD. 

20 (a) FINDINGS.—Congress makes the following find21 ings: 

22 (1) Non-combatants comprise most of the cas23 ualties in modern conflict. 


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1 (2) In many cases, civilian deaths are the result 

2 of belligerents deliberately targeting civilians on a 

3 wide scale. 

4 (3) Civilians are vulnerable both during inter5 state conflict and intrastate situations, such as civil 

6 wars, insurgencies, and anarchic conditions associ7 ated with failed states. 

8 (4) There are common variables to situations 

9 giving rise to atrocities, including past history of 

10 such occurrences, persistence of articulated and non11 articulated tensions, and poor or malevolent leader12 ship. 

13 (5) Most tellingly, atrocities—including geno14 cide—often occur when displaced persons attempt to 

15 flee conflict. 

16 (6) The United States is committed to working 

17 with our allies, and to strengthening our own inter18 nal capabilities, in order to ensure that the United 

19 States and the international community are 

20 proactively engaged in a strategic effort to prevent 

21 mass atrocities and genocide. In the event that pre22 vention fails, the United States will work both multi23 laterally and bilaterally to mobilize diplomatic, hu24 manitarian, financial, and—in certain instances— 


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1 military means to prevent and respond to genocide 

2 and mass atrocities. 

3 (7) Preventing mass atrocities and genocide is 

4 a core national security interest and a core moral re5 sponsibility of the United States. 

6 (8) United States security is affected when 

7 masses of civilians are slaughtered, refugees flow 

8 across borders, and murderers wreak havoc on re9 gional stability and livelihoods. 

10 (9) Governmental engagement on atrocities and 

11 genocide too often arrives too late, when opportuni12 ties for prevention or low-cost, low-risk action have 

13 been missed. 

14 (10) Ensuring that a full range of options is 

15 available to senior policy makers requires a level of 

16 governmental organization that matches the method17 ical organization characteristic of mass killings. 

18 (b) ESTABLISHMENT OF INTERAGENCY ATROCITIES

19 PREVENTION BOARD.—The President shall establish an 

20 Interagency Atrocities Prevention Board (in this section 

21 referred to as the ‘‘Board’’) with the following responsibil22 ities: 

23 (1) Coordinate and synchronize a whole of gov24 ernment approach to preventing mass atrocities. 


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1 (2) Integrate the early warning systems of na2 tional security agencies, including intelligence agen3 cies, with respect to incidents of mass atrocities and 

4 coordinate the policy response to such incidents. 

5 (3) Conduct gaming and contingency planning 

6 exercises regarding atrocities prevention and re7 sponse. 

8 (4) Oversee the development and implementa9 tion of comprehensive atrocities prevention and re10 sponse strategies. 

11 (5) Identify available resources and policy op12 tions necessary to prevent the emergence or esca13 lation of mass atrocities, including— 

14 (A) foreign assistance; 

15 (B) diplomatic initiatives; 

16 (C) deployment of civilian expertise; 

17 (D) use of sanctions; and 

18 (E) military options. 

19 (6) Identify and close gaps in expertise, readi20 ness, and planning for atrocities prevention and 

21 early action across Federal agencies. 

22 (7) Ensure that risk assessments and policies to 

23 mitigate identified risks are communicated in a 

24 timely fashion to the relevant Federal agencies and 

25 integrated into activities. 


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1 (c) LEADERSHIP.— 

2 (1) IN GENERAL.—The Board shall be headed 

3 by a senior director selected by the President, and 

4 who shall report to the Assistant to the President 

5 for National Security Affairs (commonly referred to 

6 as the ‘‘National Security Advisor’’). 

7 (2) RESPONSIBILITIES.—The senior director 

8 shall have primary responsibility for promoting 

9 United States Government policies to protect indi10 viduals affected by conflict and atrocities and car11 rying out the responsibilities identified in subsection 

12 (b). 

13 (d) COMPOSITION.—The Board shall be composed of 

14 representatives from the following agencies, and such oth15 ers as the President determines appropriate: 

16 (1) The Department of Defense. 

17 (2) The United States Agency for International 

18 Development. 

19 (3) The Department of State. 

20 (4) The Department of Justice. 

21 (5) The Department of the Treasury. 

22 (6) The Department of Homeland Security. 

23 (7) The Central Intelligence Agency. 

24 (8) The Office of the Director of National Intel25 ligence. 


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1 (9) The United States Mission to the United 

2 Nations. 

3 SEC. 2032. UNDER SECRETARY FOR CIVILIAN SECURITY, 

4 DEMOCRACY, AND HUMAN RIGHTS. 

5 (a) IN GENERAL.—Section 1(b) of the State Depart6 ment Basic Authorities Act of 1956 (22 U.S.C. 2651a(b)) 

7 is amended— 

8 (1) by redesignating paragraph (4) as para9 graph (5); and 

10 (2) by inserting after paragraph (3) the fol11 lowing new paragraph: 

12 ‘‘(4) UNDER SECRETARY FOR CIVILIAN SECU13 RITY, DEMOCRACY, AND HUMAN RIGHTS.—There 

14 shall be in the Department of State, among the 

15 Under Secretaries authorized by paragraph (1), an 

16 Under Secretary for Civilian Security, Democracy, 

17 and Human Rights, who shall have primary respon18 sibility to assist the Secretary and the Deputy Sec19 retary in the formation and implementation of pol20 icy, activities, and oversight related to crisis preven21 tion and response, democracy, human rights, and 

22 labor, and refugees and migration. The Under Sec23 retary for Civilian Security, Democracy, and Human 

24 Rights shall— 


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1 ‘‘(A) coordinate and implement civilian re2 sponses to conflict, including deployment of the 

3 Civilian Response Corps; 

4 ‘‘(B) oversee the full spectrum of conflict5 related policies and programs in the Depart6 ment of State; 

7 ‘‘(C) conduct strategic planning and budg8 eting for conflict-related activities within the 

9 Department of State; 

10 ‘‘(D) manage prevention and response to 

11 refugee and humanitarian crises, including sup12 port for major international organizations in13 volved in aid to conflict affected populations; 

14 and 

15 ‘‘(E) advance human rights and demo16 cratic values.’’. 

17 (b) ABOLITION.—The position of Under Secretary for 

18 Democracy and Global Affairs is hereby abolished. 

19 (c) TRANSFER.—Responsibilities for the position of 

20 Under Secretary for Democracy and Global Affairs shall 

21 be transferred to the Under Secretary for Civilian Secu22 rity, Democracy and Human Rights, as appropriate. The 

23 individual serving in the capacity of Under Secretary for 

24 Democracy and Global Affairs as of the date of the enact25 ment of this Act may continue serve in the capacity of 


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1 the Under Secretary for Civilian Security, Democracy, and 

2 Human Rights. 

3 (d) CONFORMING AMENDMENT.—Section 2113(a) of 

4 the Implementing Recommendations of the 9/11 Commis5 sion Act of 2007 (22 U.S.C. 8213(a); Public Law 110– 

6 53) is amended by striking ‘‘Under Secretary of State for 

7 Democracy and Global Affairs’’ and inserting ‘‘Under Sec8 retary of State for Civilian Security, Democracy, and 

9 Human Rights’’. 

10 SEC. 2033. CONFLICT AND STABILIZATION OPERATIONS. 

11 (a) IN GENERAL.—Section 62 of the State Depart12 ment Basic Authorities Act of 1956 (22 U.S.C. 2734) is 

13 amended to read as follows: 

14 ‘‘SEC. 62. CONFLICT AND STABILIZATION OPERATIONS. 

15 ‘‘(a) BUREAU OF CONFLICT AND STABILIZATION OP16 ERATIONS.— 

17 ‘‘(1) ESTABLISHMENT.—There is established 

18 within the Department of State the Bureau of Con19 flict and Stabilization Operations. 

20 ‘‘(2) ASSISTANT SECRETARY FOR CONFLICT

21 AND STABILIZATION OPERATIONS.—The head of the 

22 Bureau shall be the Assistant Secretary for Conflict 

23 and Stabilization Operations. The Assistant Sec24 retary shall report directly to the Under Secretary 


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1 for Civilian Security, Democracy, and Human 

2 Rights. 

3 ‘‘(3) FUNCTIONS.—The functions of the Bureau 

4 of Conflict and Stabilization Operations shall include 

5 the following: 

6 ‘‘(A) Training, equipping, and deploying 

7 the Civilian Response Corps described in sub8 section (b)(1). 

9 ‘‘(B) Developing, at the request of a Chief 

10 of Mission, a strategy or plan, and designing 

11 relevant programming, for stabilization and re12 construction, as appropriate to the local con13 text. 

14 ‘‘(C) At the request of a Chief of Mission, 

15 mobilizing and deploying members of the Civil16 ian Response Corps as needed. 

17 ‘‘(D) Entering into appropriate arrange18 ments with agencies to carry out activities 

19 under this section and the Reconstruction and 

20 Stabilization Civilian Management Act of 2008 

21 (title XVI of the Duncan Hunter National De22 fense Authorization Act for Fiscal Year 2009; 

23 Public Law 110–417). 

24 ‘‘(E) Identifying and recruiting personnel 

25 in State and local governments, including law 


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1 enforcement personnel, and in the private sector 

2 who are available to participate in the Reserve 

3 Corps established under subsection (b)(1)(B) or 

4 to otherwise participate in or contribute to re5 construction and stabilization activities. 

6 ‘‘(F) Taking steps to ensure that training 

7 and education of civilian personnel to perform 

8 such reconstruction and stabilization operations 

9 is adequate and is carried out, as appropriate, 

10 with other offices in the Department of State 

11 and the United States Agency for International 

12 Development involved with reconstruction and 

13 stabilization activities. 

14 ‘‘(G) Maintaining the capacity to field on 

15 short notice an evaluation team consisting of 

16 personnel from all relevant agencies to under17 take on-site needs assessment. 

18 ‘‘(H) Maintaining a staff of experts to pro19 vide technical support for crisis mitigation, in20 cluding mediation and negotiation support 

21 teams. 

22 ‘‘(I) Establishing and maintaining a cadre 

23 of deployable personnel to conduct contingency 

24 acquisition support. 


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1 ‘‘(J) Establishing and maintaining on ac2 tive status a contingency contracting office for 

3 the purpose of procuring goods, equipment, and 

4 services for use in contingency operations and 

5 for assistance to support reconstruction and 

6 stabilization activities. 

7 ‘‘(b) CIVILIAN RESPONSE CORPS.— 

8 ‘‘(1) IN GENERAL.—The Secretary of State 

9 shall establish and maintain a Civilian Response 

10 Corps (referred to in this section as the ‘Corps’) to 

11 provide assistance in support of reconstruction and 

12 stabilization activities in countries or regions that 

13 are at risk of, in, or are in transition from, conflict 

14 or civil strife. The Corps shall be composed of active 

15 and reserve components. 

16 ‘‘(A) ACTIVE CORPS.— 

17 ‘‘(i) IN GENERAL.—The Active Corps 

18 shall be composed of not more than 200 

19 positions identified by the Secretary of 

20 State, in consultation with the Adminis21 trator, based on the skillsets identified by 

22 the Coordinator. 

23 ‘‘(ii) MEMBERSHIP.—The Active 

24 Corps shall consist of United States Gov25 ernment personnel, including employees of 


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1 the Department of State, the United 

2 States Agency for International Develop3 ment, and other agencies. 

4 ‘‘(iii) DUTIES.—Members of the Ac5 tive Corps shall— 

6 ‘‘(I) serve as liaisons between the 

7 Bureau of Conflict and Stabilization 

8 Operations and regional bureaus of 

9 the Department of State; 

10 ‘‘(II) unless deployed abroad, be 

11 employed by the Under Secretary for 

12 Civilian Security, Democracy, and 

13 Human Rights; and 

14 ‘‘(III) deploy, within 72 hours, 

15 anywhere outside the United States 

16 where the Secretary of State directs. 

17 ‘‘(iv) SURGE.—Members of the Active 

18 Corps may be detailed by the Assistant 

19 Secretary for Conflict and Stabilization 

20 Operations to regional bureaus of the De21 partment of State to augment crisis and 

22 conflict planning and response. 

23 ‘‘(B) RESERVE CORPS.— 

24 ‘‘(i) IN GENERAL.—The Reserve 

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1 ernment personnel, individuals employed 

2 by State or local governments, or other ex3 perts who have the skills necessary for sup4 porting reconstruction and stabilization ac5 tivities, or who shall be trained and em6 ployed to carry out such activities, and 

7 who have volunteered for such purpose. 

8 ‘‘(ii) LIST.—The Secretary shall 

9 maintain and continually update a data10 base composed of personnel who have vol11 unteered for the Reserve Corps. 

12 ‘‘(iii) DUTIES.—Members of the Re13 serve Corps shall— 

14 ‘‘(I) on a voluntary basis, deploy 

15 within 72 hours, anywhere outside the 

16 United States, where the Secretary of 

17 State directs; and 

18 ‘‘(II) maintain appropriate skills 

19 and conditioning to deploy to assist in 

20 reconstruction and stabilization activi21 ties. 

22 ‘‘(2) MITIGATION OF DOMESTIC IMPACT.—The 

23 establishment and deployment of any Reserve Corps 

24 shall be undertaken in a manner that avoids sub25 stantively impairing the capacity and readiness of 


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1 the Federal Government or any State or local gov2 ernment from which Reserve Corps personnel may 

3 be drawn. 

4 ‘‘(3) EXISTING TRAINING AND EDUCATION PRO5 GRAMS.—The Secretary of State shall ensure that 

6 personnel of the Department of State, and, in co7 ordination with the Administrator of the United 

8 States Agency for International Development, that 

9 personnel of USAID, have access to and make use 

10 of the relevant existing training and education pro11 grams offered within the Federal Government, such 

12 as those at the Center for Stabilization and Recon13 struction Studies at the Naval Postgraduate School 

14 and the Interagency Training, Education, and After 

15 Action Review Program at the National Defense 

16 University. 

17 ‘‘(4) IN GENERAL.— 

18 ‘‘(A) APPOINTMENTS TO FOREIGN SERV19 ICE.—Individuals who serve in the Civilian Re20 sponse Corps shall be eligible to be appointed as 

21 a member of the Foreign Service pursuant to 

22 section 303 of the Foreign Service Act of 1980 

23 (22 U.S.C. 3943) for a term of up to three 

24 years. 


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1 ‘‘(B) DEPLOYMENT.—Not less than 60 

2 percent of the Active Corps should be deployed 

3 outside of the United States at any one time. 

4 ‘‘(C) PROMOTION.—Individuals who are 

5 career members of the Foreign Service shall be 

6 considered for promotion on the same basis as 

7 individuals who are assigned to diplomatic or 

8 consular posts with one-year tours of duty. 

9 ‘‘(D) CHAIN-OF-COMMAND.—Once de10 ployed abroad, a member of the Civilian Re11 sponse Corps shall report to and serve under 

12 the operational control of the chief of mission of 

13 the country or region in which such member is 

14 deployed. 

15 ‘‘(E) LIMITATION ON DEPLOYMENT.—The 

16 Secretary of State is authorized to deploy to a 

17 foreign country members of the Active Corps 

18 for a period of not longer than one year. Such 

19 period may be extended on a voluntary basis. 

20 ‘‘(5) TEMPORARY APPOINTMENTS FOR CERTAIN

21 INDIVIDUALS.—The Secretary of State, acting 

22 through the Assistant Secretary for Conflict and 

23 Stabilization Operations, is authorized to appoint in24 dividuals with acquisition backgrounds to the Active 


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1 or Reserve Corps on a one-year basis to implement 

2 contracts for contingency operations. 

3 ‘‘(c) EMPLOYMENT FOR CONTINGENCY OPER4 ATIONS.— 

5 ‘‘(1) FOREIGN SERVICE LIMITED POSITIONS.— 

6 Pursuant to the authority of section 309 of the For7 eign Service Act of 1980 (22 U.S.C. 3949), and not8 withstanding the limitation specified in section 305 

9 of such Act (22 U.S.C. 3945), the Administrator of 

10 the United States Agency for International Develop11 ment (USAID) may appoint to the Senior Foreign 

12 Service up to ten individuals to be assigned to or 

13 support contingency operations. 

14 ‘‘(2) WAIVER.—The provisions of section 8344 

15 or 8468 of title 5, United States Code, may be 

16 waived on a case-by-case basis by— 

17 ‘‘(A) the Administrator of USAID, with re18 spect to the employment in USAID, or 

19 ‘‘(B) the Inspector General of USAID, 

20 with respect to the employment in the Office of 

21 Inspector General, 

22 of an annuitant in a position for which there is ex23 ceptional difficulty in recruiting or retaining a quali24 fied employee, or when a temporary emergency hir25 ing need exists. 


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1 ‘‘(3) PROCEDURES.—If the authority referred 

2 to in paragraph (1) is delegated, the Administrator 

3 of USAID or the Inspector General of USAID, as 

4 appropriate, shall prescribe criteria and procedures 

5 for the exercise of any authority under this section. 

6 ‘‘(4) STATUS OF EMPLOYMENT.—A Federal em7 ployee for whom a waiver under this section is in ef8 fect shall not be considered an employee for pur9 poses of subchapter III of chapter 83, or chapter 84 

10 of title 5, United States Code. 

11 ‘‘(d) EXCEPTION.— 

12 ‘‘(1) IN GENERAL.—The Secretary of State may 

13 select and appoint employees to carry out conflict 

14 and stabilization activities without regard to the pro15 visions of title 5, United States Code, governing ap16 pointment in the competitive service and may fix the 

17 basic compensation of such employees without re18 gard to chapter 51 and subchapter III of chapter 53 

19 of such title. 

20 ‘‘(2) DELEGATION.—The Secretary of State 

21 may authorize the head of any agency to exercise the 

22 authority described in paragraph (1). 

23 ‘‘(3) DEFINITION.—For the purpose of this 

24 subsection, the term ‘employees’ means individuals 

25 who qualify as an employee as defined in section 


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1 2105 of title 5, United States Code, and who are ap2 pointed on a time-limited basis solely to carry out 

3 reconstruction and stabilization activities under or 

4 consistent with this section.’’. 

5 (b) SPECIAL AUTHORITY.—Notwithstanding any 

6 other provision of law, including section 304(c) of the Om7 nibus Diplomatic Security and Antiterrorism Act of 1986 

8 (22 U.S.C. 4834(c); Public Law 99–399), personnel des9 ignated by the Secretary, including members of the Civil10 ian Response Corps, shall not be bound by the regulations 

11 and guidance provided by the Bureau of Diplomatic Secu12 rity and shall deploy at the direction of the Secretary. 

13 (c) PERSONNEL.—The Reconstruction and Stabiliza14 tion Civilian Management Act of 2008 (title XVI of Public 

15 Law 110–417) is amended— 

16 (1) in section 1603 (22 U.S.C. 2734a note), by 

17 amending paragraph (5) to read as follows: 

18 ‘‘(5) PERSONNEL.—The term ‘personnel’ 

19 means— 

20 ‘‘(A) individuals serving in any service de21 scribed in section 2101 of title 5, United States 

22 Code, other than in the legislative or judicial 

23 branch; 


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1 ‘‘(B) individuals employed by personal 

2 services contract, including individuals em3 ployed pursuant to— 

4 ‘‘(i) section 2(c) of the State Depart5 ment Basic Authorities Act of 1956 (22 

6 U.S.C. 2669(c)); or 

7 ‘‘(ii) section 636(a)(3) of the Foreign 

8 Assistance Act of 1961 (22 U.S.C. 

9 2396(a)(3)); 

10 ‘‘(C) individuals appointed under section 

11 303 of the Foreign Service Act of 1980 (22 

12 U.S.C. 3943); and 

13 ‘‘(D) locally employed staff who are em14 ployed by participating agencies.’’; and 

15 (2) in section 1606(b) (22 U.S.C. 2734a(b)), by 

16 inserting ‘‘and to provide any related support’’ after 

17 ‘‘assign personnel of such agency’’. 

18 SEC. 2034. DANGER PAY. 

19 Section 151 of the Foreign Relations Authorization 

20 Act, Fiscal Years 1990 and 1991 (5 U.S.C. 5928 note; 

21 Public Law 101–246) is amended— 

22 (1) by striking ‘‘or’’ after ‘‘Drug Enforcement 

23 Administration’’ and inserting ‘‘, the’’; and 

24 (2) inserting ‘‘, or the Civilian Response Corps’’ 

25 after ‘‘Federal Bureau of Investigation’’. 


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1 SEC. 2035. STABILITY POLICING COORDINATOR. 

2 The State Department Basic Authorities Act of 1956 

3 is amended by adding after section 62 (as amended by 

4 2031 of this Act) the following new section: 

5 ‘‘SEC. 63. OFFICE OF THE STABILITY POLICING COORDI6 NATOR. 

7 ‘‘(a) ESTABLISHMENT.—There is established within 

8 the Department of State the Office of the Stability Polic9 ing Coordinator (in this section referred to as the ‘Office’). 

10 ‘‘(b) COORDINATOR FOR POLICE TRAINING.—The 

11 head of the Office shall be the Coordinator for Stability 

12 Policing (in this section referred to as the ‘Coordinator’). 

13 The Coordinator shall report directly to the Assistant Sec14 retary for Conflict and Stabilization Operations. 

15 ‘‘(c) RESPONSIBILITIES.—The Coordinator shall be 

16 responsible for developing a unified, coherent, comprehen17 sive, and effective program of law enforcement assistance 

18 in support of reconstruction and stabilization activities in 

19 countries or regions that are at risk of, in, or are in transi20 tion from, conflict or civil strife. Such program shall in21 clude the following elements: 

22 ‘‘(1) Developing and overseeing curricula for 

23 police training specifically oriented towards recon24 struction and stabilization activities. 


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1 ‘‘(2) Developing and implementing policies and 

2 procedures to ensure that human rights, and in par3 ticular those of women and girls, are protected. 

4 ‘‘(3) In coordination with the Bureau of Con5 flict and Stabilization Operations, as appropriate, re6 cruiting, vetting, and training personnel to serve as 

7 police trainers. 

8 ‘‘(4) Ensuring proper direction and oversight of 

9 contractors hired to implement police training pro10 grams under this section. 

11 ‘‘(5) Establishing benchmarks to measure the 

12 progress of police training programs conducted 

13 under this section. 

14 ‘‘(6) Coordinating assistance carried out by the 

15 Office with similar assistance provided by other Fed16 eral agencies and international donors. 

17 ‘‘(7) Overseeing procurement and delivery of 

18 supplies and equipment, and monitoring the end use 

19 of such supplies and equipment. 

20 ‘‘(8) Providing policy guidance and program 

21 support to the United States diplomatic and con22 sular missions in the country or region undertaking 

23 police training operations. 

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1 lection and training of law enforcement and judicial 

2 personnel for the Readiness Response Corps. 

3 ‘‘(d) RELATIONSHIP TO GLOBAL RULE OF LAW POL4 ICY COMMITTEE.—The Coordinator shall ensure that the 

5 activities of the Office are consistent with the coordination 

6 plan established pursuant to section 3202 of the Global 

7 Partnerships Act of 2013.’’. 

8 SEC. 2036. TRAINING IN CONFLICT MANAGEMENT AND 

9 MITIGATION. 

10 Section 708 of the Foreign Assistance Act of 1980 

11 (22 U.S.C. 4028) is amended— 

12 (1) in subsection (a)— 

13 (A) in paragraph (2), by striking ‘‘and’’ at 

14 the end; 

15 (B) in paragraph (3), by striking the pe16 riod at the end and inserting ‘‘; and’’; and 

17 (C) by adding at the end the following new 

18 paragraph: 

19 ‘‘(4) instruction on methods for conflict man20 agement and mitigation and on the necessary skills 

21 to be able to function successfully in countries or re22 gions that are at risk of, in, or are in transition 

23 from, conflict or civil strife, including— 


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1 ‘‘(A) recognizing patterns of escalation and 

2 early warning signs of potential atrocities or vi3 olence, including gender-based violence; and 

4 ‘‘(B) methods of early action, prevention, 

5 and response.’’; and 

6 (2) by adding at the end the following new sub7 section: 

8 ‘‘(d) The training described in subsection (a)(4) shall 

9 be mandatory for all Foreign Service officers assigned to 

10 a position, or otherwise made available for service, in the 

11 department or agency or at a post overseas with respon12 sibilities in the subject matters described in such sub13 section. Training opportunities should include, as appro14 priate for the department and agency, respectively, fellow15 ships, details, and exchanges with relevant Federal agen16 cies, international organizations, and nongovernmental or17 ganizations.’’. 

18 TITLE III—SUPPORTING HUMAN 

19 RIGHTS AND DEMOCRACY 

20 Subtitle A—General Provisions 

21 SEC. 3101. FINDINGS AND STATEMENT OF POLICY. 

22 (a) FINDINGS.—Congress makes the following find23 ings: 

24 (1) All human beings are born free and equal 

25 in dignity and rights. Recognition of the inherent 


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1 dignity and of the equal and inalienable rights of all 

2 members of the human family is the foundation of 

3 freedom, justice and peace in the world. 

4 (2) A democratic political system, in which the 

5 will of the people, as expressed in periodic and gen6 uine elections, is the basis of the authority of gov7 ernment, is the best guarantor of freedom of speech 

8 and belief and freedom from fear and want. 

9 (3) Democracy is a necessary but insufficient 

10 condition for the effective protection of human 

11 rights. Majority rule must be tempered by guaran12 tees for the dignity and rights of minorities. 

13 (4) The advancement of human rights and the 

14 institutionalization of democracy are important to 

15 the achievement of other United States foreign pol16 icy goals, such as reducing poverty, building peace, 

17 expanding prosperity and sustaining the global envi18 ronment. 

19 (5) Human rights and fundamental freedoms 

20 can be effectively advanced by— 

21 (A) bilateral and multilateral diplomatic 

22 overtures; 

23 (B) the development and implementation 

24 of international norms and standards, including 

25 voluntary codes of conduct; 


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1 (C) support for the establishment and 

2 strengthening of laws, policies and institutions 

3 that protect rights and freedoms, including 

4 technical assistance and training to govern5 ments and civil society organizations; 

6 (D) support for and protection of individ7 uals and civil society organizations who defend 

8 and exercise their human rights and democratic 

9 freedoms; 

10 (E) research and reporting on violations of 

11 human rights, including identifying those who 

12 commit such violations; 

13 (F) the threat or imposition of sanctions 

14 against violators, including criminal prosecution 

15 where appropriate; and 

16 (G) offering diplomatic and economic in17 centives for improved performance. 

18 (6) United States support for human rights and 

19 democracy should be open and explicit, with due re20 gard for the safety and independence of local part21 ners and impartiality among peaceful, democratic 

22 political parties and factions. 

23 (b) STATEMENT OF POLICY.—It is the policy of the 

24 United States, in keeping with its constitutional heritage 

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1 ligations as set forth in the Charter of the United Nations 

2 and the Universal Declaration of Human Rights, to pro3 mote and encourage increased respect for human rights 

4 and fundamental freedoms throughout the world without 

5 distinction as to race, sex, language, religion, sexual ori6 entation or gender identity. 

7 SEC. 3102. COUNTRY REPORTS ON HUMAN RIGHTS PRAC8 TICES. 

9 (a) REPORT REQUIRED.—The Secretary shall submit 

10 to the appropriate congressional committees, by February 

11 25 of each year, a comprehensive report regarding the sta12 tus of internationally recognized human rights in each cov13 ered country. 

14 (b) CONTENTS.—The report required under sub15 section (a) shall include, for each covered country, infor16 mation relating to— 

17 (1) respect for the integrity of the person, in18 cluding freedom from— 

19 (A) arbitrary or unlawful deprivation of 

20 life; 

21 (B) disappearance; 

22 (C) torture and other cruel, inhuman or 

23 degrading treatment or punishment; 

24 (D) arbitrary arrest or detention; 

25 (E) denial of fair public trial; and 


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1 (F) arbitrary interference with privacy, 

2 family, home or correspondence; 

3 (2) respect for civil liberties, including— 

4 (A) freedom of speech and press, including 

5 Internet freedom; 

6 (B) freedom of peaceful assembly and as7 sociation; 

8 (C) freedom of religion and conscience; 

9 (D) freedom of movement; and 

10 (E) provision of asylum and resettlement 

11 of refugees; 

12 (3) respect for political rights, including the 

13 right of citizens— 

14 (A) to change their government; 

15 (B) to take part in the conduct of public 

16 affairs; and 

17 (C) to vote and be elected at genuine peri18 odic elections; 

19 (4) respect for worker rights, including— 

20 (A) the right of association; 

21 (B) the right to organize and bargain col22 lectively; 

23 (C) prohibition of forced or compulsory 

24 labor; 

25 (D) prohibition of child labor; and 


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1 (E) acceptable conditions of work; 

2 (5) protection of all citizens, including 

3 marginalized groups, against violence, intimidation 

4 and discrimination, including, wherever applicable— 

5 (A) mass atrocities; 

6 (B) trafficking in persons; 

7 (C) sexual and gender-based violence; 

8 (D) criminalization of homosexuality or 

9 deprivation of fundamental freedoms due to 

10 sexual orientation or gender identity; 

11 (E) violations of the principles of volunta12 rism and informed choice in health care, includ13 ing coerced abortion and involuntary steriliza14 tion; 

15 (F) child marriage; and 

16 (G) compulsory recruitment and conscrip17 tion of individuals under the age of 15 by 

18 armed forces of the government of the country, 

19 government-supported paramilitaries, or other 

20 armed groups; and 

21 (6) official accountability, including— 

22 (A) government corruption and trans23 parency; 


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1 (B) government participation in, facilita2 tion of, or condoning of, violations of inter3 nationally recognized human rights; 

4 (C) steps taken by such government to 

5 prevent and respond to violations of inter6 nationally recognized human rights; 

7 (D) the extent of cooperation by such gov8 ernment in permitting an unimpeded investiga9 tion by international organizations, including 

10 nongovernmental organizations, of alleged viola11 tions of internationally recognized human 

12 rights; and 

13 (E) wherever applicable, such government’s 

14 votes in the United Nations Human Rights 

15 Council. 

16 (c) CONSULTATION.—In compiling data and making 

17 assessments for purposes of subsection (b), United States 

18 diplomatic mission personnel in each covered country shall 

19 consult with relevant international and nongovernmental 

20 organizations. 

21 (d) TRANSLATION AND PUBLICATION.—For each 

22 covered country, the report required by this section shall 

23 be translated into the principal languages of the country 

24 and made available on the Internet website of the United 

25 States diplomatic mission to the country, or, where there 


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1 is no diplomatic mission, on the Internet website of the 

2 Department of State. 

3 (e) DEFINITIONS.—In this section— 

4 (1) the term ‘‘covered country’’ means a coun5 try that— 

6 (A) receives assistance under this Act; or 

7 (B) is a member of the United Nations; 

8 and 

9 (2) the term ‘‘child marriage’’ means the mar10 riage of a girl or a boy who has not reached the min11 imum legal age for marriage in the country of resi12 dence, or where there is no such law, under the age 

13 of 18. 

14 SEC. 3103. ACTION PLANS FOR HUMAN RIGHTS AND DE15 MOCRACY. 

16 (a) ACTION PLAN REQUIRED.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), beginning 3 years after the date of the 

19 enactment of this Act and every 3 to 5 years there20 after, the Secretary, in coordination with the Admin21 istrator as appropriate, shall develop an action plan 

22 for human rights and democracy in each country 

23 that is included in the report under section 3102. 

24 (2) EXCEPTION.—The Secretary is not required 

25 to develop an action plan under this subsection for 


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1 any country with respect to which the Secretary de2 termines, based on the information required in the 

3 report under section 3102, that human rights and 

4 fundamental freedoms are generally respected. 

5 (b) PREPARATION OF PLANS.—The action plan re6 quired under subsection (a) shall be prepared— 

7 (1) in each country with a United States diplo8 matic mission, by the Chief of Mission, in coordina9 tion with the Mission Director of the Agency, if a 

10 Mission Director is assigned to such country, and in 

11 consultation with the Assistant Secretary for Democ12 racy, Human Rights, and Labor; or 

13 (2) in each country without a United States 

14 diplomatic mission, by the Assistant Secretary of 

15 State for Democracy, Human Rights, and Labor, in 

16 coordination with the Assistant Administrator for 

17 Democratic and Civic Development and the relevant 

18 regional bureaus of the Department of State and 

19 United States Agency for International Develop20 ment. 

21 (c) ELEMENTS.—The action plan required under sub22 section (a) shall contain the following elements: 

23 (1) A description of the major barriers in such 

24 country to fundamental rights and freedoms. 


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1 (2) Specific improvements in the areas identi2 fied under paragraph (1) that the United States will 

3 seek over the next 3 to 5 years. 

4 (3) A description of the policies and programs, 

5 including assistance, to be undertaken in order to 

6 foster the improvements identified in paragraph (2). 

7 (4) A description of the roles of each partici8 pating Federal agency in carrying out the policies 

9 and programs identified in paragraph (3). 

10 (5) A description of the budgetary and per11 sonnel resources needed to carry out the policies and 

12 programs identified in paragraph (3). 

13 (d) CONSULTATION.—In preparing the action plan 

14 required under subsection (a), the relevant officials shall 

15 consult with a wide range of nongovernmental organiza16 tions in the country and with nongovernmental organiza17 tions having significant experience in or knowledge about 

18 the country. 

19 (e) TRANSMISSION.— 

20 (1) TO CONGRESS.—The action plan required 

21 under subsection (a) shall be transmitted to the ap22 propriate congressional committees. 

23 (2) PUBLIC AVAILABILITY.—At a minimum, the 

24 elements of the action plan described in paragraphs 

25 (1) and (2) of subsection (c) shall be published on 


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1 the Internet website of the Department of State and, 

2 in countries in which a United States diplomatic 

3 mission is established, on the mission’s Internet 

4 website. 

5 (f) STRATEGIC COORDINATION.—In order to avoid 

6 duplication and policy inconsistency, the Secretary shall 

7 ensure that the action plan required under subsection (a) 

8 is coordinated with all other relevant diplomatic and devel9 opment strategies, in particular the strategies prepared 

10 pursuant to— 

11 (1) section 1703, relating to Global Strategy for 

12 Gender Equality; 

13 (2) section 1018, relating to Country Develop14 ment Cooperation Strategies; 

15 (3) section 2012, relating to Conflict Mitigation 

16 Strategy; and 

17 (4) section 3203, relating to Comprehensive 

18 International Strategy to Prevent and Respond to 

19 Violence Against Women and Girls. 

20 SEC. 3104. HUMAN RIGHTS AND DEMOCRACY FUND. 

21 (a) ESTABLISHMENT.—There is established a 

22 Human Rights and Democracy Fund (in this section re23 ferred to as the ‘‘Fund’’) to be administered by the Assist24 ant Secretary of State for Democracy, Human Rights, and 

25 Labor. 


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1 (b) PURPOSE.—The purpose of the Fund is to protect 

2 and promote fundamental freedoms and internationally 

3 recognized human rights by— 

4 (1) supporting defenders of human rights and 

5 advocates of democracy; 

6 (2) assisting victims of human rights violations; 

7 (3) preventing and responding to violence 

8 against women and girls, in accordance with subtitle 

9 A; 

10 (4) carrying out child protection compacts in 

11 accordance with section 3402; and 

12 (5) responding to emergencies and unantici13 pated opportunities in the areas of human rights 

14 and democracy. 

15 (c) CONSULTATION.—In administering the Fund, the 

16 Assistant Secretary of State for Democracy, Human 

17 Rights, and Labor shall consult with the Ambassador-at18 Large for Global Women’s Issues and the Assistant Ad19 ministrator for Democratic and Civic Development of the 

20 United States Agency for International Development. 

21 (d) ADDITIONAL FUNDS.—Funds made available 

22 under this section for a fiscal year are in addition to funds 

23 otherwise available for such purposes. 

24 (e) SPECIAL AUTHORITY.—Funds made available 

25 under this section for a fiscal year are authorized to be 


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1 made available notwithstanding any provision of law that 

2 restricts assistance to a foreign country. 

3 SEC. 3105. ROLE OF BUREAU OF DEMOCRACY, HUMAN 

4 RIGHTS, AND LABOR. 

5 Section 1(c)(2) of the State Department Basic Au6 thorities Act of 1956 (22 U.S.C. 2651a(c)(2)) is amended 

7 to read as follows: 

8 ‘‘(2) ASSISTANT SECRETARY OF STATE FOR DE9 MOCRACY, HUMAN RIGHTS, AND LABOR.— 

10 ‘‘(A) IN GENERAL.—There shall be in the 

11 Department of State an Assistant Secretary of 

12 State for Democracy, Human Rights, and 

13 Labor who shall be responsible to the Secretary 

14 of State for matters pertaining to human rights 

15 and humanitarian affairs (including matters re16 lating to prisoners of war and members of the 

17 United States Armed Forces missing in action) 

18 in the conduct of foreign policy and such other 

19 related duties as the Secretary may from time 

20 to time designate. The Assistant Secretary shall 

21 carry out the Secretary’s responsibilities under 

22 section 3102 of the Global Partnerships Act of 

23 2013. 

24 ‘‘(B) DUTIES.—The Assistant Secretary of 

25 State for Democracy, Human Rights, and 


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1 Labor shall maintain continuous observation 

2 and review all matters pertaining to human 

3 rights and humanitarian affairs (including mat4 ters relating to prisoners of war and members 

5 of the United States Armed Forces missing in 

6 action) in the conduct of foreign policy, includ7 ing the following: 

8 ‘‘(i) Gathering detailed information 

9 regarding humanitarian affairs and the ob10 servance of and respect for internationally 

11 recognized human rights in each country 

12 to which the requirements of sections 3102 

13 and 3103, respectively, of the Global Part14 nerships Act of 2013 are relevant. 

15 ‘‘(ii) Preparing the country reports 

16 and action plans required under sections 

17 3102 and 3103 of the Global Partnerships 

18 Act of 2013. 

19 ‘‘(iii) Making recommendations to the 

20 Secretary of State and the Administrator 

21 of the United States Agency for Inter22 national Development regarding implemen23 tation of the human rights policies, prin24 ciples, restrictions and authorities of the 

25 Global Partnerships Act of 2013. 


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1 ‘‘(iv) Administering the Human 

2 Rights and Democracy Fund established 

3 under section 3104 of the Global Partner4 ships Act of 2013. 

5 ‘‘(v) Performing other responsibilities 

6 which serve to promote increased observ7 ance of internationally recognized human 

8 rights by all countries. 

9 ‘‘(C) CONSULTATION.—The Assistant Sec10 retary of State for Democracy, Human Rights, 

11 and Labor shall be consulted in the determina12 tions of which countries shall receive United 

13 States foreign assistance and the nature of the 

14 assistance to be provided to each country. 

15 ‘‘(D) CERTAIN ASSIGNMENTS.—Any as16 signment of an individual to a political officer 

17 position at a United States mission abroad that 

18 has the primary responsibility for monitoring 

19 human rights developments in a foreign country 

20 shall be made upon the recommendation of the 

21 Assistant Secretary of State for Democracy, 

22 Human Rights, and Labor in conjunction with 

23 the head of the Department of State’s regional 

24 bureau having primary responsibility for that 

25 country.’’. 


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1 SEC. 3106. DISCRIMINATION RELATED TO SEXUAL ORI2 ENTATION. 

3 (a) DESIGNATION OF OFFICER.—The Assistant Sec4 retary of State for Democracy, Human Rights, and Labor 

5 shall designate an officer or officers who shall be respon6 sible for tracking violence, criminalization, and restrictions 

7 on the enjoyment of fundamental freedoms, consistent 

8 with United States law, in foreign countries based on ac9 tual or perceived sexual orientation and gender identity. 

10 (b) INTERNATIONAL EFFORTS.—The Secretary shall 

11 work through appropriate United States Government em12 ployees at United States diplomatic and consular missions 

13 to encourage the governments of other countries to reform 

14 or repeal laws of such countries criminalizing homosex15 uality or consensual homosexual conduct, or restricting 

16 the enjoyment of fundamental freedoms, consistent with 

17 United States law, by homosexual individuals or organiza18 tions. 

19 (c) TRAINING FOR FOREIGN SERVICE OFFICERS.— 

20 Section 708(a) of the Foreign Service Act of 1980 (22 

21 U.S.C. 4028(a)) is amended— 

22 (1) in the matter preceding paragraph (1), by 

23 inserting ‘‘the Assistant Secretary for Democracy, 

24 Human Rights, and Labor,’’ before ‘‘the Ambas25 sador at Large’’; 


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1 (2) in paragraph (2), by striking ‘‘and’’ at the 

2 end; 

3 (3) in paragraph (3), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

5 (4) by adding at the end the following new 

6 paragraph: 

7 ‘‘(4) instruction, in courses covering human 

8 rights reporting and advocacy work, on identifying 

9 violence, discrimination, and restrictions on the en10 joyment of fundamental freedoms, consistent with 

11 United States law, based on actual or perceived sex12 ual orientation and gender identity.’’. 

13 SEC. 3107. PERSONNEL AWARDS AND INCENTIVES. 

14 Section 2143 of the ADVANCE Democracy Act of 

15 2007 (22 U.S.C. 8243) is amended by striking the matter 

16 preceding paragraph (1) and inserting the following: 

17 ‘‘The Secretary shall expand the range of awards and 

18 incentives to encourage members of the Foreign Service 

19 and other employees of the Department to take assign20 ments relating to the promotion of democracy and the pro21 tection of human rights, which may include the fol22 lowing:’’. 


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1 Subtitle B—International Violence 

2 Against Women and Girls 

3 SEC. 3201. STATEMENT OF POLICY. 

4 It is the policy of the United States to— 

5 (1) promote the equal participation of women in 

6 the political, economic and social lives of their coun7 tries; 

8 (2) build the capacity of foreign governments 

9 and civil societies to prevent and respond to violence 

10 against women and girls; 

11 (3) ensure that all private partners under this 

12 Act take appropriate steps to prevent and respond to 

13 violence against women and girls; and 

14 (4) systematically integrate efforts to prevent 

15 and respond to violence against women and girls 

16 into United States foreign policy and foreign assist17 ance programs. 

18 SEC. 3202. DUTIES OF THE SECRETARY OF STATE. 

19 (a) DESIGNATION.—The Secretary shall designate a 

20 senior official in the Department of State to conduct the 

21 activities of the Secretary under this subtitle. 

22 (b) DUTIES.—The Secretary’s designee shall work 

23 with the Assistant Secretary for Democracy, Human 

24 Rights, and Labor, the Ambassador-at-Large for Global 

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1 reaus and offices of the Department of State and other 

2 Federal agencies to— 

3 (1) prepare the comprehensive international 

4 strategy required under section 3203; 

5 (2) collect and analyze data about violence 

6 against women and girls internationally; and 

7 (3) compile and disseminate information about 

8 effective methods of prevention and response, includ9 ing through the preparation of public reports. 

10 SEC. 3203. COMPREHENSIVE INTERNATIONAL STRATEGY 

11 TO PREVENT AND RESPOND TO VIOLENCE 

12 AGAINST WOMEN AND GIRLS. 

13 (a) DEVELOPMENT OF STRATEGY.—Not later than 

14 1 year after the date of the enactment of this Act, and 

15 every 5 years thereafter, the Secretary, with the assistance 

16 of the Administrator, shall— 

17 (1) develop a comprehensive, 5-year inter18 national strategy to prevent and respond to violence 

19 against women and girls internationally; 

20 (2) submit the strategy developed under para21 graph (1) to the appropriate congressional commit22 tees; and 

23 (3) make the strategy available to the public. 


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1 (b) COLLABORATION AND COORDINATION.—In devel2 oping the strategy under subsection (a), the Secretary 

3 shall consult with— 

4 (1) Federal agencies with expertise preventing 

5 and responding to violence against women and girls 

6 or administering international programs; 

7 (2) the Senior Policy Operating Group on Traf8 ficking in Persons; and 

9 (3) representatives of civil society organizations 

10 with demonstrated experience in combating violence 

11 against women and girls or promoting women’s 

12 health or women’s development issues internation13 ally. 

14 (c) CONTENT.—The strategy developed under sub15 section (a) shall— 

16 (1) identify 5 to 20 countries with significant 

17 levels of violence against women and girls, including 

18 within displaced communities, that have the govern19 ment or nongovernment organizational capacity to 

20 manage and implement gender-based violence pre21 vention and response program activities; 

22 (2) include individual, comprehensive plans for 

23 prevention and response in each of the countries 

24 identified under paragraph (1) (hereafter in this 

25 chapter referred to as ‘‘country plans’’); 


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1 (3) estimate the resource requirements for car2 rying out each country plan, including the proposed 

3 sources of funding and amounts to be contributed by 

4 or sought from partner countries and other public 

5 and private donors; 

6 (4) specify the roles and responsibilities of each 

7 Federal agency in carrying out the strategy; 

8 (5) ensure that the country plans are integrated 

9 with Country Development Cooperation Strategies 

10 required under section 1018 and action plans for 

11 human rights and democracy required under section 

12 3103, as appropriate; 

13 (6) explain the mechanisms and processes for 

14 consultation and coordination with partner countries 

15 and other public and private donors in all stages of 

16 planning and implementation of each country plan; 

17 and 

18 (7) describe the monitoring and evaluation 

19 mechanisms to be used for each country plan. 

20 (d) ACTIVITIES.—Each country plan should incor21 porate at least 2 of the following activities: 

22 (1) Enhancing the capacity of the health sector 

23 to prevent and respond to violence against women 

24 and girls. 


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1 (2) Developing and enforcing civil and criminal 

2 legal and judicial sanctions, protections, training, 

3 and capacity. 

4 (3) Supporting efforts to change social norms 

5 and attitudes so that violence against women and 

6 girls is neither condoned nor tolerated. 

7 (4) Expanding access of women and girls to 

8 quality education. 

9 (5) Increasing economic opportunities for 

10 women, including through access to credit, voca11 tional training, property ownership, and inheritance 

12 rights. 

13 SEC. 3204. ASSISTANCE TO PREVENT AND RESPOND TO VIO14 LENCE AGAINST WOMEN AND GIRLS INTER15 NATIONALLY. 

16 (a) IN GENERAL.—The Secretary and the Adminis17 trator are authorized to use funds made available for eco18 nomic assistance to carry out the comprehensive inter19 national strategy and country plans developed under sec20 tion 3203 and to conduct research and collect and analyze 

21 data in accordance with section 3202. 

22 (b) COORDINATION OF ASSISTANCE.—The Secretary 

23 and the Administrator shall seek to ensure that programs, 

24 projects, and activities carried out under this subtitle are 


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1 coordinated with related programs, projects, and activities 

2 carried out under other provisions of law. 

3 SEC. 3205. DEFINITIONS. 

4 In this subtitle: 

5 (1) PREVENTION AND RESPONSE.—The term 

6 ‘‘prevention and response’’ means activities designed 

7 to prevent and respond to violence against women 

8 and girls. 

9 (2) VIOLENCE AGAINST WOMEN AND GIRLS.— 

10 The term ‘‘violence against women and girls’’means 

11 any act of violence that results in, or is likely to re12 sult in, physical, sexual, or psychological harm or 

13 suffering to women or girls, including threats of 

14 such acts, coercion, or arbitrary deprivations of lib15 erty, whether occurring in public or private life. 

16 Subtitle C—Rule of Law 

17 SEC. 3301. FINDINGS. 

18 Congress finds the following: 

19 (1) Human security depends upon the existence 

20 of a system under which citizens are protected 

21 against arbitrary and abusive use of power, law and 

22 order are consistently maintained, and justice is ef23 fectively administered. 

24 (2) The rule of law must be carried out in ac25 cordance with international human rights standards, 


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1 which include the equality and accountability of all 

2 individuals before the law regardless of political or 

3 social status; the protection of individuals against 

4 arbitrary or discriminatory treatment by, or with the 

5 acquiescence of, the government; the independence 

6 of the judiciary and the legal profession from other 

7 branches of government; the professional mainte8 nance of law and order; and the transparent and fair 

9 administration of justice. 

10 (3) Responsible and effective criminal justice 

11 systems not only build the foundations for democ12 racy and economic growth in developing countries, 

13 but also help to stem illicit activities, such as drug 

14 trafficking and terrorism, that threaten United 

15 States national interests. 

16 (4) Provision of rule of law assistance to for17 eign police and security forces is an inherently gov18 ernmental function, which should be performed by, 

19 or under the direct supervision of, United States 

20 Government employees. 

21 (5) The United States should provide assistance 

22 to foreign law enforcement agencies only— 

23 (A) if such agencies have demonstrated a 

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1 curity, human rights and dignity of the civilian 

2 population; 

3 (B) within the context of a comprehensive 

4 program to strengthen the rule of law and im5 prove the administration of justice; and 

6 (C) in conjunction with a system to mon7 itor and evaluate the impact of such advice, 

8 training, and equipment. 

9 SEC. 3302. GLOBAL RULE OF LAW POLICY COMMITTEE. 

10 (a) ESTABLISHMENT.—The President shall establish 

11 a Global Rule of Law Policy Committee (hereafter in this 

12 section referred to as the ‘‘Committee’’), to include the 

13 Secretary of State, the Attorney General, the Secretary 

14 of Homeland Security, the Secretary of the Treasury, the 

15 Secretary of Defense, the Administrator, and the heads 

16 of other Federal agencies engaged in rule of law assist17 ance. 

18 (b) PURPOSE.—The purpose of the Committee shall 

19 be to promote coordination among Federal agencies car20 rying out rule of law assistance and to build capacity to 

21 provide such assistance effectively. 

22 (c) REVIEW.—The Committee shall have the author23 ity to review any proposed legislative or legal advice to 

24 be provided by private contractors to foreign law enforce25 ment agencies. 


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1 (d) COORDINATION PLAN.—Not later than 180 days 

2 after the date of the enactment of this Act, the Committee 

3 shall establish a plan for the coordination of rule of law 

4 assistance, including— 

5 (1) building capacity within the United States 

6 Government to provide expert, long-term advice and 

7 training for foreign civilian law enforcement agencies 

8 and judicial systems; 

9 (2) utilizing such capacity currently existing 

10 within other donor countries and international and 

11 nongovernmental organizations; 

12 (3) delineating the roles and responsibilities of 

13 each Federal agency in carrying out rule of law as14 sistance; 

15 (4) establishing general policies and principles 

16 guiding the provision of rule of law assistance; and 

17 (5) ensuring policy and program coordination 

18 among Federal agencies carrying out rule of law as19 sistance. 

20 (e) TRANSMISSION TO CONGRESS.—The coordination 

21 plan required under subsection (d) shall be transmitted 

22 to the appropriate congressional committees and made 

23 publicly available on the Internet. 

24 (f) DEFINITION.—In this section, the term ‘‘rule of 

25 law assistance’’ means assistance under this or any other 


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1 Act to combat crime, improve law enforcement, and 

2 strengthen the administration of justice in a foreign coun3 try, including assistance under sections 1803, 3303, and 

4 5203. 

5 SEC. 3303. ASSISTANCE FOR RULE OF LAW. 

6 (a) NONLETHAL ASSISTANCE.—The President is au7 thorized to provide training, advice, and nonlethal equip8 ment to eligible foreign law enforcement agencies to im9 prove the capacity of such agencies to— 

10 (1) protect the safety and security of civilian 

11 populations, including through community policing; 

12 (2) promote respect for human rights and due 

13 process of law; 

14 (3) prevent and respond to violence against 

15 women and girls; 

16 (4) reduce organized crime, corruption, and fi17 nancial crimes; 

18 (5) carry out investigative and forensic func19 tions; 

20 (6) bring penal institutions into conformity with 

21 international humanitarian standards; 

22 (7) develop training curricula; 

23 (8) manage human and financial resources and 

24 carry out administrative functions, including internal 

25 discipline procedures; 


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1 (9) conduct strategic planning and institutional 

2 reform consistent with civilian democratic control; 

3 (10) institute effective mechanisms for account4 ability and oversight; 

5 (11) develop constructive relationships with the 

6 communities they serve; 

7 (12) prevent disputes from escalating into vio8 lence; 

9 (13) respond appropriately and effectively in 

10 disasters and emergencies; 

11 (14) control and protect land, air and maritime 

12 borders, and enforce customs; 

13 (15) participate in international peace support 

14 operations; 

15 (16) monitor and enforce sanctions regimes; 

16 (17) detect and interdict trafficking in persons, 

17 weapons, narcotics, and other contraband; 

18 (18) conduct maritime law enforcement and 

19 border control; and 

20 (19) combat terrorism and violent extremism. 

21 (b) ADMINISTRATION OF JUSTICE.—The President is 

22 authorized to assist eligible foreign law enforcement agen23 cies to improve administration of justice, including 

24 through— 


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1 (1) revision and modernization of legal codes 

2 and procedures; 

3 (2) improving transparency and efficiency of ju4 dicial processes; 

5 (3) professional training, scholarships, and ex6 changes of lawyers, judges, and other judicial offi7 cials; 

8 (4) building administrative and financial man9 agement capacity in the justice sector; 

10 (5) programs to enhance protection of witnesses 

11 and participants in judicial cases; 

12 (6) strengthening professional organizations in 

13 order to promote services to members and the role 

14 of the bar in judicial selection, enforcement of eth15 ical standards, and legal reform; 

16 (7) increasing the availability of legal materials 

17 and publications; 

18 (8) developing systems to ensure competent de19 fense of indigent clients charged with crimes; 

20 (9) enhancing access of crime victims to legal 

21 information and services; and 

22 (10) programs to strengthen respect for the 

23 rule of law and internationally recognized human 

24 rights. 


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1 (c) ELIGIBLE AGENCIES.—A foreign law enforcement 

2 agency shall be eligible for assistance under this section 

3 only if— 

4 (1) the President determines, and reports to the 

5 appropriate congressional committees not less than 

6 15 days in advance of providing such assistance, 

7 that such agency has demonstrated a commitment to 

8 improving protection of the security, human rights, 

9 and dignity of the civilian population; 

10 (2) the assistance will be used to strengthen 

11 democratic control over the police or prison author12 ity or to improve adherence to international human 

13 rights standards; and 

14 (3) such agency is not otherwise prohibited by 

15 any provision of this Act from receiving assistance. 

16 (d) ACCOUNTABILITY.—The Comptroller General of 

17 the United States shall, not later than 1 year after the 

18 date of the enactment of this Act, conduct a review of the 

19 effectiveness and results of rule of law programs supported 

20 by the United States Government over the prior 5-year 

21 period, including their outcomes for human rights, in 

22 order to determine best practices and lessons learned for 

23 future programming. 

24 (e) PARTICIPATION IN FOREIGN POLICE ACTIONS.— 


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1 (1) PROHIBITION ON EFFECTING AN ARREST.— 

2 No officer or employee of the United States may di3 rectly effect an arrest in any foreign country as part 

4 of any foreign police action, notwithstanding any 

5 other provision of law. 

6 (2) PARTICIPATION IN ARREST ACTIONS.— 

7 Paragraph (1) does not prohibit an officer or em8 ployee of the United States, with the approval of the 

9 United States chief of mission, from being present 

10 when foreign officers are effecting an arrest or from 

11 assisting foreign officers who are effecting an arrest. 

12 (3) EXCEPTION FOR EXIGENT, THREATENING

13 CIRCUMSTANCES.—Paragraph (1) does not prohibit 

14 an officer or employee from taking direct action to 

15 protect life or safety if exigent circumstances arise 

16 which are unanticipated and which pose an imme17 diate threat to United States officers or employees, 

18 officers or employees of a foreign government, or 

19 members of the public. 

20 (4) EXCEPTION FOR MARITIME LAW ENFORCE21 MENT.—With the agreement of a foreign country, 

22 paragraph (1) does not apply with respect to mari23 time law enforcement operations in the territorial 

24 sea or archipelagic waters of that country. 


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1 (5) EXCEPTION FOR STATUS OF FORCES AR2 RANGEMENTS.—This subsection does not apply to 

3 the activities of the United States Armed Forces in 

4 carrying out their responsibilities under applicable 

5 status of forces arrangements. 

6 SEC. 3304. DEFINITION. 

7 In this subtitle, the term ‘‘foreign law enforcement 

8 agency’’ means an agency— 

9 (1) with domestic arrest powers; 

10 (2) responsible for internal security, including 

11 the protection of life and property; and 

12 (3) that does not report to a defense ministry 

13 or similar or related entity of a foreign government 

14 and is not a military force. 

15 Subtitle D—Child Protection 

16 SEC. 3401. FINDINGS. 

17 Congress finds that— 

18 (1) the Trafficking Victims Protection Act of 

19 2000 (Public Law 106–386) and subsequent reau20 thorization Acts establish a comprehensive frame21 work for monitoring and combating human traf22 ficking, including that of children; 

23 (2) under the Trafficking Victims Protection 

24 Act of 2000, the Secretary annually identifies coun25 tries that do not comply with minimum standards 


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1 for the elimination of trafficking, some of which are 

2 making significant efforts to bring themselves into 

3 compliance; 

4 (3) additional incentives should be provided to 

5 encourage countries to protect and rescue children 

6 subjected to severe forms of trafficking or sexual ex7 ploitation; and 

8 (4) such incentives can be provided in the form 

9 of assistance to countries that— 

10 (A) have a significant prevalence of traf11 ficking in children; 

12 (B) agree to address institutional weak13 nesses within the government that result in the 

14 failure to protect vulnerable children and to res15 cue and properly rehabilitate victims; and 

16 (C) agree to enhance efforts to apprehend 

17 perpetrators who engage in severe forms of 

18 trafficking in children and bring them to justice 

19 in national courts of law. 

20 SEC. 3402. CHILD PROTECTION COMPACTS. 

21 (a) AUTHORIZATION.—The Secretary, acting through 

22 the Office to Monitor and Combat Trafficking in Persons 

23 and in consultation with the Senior Policy Operating 

24 Group on Trafficking in Persons, is authorized to enter 

25 into a compact described in subsection (b) with an eligible 


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1 country described in subsection (c) to protect and rescue 

2 children subjected to severe forms of trafficking or sexual 

3 exploitation. Such compact shall be known as a ‘‘Child 

4 Protection Compact’’. 

5 (b) COMPACT.— 

6 (1) IN GENERAL.—A compact described in this 

7 subsection is an agreement between the United 

8 States and an eligible country that establishes a 

9 multiyear plan to protect and rescue children sub10 jected to severe forms of trafficking or sexual exploi11 tation. 

12 (2) ELEMENTS.—A compact shall contain— 

13 (A) the specific objectives that the country 

14 and the United States expect to achieve during 

15 the term of the compact; 

16 (B) the responsibilities of the country and 

17 the United States in the achievement of such 

18 objectives; 

19 (C) the particular programs or initiatives 

20 to be undertaken in the achievement of such ob21 jectives and the amount of funding to be allo22 cated to each program or initiative; 

23 (D) regular outcome indicators to monitor 

24 and measure progress toward achieving such 


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1 objectives, including indicators for each pro2 gram or initiative; 

3 (E) a multi-year financial plan, including 

4 the estimated amount of contributions by the 

5 United States and the country; and 

6 (F) the strategy of the country to sustain 

7 progress made toward achieving such objectives 

8 after expiration of the compact. 

9 (3) PROGRAMS AND INITIATIVES.—Programs 

10 and initiatives under a compact may include— 

11 (A) evaluating legal standards and prac12 tices and recommending improvements that will 

13 increase the likelihood of successful prosecu14 tions; 

15 (B) training anti-trafficking police and in16 vestigators; 

17 (C) increasing public awareness of the 

18 risks and dangers of child trafficking; 

19 (D) building cooperation between domestic 

20 nongovernmental organizations and law enforce21 ment agencies to identify and rescue victims; 

22 (E) making courts more friendly to vic23 tims; 

24 (F) providing rehabilitation and reintegra25 tion services for rescued children; 


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1 (G) supporting innovative technology and 

2 improved data collection to prevent child traf3 ficking, aid in the prosecution of criminals, and 

4 rescue victims; and 

5 (H) developing regional cooperative plans 

6 with neighboring countries to prevent cross-bor7 der trafficking of children and child sex tour8 ism. 

9 (c) ELIGIBLE COUNTRIES.—A country is eligible for 

10 a compact if the country— 

11 (1) is a developing country, in that term is de12 fined in section 1023; 

13 (2) is a Tier II country or Tier II Watch List 

14 country; 

15 (3) has a documented high prevalence of traf16 ficking of children; and 

17 (4) has demonstrated political will and sus18 tained commitment by the government to undertake 

19 meaningful measures to address severe forms of 

20 trafficking of children, including— 

21 (A) enactment and enforcement of laws 

22 criminalizing trafficking in children with pun23 ishments commensurate with the crime, includ24 ing, when necessary, against complicit govern25 ment officials; 


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1 (B) cooperation with local and inter2 national nongovernmental organizations with 

3 demonstrated expertise in combating the traf4 ficking in children; and 

5 (C) the treatment of child trafficking vic6 tims in accordance with Article 6(3) of the Pro7 tocol to Prevent, Suppress and Punish Traf8 ficking in Persons, Especially Women and Chil9 dren, Supplementing the United Nations Con10 vention Against Transnational Organized 

11 Crime. 

12 SEC. 3403. AUTHORIZATION OF ASSISTANCE. 

13 (a) IN GENERAL.—The Secretary is authorized to use 

14 funds made available under this Act for economic assist15 ance to— 

16 (1) develop a Child Protection Compact between 

17 the United States and an eligible country under sec18 tion 3402; and 

19 (2) provide assistance to an eligible entity de20 scribed in subsection (b) to carry out a Child Protec21 tion Compact. 

22 (b) ELIGIBLE ENTITIES.—In carrying out a Child 

23 Protection Compact, the Secretary may provide assistance 

24 to— 


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1 (1) the national government of the eligible 

2 country under section 3402; 

3 (2) regional or local governmental units of an 

4 eligible country under section 3402; 

5 (3) a regional or international organization; or 

6 (4) a nongovernmental organization or a private 

7 entity with expertise in the protection of vulnerable 

8 children, the investigation and prosecution of those 

9 who engage in or benefit from child trafficking, or 

10 the rescue of child victims of trafficking. 

11 SEC. 3404. SUSPENSION AND TERMINATION OF ASSIST12 ANCE. 

13 (a) SUSPENSION AND TERMINATION OF ASSIST14 ANCE.—The Secretary shall suspend or terminate assist15 ance under section 3403 in whole or in part for an eligible 

16 entity under section 3403 if the Secretary determines 

17 that— 

18 (1) the entity is engaged in activities that are 

19 contrary to the national security interests of the 

20 United States; 

21 (2) the entity has engaged in a pattern of ac22 tions inconsistent with the criteria used to determine 

23 the eligibility of the country or entity, as the case 

24 may be; or 


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1 (3) the entity has failed to adhere to its respon2 sibilities under the Child Protection Compact. 

3 (b) REINSTATEMENT.—The Secretary may reinstate 

4 assistance that has been suspended or terminated under 

5 subsection (a) only if the Secretary determines that the 

6 entity has demonstrated a commitment to correcting each 

7 condition for which assistance was suspended or termi8 nated. 

9 (c) CONGRESSIONAL NOTIFICATION.—Not later than 

10 3 days after the date on which the Secretary suspends or 

11 terminates assistance under subsection (a) for an entity, 

12 or reinstates assistance under subsection (b) for an entity, 

13 the Secretary shall submit to the appropriate congres14 sional committees a report that contains the determination 

15 of the Secretary under subsection (a) or subsection (b), 

16 as the case may be. 

17 SEC. 3405. CONGRESSIONAL NOTIFICATION. 

18 (a) PRIOR CONSULTATION.—Not later than 15 days 

19 prior to the start of negotiations of a Child Protection 

20 Compact with a country, the Ambassador shall consult 

21 with the appropriate congressional committees. 

22 (b) CONGRESSIONAL NOTIFICATION.—Not later than 

23 10 days after entering into a Child Protection Compact 

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1 tailed summary of the Compact and a copy of the text 

2 of the Compact. 

3 (c) MONITORING AND EVALUATION.—The Ambas4 sador shall ensure that regular monitoring reports for 

5 each compact are prepared and made available to the ap6 propriate congressional committees, and that an inde7 pendent impact evaluation is conducted upon the comple8 tion of a compact. 

9 SEC. 3406. DEFINITIONS. 

10 In this subtitle: 

11 (1) AMBASSADOR.—The term ‘‘Ambassador’’ 

12 means the Ambassador-at-Large of the Department 

13 of State’s Office to Monitor and Combat Trafficking 

14 in Persons. 

15 (2) CHILD PROTECTION.—The term ‘‘child pro16 tection’’ means efforts to prevent and respond to vio17 lence, exploitation, and abuse against children. 

18 (3) COMPACT.—The term ‘‘Child Protection 

19 Compact’’ or ‘‘Compact’’ means a Child Protection 

20 Compact described in section 3402. 

21 (4) SEVERE FORMS OF TRAFFICKING.—The 

22 term ‘‘severe forms of trafficking in persons’’ 

23 means— 

24 (A) sex trafficking in which a commercial 

25 sex act is induced by force, fraud, or coercion, 


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1 or in which the person induced to perform such 

2 act has not attained 18 years of age; or 

3 (B) the recruitment, harboring, transpor4 tation, provision, or obtaining of a person for 

5 labor or services, through the use of force, 

6 fraud, or coercion for the purpose of subjection 

7 to involuntary servitude, peonage, debt bondage, 

8 or slavery. 

9 (5) TIER II COUNTRIES AND TIER II WATCH

10 LIST COUNTRIES.—The terms ‘‘Tier II countries’’ 

11 and ‘‘Tier II Watch List countries’’ mean those 

12 countries designated by the Secretary as not meeting 

13 minimum standards for the elimination of traf14 ficking. 

15 TITLE IV—BUILDING AND REIN16 FORCING STRATEGIC PART17 NERSHIPS 

18 SEC. 4001. FINDINGS. 

19 Congress finds the following: 

20 (1) The ultimate goal of the United States con21 tinues to be a world which is free from the scourge 

22 of war and the dangers and burdens of armaments, 

23 in which the use of force has been subordinated to 

24 the rule of law, and in which international adjust25 ments to a changing world are achieved peacefully. 


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1 (2) In furtherance of that goal, it remains the 

2 policy of the United States to encourage regional 

3 arms control and disarmament agreements; discour4 age arms races; and encourage restraint in the pro5 vision of armaments, especially small arms and light 

6 weapons and advanced conventional weapons, to 

7 countries in regions of instability. 

8 (3) The efforts of the United States and other 

9 friendly countries to promote peace and security con10 tinue to require measures of support based upon the 

11 principle of effective self-help and mutual aid. 

12 (4) The peace of the world and the security of 

13 the United States are endangered so long as hostile 

14 countries continue by threat of military action, by 

15 the use of economic pressure, by their active or per16 missive support of terrorists, terrorist organizations 

17 and extremism, and by internal subversion, or other 

18 means to attempt to undermine the peace, security, 

19 human rights, political freedoms, civil rights, or 

20 prosperity of others. 

21 (5) Peace and security for all is endangered by 

22 the failure of countries to live up to their sovereign 

23 responsibilities to protect civilian populations from 

24 violence, reduce terrorism, halt the spread of dan25 gerous materials, and control transnational crime. 


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1 (6) It is in the interest of the United States to 

2 help foreign countries build capable and accountable 

3 military, police, customs, and other security forces, 

4 under civilian democratic control, in order to exer5 cise their sovereign responsibilities. 

6 (7) Extreme poverty and underdevelopment are 

7 threats to peace. The provision of foreign assistance 

8 under this title to developing countries must take 

9 into account how the foreign assistance will affect 

10 such countries’ social and economic development and 

11 whether the foreign assistance is diverting resources 

12 away from development efforts that meet basic needs 

13 of the population and address root causes of insta14 bility. 

15 (8) Weapons and weapons systems are not and 

16 should not be considered to be normal commodities 

17 for international trade, and the United States should 

18 permit such sales only to the extent that such sales 

19 directly support United States foreign policy and na20 tional security objectives. 

21 (9) Foreign assistance under this title should 

22 not be provided if such foreign assistance will like23 ly— 

24 (A) contribute to an arms race or regional 

25 instability; 


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1 (B) increase the possibility of outbreak or 

2 escalation of conflict, either within or across the 

3 borders of the recipient country; 

4 (C) support international terrorism; 

5 (D) prejudice the development of bilateral 

6 or multilateral arms control arrangements; 

7 (E) adversely affect the arms control or 

8 nonproliferation policy of the United States; 

9 (F) be in excess to the legitimate defense 

10 needs of the recipient country in terms of the 

11 actual threats to its national security it faces; 

12 or 

13 (G) undermine the objectives and purposes 

14 to promote and protect human rights and de15 mocracy under title III. 

16 SEC. 4002. STATEMENT OF POLICY. 

17 It is the policy of the United States— 

18 (1) to promote the peace of the world and the 

19 foreign policy, security, and general welfare of the 

20 United States by fostering an improved climate of 

21 security, political independence and individual lib22 erty, improving the ability of friendly countries and 

23 international organizations to deter or, if necessary, 

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1 sisting friendly countries to provide for their legiti2 mate defense needs, and creating an environment of 

3 security and stability in the developing friendly 

4 countries essential to their more rapid social, eco5 nomic, and political progress; 

6 (2) to exert leadership in the world community 

7 to bring about arrangements for reducing the inter8 national trade in implements of war and to lessen 

9 the danger of outbreak of regional conflict and the 

10 burdens of armaments; 

11 (3) to exert maximum efforts to achieve uni12 versal control of weapons of mass destruction, the 

13 securing and control of the means to produce and 

14 deliver them, and universal regulation and reduction 

15 of armaments, including armed forces, under ade16 quate safeguards to protect complying countries 

17 against violation, aggression, and invasion; 

18 (4) to administer United States programs for or 

19 procedures governing the export, sale, and grant of 

20 defense articles and defense services to foreign coun21 tries and international organizations in a manner 

22 consistent with the goals described in section 4003; 

23 (5) to achieve international peace and security 

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1 tlement of disputes so that armed force shall not be 

2 used except for individual or collective self-defense; 

3 (6) to encourage all other countries to join in 

4 a common undertaking to meet the goals described 

5 in section 4003; and 

6 (7) to give priority for the provision of foreign 

7 assistance under this title to the needs of those 

8 countries in danger of becoming victims of aggres9 sion, terrorism, or intimidation by conventional or 

10 non-conventional military means. 

11 SEC. 4003. GOALS OF ASSISTANCE. 

12 (a) IN GENERAL.—The provision of foreign assist13 ance under this title to any country or organization shall 

14 be furnished solely to achieve the following goals: 

15 (1) To improve the ability of the country or or16 ganization to meet its legitimate defense and inter17 nal security needs. 

18 (2) To assist and encourage the country or or19 ganization to recognize and effectively address prob20 lems that threaten United States security, including 

21 terrorism, proliferation of weapons and dangerous 

22 technologies, environmental destruction, the spread 

23 of deadly disease, and transnational crime. 

24 (3) To protect civilian populations from vio25 lence, including criminal violence. 


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1 (4) To permit the country or organization to 

2 participate in regional or collective arrangements or 

3 measures requested by the United Nations, or con4 sistent with the Charter of the United Nations, for 

5 the purpose of maintaining or restoring international 

6 peace and security. 

7 (5) To increase the professionalization, trans8 parency, accountability, humanitarian and disaster 

9 response capacity, or human rights record of the se10 curity forces of the country or organization, and the 

11 effective control of such security forces by civilian 

12 democratic authorities. 

13 (6) To promote a social, economic, and political 

14 environment conducive to stable peace in the country 

15 or region. 

16 (b) BIENNIAL REVIEW AND REPORT.— 

17 (1) REVIEW.—In carrying out the requirements 

18 of section 8201 with respect to security assistance, 

19 the Secretary shall, for each country to which such 

20 assistance is provided— 

21 (A) review the extent to which such assist22 ance is achieving the goals of subsection (a); 

23 (B) review the impact of such assistance 

24 on internationally recognized human rights; and 


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1 (C) incorporate the results of such review 

2 into decisions regarding the provision and de3 sign of security assistance. 

4 (2) BIENNIAL REPORT.—Not later than 2 years 

5 after the date of the enactment of this Act, and 

6 every 2 years thereafter, the President shall submit 

7 to the appropriate congressional committees a report 

8 on the result of the review required under paragraph 

9 (1) and the steps taken to incorporate the results of 

10 such review into security assistance decisionmaking. 

11 Subtitle A—Economic Support 

12 Fund 

13 SEC. 4101. FINDINGS AND STATEMENT OF POLICY. 

14 (a) FINDINGS.—Congress finds the following: 

15 (1) Conflict, violence, anarchy, and instability, 

16 fueled by problems such as tyranny and oppression, 

17 corruption and financial mismanagement, ethnic and 

18 religious discrimination and discord, competition 

19 over resources, and other sources of tension, are 

20 among the greatest threats to United States national 

21 security. 

22 (2) Terrorism and violent extremism undermine 

23 the stability and survival of states, the protection of 

24 democratic freedoms, the vitality of economies and 

25 markets, and the lives of civilian populations. 


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1 (3) United States leadership is essential to 

2 countering terrorism and violent extremism, fos3 tering political and economic stability, and reaching 

4 comprehensive, just and lasting peace agreements. 

5 (4) To reduce the need for military force, the 

6 United States must develop and maintain a broad 

7 range of efficient and effective diplomatic and eco8 nomic tools to promote peaceful resolution of conflict 

9 and to prevent the collapse of weak and fragile 

10 states. 

11 (5) Efforts to promote international peace and 

12 stability are most effective when undertaken on a 

13 multilateral basis, in concert with strategic partners. 

14 (6) Prudent investment of United States re15 sources to assist, through bilateral and collective ef16 forts, in preventing or containing armed conflict, in 

17 restoring peace and stability, and in addressing the 

18 sources of conflict, is essential for achieving a peace19 ful world. 

20 (7) While stability is a necessary precursor to 

21 long-term development, stabilization programming 

22 often has different objectives, beneficiaries, modali23 ties, and measurement tools than long-term develop24 ment programming, and should be justified, budg25 eted, and evaluated according to different criteria. 


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1 (b) STATEMENT OF POLICY.—It is the policy of the 

2 United States to deepen engagement with close allies and 

3 partners, and to develop relations with new partners, to 

4 prevent violent conflict, resolve underlying grievances fair5 ly, and build sustainable peace. 

6 SEC. 4102. GOAL AND OBJECTIVES. 

7 (a) GOAL.—The goal of foreign assistance under this 

8 subtitle is to expand strategic partnerships to prevent vio9 lent conflict, resolve underlying grievances fairly, and 

10 build sustainable peace. 

11 (b) OBJECTIVES.—In furtherance of the goal de12 scribed in subsection (a), foreign assistance under this 

13 subtitle shall be designed to achieve the following objec14 tives: 

15 (1) Promoting and supporting peace agree16 ments. 

17 (2) Increasing economic and political stability. 

18 (3) Facilitating participation in collective diplo19 matic and security efforts. 

20 (4) Strengthening democratic governance. 

21 SEC. 4103. ECONOMIC SUPPORT FUND. 

22 (a) AUTHORIZATION.—The President is authorized to 

23 provide foreign assistance under this subtitle to countries 

24 and organizations, on such terms and conditions as the 

25 President may determine, in order to achieve the goal and 


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1 objectives of this subtitle. Such foreign assistance shall be 

2 known as ‘‘Economic Support Fund’’ assistance. 

3 (b) RELATIONSHIP TO DEVELOPMENT ASSIST4 ANCE.—Foreign assistance under this subtitle— 

5 (1) should be designed to complement assist6 ance under title I and should be linked with subse7 quent medium-term and long-term development pro8 grams; 

9 (2) shall be provided, to the maximum extent 

10 feasible, consistent with the policy directions, pur11 poses, and programs of title I; and 

12 (3) is authorized to be provided for countries in 

13 amounts that could not be justified solely under as14 sistance under title I. 

15 (c) ROLE OF THE SECRETARY.—The Secretary shall 

16 be responsible for policy decisions and justifications for 

17 foreign assistance under this subtitle, including determina18 tions of whether to provide foreign assistance to a country 

19 or organization and the amount of such foreign assistance. 

20 The Secretary shall exercise this responsibility in coordi21 nation with the Administrator. 

22 (d) INFORMATION TO BE PROVIDED.—The annual 

23 congressional budget justification required under section 

24 8302 and the database required under section 8301 shall 

25 include information concerning the amounts and kinds of 


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1 cash grant transfers, the amounts and kinds of budgetary 

2 and balance-of-payments support provided, and the 

3 amounts and kinds of project assistance provided with 

4 funds made available under this subtitle. 

5 (e) NON-MILITARY PURPOSES.—Amounts made 

6 available to carry out this subtitle may not be used for 

7 military or paramilitary purposes and may not be carried 

8 out by military forces. 

9 (f) AVAILABILITY OF FUNDS.—Amounts made avail10 able to carry out this subtitle are authorized to remain 

11 available until expended. 

12 SEC. 4104. CASH TRANSFER ASSISTANCE. 

13 (a) IN GENERAL.—The Secretary is authorized to 

14 provide foreign assistance under this subtitle in the form 

15 of cash grant transfers, balance-of-payments support, or 

16 other non-project assistance only to the extent and in the 

17 amounts justified in the annual congressional budget jus18 tification required under section 8302 or as subsequently 

19 notified to Congress pursuant to section 8401. 

20 (b) SEPARATE ACCOUNTS.—A country or organiza21 tion receiving foreign assistance in the form of cash trans22 fers or non-project sector assistance shall be required to 

23 maintain such funds in a separate account and not com24 mingle them with any other funds. 


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1 (c) USE OF FUNDS.—Funds placed into a separate 

2 account pursuant to subsection (b) may be obligated and 

3 expended notwithstanding commodity restrictions (as de4 fined in section 10001). 

5 Subtitle B—Security Partnerships 

6 CHAPTER 1—GENERAL AUTHORITIES 

7 SEC. 4211. AUTHORIZATION OF ASSISTANCE. 

8 (a) AUTHORIZATION.— 

9 (1) IN GENERAL.—The President is authorized 

10 to provide foreign assistance under this subtitle to 

11 any country or organization that is eligible to receive 

12 such assistance in order to promote security in the 

13 country or region. 

14 (2) TERMS AND CONDITIONS.—The President 

15 may provide foreign assistance under this subtitle on 

16 such terms and conditions as the President may de17 termine. 

18 (b) TYPES OF ASSISTANCE.—Assistance provided 

19 under subsection (a) includes— 

20 (1) acquiring from any source and providing by 

21 grant any defense article or defense service; 

22 (2) assigning or detailing members of the 

23 United States Armed Forces and other personnel of 

24 the Department of Defense, the Department of 


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1 State, or any other Federal agency, to perform du2 ties of a non-combatant nature; or 

3 (3) transferring such amounts made available 

4 under this title as the President may determine for 

5 assistance to the country or organization to the ac6 count in which amounts for the procurement of de7 fense articles and defense services under section 

8 4311 and section 4312 have been deposited for the 

9 country or organization, to be merged with such de10 posited funds, and to be used solely to meet obliga11 tions of the country or organization for payment for 

12 sales of defense items and services under this title. 

13 (c) EXCLUSION OF CERTAIN COSTS.—Sales that are 

14 wholly paid from funds transferred under subsection 

15 (b)(3) or from funds made available on a non-repayable 

16 basis under section 4311 shall be priced to exclude the 

17 costs of salaries of members of the United States Armed 

18 Forces (other than the Coast Guard). 

19 SEC. 4212. CONDITIONS OF ASSISTANCE. 

20 (a) IN GENERAL.—Consistent with the requirements 

21 of sections 4361 and 4362, foreign assistance authorized 

22 under this subtitle, including defense articles, defense 

23 services, or related training, may be provided to any coun24 try or organization if the country or organization (as the 

25 case may be) has agreed that— 


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1 (1) it will not transfer title to, or possession or 

2 use of, any defense article, defense service, or related 

3 training so provided to it, or produced pursuant to 

4 a cooperative project agreement, to anyone who is 

5 not an officer, employee, or agent of the country or 

6 organization (as the case may be) or the specific 

7 member countries (other than the United States) in 

8 the case of a cooperative project agreement, without 

9 the prior consent of the President; 

10 (2) it will maintain the security of such articles, 

11 services, or related training and will provide substan12 tially the same degree of security protection afforded 

13 to such articles, services, or related training by the 

14 United States Government; 

15 (3) it will, as the President may require, permit 

16 continuous observation and review by, and provide 

17 necessary information to, representatives of the 

18 United States Government with regard to the use of 

19 such articles, services, or related training; and 

20 (4) unless the President consents to other dis21 position, it will return to the United States Govern22 ment for such use or disposition as the President 

23 considers in the best interests of the United States, 

24 such articles, services, or related training which are 


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1 no longer needed for the purposes for which pro2 vided. 

3 (b) CERTIFICATION.— 

4 (1) IN GENERAL.—The Secretary may not give 

5 consent under section 4361 to the retransfer of any 

6 defense article or defense service that would be, if it 

7 were a sale, subject to the requirements of section 

8 4382 (regarding congressional certification of sen9 sitive foreign military sales and agreements), unless 

10 the Secretary submits to the appropriate congres11 sional committees a written certification with respect 

12 to such proposed retransfer containing— 

13 (A) the name of the country or organiza14 tion proposing to make such retransfer; 

15 (B) a description of such article or service 

16 proposed to be retransferred, including its ac17 quisition cost; 

18 (C) the name of the proposed recipient of 

19 such article or service; 

20 (D) the reasons for such proposed re21 transfer; and 

22 (E) the date on which such retransfer is 

23 proposed to be made. 


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1 (2) FORM.—Any certification submitted to the 

2 appropriate congressional committees pursuant to 

3 paragraph (1)— 

4 (A) shall be submitted in unclassified form, 

5 except that information regarding the dollar 

6 value and number of defense articles or defense 

7 services proposed to be retransferred may be 

8 submitted in classified form if public disclosure 

9 thereof would be clearly detrimental to the secu10 rity of the United States; and 

11 (B) shall be subject to the requirements of 

12 sections 4384. 

13 (3) EXCEPTION.—Paragraph (1) shall not 

14 apply to an export that has been exempted from the 

15 licensing requirements of this title pursuant to an 

16 agreement pursuant to section 4341. 

17 (c) EXCEPTION FOR INCORPORATED COMPO18 NENTS.—The consent of the President under subsection 

19 (a)(1) shall not be required for the transfer by a foreign 

20 country or international organization of defense articles 

21 sold by the United States under this Act if— 

22 (1) such articles constitute components incor23 porated into foreign defense articles; 

24 (2) the recipient is the government of a stra25 tegic United States ally; 


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1 (3) the recipient is not a country designated 

2 under section 9401; 

3 (4) the United States-origin components are 

4 not— 

5 (A) significant military equipment; 

6 (B) defense articles for which notification 

7 to Congress is required under section 4382; and 

8 (C) identified by regulation as Missile 

9 Technology Control Regime items; and 

10 (5) the foreign country or international organi11 zation provides notification of the transfer of the de12 fense articles to the United States Government not 

13 later than 30 days after the date of such transfer. 

14 SEC. 4213. PROHIBITION FOR MISUSE OF UNITED STATES 

15 ASSISTANCE. 

16 (a) PROHIBITION.—No foreign assistance may be 

17 provided under this subtitle, subtitle C, or any predecessor 

18 Act to any country or organization if the Secretary has 

19 credible information the country or organization (as the 

20 case may be) uses or has used assistance, including de21 fense articles or defense services, provided under this title 

22 or any predecessor Act in substantial violation (either in 

23 terms of quantities or in terms of the gravity of the con24 sequences regardless of the quantities involved) of any 


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1 agreement entered into pursuant to this title or any such 

2 Act— 

3 (1) by using such articles or services for a pur4 pose not authorized under section 4301 or, if such 

5 agreement provides that such articles or services 

6 may only be used for purposes more limited than 

7 those authorized under section 4301, for a purpose 

8 not authorized under such agreement; or 

9 (2) by transferring such articles or services to, 

10 or permitting any use of such articles or services by, 

11 anyone not an officer, employee, or agent of the 

12 country or organization without the prior consent of 

13 the United States; or 

14 (3) by failing to maintain the security of such 

15 articles or services, including attempts to obtain 

16 classified or proprietary information or technology 

17 from such articles or services. 

18 (b) CONGRESSIONAL NOTIFICATION.— 

19 (1) IN GENERAL.—The Secretary shall notify 

20 the appropriate congressional committees promptly 

21 upon the receipt of credible information that a coun22 try or organization may have committed a violation 

23 described in subsection (a), and what actions are 

24 being taken to implement the prohibition under that 

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1 propriate United States Government departments 

2 and agencies provide to the Secretary without delay 

3 any and all information relating to a violation de4 scribed in subsection (a). 

5 (2) TIMING.—The notification required under 

6 paragraph (1) with respect to a country or organiza7 tion shall occur before a certification required under 

8 chapter 6 of subtitle C relating to a proposed export 

9 of a defense article or defense service to the country 

10 or organization. 

11 (c) REINSTATEMENT.—The prohibition on assistance 

12 under subsection (a) shall cease to be effective for any 

13 country or organization if the Secretary determines and 

14 notifies the appropriate congressional committees that— 

15 (1) the violation for which the prohibition was 

16 imposed has ceased; 

17 (2) the country or organization (as the case 

18 may be) has given assurances satisfactory to the 

19 Secretary that the violation will not recur; and 

20 (3) the country or organization (as the case 

21 may be) has taken sufficient steps to prevent a re22 currence of any similar violation; or 

23 (4) the Secretary has determined that the viola24 tion did not in fact occur. 


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1 (d) WAIVER.—The Secretary may waive the prohibi2 tion on assistance under subsection (a) for any country 

3 or organization if the Secretary determines and notifies 

4 the appropriate congressional committees that such prohi5 bition on assistance would have a significant adverse im6 pact on the security of the United States. 

7 (e) REVIEW AND REPORT.— 

8 (1) REVIEW.—Not later than 180 days after 

9 the date of the enactment of this Act, and every 3 

10 years thereafter, the Inspector General of the De11 partment of State shall conduct a review of inves12 tigations by the Department of State of any and all 

13 possible occasions of misuse of defense articles and 

14 defense services by countries and organizations to 

15 determine whether the Department of State has 

16 fully complied with the requirements of this section, 

17 as well as with the Department of State’s internal 

18 procedures (and whether such procedures are ade19 quate), for reporting to Congress any information 

20 regarding the unlawful use or transfer of defense ar21 ticles and defense services by such countries and or22 ganizations. 

23 (2) REPORT.—The Inspector General of the 

24 Department of State shall submit to the appropriate 

25 congressional committees for each of fiscal years 


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1 2014 through 2017 a report that contains the find2 ings and results of the review conducted under para3 graph (1). The report shall be submitted in unclassi4 fied form to the maximum extent possible, but may 

5 include a classified annex. 

6 CHAPTER 2—DRAWDOWN AUTHORITY 

7 SEC. 4221. AUTHORIZATION OF EMERGENCY ASSISTANCE. 

8 (a) AUTHORIZATION.—If the President determines 

9 that— 

10 (1) an unforeseen emergency exists which re11 quires the immediate provision of assistance author12 ized under this subtitle to a country or organization, 

13 and 

14 (2) the emergency requirement cannot be met 

15 under the authority of any other provision of law ex16 cept this section, 

17 the President may direct, in order to meet the goals de18 scribed in section 4003, the drawdown of articles and serv19 ices, including training, from any Federal agency of an 

20 aggregate value of not to exceed $250,000,000 in any fis21 cal year. 

22 (b) CONGRESSIONAL NOTIFICATION.—The President 

23 may exercise the authority of subsection (a) with respect 

24 to an emergency described in subsection (a) only if the 


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1 President first notifies the appropriate congressional com2 mittees. 

3 SEC. 4222. AUTHORIZATION OF NON-EMERGENCY ASSIST4 ANCE. 

5 (a) IN GENERAL.—If the President determines that 

6 it is in the national interest of the United States to draw7 down articles and services from the inventory and re8 sources of any Federal agency, including military edu9 cation and training from the Department of Defense, the 

10 President may direct the drawdown of such articles, serv11 ices, and military education and training— 

12 (1) for purposes of providing foreign assistance, 

13 as administered by the Department of State, under 

14 this Act; 

15 (2) for purposes of providing assistance under 

16 the Migration and Refugee Assistance Act of 1962; 

17 or 

18 (3) to support cooperative efforts with Vietnam, 

19 Cambodia, or Laos to locate and repatriate members 

20 of the United States Armed Forces and civilians em21 ployed directly or indirectly by the United States 

22 Government who remain unaccounted for from the 

23 Vietnam War, including for purposes of— 


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1 (A) ensuring the safety of United States 

2 Government personnel engaged in such coopera3 tive efforts; and 

4 (B) supporting Department of Defense5 sponsored humanitarian projects associated 

6 with such efforts. 

7 (b) LIMITATION.—An aggregate value of not to ex8 ceed $250,000,000 in any fiscal year of such articles, serv9 ices, and military education and training may be provided 

10 pursuant to subsection (a). 

11 (c) NOTIFICATION.—The authority contained in this 

12 section shall be effective for any such drawdown only upon 

13 notification to the appropriate congressional committees 

14 at least 15 days prior to such drawdown in accordance 

15 with the procedures applicable to reprogramming notifica16 tions. 

17 SEC. 4223. COMMERCIAL TRANSPORTATION AND RELATED 

18 SERVICES. 

19 For purposes of this chapter, a drawdown of articles 

20 or services may include the supply of commercial transpor21 tation and related services that are acquired by contract 

22 for the purposes of the drawdown in question if the cost 

23 to acquire such commercial transportation and related 

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1 ment of providing such services from existing assets of the 

2 applicable Federal agency. 

3 SEC. 4224. REPORT. 

4 (a) IN GENERAL.—The Secretary shall keep the ap5 propriate congressional committees fully and currently in6 formed of assistance provided to a country or organization 

7 under this chapter, including by submitting to the appro8 priate congressional committees a report describing such 

9 assistance delivered to each country or organization upon 

10 delivery of such articles or upon completion of such serv11 ices or education and training. 

12 (b) PUBLICATION ON WEBSITE.—The Secretary shall 

13 publish each report required under subsection (a) on the 

14 Internet website of the Department of State upon submis15 sion of the report to the appropriate congressional com16 mittees. 

17 CHAPTER 3—LOANS OF DEFENSE 

18 ARTICLES 

19 SEC. 4231. LOAN REQUIREMENTS. 

20 In addition to such other terms and conditions as the 

21 President may determine pursuant to section 4211, de22 fense articles and defense services may be loaned under 

23 such section only if— 


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1 (1) there is a bona fide reason, other than the 

2 shortage of funds, for providing such articles on a 

3 loan basis rather than on a grant basis; 

4 (2) there is a reasonable expectation that such 

5 articles will be returned to the Federal agency mak6 ing the loan at the end of the loan period unless the 

7 loan is then renewed; 

8 (3) the loan period is of fixed duration not ex9 ceeding five years, during which such article may be 

10 recalled for any reason by the United States; 

11 (4) the agency making the loan is reimbursed 

12 for the loan according to the provisions of section 

13 4232; and 

14 (5) the loan agreement provides that— 

15 (A) if the defense article is damaged while 

16 on loan, the country or organization to which it 

17 was loaned will reimburse the United States for 

18 the cost of restoring or replacing the defense 

19 article; and 

20 (B) if the defense article is lost or de21 stroyed while on loan, the country or organiza22 tion to which it was loaned will pay to the 

23 United States an amount equal to the replace24 ment cost (less any depreciation in the value) of 

25 the defense article. 


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1 SEC. 4232. COST OF LOANS. 

2 (a) IN GENERAL.—In the case of any loan of a de3 fense article or defense service made under section 4211, 

4 there shall be a charge to the appropriation for security 

5 assistance for any fiscal year while such article or service 

6 is on loan in an amount based on— 

7 (1) the out-of-pocket expenses authorized to be 

8 incurred in connection with such loan during such 

9 fiscal year; and 

10 (2) the depreciation which occurs during such 

11 year while such article is on loan. 

12 (b) INAPPLICABILITY.—The provisions of this chap13 ter shall not apply to any defense article or defense serv14 ice, or portion thereof, acquired with funds made available 

15 for assistance under this title. 

16 CHAPTER 4—STOCKPILING OF DEFENSE 

17 ARTICLES 

18 SEC. 4241. GENERAL AUTHORITY. 

19 (a) IN GENERAL.—The President is authorized to set 

20 aside, reserve, or otherwise earmark defense articles in the 

21 inventory of the Department of Defense, consistent with 

22 the provisions of this Act, for future use by any foreign 

23 country that is a strategic United States ally. 

24 (b) NOTIFICATION.— 

25 (1) IN GENERAL.—Except as provided in para26 graph (2), not later than 15 days before making a 


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1 defense article that has been set aside, reserved, or 

2 otherwise earmarked under the authority of this sec3 tion made available to or for use by a foreign coun4 try described in subsection (a), the President shall 

5 transmit a notification of the proposed transfer to 

6 the appropriate congressional committees and to the 

7 Committees on Armed Services of the House of Rep8 resentatives and the Senate. The notification shall 

9 identify the items to be transferred and the conces10 sions to be received. 

11 (2) EXCEPTION.—If the President determines 

12 that an emergency exists that requires making a de13 fense article available to a foreign country described 

14 in subsection (a), the President is authorized to 

15 make such defense article available immediately 

16 upon notification to the appropriate congressional 

17 committees. The President shall set forth the rea18 sons for determining that such an emergency exists 

19 that warrants the immediate use of this authority. 

20 (c) RULE OF CONSTRUCTION.—No defense article 

21 transferred from any stockpile which is made available to 

22 or for use by any foreign country under this section may 

23 be considered an excess defense article for the purpose of 

24 determining the value thereof. 


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1 SEC. 4242. VALUE OF DEFENSE ARTICLES. 

2 (a) IN GENERAL.—The value of defense articles to 

3 be set aside, reserved, or earmarked or intended for use 

4 under this chapter in stockpiles located in foreign coun5 tries may not exceed $300,000,000 for a fiscal year, of 

6 which up to $200,000,000 may be made available for 

7 stockpiles in the State of Israel. 

8 (b) VALUE DEFINED.—For purposes of this section, 

9 the term ‘‘value’’ means the acquisition cost plus crating, 

10 packing, handling, and transportation costs incurred in 

11 carrying out section 4241. 

12 CHAPTER 5—FOREIGN MILITARY 

13 FINANCING 

14 SEC. 4251. GENERAL AUTHORITY. 

15 The President is authorized to finance the procure16 ment of defense articles, defense services, and design and 

17 construction services by foreign countries and inter18 national organizations, on such terms and conditions as 

19 the President may determine consistent with the require20 ments of this chapter. 

21 SEC. 4252. RULE OF CONSTRUCTION. 

22 References in any law to credits extended under this 

23 chapter or section 21 of the Arms Export Control Act 

24 shall be deemed to include reference to participations in 

25 credits. 


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1 SEC. 4253. AUDITS. 

2 For each fiscal year, the Secretary of Defense, as re3 quested by the Director of the Defense Security Assistance 

4 Agency, shall conduct audits on a nonreimbursable basis 

5 of private firms that have entered into contracts with 

6 countries or organizations under which defense articles, 

7 defense services, or design and construction services are 

8 to be procured by such firms for such countries or organi9 zations from financing under this chapter. 

10 SEC. 4254. CASH FLOW FINANCING. 

11 The Secretary may approve cash flow financing for 

12 Israel and Egypt for the procurement of defense articles, 

13 defense services, or design and construction services in ex14 cess of $100,000,000. 

15 CHAPTER 6—INTERNATIONAL MILITARY 

16 EDUCATION AND TRAINING 

17 SEC. 4261. PURPOSE. 

18 The purpose of this chapter is to provide military 

19 education and training activities under this chapter that 

20 are designed— 

21 (1) to encourage effective and mutually bene22 ficial relations and increased understanding between 

23 the United States and foreign countries in further24 ance of the goals of international peace and security; 

25 (2) to improve the ability of foreign countries to 

26 utilize their resources, including defense articles and 


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1 defense services obtained by such countries from the 

2 United States, with maximum effectiveness, thereby 

3 contributing to greater self-reliance by such coun4 tries; and 

5 (3) to increase the awareness of nationals of 

6 foreign countries participating in such activities of 

7 basic issues involving respect and observance of 

8 internationally recognized human rights, the impor9 tance of civilian oversight and authority over secu10 rity and national defense forces, and of account11 ability of defense personnel to civilian governments 

12 and courts. 

13 SEC. 4262. MILITARY EDUCATION AND TRAINING FOR FOR14 EIGN MILITARY AND DEFENSE PERSONNEL. 

15 (a) AUTHORITY.—The Secretary is authorized to pro16 vide, on such terms and conditions as the Secretary may 

17 determine, military education and training to foreign mili18 tary and defense personnel. 

19 (b) REQUIREMENTS.—Professional military edu20 cation and training provided under subsection (a) shall be 

21 designed to— 

22 (1) contribute to greater cooperation between 

23 the United States and the government of such for24 eign military and defense personnel on United States 


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1 counternarcotics, counterterrorism, or counterpro2 liferation efforts; and 

3 (2) foster greater respect for, and under4 standing of— 

5 (A) democracy and the rule of law, includ6 ing the principle of civilian control of the mili7 tary; and 

8 (B) internationally recognized human 

9 rights. 

10 (c) SELECTION OF PARTICIPANTS.—The selection of 

11 foreign military and defense personnel for training under 

12 this chapter shall be made in consultation with the Sec13 retary of Defense. 

14 (d) FOREIGN MILITARY AND DEFENSE PERSONNEL

15 DEFINED.—In this section, the term ‘‘foreign military and 

16 defense personnel’’ means members of the armed forces 

17 and civilian personnel of the defense ministry of a foreign 

18 country. 

19 SEC. 4263. MILITARY EDUCATION AND TRAINING FOR FOR20 EIGN CIVILIAN PERSONNEL. 

21 (a) AUTHORITY.—The Secretary is authorized to pro22 vide, on such terms and conditions as the Secretary may 

23 determine, military education and training to foreign civil24 ian personnel, if such military education and training 

25 would contribute to— 


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1 (1) civilian, democratic control of the military; 

2 (2) responsible defense resource management; 

3 (3) cooperation between military and law en4 forcement personnel with respect to counter5 narcotics, counterterrorism, or counterproliferation 

6 activities; or 

7 (4) improved military justice systems and pro8 cedures in accordance with internationally recog9 nized human rights. 

10 (b) FOREIGN CIVILIAN PERSONNEL DEFINED.—In 

11 this section, the term ‘‘foreign civilian personnel’’ includes 

12 legislators, representatives of civil society, and foreign gov13 ernmental personnel of ministries other than ministries of 

14 defense. 

15 SEC. 4264. LOCATIONS OF INSTRUCTION. 

16 Military education and training activities carried out 

17 under this chapter may be provided through— 

18 (1) attendance at military educational and 

19 training facilities in the United States (other than 

20 Service academies) and abroad; 

21 (2) attendance in special courses of instruction 

22 at schools and institutions of learning or research in 

23 the United States and abroad; and 


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1 (3) observation and orientation visits to military 

2 facilities and related activities in the United States 

3 and abroad. 

4 SEC. 4265. REIMBURSEMENT. 

5 The Secretary shall seek reimbursement for military 

6 education and training provided under this chapter from 

7 countries using assistance under section 4251 to purchase 

8 such military education and training at a rate comparable 

9 to the rate charged to countries receiving grant assistance 

10 for military education and training under this chapter. 

11 SEC. 4266. EXCHANGE OF TRAINING AND RELATED SUP12 PORT. 

13 (a) AUTHORITY.—Subject to subsection (b), the Sec14 retary, in consultation with the Secretary of Defense, is 

15 authorized to provide training and related support to for16 eign military and defense personnel (as defined in section 

17 4262) and to foreign civilian personnel (as defined in sec18 tion 4263). Such training and related support shall be pro19 vided by the Secretary of Defense and may include the 

20 provision of transportation, food services, health services, 

21 and logistics and the use of facilities and equipment. 

22 (b) AGREEMENT OR OTHER ARRANGEMENT RE23 QUIRED.— 

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1 ant to an agreement or other arrangements pro2 viding for the provision by the country or organiza3 tion, on a reciprocal basis, of comparable training 

4 and related support to the United States. 

5 (2) REASONABLE PERIOD OF TIME.—Such re6 ciprocal training and related support shall be pro7 vided within a reasonable period of time (which may 

8 not be more than one year) of the provision of train9 ing and related support by the United States Gov10 ernment under this chapter. 

11 (c) REIMBURSEMENT REQUIREMENT.—To the extent 

12 that a country or organization to which training and re13 lated support is provided under this section does not pro14 vide such comparable training and related support to the 

15 United States within a reasonable period of time, the Sec16 retary shall require a country or organization to reimburse 

17 the United States for the full costs of the training and 

18 related support provided by the United States. 

19 (d) REGULATIONS.—The President shall prescribe 

20 regulations for the provision of training and related sup21 port under this section. 


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1 CHAPTER 7—TRANSFER OF EXCESS 

2 DEFENSE ARTICLES 

3 SEC. 4271. TRANSFER OF EXCESS DEFENSE ARTICLES. 

4 (a) AUTHORITY.—To further the goals and objectives 

5 of United States foreign policy and the goals of this Act, 

6 the Secretary is authorized to transfer to foreign countries 

7 and international organizations excess defense articles 

8 under this section that have been designated by the Sec9 retary of Defense as excess to the military needs of the 

10 United States, except for naval vessels subject to section 

11 4275. 

12 (b) LIMITATIONS ON TRANSFERS.—The Secretary 

13 may authorize the transfer of excess defense articles under 

14 this section only if— 

15 (1) such articles are drawn from existing stocks 

16 of the Department of Defense; 

17 (2) funds available to the Department of De18 fense for the procurement of defense equipment are 

19 not expended in connection with the transfer; 

20 (3) the transfer of such articles will not have, 

21 in the judgment of the Secretary of Defense, an ad22 verse impact on the military readiness of the United 

23 States; 

24 (4) with respect to a proposed transfer of such 

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1 erable to a transfer on a sales basis, after taking 

2 into account the potential proceeds from, and likeli3 hood of, such sales, and the comparative foreign pol4 icy benefits that may accrue to the United States as 

5 the result of a transfer on either a grant or sales 

6 basis; and 

7 (5) the transfer of such articles will not have an 

8 adverse impact on the national technology and in9 dustrial base and, particularly, will not reduce the 

10 opportunities of entities in the national technology 

11 and industrial base to sell new or used equipment to 

12 the countries to which such articles are transferred. 

13 SEC. 4272. TERMS OF TRANSFERS. 

14 (a) IN GENERAL.—Excess defense articles may be 

15 transferred under section 4271 without cost to the recipi16 ent country or international organization. 

17 (b) WAIVER OF REQUIREMENT FOR REIMBURSE18 MENT OF DEPARTMENT OF DEFENSE EXPENSES.—sec19 tion 10505(c) shall not apply with respect to the transfer 

20 to foreign countries and international organizations of ex21 cess defense articles (including transportation and related 

22 costs) under section 4271. 

23 (c) TRANSPORTATION AND RELATED COSTS.— 

24 (1) IN GENERAL.—Except as provided in para25 graph (2), funds available to the Department of DeVerDate Mar 15 2010 22:23 Apr 26, 2013 Jkt 029200 PO 00000 Frm 00354 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793

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1 fense may not be expended for crating, packing, 

2 handling, and transportation of excess defense arti3 cles transferred under the authority of section 4271. 

4 (2) EXCEPTION.—Excess defense articles may 

5 be transported to a recipient country or inter6 national organization without charge if— 

7 (A) the Secretary determines that it is in 

8 the national interest of the United States to do 

9 so; 

10 (B) the total weight of the transfer does 

11 not exceed 50,000 pounds; and 

12 (C) such transportation is accomplished on 

13 a space available basis. 

14 SEC. 4273. ADVANCE NOTIFICATION TO CONGRESS FOR 

15 TRANSFER OF CERTAIN EXCESS DEFENSE AR16 TICLES. 

17 (a) IN GENERAL.—The Secretary may not transfer 

18 excess defense articles that are significant military equip19 ment (as defined in section 4411) or excess defense arti20 cles valued (in terms of original acquisition cost) at 

21 $10,000,000 or more, under section 4271 until 30 days 

22 after the date on which the Secretary has provided notice 

23 of the proposed transfer to the appropriate congressional 

24 committees in accordance with procedures applicable to re25 programming notifications under section 8401. 


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1 (b) CONTENTS.—Such notification shall include— 

2 (1) a statement outlining the purposes for 

3 which the article is being provided to the country, 

4 including whether such article has been previously 

5 provided to such country; 

6 (2) an assessment of the impact of the transfer 

7 on the military readiness of the United States; 

8 (3) an assessment of the impact of the transfer 

9 on the national technology and industrial base and, 

10 particularly, the impact on opportunities of entities 

11 in the national technology and industrial base to sell 

12 new or used equipment to the countries to which 

13 such articles are to be transferred; 

14 (4) a statement describing the current value of 

15 such article and the value of such article at acquisi16 tion; and 

17 (5) an assessment, if the article is a small arm 

18 or light weapon, of the risk that such article or arti19 cle could be illicitly transferred to terrorist or crimi20 nal persons or groups or otherwise used for unau21 thorized purposes. 

22 SEC. 4274. AGGREGATE ANNUAL LIMITATION. 

23 The aggregate value of excess defense articles trans24 ferred to countries under section 4271 in any fiscal year 

25 may not exceed $500,000,000. 


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1 SEC. 4275. RESTRICTIONS AND CONDITIONS ON TRANS2 FERS OF NAVAL VESSELS. 

3 (a) IN GENERAL.—A naval vessel that is in excess 

4 of 3,000 tons or that is less than 20 years of age may 

5 not be disposed of to a foreign country (whether by sale, 

6 lease, grant, loan, barter, transfer, or otherwise) unless 

7 the disposal of that vessel, or of a vessel of the class of 

8 that vessel, is authorized by law. A lease or loan of such 

9 a vessel under such a law may be made only in accordance 

10 with the provisions of this title. In the case of an author11 ization by law for the disposal of such a vessel that names 

12 a specific vessel as being authorized for such disposal, the 

13 Secretary of Defense may substitute another vessel of the 

14 same class, if the vessel substituted has virtually identical 

15 capabilities as the named vessel. 

16 (b) COSTS OF TRANSFERS.—Any expense incurred by 

17 the United States in connection with a transfer authorized 

18 by this section shall be charged to the recipient (notwith19 standing section 4272(c)). 

20 (c) REPAIR AND REFURBISHMENT IN UNITED

21 STATES SHIPYARDS.—To the maximum extent prac22 ticable, the Secretary shall require, as a condition of the 

23 transfer of a vessel covered by this chapter, that the recipi24 ent to which the vessel is transferred have such repair or 

25 refurbishment of the vessel as is needed, before the vessel 

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1 yard located in the United States, including a United 

2 States Navy shipyard. 

3 CHAPTER 8—COOPERATIVE PROJECT 

4 AGREEMENTS 

5 SEC. 4281. AUTHORITY TO ENTER INTO COOPERATIVE 

6 PROJECT AGREEMENTS. 

7 (a) AUTHORITY.—The President is authorized to 

8 enter into a cooperative project agreement with one or 

9 more foreign countries that is undertaken in order to— 

10 (1) further the objectives of standardization, ra11 tionalization, and interoperability of the armed 

12 forces of the foreign country and the United States; 

13 or 

14 (2) enhance an ongoing multinational effort of 

15 the parties to the agreement to improve the conven16 tional defense capabilities of the parties. 

17 (b) MATTERS TO BE INCLUDED.— 

18 (1) IN GENERAL.—A cooperative project agree19 ment described in subsection (a) shall provide that 

20 each of the parties to the agreement will contribute 

21 to the cooperative project its equitable share of the 

22 full costs of the cooperative project and will receive 

23 an equitable share of the results of such cooperative 

24 project. 


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1 (2) FULL COSTS DESCRIBED.—The full costs of 

2 the cooperative project includes overhead costs, ad3 ministrative costs, and costs of claims. 

4 (3) CONTRIBUTION OF FUNDS OR DEFENSE AR5 TICLES AND DEFENSE SERVICES.—A party to the 

6 cooperative project agreement described in sub7 section (a) may contribute its equitable share of the 

8 full cost of the cooperative project in funds or in de9 fense articles or defense services needed for the co10 operative project. 

11 (4) LIMITATION ON ASSISTANCE.—Assistance 

12 provided under this Act to a foreign country may 

13 not be used by the foreign country to provide its eq14 uitable share of the full costs of the cooperative 

15 project under this section. 

16 (5) LIMITATION ON WORKSHARING, ETC.—A 

17 cooperative project agreement described in sub18 section (a) may not impose a requirement on any 

19 party to the agreement for worksharing or other in20 dustrial or commercial compensation that is not 

21 specified in the terms of the agreement. 

22 SEC. 4282. COSTS. 

23 The President may enter into contracts or incur other 

24 obligations for a cooperative project described in section 

25 4281 on behalf of the other parties to the cooperative 


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1 project agreement described in section 4281, without 

2 charge to any appropriation or contract authorization, if 

3 each of the other parties to the cooperative project agree4 ment agrees— 

5 (1) to pay its equitable share of the contract or 

6 other obligation; and 

7 (2) to make such funds available in such 

8 amounts and at such times as may be required by 

9 the contract or other obligation and to pay any dam10 ages and costs that may accrue from the perform11 ance of or cancellation of the contract or other obli12 gation in advance of the time such payments, dam13 ages, or costs are due. 

14 SEC. 4283. CHARGES. 

15 (a) IN GENERAL.—The President may reduce or 

16 waive the charge or charges that would otherwise be con17 sidered appropriate under section 4314 in connection with 

18 sales under sections 4311 and 4312 if— 

19 (1) such sales are made as part of a cooperative 

20 project described in section 4281; and 

21 (2) the other parties to the cooperative project 

22 agreement described in section 4281 agree to reduce 

23 or waive corresponding charges. 

24 (b) ADMINISTRATIVE SURCHARGES; REIMBURSE25 MENT.—Notwithstanding sections 4314(a)(1) and 


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1 4402(b), administrative surcharges shall not be increased 

2 on other sales made under this title in order to compensate 

3 for reductions or waivers of such surcharges under this 

4 section. Funds received pursuant to such other sales shall 

5 not be available to reimburse the costs incurred by the 

6 United States Government for which reduction or waiver 

7 is approved by the President under this section. 

8 SEC. 4284. CERTIFICATION. 

9 Not less than 30 days before a cooperative project 

10 agreement described in section 4281 is signed on behalf 

11 of the United States, the President shall transmit to the 

12 appropriate congressional committees and the Committee 

13 on Armed Services of the House of Representatives and 

14 the Committee on Armed Services of the Senate, a num15 bered certification with respect to such proposed agree16 ment, setting forth— 

17 (1) a detailed description of the cooperative 

18 project with respect to which the certification is 

19 made; 

20 (2) an estimate of the quantity of the defense 

21 articles expected to be produced in furtherance of 

22 such cooperative project; 

23 (3) an estimate of the full cost of the coopera24 tive project, with an estimate of the part of the full 

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1 ment, including an estimate of the costs as a result 

2 of waivers of sections 4314(a)(1) and 4402(b), for 

3 its participation in such cooperative project and an 

4 estimate of that part of the full costs to be incurred 

5 by the other participants; 

6 (4) an estimate of the dollar value of the funds 

7 to be contributed by the United States and each of 

8 the other participants on behalf of such cooperative 

9 project; 

10 (5) a description of the defense articles and de11 fense services expected to be contributed by the 

12 United States and each of the other participants on 

13 behalf of such cooperative project; 

14 (6) a statement of the foreign policy and na15 tional security benefits anticipated to be derived 

16 from such cooperative project; and 

17 (7) to the extent known, whether it is likely 

18 that prime contracts will be awarded to particular 

19 prime contractors or that subcontracts will be 

20 awarded to particular subcontractors to comply with 

21 the proposed agreement. 


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1 SEC. 4285. AUTHORITY IN ADDITION TO OTHER AUTHORI2 TIES. 

3 The authority under this chapter is in addition to the 

4 authority under sections 4311 and 4312 and under any 

5 other provision of law. 

6 Subtitle C—Arms Sales and 

7 Related Assistance 

8 SEC. 4301. CONTROL OF ARMS EXPORTS AND IMPORTS. 

9 (a) IN GENERAL.—The President is authorized to 

10 control the import and the export of defense articles and 

11 defense services and to provide foreign policy guidance to 

12 persons of the United States involved in the export and 

13 import of such articles and services. 

14 (b) COMPOSITION OF UNITED STATES MUNITIONS

15 LIST.— 

16 (1) IN GENERAL.—The President is authorized 

17 to designate those items that shall be considered as 

18 defense articles and defense services for the purposes 

19 of this section and to promulgate regulations for the 

20 import and export of such articles and services. The 

21 items so designated shall constitute the United 

22 States Munitions List. 

23 (2) FACTORS.—The President shall designate a 

24 defense article or defense service if it— 

25 (A) provides a critical military or intel26 ligence advantage to the United States; or 


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1 (B) would provide a military or intelligence 

2 advantage to countries other than the United 

3 States or to non-state actors to the detriment 

4 of the national security of United States friends 

5 and allies, or to the achievement of the foreign 

6 policy and national security objectives of the 

7 United States. 

8 (c) PURPOSES FOR WHICH UNITED STATES MILI9 TARY SALES ARE AUTHORIZED.—Defense articles and de10 fense services shall be sold or leased by the United States 

11 Government under this title to countries solely to meet the 

12 goals of assistance under section 4003. 

13 (d) FACTORS.—Decisions on issuing export licenses 

14 under this section shall ensure that the export of a defense 

15 article or defense service— 

16 (1) is justified in terms of its military utility re17 lated to the actual security threat by the recipient 

18 country; and 

19 (2) will not— 

20 (A) contribute to an arms race or regional 

21 instability; 

22 (B) aid in the development of weapons of 

23 mass destruction; 

24 (C) support domestic or international ter25 rorism; 


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1 (D) increase the possibility of outbreak or 

2 escalation of conflict, either within or across the 

3 borders of the recipient country; 

4 (E) prejudice the development of bilateral 

5 or multilateral arms control arrangements; 

6 (F) adversely affect the arms control or 

7 nonproliferation policy of the United States; 

8 (G) conflict with any international agree9 ments, treaties or arrangements to which the 

10 United States is a party or adherent; 

11 (H) support blackmarket or greymarket 

12 trade in arms, either those transferred or obso13 lete arms to be replaced by the arms sale; or 

14 (I) undermine the objectives and purposes 

15 to promote and protect human rights and de16 mocracy under title III. 

17 (e) SALE REQUIREMENT.—In exercising the authori18 ties conferred by this section, the President may require 

19 that any defense article or defense service be sold under 

20 this title as a condition of its eligibility for export, and 

21 may require that persons engaged in the negotiation for 

22 the export of defense articles and defense services keep 

23 the President fully and currently informed of the progress 

24 and future prospects of such negotiations. 


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1 CHAPTER 1—FOREIGN MILITARY SALES 

2 AND COOPERATION 

3 SEC. 4311. GENERAL AUTHORITY. 

4 (a) SALES FROM DEFENSE ARTICLES AND DEFENSE

5 SERVICES.—The President may sell defense articles and 

6 defense services from the stocks of the Department of De7 fense and the Coast Guard, or design and construction 

8 services, to a foreign country or international organization 

9 if the country or international organization agrees to pay 

10 in United States dollars— 

11 (1) in the case of a defense article not intended 

12 to be replaced at the time such agreement is entered 

13 into, not less than the actual value thereof; 

14 (2) in the case of a defense article intended to 

15 be replaced at the time such agreement is entered 

16 into, the estimated cost of replacement of such arti17 cle, including the contract or production costs less 

18 any depreciation in the value of such article; or 

19 (3) in the case of a defense service (other than 

20 training covered in subsection (b)), or design and 

21 construction services, the full cost to the United 

22 States Government of providing such service. 

23 (b) TRAINING.— 

24 (1) IN GENERAL.—In the case of training sold 

25 to a foreign country or international organization 


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1 that is concurrently receiving international military 

2 education and training assistance under this title, 

3 the country or international organization agrees to 

4 pay in United States dollars only those additional 

5 costs that are incurred by the United States Govern6 ment in providing such assistance. 

7 (2) OTHER COUNTRIES.—The President may 

8 provide training to a foreign country not receiving 

9 assistance under chapter 6 of subtitle B if the Presi10 dent determines and so notifies the appropriate con11 gressional committees in each fiscal year for which 

12 such training is to be provided that providing such 

13 training to the country is in the national interest of 

14 the United States and the reasons for such deter15 mination. 

16 SEC. 4312. PROCUREMENT FOR FOREIGN MILITARY CASH 

17 SALES. 

18 (a) IN GENERAL.— 

19 (1) CONTRACTS.—Except as otherwise provided 

20 in this section, the President may, without require21 ment for charge to any appropriation or contract au22 thorization otherwise provided, enter into contracts 

23 for the procurement of defense articles or defense 

24 services or design and construction services for sale 

25 for United States dollars to any foreign country or 


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1 international organization if such country or inter2 national organization provides the United States 

3 Government with a dependable undertaking— 

4 (A) to pay the full amount of such contract 

5 which will assure the United States Government 

6 against any loss on the contract; and 

7 (B) to make funds available in such 

8 amounts and at such times as may be required 

9 to meet the payments required by the contract 

10 and any damages and costs that may accrue 

11 from the cancellation of such contract, in ad12 vance of the time such payments, damages, or 

13 costs are due. 

14 (2) INTEREST.—Interest shall be charged on 

15 any net amount by which any such country or inter16 national organization is in arrears under all of its 

17 outstanding unliquidated dependable undertakings, 

18 considered collectively. The rate of interest charged 

19 shall be a rate not less than a rate determined by 

20 the Secretary of the Treasury taking into consider21 ation the current average market yield on out22 standing short-term obligations of the United States 

23 as of the last day of the month preceding the net ar24 rearage and shall be computed from the date of net 

25 arrearage. 


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1 (b) LETTERS OF OFFER.— 

2 (1) IN GENERAL.—The President may, if the 

3 President determines it to be in the national interest 

4 of the United States, issue letters of offer under this 

5 section that provide for billing upon delivery of the 

6 defense article or rendering of the defense service 

7 and for payment within 120 days after the date of 

8 billing. 

9 (2) REQUIREMENT.—The authority of para10 graph (1) may be exercised only if the President de11 termines that the emergency requirements of the 

12 purchaser for acquisition of such defense articles 

13 and defense services exceed the ready availability to 

14 the purchaser of funds sufficient to make payments 

15 on a dependable undertaking basis and submits both 

16 determinations to Congress together with a special 

17 emergency request for authorization and appropria18 tion of additional funds to finance such purchases 

19 under this Act. 

20 (3) APPROPRIATIONS.—Appropriations available 

21 to the Department of Defense may be used to meet 

22 the payments required by the contracts for the pro23 curement of defense articles and defense services 

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1 quently received from the country or international 

2 organization to whom articles or services are sold. 

3 (c) RENEGOTIATION ACT OF 1951.—The provisions 

4 of the Renegotiation Act of 1951 do not apply to procure5 ment contracts entered into under this section or prede6 cessor provisions of law before, on, or after the date of 

7 the enactment of this Act. 

8 (d) COMPETITIVE PRICING.— 

9 (1) PROCUREMENT CONTRACTS.—Procurement 

10 contracts made in implementation of sales under this 

11 section for defense articles and defense services 

12 wholly paid for from funds made available on a non13 repayable basis shall be priced on the same costing 

14 basis with regard to profit, overhead, independent 

15 research and development, bid and proposal, and 

16 other costing elements, as is applicable to procure17 ments of like items purchased by the Department of 

18 Defense for its own use. 

19 (2) DIRECT COSTS.—Direct costs associated 

20 with meeting additional or unique requirements of 

21 the purchaser shall be allowable under contracts de22 scribed in paragraph (1). Loadings applicable to 

23 such direct costs shall be permitted at the same 

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1 chased by the Department of Defense for its own 

2 use. 

3 SEC. 4313. PAYMENTS. 

4 (a) IN GENERAL.—Except as provided in subsection 

5 (b), payment for defense articles or defense services under 

6 this chapter shall be made in advance or, if the President 

7 determines it to be in the national interest of the United 

8 States, upon delivery of the defense article or rendering 

9 of the defense service. 

10 (b) EXCEPTION.—If the President determines it to 

11 be in the national interest of the United States pursuant 

12 to subsection (a), billings for sales made under letters of 

13 offer issued under this section after the date of the enact14 ment of this subsection may be dated and issued upon de15 livery of the defense article or rendering of the defense 

16 service and shall be due and payable upon receipt thereof 

17 by the purchasing country or international organization. 

18 (c) INTEREST.— 

19 (1) IN GENERAL.—Interest shall be charged on 

20 any net amount due and payable which is not paid 

21 within 60 days after the date of such billing. The 

22 rate of interest charged shall be a rate not less than 

23 a rate determined by the Secretary of the Treasury 

24 taking into consideration the current average market 

25 yield on outstanding short-term obligations of the 


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1 United States as of the last day of the month pre2 ceding the billing and shall be computed from the 

3 date of billing. 

4 (2) EXTENSION.—The President may extend 

5 such 60-day period to 120 days if the President de6 termines that emergency requirements of the pur7 chaser for acquisition of such defense articles or de8 fense services exceed the ready availability to the 

9 purchaser of funds sufficient to pay the United 

10 States in full for such articles or services within 

11 such 60-day period and submits that determination 

12 to the Congress together with a special emergency 

13 request for the authorization and appropriation of 

14 additional funds to finance such purchases under 

15 this Act. 

16 SEC. 4314. CHARGES. 

17 (a) IN GENERAL.—Letters of offer for the sale of de18 fense articles or defense services that are issued pursuant 

19 to section 4311 or 4312 shall include appropriate charges 

20 for— 

21 (1) administrative services, calculated on an av22 erage percentage basis to recover the full estimated 

23 costs (excluding a pro rata share of fixed base oper24 ations costs) of administration of sales made under 


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1 this Act to all purchasers of such articles and serv2 ices as specified in section 4402(b) and (c); 

3 (2) a proportionate amount of any nonrecurring 

4 costs of research, development, and production of 

5 major defense equipment (except for equipment 

6 wholly paid for either from funds transferred under 

7 section 4211(b)(3) or from funds made available on 

8 a nonrepayable basis under section 4251; and 

9 (3) the recovery of ordinary inventory losses as10 sociated with the sale from stock of defense articles 

11 that are being stored at the expense of the purchaser 

12 of such articles. 

13 (b) WAIVER.— 

14 (1) ADMINISTRATIVE CHARGES.—The President 

15 may waive the charges for administrative services 

16 that would otherwise be required by— 

17 (A) subsection (a)(1) in connection with 

18 any sale to a foreign country, if the President 

19 determines that a waiver— 

20 (i) is in the national security interests 

21 of the United States; and 

22 (ii) will facilitate the ability of that 

23 country to detect, deter, prevent, defeat, or 

24 counter terrorist activities, or participate 

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1 tion operations, or stability operations of 

2 the United States; or 

3 (B) subsection (a)(2) in connection with 

4 any sale to the Maintenance and Supply Agency 

5 of the North Atlantic Treaty Organization in 

6 support of— 

7 (i) a weapon system partnership 

8 agreement; or 

9 (ii) a NATO/SHAPE project. 

10 (2) MAJOR DEFENSE EQUIPMENT.—The Presi11 dent may reduce or waive the charge or charges that 

12 would otherwise be considered appropriate under 

13 subsection (a)(2) for a particular sale or for sales if 

14 the President determines that— 

15 (A) the reduction or waiver would signifi16 cantly advance United States Government inter17 ests in standardization with the armed forces of 

18 a foreign country that is a strategic United 

19 States ally, or would promote foreign procure20 ment in the United States under coproduction 

21 arrangements; 

22 (B) imposition of the charge or charges 

23 likely would result in the loss of the sale; or 

24 (C) in the case of a sale of major defense 

25 equipment that is also being procured for the 


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1 use of the United States Armed Forces, the 

2 waiver of the charge or charges would (through 

3 a resulting increase in the total quantity of the 

4 equipment purchased from the source of the 

5 equipment that causes a reduction in the unit 

6 cost of the equipment) result in a savings to the 

7 United States on the cost of the equipment pro8 cured for the use of the United States Armed 

9 Forces that substantially offsets the revenue 

10 foregone by reason of the waiver of the charge 

11 or charges. 

12 (3) INCREASE IN CHARGES.—The President 

13 may waive, for particular sales of major defense 

14 equipment, any increase in a charge or charges pre15 viously considered appropriate under paragraph (2) 

16 of subsection (a) if the increase results from a cor17 rection of an estimate (reasonable when made) of 

18 the production quantity base that was used for cal19 culating the charge or charges for purposes of such 

20 paragraph. 

21 SEC. 4315. NON-COMBAT DUTIES OF UNITED STATES PER22 SONNEL SUPPORTING FOREIGN MILITARY 

23 SALES. 

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1 form any duties of a combatant nature, including any du2 ties related to training and advising that may engage 

3 United States personnel in combat activities, outside the 

4 United States in connection with the performance of those 

5 defense services. 

6 (b) REPORT.—Within 48 hours of the existence of, 

7 or a change in status of significant hostilities or terrorist 

8 acts or a series of such acts, that may endanger lives or 

9 property of United States personnel, involving a country 

10 in which United States personnel are performing defense 

11 services pursuant to this title, the President shall submit 

12 to the Speaker of the House of Representatives and to 

13 the President pro tempore of the Senate a report, in writ14 ing, classified if necessary, setting forth— 

15 (1) the identity of such country; 

16 (2) a description of such hostilities or terrorist 

17 acts; and 

18 (3) the number of members of the United 

19 States Armed Forces and the number of United 

20 States civilian personnel that may be endangered by 

21 such hostilities or terrorist acts. 

22 SEC. 4316. PUBLIC INFORMATION. 

23 Any contract entered into between the United States 

24 and a foreign country under the authority of section 4311 

25 or section 4312 shall be prepared in a manner that will 


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1 permit the contract to be made available for public inspec2 tion to the fullest extent possible consistent with the na3 tional security of the United States. Such information 

4 shall be posted on the Internet website of the Department 

5 of State in a timely fashion. 

6 SEC. 4317. STANDARDIZATION AGREEMENTS. 

7 (a) IN GENERAL.—The President may enter into 

8 North Atlantic Treaty Organization standardization 

9 agreements in carrying out section 814 of the Department 

10 of Defense Appropriation Authorization Act, 1976 (Public 

11 Law 94–106), and may enter into similar agreements with 

12 a country that is a strategic United States ally, for the 

13 cooperative furnishing of training on a bilateral or multi14 lateral basis, if the financial principles of such agreements 

15 are based on reciprocity. 

16 (b) REIMBURSEMENT.—Each agreement shall in17 clude reimbursement for all direct costs but may exclude 

18 reimbursement for indirect costs, administrative sur19 charges, and costs of billeting of trainees (except to the 

20 extent that members of the United States Armed Forces 

21 occupying comparable accommodations are charged for 

22 such accommodations by the United States). 

23 (c) CONGRESSIONAL NOTIFICATION.—Each agree24 ment shall be transmitted promptly to— 


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1 (1) the appropriate congressional committees; 

2 and 

3 (2) the Committees on Appropriations and the 

4 Committees on Armed Services of the House of Rep5 resentatives and the Senate. 

6 SEC. 4318. QUALITY ASSURANCE AND RELATED SERVICES. 

7 (a) IN GENERAL.—The President is authorized to 

8 provide, without charge, quality assurance, inspection, 

9 contract administration services, and contract audit de10 fense services under this chapter— 

11 (1) in connection with the placement or admin12 istration of any contract or subcontract for defense 

13 articles, defense services, or design and construction 

14 services entered into under this Act on behalf of, a 

15 government that is a strategic United States ally, if 

16 such government provides such services in accord17 ance with an agreement on a reciprocal basis, with18 out charge, to the United States Government; or 

19 (2) in connection with the placement or admin20 istration of any contract or subcontract for defense 

21 articles, defense services, or design and construction 

22 services pursuant to the North Atlantic Treaty Or23 ganization’s Security Investment program in accord24 ance with an agreement under which the foreign 

25 governments participating in such program provide 


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1 such services, without charge, in connection with 

2 similar contracts or subcontracts. 

3 (b) CATALOGING DATA AND CATALOGING SERV4 ICES.—In carrying out the objectives of this section, the 

5 President is authorized to provide, without charge, cata6 loging data and cataloging services to the North Atlantic 

7 Treaty Organization or to any strategic United States ally 

8 if that Organization or ally provides such data and serv9 ices in accordance with an agreement on a reciprocal basis, 

10 without charge, to the United States Government. 

11 SEC. 4319. RESTRICTION ON SALE OF DEFENSE ARTICLES 

12 AND DEFENSE SERVICES THAT WOULD AD13 VERSELY AFFECT UNITED STATES COMBAT 

14 READINESS. 

15 (a) RESTRICTION.—The President may not sell de16 fense articles and defense services if the sale of such arti17 cles or services would have significant adverse effect on 

18 the combat readiness of the United States Armed Forces. 

19 (b) WAIVER AND CONGRESSIONAL NOTIFICATION.— 

20 (1) IN GENERAL.—The President may waive 

21 the restriction in subsection (a) if the President de22 termines that the possible significant adverse effect 

23 on the combat readiness of the United States Armed 

24 Forces is outweighed by the benefits to United 

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1 mination to the appropriate congressional commit2 tees and to the Committees on Armed Services of 

3 the House of the Representatives and the Senate. 

4 (2) STATEMENT.—Each such determination 

5 shall be accompanied with a statement that shall in6 clude the following information: 

7 (A) The country or international organiza8 tion to which the sale is proposed to be made. 

9 (B) The amount of the proposed sale. 

10 (C) A description of the defense article or 

11 service proposed to be sold. 

12 (D) A full description of the impact which 

13 the proposed sale will have on the United States 

14 Armed Forces. 

15 (E) A justification for such proposed sale, 

16 including an explanation as to why, in the 

17 President’s judgment, benefits to United States 

18 national security from the sale outweighs the 

19 adverse impact on the readiness of the United 

20 States Armed Forces. 

21 SEC. 4320. ACQUISITION OF FOREIGN-UNITED STATES ORI22 GIN DEFENSE ARTICLES. 

23 (a) IN GENERAL.—The President may acquire a re24 pairable defense article from a foreign country or inter25 national organization if such defense article— 


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1 (1) previously was transferred to such country 

2 or organization under this Act or predecessor Act 

3 (as in effect on the day before the date of the enact4 ment of this Act); 

5 (2) is not an end item; and 

6 (3) will be exchanged for a defense article of 

7 the same type that is in the stocks of the Depart8 ment of Defense. 

9 (b) LIMITATION.—The President may exercise the 

10 authority provided in subsection (a) only to the extent that 

11 the Department of Defense— 

12 (1)(A) has a requirement for the defense article 

13 being returned; and 

14 (B) has available sufficient funds authorized 

15 and appropriated for such purpose; or 

16 (2)(A) is accepting the return of the defense ar17 ticle for subsequent transfer to another foreign gov18 ernment or international organization pursuant to a 

19 letter of offer and acceptance implemented in ac20 cordance with this Act or predecessor Act (as in ef21 fect on the day before the date of the enactment of 

22 this Act); and 

23 (B) has available sufficient funds provided by 

24 or on behalf of such other foreign government or 

25 international organization pursuant to a letter of 


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1 offer and acceptance implemented in accordance 

2 with this Act or predecessor Act (as in effect on the 

3 day before the date of the enactment of this Act). 

4 (c) REQUIREMENT.— 

5 (1) IN GENERAL.—The foreign government or 

6 international organization receiving a new or re7 paired defense article in exchange for a repairable 

8 defense article pursuant to subsection (a) shall, upon 

9 the acceptance by the United States Government of 

10 the repairable defense article being returned, be 

11 charged the total cost associated with the repair and 

12 replacement transaction. 

13 (2) COST.—The total cost charged pursuant to 

14 paragraph (1) shall be the same as that charged the 

15 United States Armed Forces for a similar repair and 

16 replacement transaction, plus an administrative sur17 charge in accordance with section 4314(a)(1). 

18 (d) RELATIONSHIP TO CERTAIN OTHER PROVISIONS

19 OF LAW.—The authority of the President to accept the 

20 return of a repairable defense article as provided in sub21 section (a) shall not be subject to chapter 137 of title 10, 

22 United States Code, or any other provision of law relating 

23 to the conclusion of contracts. 


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1 SEC. 4321. RETURN OF DEFENSE ARTICLES. 

2 (a) IN GENERAL.—The President may accept the re3 turn of a defense article from a foreign country or inter4 national organization if such defense article— 

5 (1) previously was transferred to such country 

6 or organization under this Act or predecessor Act 

7 (as in effect on the day before the date of the enact8 ment of this Act); 

9 (2) is not significant military equipment (as de10 fined in section 4411); and 

11 (3) is in fully functioning condition without 

12 need of repair or rehabilitation. 

13 (b) LIMITATION.—The President may exercise the 

14 authority provided in subsection (a) only to the extent that 

15 the Department of Defense— 

16 (1)(A) has a requirement for the defense article 

17 being returned; and 

18 (B) has available sufficient funds authorized 

19 and appropriated for such purpose; or 

20 (2)(A) is accepting the return of the defense ar21 ticle for subsequent transfer to another foreign gov22 ernment or international organization pursuant to a 

23 letter of offer and acceptance implemented in ac24 cordance with this Act or predecessor Act (as in ef25 fect on the day before the date of the enactment of 

26 this Act); and 


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1 (B) has available sufficient funds provided by 

2 or on behalf of such other foreign government or 

3 international organization pursuant to a letter of 

4 offer and acceptance implemented in accordance 

5 with this Act or predecessor Act (as in effect on the 

6 day before the date of the enactment of this Act). 

7 (c) CREDIT FOR TRANSACTION.—Upon acquisition 

8 and acceptance by the United States Government of a de9 fense article under subsection (a), the appropriate Foreign 

10 Military Sales account of the provider shall be credited 

11 to reflect the transaction. 

12 (d) RELATIONSHIP TO CERTAIN OTHER PROVISIONS

13 OF LAW.—The authority of the President to accept the 

14 return of a defense article as provided in subsection (a) 

15 shall not be subject to chapter 137 of title 10, United 

16 States Code, or any other provision of law relating to the 

17 conclusion of contracts. 

18 SEC. 4322. SALE OF OBSOLETE NAVAL VESSELS. 

19 For purposes of section 4311(a), the actual value of 

20 a naval vessel of 3,000 tons or less and 20 years or more 

21 of age shall be considered to be not less than the greater 

22 of the scrap value or fair value (including conversion costs) 

23 of such vessel, as determined by the Secretary of Defense. 


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1 SEC. 4323. ANNUAL ESTIMATE AND JUSTIFICATION FOR 

2 SALES PROGRAM. 

3 (a) REPORT.—Except as provided in subsection (d), 

4 not later than February 1 of each year, the President shall 

5 transmit to the appropriate congressional committees, as 

6 a part of the annual presentation materials for security 

7 assistance programs proposed for the next fiscal year, a 

8 report which sets forth— 

9 (1) an Arms Sales Proposal covering all sales 

10 and licensed commercial exports under this title of 

11 major weapons or weapons-related defense equip12 ment for $7,000,000 or more, or of any other weap13 ons or weapons-related defense equipment for 

14 $25,000,000 or more, which are considered eligible 

15 for approval during the current calendar year and 

16 are deemed most likely actually to result in the 

17 issuance of a letter of offer or of an export license 

18 during such year; 

19 (2) an estimate of the total amount of sales and 

20 licensed commercial exports expected to be made to 

21 each foreign country from the United States; 

22 (3) the United States national security consid23 erations involved in expected sales or licensed com24 mercial exports to each country, an analysis of the 

25 relationship between anticipated sales to each coun26 try and arms control efforts concerning such country 


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1 and an analysis of the impact of such anticipated 

2 sales on the stability of the region that includes such 

3 country; 

4 (4) an estimate with regard to the international 

5 volume of arms traffic to and from countries pur6 chasing arms as set forth in paragraphs (1) and (2), 

7 together with best estimates of the sale and delivery 

8 of weapons and weapons-related defense equipment 

9 by all major arms suppliers to all major recipient 

10 countries during the preceding calendar year; 

11 (5)(A) an estimate of the aggregate dollar value 

12 and quantity of defense articles and defense services, 

13 military education and training, grant military as14 sistance, and credits and guarantees, to be furnished 

15 by the United States to each foreign country and 

16 international organization in the next fiscal year; 

17 and 

18 (B) for each country that is proposed to be fur19 nished credits or guaranties under this Act in the 

20 next fiscal year and that has been approved for cash 

21 flow financing in excess of $100,000,000 as of Octo22 ber 1 of the current fiscal year— 

23 (i) the amount of such approved cash flow 

24 financing; 


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1 (ii) a description of administrative ceilings 

2 and controls applied, and 

3 (iii) a description of the financial resources 

4 otherwise available to such country to pay such 

5 approved cash flow financing; 

6 (6) an analysis and description of the services 

7 performed during the preceding fiscal year by offi8 cers and employees of the United States Government 

9 carrying out functions on a full-time basis under this 

10 Act for which reimbursement is provided under sec11 tion 4402(b) or section 4311(a), including the num12 ber of personnel involved in performing such serv13 ices; 

14 (7) the status of— 

15 (A) each loan and each contract of guar16 anty or insurance theretofore made under this 

17 title, predecessor Acts, or any Act authorizing 

18 international security assistance, with respect to 

19 which there remains outstanding any unpaid 

20 obligation or potential liability; and 

21 (B) each extension of credit for the pro22 curement of defense articles or defense services, 

23 and of each contract of guaranty in connection 

24 with any such procurement, theretofore made 

25 under this title or predecessor Acts with respect 


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1 to which there remains outstanding any unpaid 

2 obligation or potential liability; 

3 (8)(A) a detailed accounting of all articles, serv4 ices, credits, guarantees, or any other form of assist5 ance furnished by the United States to each country 

6 and international organization, including payments 

7 to the United Nations, during the preceding fiscal 

8 year for the detection and clearance of landmines, 

9 including activities relating to the furnishing of edu10 cation, training, and technical assistance for the de11 tection and clearance of landmines; and 

12 (B) for each provision of law making funds 

13 available or authorizing appropriations for demining 

14 activities described in subparagraph (A), an analysis 

15 and description of the objectives and activities un16 dertaken during the preceding fiscal year, including 

17 the number of personnel involved in performing such 

18 activities; 

19 (9) a list of weapons systems that are signifi20 cant military equipment, and numbers thereof, that 

21 are believed likely to become available for transfer as 

22 excess defense articles during the next 12 months; 

23 and 

24 (10) such other information as the President 

25 may deem necessary. 


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1 (b) ADDITIONAL INFORMATION.—Not later than 30 

2 days following the receipt of a request made by any of 

3 the appropriate congressional committees for additional 

4 information with respect to any information submitted 

5 pursuant to subsection (a), the President shall submit 

6 such information to such committees. 

7 (c) FORM.—The President shall make every effort to 

8 submit all of the information required by subsection (a) 

9 or (b) wholly in unclassified form. Whenever the President 

10 submits any such information in classified form, the Presi11 dent shall submit such classified information in an adden12 dum and shall also submit simultaneously a detailed sum13 mary, in unclassified form, of such classified information. 

14 (d) ADDITIONAL REQUIREMENT.—The information 

15 required by subsection (a)(4) of this section shall be trans16 mitted to Congress not later than April 1 of each year. 

17 SEC. 4324. SALES TO UNITED STATES COMPANIES FOR IN18 CORPORATION INTO END ITEMS. 

19 (a) GENERAL AUTHORITY.— 

20 (1) IN GENERAL.—Subject to the conditions 

21 specified in subsection (b), the President may, on a 

22 negotiated contract basis, under cash terms— 

23 (A) sell defense articles at not less than 

24 their estimated replacement cost (or actual cost 

25 in the case of services); or 


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1 (B) procure or manufacture and sell de2 fense articles at not less than their contract or 

3 manufacturing cost to the United States Gov4 ernment, to any United States company for in5 corporation into end items (and for concurrent 

6 or follow-on support) to be sold by such a com7 pany either— 

8 (i) on a direct commercial basis to a 

9 foreign country or international organiza10 tion pursuant to an export license or ap11 proval under section 4301; or 

12 (ii) in the case of ammunition parts 

13 subject to subsection (b), using commercial 

14 practices which restrict actual delivery di15 rectly to a foreign country or international 

16 organization pursuant to approval under 

17 section 4301. 

18 (2) ADDITIONAL AUTHORITY.—The President 

19 may also sell defense services in support of such 

20 sales of defense articles, subject to the requirements 

21 of this chapter. Such services may be performed only 

22 in the United States. The amount of reimbursement 

23 received from such sales shall be credited to the cur24 rent applicable appropriation, fund, or account of 

25 the selling agency of the United States Government. 


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1 (b) ADDITIONAL REQUIREMENTS.—Defense articles 

2 and defense services may be sold, procured and sold, or 

3 manufactured and sold, pursuant to subsection (a) only 

4 if— 

5 (1) the end item to which the articles apply is 

6 to be procured for the armed forces of a country or 

7 international organization; 

8 (2) the articles would be supplied to the prime 

9 contractor as government-furnished equipment or 

10 materials if the end item were being procured for the 

11 use of the United States Armed Forces; and 

12 (3) the articles and services are available only 

13 from United States Government sources or are not 

14 available to the prime contractor directly from 

15 United States commercial sources at such times as 

16 may be required to meet the prime contractor’s de17 livery schedule. 

18 SEC. 4325. FISCAL PROVISIONS RELATING TO FOREIGN 

19 MILITARY SALES CREDITS. 

20 (a) IN GENERAL.—Cash payments received under 

21 sections 4311 and funds received under section 4324 shall 

22 be available solely for payments to suppliers (including the 

23 military departments) and refunds to purchasers and shall 

24 not be available for financing credits. 


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1 (b) REPAYMENTS FOR CREDITS, DISPOSITION OF

2 CERTAIN INSTRUMENTS, AND OTHER COLLECTIONS.— 

3 Amounts received from foreign governments and inter4 national organizations as repayments for any credits ex5 tended pursuant to section 4251, and other collections (in6 cluding fees and interest) shall be transferred to the mis7 cellaneous receipts of the United States Treasury. 

8 CHAPTER 2—ARMS EXPORT CONTROLS 

9 SEC. 4331. LICENSING REQUIREMENT FOR EXPORTING OR 

10 IMPORTING DEFENSE ARTICLES AND DE11 FENSE SERVICES. 

12 (a) IN GENERAL.—Except as otherwise specifically 

13 provided in regulations issued under section 4301, defense 

14 articles, defense services, and design and construction 

15 services designated by the President under section 4301 

16 may only be licensed for export or import in accordance 

17 with this title and regulations issued under this title. 

18 (b) EXCEPTIONS.—No license may be required for ex19 ports or imports made by or for a Federal agency— 

20 (1) for official use by personnel of a Federal 

21 agency; or 

22 (2) for carrying out any foreign assistance or 

23 sales program authorized by law and subject to the 

24 control of the President by other means. 


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1 SEC. 4332. IMPACT OF MILITARY EXPENDITURES ON DE2 VELOPMENT. 

3 (a) REVIEW.—The Secretary shall conduct a review 

4 of the military expenditures of developing countries to— 

5 (1) identify those countries which the Secretary 

6 has credible evidence to believe— 

7 (A) are diverting official development as8 sistance from any source to military purposes; 

9 (B) are devoting budgetary resources to 

10 arms purchases to a degree that materially 

11 interferes with the development of such coun12 tries; or 

13 (C) are accumulating unsustainable levels 

14 of debt to finance arms purchases; 

15 (2) take such action as the Secretary deems ap16 propriate, including cessation of United States arms 

17 sales and working with other countries to do like18 wise, to reduce the impact of the military activities 

19 of the countries identified under paragraph (1) and 

20 acquisition of arms on the economic and political de21 velopment of such countries. 

22 (b) TIMING OF REVIEW AND REPORT TO CON23 GRESS.—The Secretary shall complete the first review re24 quired under subsection (a) and submit to the appropriate 

25 congressional committees not later than one year after the 

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1 section (a), including the actions the Secretary will take 

2 under subsection (a)(2), and the results of any such ac3 tions taken since the submission of the prior report to 

4 such committees. Subsequent reviews shall be conducted 

5 on a quadrennial basis, and reported to the appropriate 

6 congressional committees on the quadrennial anniversary 

7 of the first report. 

8 SEC. 4333. REQUIREMENT FOR REGISTRATION BY EXPORT9 ERS. 

10 (a) IN GENERAL.—As prescribed in regulations 

11 issued under section 4301, every person (other than an 

12 officer or employee of the United States Government act13 ing in an official capacity) who engages in the business 

14 of manufacturing, exporting, or importing defense articles 

15 or defense services designated by the President under sec16 tion 4301 shall register with the Department of State, and 

17 shall pay a registration fee which shall be prescribed by 

18 such regulations. 

19 (b) PROHIBITION.— 

20 (1) IN GENERAL.—Such regulations shall pro21 hibit the return to the United States for sale in the 

22 United States (other than for the United States 

23 Armed Forces or its allies or for any State for local 

24 law enforcement agency) of any military firearms or 

25 ammunition of United States manufacture furnished 


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1 to foreign governments by the United States under 

2 this Act, or predecessor Act, or any other foreign as3 sistance or sales program of the United States, 

4 whether or not enhanced in value or improved in 

5 condition in a foreign country. 

6 (2) EXCEPTION.—The prohibition in paragraph 

7 (1) shall not extend to similar firearms that have 

8 been so substantially transformed as to become, in 

9 effect, articles of foreign manufacture. 

10 SEC. 4334. IDENTIFICATION OF ALL CONSIGNEES AND 

11 FREIGHT FORWARDERS. 

12 The President shall require that each applicant for 

13 a license to export an item on the United States Munitions 

14 List identify in the application all consignees and freight 

15 forwarders involved in the proposed export. 

16 SEC. 4335. BROKERING ACTIVITIES. 

17 (a) IN GENERAL.—As prescribed in regulations 

18 issued under this section, every person (other than an offi19 cer or employee of the United States Government acting 

20 in an official capacity) who engages in the business of 

21 brokering activities with respect to the manufacture, ex22 port, import, or transfer of any defense article or defense 

23 service designated by the President under section 4301, 

24 or in the business of brokering activities with respect to 

25 the manufacture, export, import, or transfer of any foreign 


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1 defense article or defense service (as defined in subsection 

2 (c)), shall register with the United States Government 

3 agency charged with the administration of this section, 

4 and shall pay a registration fee which shall be prescribed 

5 by such regulations. 

6 (b) BROKERING ACTIVITIES DESCRIBED.—Such 

7 brokering activities shall include the financing, transpor8 tation, freight forwarding, or taking of any other action 

9 that facilitates the sale, manufacture, export, or import 

10 of a defense article or defense service. 

11 (c) LICENSING REQUIREMENT.—No person may en12 gage in the business of brokering activities described in 

13 subsection (a) without a license, issued in accordance with 

14 this title, except that no license shall be required for such 

15 activities undertaken by or for a Federal agency— 

16 (1) for use by a Federal agency; or 

17 (2) for carrying out any foreign assistance or 

18 sales program authorized by law and subject to the 

19 control of the President by other means. 

20 (d) REVIEW OF REGISTRATION.—A copy of each reg21 istration made under this section shall be transmitted to 

22 the Secretary of the Treasury for review regarding law en23 forcement concerns. The Secretary shall report to the 

24 President regarding such concerns as necessary. 


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1 SEC. 4336. FOREIGN PERSONS. 

2 (a) IN GENERAL.—A license to export an item on the 

3 United States Munitions List may not be issued to a for4 eign person (other than a foreign government or inter5 national organization). 

6 (b) LICENSE REQUIREMENT.—The President may re7 quire a license or other form of authorization before any 

8 item on the United States Munitions List is sold or other9 wise transferred to the control or possession of a foreign 

10 person or a person acting on behalf of a foreign person. 

11 SEC. 4337. REVIEW OF UNITED STATES MUNITIONS LIST. 

12 (a) IN GENERAL.—The President shall periodically 

13 review the items on the United States Munitions List to 

14 determine what items, if any, no longer warrant export 

15 controls under this title. The results of such reviews shall 

16 be reported to the appropriate congressional committees. 

17 (b) CONGRESSIONAL NOTIFICATION AND REVIEW.— 

18 The President may not remove any item from the United 

19 States Munitions List until 45 days after the date on 

20 which the President has provided notice of the proposed 

21 removal to the appropriate congressional committees in ac22 cordance with the procedures applicable to reprogramming 

23 notifications under section 8401, consistent with sub24 section (c) of this section. Such notice shall describe the 

25 nature of any controls to be imposed on that item under 

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1 tion of the item to be removed such that the appropriate 

2 congressional committees can fully assess the capabilities 

3 of the item and the potential impact on United States na4 tional security and foreign policy from its removal from 

5 the Munitions List. If the President proposes to remove 

6 classes or categories of items from the United States Mu7 nitions List, without enumerating individual items, then 

8 the President shall provide the appropriate congressional 

9 committees with a listing of items approved for export dur10 ing the previous five years that would no longer be re11 quired for licenses under this title by virtue of being re12 moved from the Munitions List. 

13 (c) CONGRESSIONAL DISAPPROVAL.—The President 

14 may not remove any item from the United States Muni15 tions List if, during the 45 days required under subsection 

16 (b), Congress enacts a joint resolution of disapproval of 

17 the removal of such item, according to the procedures 

18 under section 4384(c) for consideration of a joint resolu19 tion. 

20 SEC. 4338. LICENSING OF MISSILES AND MISSILE EQUIP21 MENT OR TECHNOLOGY. 

22 (a) ESTABLISHMENT OF LIST OF CONTROLLED

23 ITEMS.—The Secretary, in consultation with the Secretary 

24 of Defense and the heads of other appropriate Federal 

25 agencies, shall establish and maintain, as part of the 


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1 United States Munitions List, a list of all items on the 

2 MTCR Annex the export of which is not controlled under 

3 section 6(l) of the Export Administration Act of 1979 (as 

4 continued in effect under the International Emergency 

5 Economic Powers Act) or similar provisions of any suc6 cessor Act. 

7 (b) REFERRAL OF LICENSE APPLICATIONS.— 

8 (1) IN GENERAL.—A determination of the Sec9 retary to approve a license for the export of an item 

10 on the list established under subsection (a) may be 

11 made only after the license application is referred to 

12 the Secretary of Defense. 

13 (2) REFERRAL.—Within 10 days after a license 

14 is issued for the export of an item on the list estab15 lished under subsection (a), the Secretary shall pro16 vide to the Secretary of Defense and the Secretary 

17 of Commerce the license application and accom18 panying documents issued to the applicant, to the 

19 extent that the relevant Secretary indicates the need 

20 to receive such application and documents. 

21 (c) INFORMATION SHARING.—The Secretary shall es22 tablish a procedure for sharing information with appro23 priate officials of the intelligence community, as deter24 mined by the Director of National Intelligence, and with 

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1 tive monitoring of transfers of MTCR equipment or tech2 nology and other missile technology. 

3 (d) EXPORTS TO SPACE LAUNCH VEHICLE PRO4 GRAMS.— 

5 (1) IN GENERAL.—Within 15 days after the 

6 issuance of a license (including any brokering li7 cense) for the export of items valued at less than 

8 $50,000,000 that are controlled under this Act pur9 suant to United States obligations under the MTCR 

10 and are goods or services that are intended to sup11 port the design, utilization, development, or produc12 tion of a space launch vehicle system listed in Cat13 egory I of the MTCR Annex, the Secretary shall 

14 transmit to Congress a report describing the licensed 

15 export and rationale for approving such export, in16 cluding the consistency of such export with United 

17 States missile nonproliferation policy. 

18 (2) APPLICABILITY.—The requirement con19 tained in paragraph (1) shall not apply to licenses 

20 for exports to countries that are members of the 

21 MTCR as of as of the date of the enactment of this 

22 Act. 


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1 SEC. 4339. SPECIAL LICENSING AUTHORIZATION FOR CER2 TAIN EXPORTS TO STRATEGIC UNITED 

3 STATES ALLIES. 

4 (a) AUTHORIZATION.—The President may provide 

5 for special licensing authorization for exports of United 

6 States-manufactured spare and replacement parts or com7 ponents listed in an application for such special licensing 

8 authorization in connection with defense items previously 

9 exported to a strategic United States ally. A special licens10 ing authorization issued pursuant to this subsection shall 

11 be effective for a period not to exceed 5 years. 

12 (b) CERTIFICATION.—An authorization may be 

13 issued under subsection (a) only if the applicable govern14 ment of the country described in subsection (a), acting 

15 through the applicant for the authorization, certifies 

16 that— 

17 (1) the export of spare and replacement parts 

18 or components supports a defense item previously 

19 lawfully exported; 

20 (2) the spare and replacement parts or compo21 nents will be transferred to a defense agency of the 

22 country that is a previously approved end-user of the 

23 defense item and not to a distributor or a foreign 

24 consignee of the defense item; 

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1 mize, or otherwise modify or upgrade the capability 

2 of the defense item; 

3 (4) the spare and replacement parts or compo4 nents relate to a defense item that is owned, oper5 ated, and in the inventory of the armed forces of the 

6 country; 

7 (5) the export of spare and replacement parts 

8 or components will be effected using the freight for9 warder designated by the purchasing country’s diplo10 matic mission as responsible for handling transfers 

11 as required under regulations; and 

12 (6) the spare and replacement parts or compo13 nents to be exported under the special licensing au14 thorization are specifically identified in the applica15 tion. 

16 (c) LIMITATION.—An authorization may not be 

17 issued under subsection (a) for purposes of establishing 

18 offshore procurement arrangements or producing defense 

19 articles offshore. 

20 (d) DEFINITION.— 

21 (1) IN GENERAL.—In this section, the term 

22 ‘‘United States-manufactured spare and replacement 

23 parts or components’’ or ‘‘spare and replacement 

24 parts or components’’ means spare and replacement 

25 parts or components— 


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1 (A) with respect to which— 

2 (i) United States-origin content costs 

3 constitute at least 85 percent of the total 

4 content costs; 

5 (ii) United States manufacturing costs 

6 constitute at least 85 percent of the total 

7 manufacturing costs; and 

8 (iii) foreign content, if any, is limited 

9 to content from countries eligible to receive 

10 exports of items on the United States Mu11 nitions List (other than de minimis foreign 

12 content); 

13 (B) that were last substantially trans14 formed in the United States; and 

15 (C) that are not— 

16 (i) classified as significant military 

17 equipment; or 

18 (ii) listed on the MTCR Annex. 

19 (2) ADDITIONAL RULE.—For purposes of para20 graph (1)(A)(i) and (ii), the costs of non-United 

21 States-origin content and the costs of non-United 

22 States manufacturing shall be determined using the 

23 final price or final cost associated with the non24 United States-origin content and non-United States 

25 manufacturing. 


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1 (e) INAPPLICABILITY PROVISIONS.— 

2 (1) IN GENERAL.—The provisions of this sec3 tion shall not apply with respect to re-exports or re4 transfers of spare and replacement parts or compo5 nents and related services of defense items described 

6 in subsection (a). 

7 (2) CONGRESSIONAL NOTIFICATION.—The con8 gressional notification requirements contained in this 

9 title shall not apply with respect to an authorization 

10 issued under subsection (a). 

11 CHAPTER 3—LEASES OF DEFENSE 

12 ARTICLES 

13 SEC. 4351. LEASING AUTHORITY. 

14 (a) IN GENERAL.—The President may lease defense 

15 articles in the stocks of the Department of Defense to a 

16 foreign country or international organization if— 

17 (1) the President determines that there are 

18 compelling foreign policy and national security rea19 sons for providing such articles on a lease basis 

20 rather than on a sales basis under this subtitle; 

21 (2) the President determines that the articles 

22 are not for the time needed for public use; 

23 (3) the President first considers the effects of 

24 the lease of the articles on the national technology 

25 and industrial base, particularly the extent, if any, 


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1 to which the lease reduces the opportunities of enti2 ties in the national technology and industrial base to 

3 sell new equipment to the country or countries to 

4 which the articles are leased; and 

5 (4) the country or international organization 

6 has agreed to pay in United States dollars all costs 

7 incurred by the United States Government in leasing 

8 such articles, including reimbursement for deprecia9 tion of such articles while leased, the costs of res10 toration or replacement if the articles are damaged 

11 while leased, and, if the articles are lost or destroyed 

12 while leased— 

13 (A) in the event the United States intends 

14 to replace the articles lost or destroyed, the re15 placement cost (less any depreciation in the 

16 value) of the articles; or 

17 (B) in the event the United States does 

18 not intend to replace the articles lost or de19 stroyed, an amount not less than the actual 

20 value (less any depreciation in the value) speci21 fied in the lease agreement. 

22 (b) EXCEPTIONS.— 

23 (1) IN GENERAL.—The requirement of sub24 section (a)(4) shall not apply to leases entered into 

25 for purposes of cooperative research or development, 


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1 military exercises, or communications or electronics 

2 interface projects. 

3 (2) WAIVERS.—The President may waive the 

4 requirement of subsection (a)(4)— 

5 (A) for reimbursement of depreciation for 

6 any defense article which has passed three7 quarters of its normal service life if the Presi8 dent determines that to do so is important to 

9 the national security interest of the United 

10 States; 

11 (B) with respect to a lease which is made 

12 in exchange with the lessee for a lease on sub13 stantially reciprocal terms of defense articles 

14 for the Department of Defense, except that this 

15 waiver authority— 

16 (i) may be exercised only if the Presi17 dent submits to the appropriate congres18 sional committees, and in addition the 

19 Committees on Appropriations of the 

20 House of Representatives and the Senate, 

21 a detailed notification for each lease with 

22 respect to which the authority is exercised; 

23 and 

24 (ii) may be exercised only— 

25 (I) on a fiscal year basis; and 


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1 (II) with respect to one country 

2 or international organization for each 

3 lease. 

4 (3) RULE OF CONSTRUCTION.—Paragraph (2) 

5 does not constitute authorization of appropriations 

6 for payments by the United States for leased arti7 cles. 

8 (c) DURATION.— 

9 (1) IN GENERAL.—Each lease agreement under 

10 this section shall be for a fixed duration which may 

11 not exceed— 

12 (A) 5 years; and 

13 (B) a specified period of time required to 

14 complete major refurbishment work of the 

15 leased articles to be performed prior to the de16 livery of the leased articles, of not to exceed 5 

17 years. 

18 (2) TERMINATION.—Each lease agreement 

19 under this section shall provide that, at any time 

20 during the duration of the lease, the President may 

21 terminate the lease and require the immediate re22 turn of the leased articles. 

23 (3) DEFINITION.—In this subsection, the term 

24 ‘‘major refurbishment work’’ means work for which 

25 the period of performance is 6 months or more. 


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1 (d) LIMITATION.—Defense articles in the stocks of 

2 the Department of Defense may be leased or loaned to 

3 a foreign country or international organization only under 

4 the authority of this chapter or chapter 3 of subtitle B, 

5 and may not be leased to a foreign country or inter6 national organization under the authority of section 2667 

7 of title 10, United States Code. 

8 SEC. 4352. CERTIFICATION FOR LEASING. 

9 (a) IN GENERAL.—Before entering into or renewing 

10 any agreement with a foreign country or international or11 ganization to lease any defense article under this chapter, 

12 or to loan any defense article this title for a period of 1 

13 year or longer, the President shall transmit to the appro14 priate congressional committees and the Committees on 

15 Armed Services of the House of Representatives and the 

16 Senate, a written certification which specifies— 

17 (1) the country or international organization to 

18 which the article is to be leased or loaned; 

19 (2) the type, quantity, and value (in terms of 

20 replacement cost) of the article to be leased or 

21 loaned; 

22 (3) the terms and duration of the lease or loan; 

23 and 


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1 (4) a justification for the lease or loan, includ2 ing an explanation of why the article is being leased 

3 rather than sold under this subtitle. 

4 (b) WAIVER.— 

5 (1) IN GENERAL.—The President may waive 

6 the requirements of this section if the President 

7 states in the certification required by subsection (a) 

8 that an emergency exists which requires that it is in 

9 the national security interests of the United States 

10 to enter into the lease or loan immediately. 

11 (2) JUSTIFICATION.—If the President states in 

12 the certification that such an emergency exists, the 

13 President shall set forth in the certification a de14 tailed justification for the President’s determination, 

15 including a description of the emergency cir16 cumstances that necessitate that the lease be entered 

17 into immediately and a discussion of the national se18 curity interests involved. 

19 (c) DEADLINE.—The certification required by sub20 section (a) shall be transmitted— 

21 (1) not less than 15 calendar days before the 

22 agreement is entered into or renewed in the case of 

23 an agreement with a strategic United States ally; or 

24 (2) not less than 30 calendar days before the 

25 agreement is entered into or renewed in the case of 


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1 an agreement with any other country or organiza2 tion. 

3 SEC. 4353. APPLICATION OF OTHER PROVISIONS OF LAW. 

4 Any reference to sales of defense articles under this 

5 subtitle in any provision of law restricting the countries 

6 or organizations to which such sales may be made shall 

7 be deemed to include a reference to leases of defense arti8 cles under this chapter. 

9 SEC. 4354. LOAN OF MATERIALS, SUPPLIES, AND EQUIP10 MENT FOR RESEARCH AND DEVELOPMENT 

11 PURPOSES. 

12 (a) AUTHORITY TO LOAN.— 

13 (1) IN GENERAL.—Except as provided in sub14 section (c), the Secretary of Defense, with the con15 currence of the Secretary, may loan to a country 

16 that is a strategic United States ally or a major 

17 United States ally materials, supplies, or equipment 

18 for the purpose of carrying out a program of cooper19 ative research, development, testing, or evaluation. 

20 The Secretary of Defense may accept as a loan or 

21 a gift from a country that is a strategic United 

22 States ally or a major United States ally materials, 

23 supplies, or equipment for such purpose. 

24 (2) AGREEMENT.—Each loan or gift trans25 action entered into by the Secretary of Defense 


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1 under this section shall be provided for under the 

2 terms of a written agreement between the Secretary 

3 of Defense and the country concerned. 

4 (3) TESTING OR EVALUATION.—A program of 

5 testing or evaluation for which the Secretary of De6 fense may loan materials, supplies, or equipment 

7 under this section includes a program of testing or 

8 evaluation conducted solely for the purpose of stand9 ardization, interchangeability, or technical evaluation 

10 if the country to which the materials, supplies, or 

11 equipment are loaned agrees to provide the results 

12 of the testing or evaluation to the United States 

13 without charge. 

14 (b) MATERIALS, SUPPLIES, OR EQUIPMENT.—The 

15 materials, supplies, or equipment loaned to a country 

16 under this section may be expended or otherwise consumed 

17 in connection with any testing or evaluation program with18 out a requirement for reimbursement of the United States 

19 if the Secretary of Defense— 

20 (1) determines that the success of the research, 

21 development, test, or evaluation depends upon ex22 pending or otherwise consuming the materials, sup23 plies, or equipment loaned to the country; and 

24 (2) approves of the expenditure or consumption 

25 of such materials, supplies, or equipment. 


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1 (c) STRATEGIC AND CRITICAL MATERIALS.—The 

2 Secretary of Defense may not loan to a country under this 

3 section any material if the material is a strategic and crit4 ical material and if, at the time the loan is to be made, 

5 the quantity of the material in the National Defense 

6 Stockpile (provided for under section 3 of the Strategic 

7 and Critical Materials Stock Piling Act (50 U.S.C. 98b)) 

8 is less than the quantity of such material to be stockpiled, 

9 as determined by the President under section 3(a) of such 

10 Act. 

11 SEC. 4355. SPECIAL LEASING AUTHORITY. 

12 The authority of section 4251 may be used to provide 

13 financing to Israel and Egypt for the procurement by leas14 ing (including leasing with an option to purchase) of de15 fense articles from United States commercial suppliers, 

16 other than major defense equipment (other than heli17 copters and other types of aircraft having possible civilian 

18 application), if the President determines that there are 

19 compelling foreign policy or national security reasons for 

20 the articles to be provided by commercial lease rather than 

21 by government-to-government sale under this subtitle. 


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1 CHAPTER 4—RETRANSFERS OF UNITED 

2 STATES DEFENSE ARTICLES 

3 SEC. 4361. AUTHORITY TO APPROVE RETRANSFERS. 

4 (a) IN GENERAL.—Subject to subsection (b), the Sec5 retary is authorized, consistent with the provisions of this 

6 chapter, to approve a retransfer of any defense article or 

7 defense service transferred to a foreign country pursuant 

8 to the authority of this Act to another country. 

9 (b) ADDITIONAL REQUIREMENT.—The Secretary 

10 may not give consent to a retransfer of a defense article 

11 or defense service to a foreign country under subsection 

12 (a) if the United States is prohibited from transferring 

13 the defense article or defense service to the country, or 

14 would not license the export of such defense article or de15 fense service to such country. 

16 SEC. 4362. DEMILITARIZATION FOR RETRANSFER OF SIG17 NIFICANT DEFENSE ARTICLES. 

18 The Secretary may not give consent to the retransfer 

19 of any significant defense articles on the United States 

20 Munitions List or successor list for controlling the export 

21 of United States munitions and related items, unless the 

22 foreign country requesting consent to retransfer— 

23 (1) agrees to demilitarize the defense articles 

24 prior to transfer; or 


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1 (2) commits in writing to the United States 

2 Government that it will not transfer the defense ar3 ticles if not demilitarized to any other foreign coun4 try or person without first obtaining the consent of 

5 the Secretary. 

6 SEC. 4363. PROCEEDS OF SALE OF RETRANSFERRED DE7 FENSE ARTICLES. 

8 The Secretary may not provide any defense article to 

9 a foreign country or international organization on a grant 

10 basis unless the country or organization has agreed that 

11 in disposing or transferring the defense article— 

12 (1) the disposition or transfer will be made on 

13 a sales basis; and 

14 (2) the net proceeds of the sale will be provided 

15 to the United States Government. 

16 SEC. 4364. CERTIFICATION. 

17 (a) IN GENERAL.—The Secretary may not give con18 sent to a retransfer of a defense article or defense service 

19 that would be, if it were a sale, subject to the requirements 

20 of section 4382 (regarding congressional certification of 

21 sensitive foreign military sales and agreements), unless 

22 the Secretary submits to the appropriate congressional 

23 committees a written certification with respect to such 

24 proposed retransfer containing— 


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1 (1) the name of the country or organization 

2 proposing to make such retransfer; 

3 (2) a description of such article or service pro4 posed to be retransferred, including its acquisition 

5 cost; 

6 (3) the name of the proposed recipient of such 

7 article or service; 

8 (4) the reasons for such proposed retransfer; 

9 and 

10 (5) the date on which such retransfer is pro11 posed to be made. 

12 (b) FORM.—Any certification submitted to the appro13 priate congressional committees pursuant to paragraph 

14 (1)— 

15 (1) shall be submitted in unclassified form, ex16 cept that information regarding the dollar value and 

17 number of defense articles or defense services pro18 posed to be retransferred may be submitted in clas19 sified form if public disclosure thereof would be 

20 clearly detrimental to the security of the United 

21 States; and 

22 (2) shall be subject to the requirements of sec23 tions 4384. 

24 (c) EXCEPTION.—Paragraph (1) shall not apply to 

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1 quirements of this title pursuant to an agreement pursu2 ant to section 4341. 

3 CHAPTER 5—ENFORCEMENT AND 

4 MONITORING OF ARMS SALES 

5 SEC. 4371. GENERAL AUTHORITY. 

6 (a) IN GENERAL.—Except as provided in subsection 

7 (b), in carrying out functions under this Act with respect 

8 to the export of defense articles and defense services, the 

9 President is authorized to exercise the same powers con10 cerning violations and enforcement that are conferred 

11 upon departments, agencies and officials by subsections 

12 (c), (d), (e), and (g) of section 11 of the Export Adminis13 tration Act of 1979 and by subsections (a) and (c) of sec14 tion 12 of such Act (as continued in effect under the Inter15 national Emergency Economic Powers Act), subject to the 

16 same terms and conditions as are applicable to such pow17 ers under such Act. 

18 (b) EXCEPTION.—Section 11(c)(2)(B) of the Export 

19 Administration Act of 1979 (as continued in effect under 

20 the International Emergency Economic Powers Act) shall 

21 not apply, and instead, as prescribed in regulations issued 

22 under this section, the Secretary may assess civil penalties 

23 for violations of this Act and regulations prescribed there24 under and further may commence a civil action to recover 

25 such civil penalties, and except further that the names of 


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1 the countries and the types and quantities of defense arti2 cles for which licenses are issued under this section shall 

3 not be withheld from public disclosure unless the Presi4 dent determines that the release of such information would 

5 be contrary to the national interest. 

6 (c) RULE OF CONSTRUCTION.—Nothing in this sec7 tion shall be construed as authorizing the withholding of 

8 information from Congress. 

9 SEC. 4372. CRIMINAL AND CIVIL PENALTIES. 

10 (a) IN GENERAL.—Any person who willfully violates 

11 any provision of this Act relating to the export of defense 

12 articles and defense services, or any rule or regulation 

13 issued thereunder, or who willfully, in a registration or li14 cense application or required report, makes any untrue 

15 statement of a material fact or omits to state a material 

16 fact required to be stated therein or necessary to make 

17 the statements therein not misleading, shall upon convic18 tion be fined for each violation not more than $1,000,000, 

19 or imprisoned not more than 20 years, or both. 

20 (b) ILLICIT TRAFFICKING IN THE WESTERN HEMI21 SPHERE.—Any person who willfully exports to a country 

22 in the Western Hemisphere any small arm or light weapon 

23 without a license in violation of the requirements of this 

24 Act shall upon conviction be fined for each violation not 


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1 less than $1,000,000 but not more than $3,000,000 and 

2 imprisoned for not more than 20 years, or both. 

3 SEC. 4373. IDENTIFICATION OF PERSONS OF CONCERN. 

4 (a) IN GENERAL.—The President shall develop ap5 propriate mechanisms to identify, in connection with the 

6 export licensing process under this subtitle— 

7 (1) persons who are the subject of an indict8 ment for, or have been convicted of, a violation 

9 under— 

10 (A) section 4372; 

11 (B) section 11 of the Export Administra12 tion Act of 1979 (50 U.S.C. App. 2410) (as 

13 continued in effect under the International 

14 Emergency Economic Powers Act); 

15 (C) section 793, 794, or 798 of title 18, 

16 United States Code (relating to espionage in17 volving defense or classified information) or sec18 tion 2339A of such title (relating to providing 

19 material support to terrorists); 

20 (D) section 16 of the Trading with the 

21 Enemy Act (50 U.S.C. App. 16); 

22 (E) section 206 of the International Emer23 gency Economic Powers Act (relating to foreign 

24 assets controls; 50 U.S.C. App. 1705); 


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1 (F) section 30A of the Securities Exchange 

2 Act of 1934 (15 U.S.C. 78dd1) or section 104 

3 of the Foreign Corrupt Practices Act (15 

4 U.S.C. 78dd2); 

5 (G) chapter 105 of title 18, United States 

6 Code (relating to sabotage); 

7 (H) section 4(b) of the Internal Security 

8 Act of 1950 (relating to communication of clas9 sified information; 50 U.S.C. 783(b)); 

10 (I) section 57, 92, 101, 104, 222, 224, 

11 225, or 226 of the Atomic Energy Act of 1954 

12 (42 U.S.C. 2077, 2122, 2131, 2134, 2272, 

13 2274, 2275, and 2276); 

14 (J) section 601 of the National Security 

15 Act of 1947 (relating to intelligence identities 

16 protection; 50 U.S.C. 421); 

17 (K) section 603(b) or (c) of the Com18 prehensive Anti-Apartheid Act of 1986 (22 

19 U.S.C. 5113(b) or (c)); or 

20 (L) section 3, 4, 5, and 6 of the Preven21 tion of Terrorist Access to Destructive Weapons 

22 Act of 2004, relating to missile systems de23 signed to destroy aircraft (18 U.S.C. 2332g), 

24 prohibitions governing atomic weapons (42 

25 U.S.C. 2122), radiological dispersal devices (18 


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1 U.S.C. 2332h), and variola virus (18 U.S.C. 

2 175b); 

3 (2) persons who are the subject of an indict4 ment or have been convicted under section 371 of 

5 title 18, United States Code, for conspiracy to vio6 late any of the provisions of law described in para7 graph (1); and 

8 (3) persons who are ineligible— 

9 (A) to contract with, 

10 (B) to receive a license or other form of 

11 authorization to export from, or 

12 (C) to receive a license or other form of 

13 authorization to import defense articles or de14 fense services from, 

15 any Federal agency. 

16 (b) DISAPPROVAL OF APPLICATION.—If the Presi17 dent determines that— 

18 (1) an applicant for a license to export under 

19 this subtitle is the subject of an indictment for a vio20 lation of any of the provisions of law described in 

21 subsection (a), 

22 (2) there is reasonable cause to believe that an 

23 applicant for a license to export under this subtitle 

24 has violated any of the provisions of law described 

25 in subsection (a), or 


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1 (3) an applicant for a license to export under 

2 this subtitle is ineligible to contract with, or to re3 ceive a license or other form of authorization to im4 port defense articles or defense services from, any 

5 Federal agency, 

6 the President may disapprove the export license applica7 tion. The President shall consider requests by the Sec8 retary of the Treasury to disapprove any export license 

9 application based on these criteria. 

10 (c) PROHIBITION ON ISSUANCE OF LICENSE TO EX11 PORT ITEMS ON THE USML.— 

12 (1) IN GENERAL.—A license to export an item 

13 on the United States Munitions List may not be 

14 issued to a person— 

15 (A) if the person, or any party to the ex16 port, has been convicted of violating a provision 

17 of law described in subsection (a); or 

18 (B) if the person, or any party to the ex19 port, is at the time of the license review ineli20 gible to receive export licenses (or other forms 

21 of authorization to export) from any Federal 

22 agency. 

23 (2) EXCEPTION.—A license to export an item 

24 on the United States Munitions List may be issued 

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1 dent, after consultation with the Secretary of the 

2 Treasury, and after a thorough review of the cir3 cumstances surrounding the conviction or ineligi4 bility to export, determines that appropriate steps 

5 have been taken to mitigate any law enforcement 

6 concerns. 

7 SEC. 4374. STANDARDS TO IDENTIFY HIGH-RISK EXPORTS. 

8 The Secretary shall, in coordination with the heads 

9 of appropriate Federal agencies, develop standards for 

10 identifying high-risk defense articles for regular end-use 

11 verification. 

12 SEC. 4375. REQUIREMENT OF EXPORTERS TO REPORT 

13 SHIPMENT. 

14 As prescribed in regulations issued under this chap15 ter, a person to whom a license has been granted to export 

16 an item on the United States Munitions List shall, not 

17 later than 15 days after the item is exported, submit to 

18 the Department of State a report containing all shipment 

19 information, including a description of the item and the 

20 quantity, value, port of exit, and end-user and country of 

21 destination of the item. 

22 SEC. 4376. END-USE MONITORING OF DEFENSE ARTICLES 

23 AND DEFENSE SERVICES. 

24 (a) ESTABLISHMENT OF MONITORING PROGRAM.— 


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1 (1) IN GENERAL.—In order to improve account2 ability with respect to defense articles and defense 

3 services sold, leased, or exported under this Act and 

4 predecessor Acts, the President shall establish a pro5 gram which provides for the end-use monitoring of 

6 the articles and services. 

7 (2) REQUIREMENTS OF PROGRAM.—To the ex8 tent practicable, the program shall be— 

9 (A) established and carried out in accord10 ance with the standards that apply for identi11 fying high-risk exports for regular end-use 

12 verification developed under section 4374 (com13 monly referred to as the ‘‘Blue Lantern’’ pro14 gram); and 

15 (B) designed to provide reasonable assur16 ance that— 

17 (i) the recipient is complying with the 

18 requirements imposed by the United States 

19 Government with respect to use, transfers, 

20 and security of defense articles and defense 

21 services; and 

22 (ii) the articles and services are being 

23 used for the purposes for which they are 

24 provided. 


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1 (b) CONDUCT OF PROGRAM.—In carrying out the 

2 program established under subsection (a), the President 

3 shall ensure that the program— 

4 (1) provides for the end-use verification of de5 fense articles and defense services that incorporate 

6 sensitive technology, defense articles and defense 

7 services that are particularly vulnerable to diversion 

8 or other misuse, or defense articles or defense serv9 ices whose diversion or other misuse could have sig10 nificant consequences; and 

11 (2) prevents the diversion (through reverse en12 gineering or other means) of technology incorporated 

13 in defense articles. 

14 (c) REPORT TO CONGRESS.—As part of the annual 

15 congressional budget justification submitted under section 

16 8302, the President shall transmit to Congress a report 

17 describing the actions taken to implement this section, in18 cluding a detailed accounting of the costs and number of 

19 personnel associated with the monitoring program. 

20 (d) THIRD COUNTRY TRANSFERS.—For purposes of 

21 this section, defense articles and defense services sold, 

22 leased, or exported under this Act includes defense articles 

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1 ing of end-use monitoring of United States transfers of 

2 small arms and light weapons. 

3 SEC. 4377. FEES OF MILITARY SALES AGENTS AND OTHER 

4 PAYMENTS. 

5 (a) IN GENERAL.—In accordance with such regula6 tions as the Secretary may prescribe under subsection (b), 

7 the Secretary shall require adequate and timely reporting 

8 on political contributions, gifts, commissions and fees 

9 paid, or offered or agreed to be paid, by any person in 

10 connection with— 

11 (1) sales of defense articles or defense services, 

12 or of design and construction services under section 

13 4312; or 

14 (2) commercial sales of defense articles or de15 fense services licensed or approved under section 

16 4301, to or for the armed forces of a foreign country 

17 or international organization in order to solicit, pro18 mote, or otherwise to secure the conclusion of such 

19 sales. 

20 (b) REGULATIONS.—The regulations referred to in 

21 subsection (a) shall specify the amounts and the kinds of 

22 payments, offers, and agreements to be reported, and the 

23 form and timing of reports, and shall require reports on 

24 the names of sales agents and other persons receiving such 


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1 payments. The Secretary shall by regulation require such 

2 recordkeeping as the Secretary determines is necessary. 

3 (c) PROHIBITION, LIMITATION, CONDITIONS.—The 

4 Secretary may, by regulation, prohibit, limit, or prescribe 

5 conditions with respect to such contributions, gifts, com6 missions, and fees as the President determines will be in 

7 furtherance of the purposes of this Act. 

8 (d) REQUIREMENT FOR INCLUSION IN PROCURE9 MENT CONTRACT.— 

10 (1) IN GENERAL.—No such contribution, gift, 

11 commission, or fee may be included, in whole or in 

12 part, in the amount paid under any procurement 

13 contract entered into under section 4312, unless the 

14 amount thereof is reasonable, allocable to such con15 tract, and not made to a person who has solicited, 

16 promoted, or otherwise secured such sale, or has 

17 held himself out as being able to do so, through im18 proper influence. 

19 (2) DEFINITION.—For the purposes of this sub20 section, the term ‘‘improper influence’’ means influ21 ence, direct or indirect, which induces or attempts to 

22 induce consideration or action by any employee or 

23 officer of a purchasing foreign government or inter24 national organization with respect to such purchase 

25 on any basis other than such consideration of merit 


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1 as are involved in comparable United States procure2 ments. 

3 (e) AVAILABILITY OF INFORMATION AND

4 RECORDS.— 

5 (1) IN GENERAL.—All information reported to 

6 the Secretary and all records maintained by any per7 son pursuant to regulations prescribed under this 

8 section shall be available, upon request, to any 

9 standing committee of Congress or any sub10 committee thereof and to any Federal agency au11 thorized by law to have access to the books and 

12 records of the person required to submit reports or 

13 to maintain records under this section. 

14 (2) TERMS AND CONDITIONS.—Access by an 

15 Federal agency to records maintained under this 

16 section shall be on the same terms and conditions 

17 that govern access by the agency to the books and 

18 records of the person concerned. 

19 SEC. 4378. PROHIBITION ON INCENTIVE PAYMENTS. 

20 (a) PROHIBITION.—A United States person, or any 

21 employee, agent, or subcontractor thereof, may not, with 

22 respect to the sale or export of any defense article or de23 fense service to a foreign country, make any incentive pay24 ments for the purpose of satisfying, in whole or in part, 

25 any offset agreement with the country. 


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1 (b) CIVIL PENALTIES.—Any person who violates the 

2 provisions of subsection (a) shall be subject to the imposi3 tion of civil penalties as provided for in subsection (c). 

4 (c) ENFORCEMENT.—In providing for the enforce5 ment of this section, the Secretary is authorized to exer6 cise the same powers concerning violations and enforce7 ment and imposition of civil penalties that are conferred 

8 upon Federal agencies and officials by subsections (c), (d), 

9 (e), and (f) of section 11 of the Export Administration 

10 Act of 1979 and section 12(a) of such Act (as continued 

11 in effect under the International Emergency Economic 

12 Powers Act), subject to the same terms and conditions as 

13 are applicable to such powers under such Act, except that 

14 section 11(c)(2)(B) of such Act shall not apply, and in15 stead, as prescribed in regulations issued under this sec16 tion, the Secretary may assess civil penalties for violations 

17 of this Act and regulations prescribed thereunder and fur18 ther may commence a civil action to recover such civil pen19 alties, and except further that notwithstanding section 

20 11(c) of that Act, the civil penalty for each violation of 

21 this section may not exceed $500,000 or five times the 

22 amount of the prohibited incentive payment, whichever is 

23 greater. 


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1 CHAPTER 6—CONGRESSIONAL REVIEW OF 

2 ARMS SALES 

3 SEC. 4381. REPORTS ON COMMERCIAL AND GOVERN4 MENTAL MILITARY EXPORTS; CONGRES5 SIONAL ACTION. 

6 (a) IN GENERAL.—The Secretary shall transmit to 

7 the appropriate congressional committees not later than 

8 60 days after the end of each calendar quarter an unclassi9 fied report (except that any material which was trans10 mitted in classified form under subsection (b)(1) or (c)(1) 

11 may be contained in a classified addendum to such report, 

12 and any letter of offer referred to in paragraph (1) may 

13 be listed in such addendum unless such letter of offer has 

14 been the subject of an unclassified certification pursuant 

15 to subsection (b)(1), and any information provided under 

16 paragraph (11) may also be provided in a classified adden17 dum) containing— 

18 (1) a listing of all letters of offer to sell any 

19 major defense equipment for $1,000,000 or more 

20 under this Act to each foreign country and inter21 national organization, by category, if such letters of 

22 offer have not been accepted or canceled; 

23 (2) a listing of all such letters of offer that have 

24 been accepted during the fiscal year in which such 

25 report is submitted, together with the total value of 


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1 all defense articles and defense services sold to each 

2 foreign country and international organization dur3 ing such fiscal year; 

4 (3) the cumulative dollar amounts, by foreign 

5 country and international organization, of sales cred6 it agreements under section 4251 made during the 

7 fiscal year in which such report is submitted; 

8 (4) a numbered listing of all licenses and ap9 provals for the export to each foreign country and 

10 international organization during such fiscal year of 

11 commercially sold major defense equipment, by cat12 egory, sold for $1,000,000 or more, together with 

13 the total value of all defense articles and defense 

14 services so licensed for each foreign country and 

15 international organization, setting forth, with respect 

16 to the listed major defense equipment— 

17 (A) the items to be exported under the li18 cense; 

19 (B) the quantity and contract price of each 

20 such item to be provided; and 

21 (C) the name and address of the ultimate 

22 user of each such item; 

23 (5) projections of the dollar amounts, by foreign 

24 country and international organization, of sales ex25 pected to be made under sections 4311 and 4312, in 


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1 the quarter of the fiscal year immediately following 

2 the quarter for which such report is submitted; 

3 (6) a projection with respect to all sales ex4 pected to be made to each country and organization 

5 for the remainder of the fiscal year in which such re6 port is transmitted; 

7 (7) a description of each payment, contribution, 

8 gift, commission, or fee reported to the Secretary 

9 under section 4377, including— 

10 (A) the name of the person who made such 

11 payment, contribution, gift, commission, or fee; 

12 (B) the name of any sales agent or other 

13 person to whom such payment, contribution, 

14 gift, commission, or fee was paid; 

15 (C) the date and amount of such payment, 

16 contribution, gift, commission, or fee; 

17 (D) a description of the sale in connection 

18 with which such payment, contribution, gift, 

19 commission, or fee was paid; and 

20 (E) the identification of any business infor21 mation considered confidential by the person 

22 submitting it which is included in the report; 

23 (8) a listing of each sale under section 4251 

24 during the quarter for which such report is made, 

25 specifying— 


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1 (A) the purchaser; 

2 (B) the Federal agency responsible for im3 plementing the sale; 

4 (C) an estimate of the dollar amount of the 

5 sale; and 

6 (D) a general description of the real prop7 erty facilities to be constructed pursuant to 

8 such sale; 

9 (9) a listing of each export of defense articles 

10 under section 4311 during the quarter for which re11 port is made, specifying the recipient, the defense 

12 article, the dollar amount of the export, and a de13 scription of the cooperative agreement pursuant to 

14 which the export was made; 

15 (10) a listing of the consents to third-party 

16 transfers of defense articles or defense services 

17 which were granted, during the quarter for which 

18 such report is submitted, if the value (in terms of 

19 original acquisition cost) of the defense articles or 

20 defense services to be transferred is $1,000,000 or 

21 more; 

22 (11) a listing of all munitions items that were 

23 sold, leased, or otherwise transferred by the Depart24 ment of Defense to any other Federal agency during 

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1 cluding the name of the recipient agency and a dis2 cussion of what the agency will do with those muni3 tions items) if— 

4 (A) the value of the munitions items was 

5 $250,000 of more, and 

6 (B) the value of all munitions items trans7 ferred to the Federal agency during that quar8 ter was $250,000 or more, 

9 excluding munitions items transferred (i) for disposi10 tion or use solely within the United States, or (ii) 

11 for use in connection with intelligence activities sub12 ject to reporting requirements under title V of the 

13 National Security Act of 1947 (50 U.S.C. 413 et 

14 seq.; relating to congressional oversight of intel15 ligence activities); 

16 (12) a report on all concluded government-to17 government agreements regarding foreign coproduc18 tion of defense articles of United States origin and 

19 all other concluded agreements involving coproduc20 tion or licensed production outside of the United 

21 States of defense articles of United States origin (in22 cluding coproduction memoranda of understanding 

23 or agreement) that have not been previously re24 ported under this subsection, which shall include— 


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1 (A) the identity of the foreign countries, 

2 international organizations, or foreign firms in3 volved; 

4 (B) a description and the estimated value 

5 of the articles authorized to be produced, and 

6 an estimate of the quantity of the articles au7 thorized to be produced; 

8 (C) a description of any restrictions on 

9 third-party transfers of the foreign-manufac10 tured articles; and 

11 (D) if any such agreement does not pro12 vide for United States access to and verification 

13 of quantities of defense articles produced out14 side the United States and their disposition in 

15 the foreign country, a description of alternative 

16 measures and controls incorporated in the co17 production or licensing program to ensure com18 pliance with restrictions in the agreement on 

19 production quantities and third-party transfers; 

20 (13) a report on all exports of significant mili21 tary equipment for which information has been pro22 vided pursuant to section 4375; and 

23 (14) copies of security assistance surveys con24 ducted by United States Government personnel for 


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1 the calendar quarter for which the report is trans2 mitted. 

3 (b) ADDITIONAL INFORMATION.—For each letter of 

4 offer to sell under paragraphs (1) and (2) of subsection 

5 (a), the report shall specify— 

6 (1) the foreign country or international organi7 zation to which the defense article or defense service 

8 is offered or was sold, as the case may be; 

9 (2) the dollar amount of the offer to sell or the 

10 sale and the number of defense articles offered or 

11 sold, as the case may be; 

12 (3) a description of the defense article or de13 fense service offered or sold, as the case may be; and 

14 (4) the United States Armed Forces or Federal 

15 agency that is making the offer to sell or the sale, 

16 as the case may be. 

17 SEC. 4382. CONGRESSIONAL CERTIFICATION OF SENSITIVE 

18 FOREIGN MILITARY SALES AND AGREE19 MENTS. 

20 (a) IN GENERAL.—The President shall submit to the 

21 appropriate congressional committees a numbered certifi22 cation with respect to any letter of offer to sell, or an ap23 plication by a person for a license for the export of, pursu24 ant to this or any other Act, the following to a foreign 

25 country or international organization: 


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1 (1) Major defense equipment of a type that 

2 have not been sold to the country or organization for 

3 $25,000,000 or more. 

4 (2) Major defense equipment of a type that 

5 have been sold to the country or organization but 

6 are significantly different in terms of capability from 

7 those previously sold, for $25,000,000 or more. 

8 (3) Fixed- or rotary-wing aircraft, whether 

9 flown remotely or by an onboard pilot, primarily 

10 used for military purposes; navigation, sensors, sen11 sitive components; and engines for same and sen12 sitive components of such engines. 

13 (4) Radars for military end-use. 

14 (5) Guided or ballistic missiles, regardless of 

15 mode of launch. 

16 (6) Firearms, close assault weapons, and com17 bat shotguns over $1,000,000. 

18 (7) Night vision devices. 

19 (8) Naval vessels, both surface vessels (above 

20 3,000 tons) and submersibles. 

21 (9) Toxicological Agents and associated equip22 ment, for $25,000,000 or more. 

23 (10) Tanks (including significant components) 

24 and armored vehicle chassis, regardless of armament 

25 or lack thereof. 


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1 (11) Other defense articles and defense services 

2 for $100,000,000 or more. 

3 (12) Military-related design and construction 

4 services for $300,000,000 or more. 

5 (b) CERTIFICATION.—The following requirements 

6 shall apply with respect to the submission of a numbered 

7 certification under subsection (a): 

8 (1) Before a United States commercial tech9 nical assistance or manufacturing licensing agree10 ment that involves the manufacture outside the 

11 United States of any sensitive military equipment is 

12 approved under section 4301, the Secretary shall 

13 transmit to the appropriate congressional commit14 tees an unclassified numbered certification with re15 spect to the agreement. 

16 (2) Each numbered certification shall specify— 

17 (A) the foreign country or international or18 ganization to which the defense article or de19 fense service is offered or was sold, as the case 

20 may be; 

21 (B) the dollar amount of the offer to sell 

22 or the sale and the number of defense articles 

23 offered or sold, as the case may be; 


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1 (C) a description of the defense article or 

2 defense service offered or sold, as the case may 

3 be; and 

4 (D) the United States Armed Forces or 

5 Federal agency that is making the offer to sell 

6 or the sale, as the case may be. 

7 (3) For commercial technical assistance or 

8 manufacturing licensing agreements, each numbered 

9 certification shall specify— 

10 (A) the purchaser; 

11 (B) the Federal agency responsible for im12 plementing the sale; 

13 (C) an estimate of the dollar amount of the 

14 sale; and 

15 (D) a general description of the real prop16 erty facilities to be constructed pursuant to 

17 such sale. 

18 (c) ADDITIONAL INFORMATION.—Each numbered 

19 certification submitted under subsection (a) shall also con20 tain information on the following: 

21 (1) A description, containing the information 

22 described in section 4381(a)(7), of any contribution, 

23 gift, commission, or fee paid or offered or agreed to 

24 be paid in order to solicit, promote, or otherwise to 


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1 secure the letter of offer relating to the numbered 

2 certification. 

3 (2) An item, classified if necessary, identifying 

4 the sensitivity of technology contained in the defense 

5 articles, defense services, or design and construction 

6 services proposed to be sold, and a detailed justifica7 tion of the reasons necessitating the sale of the arti8 cles, services, or design and construction services in 

9 view of the sensitivity of the technology. 

10 (3) In a case in which the defense articles or 

11 defense services listed on the Missile Technology 

12 Control Regime Annex are intended to support the 

13 design, development, or production of a Category I 

14 space launch vehicle system, the certification shall 

15 also include a description of the proposed export and 

16 rationale for approving such export, including the 

17 consistency of such export with United States mis18 sile nonproliferation policy. 

19 (4) Each numbered certification shall contain 

20 an item indicating whether any offset agreement is 

21 proposed to be entered into in connection with such 

22 letter of offer to sell (if known on the date of trans23 mittal of such certification). 

24 (d) FORM.—A numbered certification transmitted 

25 pursuant to subsection (a) shall be in unclassified form, 


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1 except that the information specified in paragraphs (2) 

2 and (3) of section 4381(b) and the details of the descrip3 tion specified in subsections (b) and (c) may be classified 

4 if the public disclosure thereof would be clearly detri5 mental to the security of the United States, in which case 

6 the information shall be accompanied by a description of 

7 the damage to the national security that could be expected 

8 to result from public disclosure of the information. 

9 (e) CONSULTATION.—The Secretary shall consult 

10 with the appropriate congressional committees prior to the 

11 notification of a letter of offer, an application to export, 

12 or the conclusion of an commercial technical assistance 

13 agreement or a manufacturing license agreement. 

14 (f) COMMITTEE INFORMATION REQUEST.—The Sec15 retary shall, upon the request of an appropriate congres16 sional committee, transmit promptly to both such commit17 tees a statement setting forth, to the extent specified in 

18 such request— 

19 (1) a detailed description of the defense articles, 

20 defense services, or design and construction services 

21 to be offered, including a brief description of the ca22 pabilities of any defense article to be offered; 

23 (2) an estimate of the number of officers and 

24 employees of the United States Government and of 

25 United States civilian contract personnel expected to 


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1 be needed in such country to carry out the proposed 

2 sale; 

3 (3) the name of each contractor expected to 

4 provide the defense article, defense service, or design 

5 and construction services proposed to be sold and a 

6 description of any offset agreement with respect to 

7 such sale; 

8 (4) an evaluation, prepared by the Secretary in 

9 consultation with the Secretary of Defense and the 

10 Director of Central Intelligence, of the manner, if 

11 any, in which the proposed sale would— 

12 (A) contribute to an arms race; 

13 (B) support international terrorism; 

14 (C) increase the possibility of an outbreak 

15 or escalation of conflict; 

16 (D) prejudice the negotiation of any arms 

17 controls; 

18 (E) adversely affect the arms control or 

19 nonproliferation policy of the United States; 

20 (F) support blackmarket or greymarket 

21 trade in arms, either those transferred or obso22 lete arms to be replaced by the arms sale; or 

23 (G) require the transfer of United States 

24 arms sensitive technology or manufacturing 

25 techniques as a condition of the arms sale, and 


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1 the impact of such transfer on the United 

2 States manufacturing base, including on jobs 

3 based in the United States; 

4 (5) the reasons why the foreign country or 

5 international organization to which the sale is pro6 posed to be made needs the defense articles, defense 

7 services, or design and construction services which 

8 are the subject of such sale and a description of how 

9 such country or organization intends to use such de10 fense articles, defense services, or design and con11 struction services; 

12 (6) an analysis of the impact of the proposed 

13 sale on the military stocks and the military pre14 paredness of the United States; 

15 (7) the reasons why the proposed sale is in the 

16 national interest of the United States; 

17 (8) an analysis of the impact of the proposed 

18 sale on the military capabilities of the foreign coun19 try or international organization to which such sale 

20 would be made; 

21 (9) an analysis of how the proposed sale would 

22 affect the relative military strengths of countries in 

23 the region to which the defense articles, defense 

24 services, or design and construction services which 

25 are the subject of such sale would be delivered and 


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1 whether other countries in the region have com2 parable kinds and amounts of defense articles, de3 fense services, or design and construction services; 

4 (10) an estimate of the levels of trained per5 sonnel and maintenance facilities of the foreign 

6 country or international organization to which the 

7 sale would be made which are needed and available 

8 to utilize effectively the defense articles, defense 

9 services, or design and construction services pro10 posed to be sold; 

11 (11) an analysis of the extent to which com12 parable kinds and amounts of defense articles, de13 fense services, or design and construction services 

14 are available from other countries; 

15 (12) an analysis of the impact of the proposed 

16 sale on United States relations with the countries in 

17 the region to which the defense articles, defense 

18 services, or design and construction services which 

19 are the subject of such sale would be delivered; 

20 (13) a detailed description of any agreement 

21 proposed to be entered into by the United States for 

22 the purchase or acquisition by the United States of 

23 defense articles, defense services, design and con24 struction services or defense equipment, or other ar25 ticles, services, or equipment of the foreign country 


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1 or international organization in connection with, or 

2 as consideration for, such letter of offer, including 

3 an analysis of the impact of such proposed agree4 ment upon United States business concerns which 

5 might otherwise have provided such articles, services, 

6 or equipment to the United States, an estimate of 

7 the costs to be incurred by the United States in con8 nection with such agreement compared with costs 

9 which would otherwise have been incurred, an esti10 mate of the economic impact and unemployment 

11 which would result from entering into such proposed 

12 agreement, and an analysis of whether such costs 

13 and such domestic economic impact justify entering 

14 into such proposed agreement; 

15 (14) the projected delivery dates of the defense 

16 articles, defense services, or design and construction 

17 services to be offered; 

18 (15) a detailed description of weapons and lev19 els of munitions that may be required as support for 

20 the proposed sale; 

21 (16) an analysis of the relationship of the pro22 posed sale to projected procurements of the same 

23 item, and 

24 (17) an analysis, classified if necessary, of the 

25 security to be provided by the proposed recipient of 


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1 the arms sale on the defense articles and defense 

2 services, both against external and internal security 

3 threats, including espionage. 

4 SEC. 4383. UPGRADE OR ENHANCEMENT. 

5 (a) IN GENERAL.—If, before the delivery of any 

6 major defense article or major defense equipment, or the 

7 furnishing of any defense service or design and construc8 tion service, sold pursuant to a letter of offer or a contract 

9 pursuant to a license described in section 4382, the sensi10 tivity of technology or the capability of the article, equip11 ment, or service is enhanced or upgraded from the level 

12 of sensitivity or capability described in the numbered cer13 tification with respect to an offer to sell such article, 

14 equipment, or service, then, at least 45 days before the 

15 delivery of such article or equipment or the furnishing of 

16 such service, the President shall prepare and transmit to 

17 the chairman of the Committee on Foreign Affairs of the 

18 House of Representatives and the chairman of the Com19 mittee on Foreign Relations of the Senate a report— 

20 (1) describing the manner in which the tech21 nology or capability has been enhanced or upgraded 

22 and describing the significance of such enhancement 

23 or upgrade; and 

24 (2) setting forth a detailed justification for such 

25 enhancement or upgrade. 


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1 (b) APPLICATION.—The provisions of subsection (a) 

2 apply to an article or equipment delivered, or a service 

3 furnished, within 10 years after the transmittal to the 

4 Congress of a numbered certification with respect to the 

5 sale of such article, equipment, or service. 

6 (c) NEW NUMBERED CERTIFICATION.— 

7 (1) IN GENERAL.—If the enhancement or up8 grade in the sensitivity of technology or the capa9 bility of major defense equipment, defense articles, 

10 defense services, or design and construction services 

11 described in a numbered certification submitted 

12 under this section costs $14,000,000 or more in the 

13 case of any major defense equipment, $50,000,000 

14 or more in the case of defense articles or defense 

15 services, or $200,000,000 or more in the case of de16 sign or construction services, then the Secretary 

17 shall submit to the chairman of the Committee on 

18 Foreign Affairs of the House of Representatives and 

19 the chairman of the Committee on Foreign Relations 

20 of the Senate a new numbered certification which re21 lates to such enhancement or upgrade and which 

22 shall be considered for purposes of this section as if 

23 it were a separate letter of offer to sell defense 

24 equipment, articles, or services, subject to all of the 


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1 requirements, restrictions, and conditions set forth 

2 in this section. 

3 (2) RULE OF CONSTRUCTION.—For purposes of 

4 this subsection, references in this section to sales 

5 shall be deemed to be references to enhancements or 

6 upgrades in the sensitivity of technology or the capa7 bility of major defense equipment, defense articles, 

8 or defense services, as the case may be. 

9 SEC. 4384. CONGRESSIONAL REVIEW PERIOD AND DIS10 APPROVAL. 

11 (a) REVIEW PERIOD.—Any numbered certification 

12 submitted to the appropriate congressional committees for 

13 a letter of offer or a license to export under section 4382 

14 may not be issued not earlier than— 

15 (1) in the case of a strategic United States ally, 

16 15 legislative days after the date of submission of 

17 the certification; 

18 (2) in the case of any other country, 30 legisla19 tive days after the date of submission of the certifi20 cation; and 

21 (3) in the case of a license for export of a com22 mercial communications satellite for launch from, 

23 and by nationals of, the Russian Federation, 

24 Ukraine, or Kazakhstan, 15 legislative days after 

25 the date of submission of the certification. 


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1 (b) DISAPPROVAL.—No letter of offer, or license to 

2 export, may be issued for any proposed sale subject to the 

3 provisions of this section if a joint resolution of dis4 approval is enacted providing for any such sale within the 

5 respective time periods specified in subsection (a). 

6 (c) PROCEDURES FOR CONSIDERATION OF JOINT

7 RESOLUTION.— 

8 (1) SENATE.—Any such joint resolution shall 

9 be considered in the Senate in accordance with the 

10 provisions of section 601(b) of the International Se11 curity Assistance and Arms Export Control Act of 

12 1976, except that for purposes of consideration of 

13 any joint resolution with respect to a strategic 

14 United States ally, it shall be in order in the Senate 

15 to move to discharge a committee to which such 

16 joint resolution was referred if such committee has 

17 not reported such joint resolution at the end of 5 

18 calendar days after its introduction. 

19 (2) HOUSE OF REPRESENTATIVES.—For the 

20 purpose of expediting the consideration and enact21 ment of joint resolutions under this subsection, a 

22 motion to proceed to the consideration of any such 

23 joint resolution after it has been reported by the ap24 propriate committee shall be treated as highly privi25 leged in the House of Representatives. 


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1 SEC. 4385. NATIONAL SECURITY WAIVER OF CONGRES2 SIONAL REVIEW OF ARMS SALES. 

3 (a) AUTHORITY.—If the President informs the appro4 priate congressional committees that an emergency exists 

5 that requires a sale of a defense article or defense service 

6 under section 4331 or a retransfer of a defense article or 

7 defense service under section 4361 in the national security 

8 interests of the United States, the President may exempt 

9 the proposed sale from the requirements of this chapter. 

10 (b) JUSTIFICATION.—Before exercising such waiver, 

11 the President shall set forth in a statement to the appro12 priate congressional committees a detailed justification for 

13 the President’s determination, including a description of 

14 the emergency circumstances that necessitate the imme15 diate issuance of the letter of offer and a discussion of 

16 the national security interests involved. 

17 SEC. 4386. PUBLICATION OF ARMS SALES NOTIFICATIONS. 

18 (a) PUBLICATION.—The Secretary shall publish in a 

19 timely manner in the Federal Register, upon transmittal 

20 to the Speaker of the House of Representatives and to 

21 the chairman of the Committee on Foreign Relations of 

22 the Senate, the full unclassified text of each numbered cer23 tification submitted pursuant to section 4382. 

24 (b) RULE OF CONSTRUCTION.—Information relating 

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1 ministration Act of 1979 (50 U.S.C. App. 2411(c)) (as 

2 continued in effect under the International Emergency 

3 Economic Powers Act). 

4 SEC. 4387. CERTIFICATION REQUIREMENT RELATING TO 

5 ISRAEL’S QUALITATIVE MILITARY EDGE. 

6 (a) IN GENERAL.—Any certification relating to a 

7 proposed sale or export of defense articles or defense serv8 ices under this chapter to any country in the Middle East 

9 other than Israel shall include an unclassified determina10 tion that the sale or export of the defense articles or de11 fense services will not adversely affect Israel’s qualitative 

12 military edge over military threats to Israel, but may also 

13 include a classified determination as well. 

14 (b) QUALITATIVE MILITARY EDGE DEFINED.—In 

15 this section, the term ‘‘qualitative military edge’’ means 

16 the ability to counter and defeat any credible conventional 

17 military threat from any individual state or possible coali18 tion of states or from non-state actors, while sustaining 

19 minimal damages and casualties, through the use of supe20 rior military means, possessed in sufficient quantity, in21 cluding weapons, command, control, communication, intel22 ligence, surveillance, and reconnaissance capabilities that 

23 in their technical characteristics are superior in capability 

24 to those of such other individual or possible coalition of 

25 states or non-state actors. 


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1 CHAPTER 7—LANDMINES AND CLUSTER 

2 MUNITIONS 

3 SEC. 4391. LANDMINES. 

4 (a) IN GENERAL.—Notwithstanding any other provi5 sion of law, demining equipment available to the Agency 

6 or the Department of State and used in support of the 

7 clearance of landmines and unexploded ordnance for hu8 manitarian purposes may be disposed of on a grant basis 

9 in foreign countries. 

10 (b) TERMS AND CONDITIONS.—The exercise of the 

11 authority under subsection (a) shall be subject to such 

12 terms and conditions as the President may prescribe. 

13 SEC. 4392. CLUSTER MUNITIONS. 

14 No security assistance may be provided for cluster 

15 munitions, no defense export license for cluster munitions 

16 may be issued, and no cluster munitions or cluster muni17 tions technology shall be sold or transferred, unless— 

18 (1) the submunitions of the cluster munitions, 

19 after arming, do not result in more than 1 percent 

20 unexploded ordnance across the range of intended 

21 operational environments; and 

22 (2) the agreement applicable to the assistance, 

23 transfer, or sale of such cluster munitions or cluster 

24 munitions technology specifies that— 


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1 (A) the cluster munitions will only be used 

2 against clearly defined military targets and will 

3 not be used where civilians are known to be 

4 present or in areas normally inhabited by civil5 ians; and 

6 (B) the recipient agrees to immediately re7 cover any unexploded submunitions, and to give 

8 assistance as necessary to any civilian injuries, 

9 that follow the use of such weapons in any area 

10 in which civilians are present. 

11 Subtitle D—General Administrative 

12 and Miscellaneous Provisions 

13 SEC. 4401. GENERAL PROVISIONS. 

14 (a) PROCUREMENT IN THE UNITED STATES; CO15 PRODUCTION OR LICENSED PRODUCTION OUTSIDE THE

16 UNITED STATES.— 

17 (1) IN GENERAL.—In carrying out this title, 

18 special emphasis shall be placed on procurement in 

19 the United States, but, subject to the provisions of 

20 subsection (b), consideration shall also be given to 

21 coproduction or licensed production outside the 

22 United States of defense articles of United States 

23 origin when such production best serves the foreign 

24 policy, national security, and economy of the United 

25 States. 


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1 (2) EVALUATION.—In evaluating any sale pro2 posed to be made pursuant to this title, there shall 

3 be taken into consideration— 

4 (A) the extent to which the proposed sale 

5 damages or infringes upon licensing arrange6 ments whereby United States entities have 

7 granted licenses for the manufacture of the de8 fense articles selected by the purchasing coun9 try to entities located in friendly foreign coun10 tries, which licenses result in financial returns 

11 to the United States; 

12 (B) the portion of the defense articles so 

13 manufactured which is of United States origin; 

14 and 

15 (C) whether, and the extent to which, such 

16 sale might contribute to an arms race, aid in 

17 the development of weapons of mass destruc18 tion, support international terrorism, increase 

19 the possibility of outbreak or escalation of con20 flict, or prejudice the development of bilateral 

21 or multilateral arms control or nonproliferation 

22 agreements or other arrangements. 

23 (b) PROHIBITIONS.—No credit sale shall be extended 

24 under section 4251 in any case involving coproduction or 

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1 fense article of United States origin, unless the Secretary, 

2 in advance of any such transaction, advises the appro3 priate congressional committees and furnish the Speaker 

4 of the House of Representatives and the President of the 

5 Senate with full information regarding the proposed trans6 action, including a description of the particular defense 

7 article or articles which would be produced under license 

8 or coproduced outside the United States, the estimated 

9 value of such production or coproduction, and the probable 

10 impact of the proposed transaction on employment and 

11 production within the United States. 

12 (c) AVAILABILITY OF FUNDS.—Funds made available 

13 under this title may be used for procurement outside the 

14 United States only if the President determines that such 

15 procurement will not result in adverse effects upon the 

16 economy of the United States or the industrial mobiliza17 tion base, with special reference to any areas of labor sur18 plus or to the net position of the United States in its bal19 ance of payments with the rest of the world, which out20 weigh the economic or other advantages to the United 

21 States of less costly procurement outside the United 

22 States 

23 (d) RESPONSIBILITIES OF SECRETARY OF DE24 FENSE.— 


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1 (1) IN GENERAL.—With respect to sales under 

2 sections 4311, 4312, 4324, and 4351 the Secretary 

3 of Defense shall, under the direction of the Presi4 dent, have primary responsibility for— 

5 (A) the determination of military end-item 

6 requirements; 

7 (B) the procurement of military equipment 

8 in a manner which permits its integration with 

9 service programs; 

10 (C) the supervision of the training of for11 eign military personnel; 

12 (D) the movement and delivery of military 

13 end-items; and 

14 (E) within the Department of Defense, the 

15 performance of any other functions with respect 

16 to sales and guaranties. 

17 (2) PRIORITIES.—The establishment of prior18 ities in the procurement, delivery, and allocation of 

19 military equipment shall, under the direction of the 

20 President, be determined by the Secretary of De21 fense. 

22 (e) TERMINATION PROVISIONS.— 

23 (1) CONTRACTS.—Each contract for sale en24 tered into under sections 4311, 4312, 4324, and 

25 4351, and each contract entered into under section 


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1 4282, shall provide that such contract may be can2 celed in whole or in part, or its execution suspended, 

3 by the United States at any time under unusual or 

4 compelling circumstances if the national interest of 

5 the United States so requires. 

6 (2) EXPORT LICENSES.—Each export license 

7 issued under section 4331 shall provide that such li8 cense may be revoked, suspended, or amended by the 

9 Secretary, without prior notice, whenever the Sec10 retary deems such action to be advisable. Nothing in 

11 this paragraph may be construed as limiting the reg12 ulatory authority of the President under this Act. 

13 (3) AUTHORIZATION OF APPROPRIATIONS.— 

14 There are authorized to be appropriated from time 

15 to time such sums as may be necessary— 

16 (A) to refund moneys received from pur17 chasers under contracts of sale entered into 

18 under sections 4311, 4312, 4324, and 4351, or 

19 under contracts entered into under section 

20 4282, that are canceled or suspended under this 

21 subsection to the extent such moneys have pre22 viously been disbursed to private contractors 

23 and United States Government agencies for 

24 work in progress; and 


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1 (B) to pay such damages and costs that 

2 accrue from the corresponding cancellation or 

3 suspension of the existing procurement con4 tracts or Federal agency work orders involved. 

5 (f) CIVILIAN CONTRACT PERSONNEL.—The Presi6 dent shall, to the maximum extent possible and consistent 

7 with the purposes of this title, use civilian contract per8 sonnel in any foreign country to perform defense services 

9 sold under this title. 

10 SEC. 4402. ADMINISTRATIVE EXPENSES. 

11 (a) IN GENERAL.—Funds made available under other 

12 provisions of law for the operations of Federal agencies 

13 carrying out functions under this title shall be available 

14 for the administrative expenses incurred by such agencies 

15 under this title. 

16 (b) RECOVERY OF EXPENSES.—Charges for adminis17 trative services calculated under section 4314(a)(1) shall 

18 include recovery of administrative expenses and official re19 ception and representation expenses incurred by any Fed20 eral agency, including any mission or group thereof, in 

21 carrying out functions under this title if— 

22 (1) such functions are primarily for the benefit 

23 of any foreign country; 


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1 (2) such expenses are not directly and fully 

2 charged to, and reimbursed from amounts received 

3 for, sale of defense services under section 4311; and 

4 (3) such expenses are neither salaries of the 

5 United States Armed Forces nor represent unfunded 

6 estimated costs of civilian retirement and other ben7 efits. 

8 (c) OFFICIAL RECEPTION AND REPRESENTATION

9 EXPENSES.—Not more than $86,500 of the funds derived 

10 from charges for administrative services pursuant to sec11 tion 4314(a)(1) may be used each fiscal year for official 

12 reception and representation expenses. 

13 SEC. 4403. DETAIL OF APPROPRIATE PERSONNEL. 

14 The President may detail, as necessary, to the De15 partment of State appropriate personnel from any other 

16 Federal agency on a nonreimbursable basis, to assist in 

17 the initial screening of applications for export licenses 

18 under this subtitle in order to determine the need for fur19 ther review of those applications for foreign policy, na20 tional security, and law enforcement concerns. 

21 SEC. 4404. RULE OF CONSTRUCTION. 

22 Nothing in this title shall be construed as modifying 

23 in any way the provisions of the Atomic Energy Act of 

24 1954 or section 7307 of title 10, United States Code. 


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1 SEC. 4405. PERFORMANCE GOALS FOR PROCESSING OF AP2 PLICATIONS FOR LICENSES TO EXPORT 

3 ITEMS ON UNITED STATES MUNITIONS LIST. 

4 (a) IN GENERAL.—The Secretary shall establish and 

5 maintain the following goals: 

6 (1) The processing time for review of each ap7 plication for a license to export items on the United 

8 States Munitions List (other than a Manufacturing 

9 License Agreement) shall be not more than 60 days 

10 from the date of receipt of the application. 

11 (2) The processing time for review of each ap12 plication for a commodity jurisdiction determination 

13 shall be not more than 60 days from the date of re14 ceipt of the application. 

15 (3) The total number of applications described 

16 in paragraph (1) that are unprocessed shall be not 

17 more than 7 percent of the total number of such ap18 plications submitted in the preceding calendar year. 

19 (b) ADDITIONAL REVIEW.— 

20 (1) IN GENERAL.—If an application described 

21 in paragraph (1) or (2) of subsection (a) is not proc22 essed within the time period described in the respec23 tive paragraph of such subsection, then the Sec24 retary shall ensure that the appropriate managing 

25 official shall review the status of the application to 


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1 determine if further action is required to process the 

2 application. 

3 (2) ADDITIONAL REQUIREMENTS.—If an appli4 cation described in paragraph (1) or (2) of sub5 section (a) is not processed within 90 days from the 

6 date of receipt of the application, then the appro7 priate managing official shall— 

8 (A) review the status of the application to 

9 determine if further action is required to proc10 ess the application; and 

11 (B) submit to the appropriate congres12 sional committees a notification of the review 

13 conducted under subparagraph (A), including a 

14 description of the application, the reason for 

15 delay in processing the application, and a pro16 posal for further action to process the applica17 tion. 

18 (3) ANNUAL REVIEW.—For each calendar year, 

19 the appropriate managing official shall review not 

20 less than 2 percent of the total number of applica21 tions described in paragraphs (1) and (2) of sub22 section (a) to ensure that the processing of such ap23 plications, including decisions to approve, deny, or 

24 return without action, is consistent with both the 


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1 foreign policy and regulatory requirements of the 

2 United States. 

3 (c) STATEMENTS OF POLICY.— 

4 (1) UNITED STATES ALLIES.—Congress states 

5 that— 

6 (A) to ensure that, to the maximum extent 

7 practicable, the processing time for review of 

8 applications to export items to United States al9 lies in direct support of combat operations or 

10 peacekeeping or humanitarian operations with 

11 the United States Armed Forces is not more 

12 than 7 days from the date of receipt of the ap13 plication; and 

14 (B) the Secretary shall ensure that, to the 

15 maximum extent practicable, the processing 

16 time for review of applications described in sub17 section (a)(1) to export items that are not sub18 ject to the requirements of chapter 6 to a stra19 tegic United States ally, and, as appropriate, 

20 other major United States allies for any pur21 pose other than the purpose described in para22 graph (1) is not more than 30 days from the 

23 date of receipt of the application. 

24 (2) PRIORITY FOR APPLICATIONS FOR EXPORT

25 OF U.S.-ORIGIN EQUIPMENT.—In meeting the goals 


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1 established by this section, the Secretary shall 

2 prioritize the processing of applications for licenses 

3 and agreements necessary for the export of United 

4 States-origin equipment over applications for Manu5 facturing License Agreements. 

6 (d) REPORT.—Not later than 180 days after the date 

7 of the enactment of this Act, and not later than 1 year 

8 thereafter, the Secretary shall submit to the appropriate 

9 congressional committees a report that contains a detailed 

10 description of— 

11 (1)(A) the average processing time for and 

12 number of applications described in subsection 

13 (a)(1) to— 

14 (i) a strategic United States ally; 

15 (ii) a major United States ally; and 

16 (iii) any other country; and 

17 (B) to the extent practicable, the average proc18 essing time for and number of applications described 

19 in subsection (b)(1) by item category; 

20 (2) the average processing time for and number 

21 of applications described in subsection (a)(2); 

22 (3) the average processing time for and number 

23 of applications for agreements described in part 124 

24 of title 22, Code of Federal Regulations (relating to 


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1 the International Traffic in Arms Regulations), 

2 other than Manufacturing License Agreements; 

3 (4) the average processing times for applica4 tions for Manufacturing License Agreements; 

5 (5) any management decisions of the Direc6 torate of Defense Trade Controls of the Department 

7 of State that have been made in response to data 

8 contained in paragraphs (1) through (3); and 

9 (6) any advances in technology that will allow 

10 the time-frames described in subsection (a)(1) to be 

11 substantially reduced. 

12 (e) CONGRESSIONAL BRIEFINGS.—If, at the end of 

13 any month beginning after the date of the enactment of 

14 this Act, the total number of applications described in sub15 section (a)(1) that are unprocessed is more than 7 percent 

16 of the total number of such applications submitted in the 

17 preceding calendar year, then the Secretary shall ensure 

18 that the Assistant Secretary for Political-Military Affairs 

19 shall brief the appropriate congressional committees on 

20 such matters and the corrective measures that will be 

21 taken to comply with the requirements of subsection (a). 

22 (f) TRANSPARENCY OF COMMODITY JURISDICTION

23 DETERMINATIONS.— 

24 (1) IN GENERAL.—To the maximum extent 

25 practicable, commodity jurisdiction determinations 


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1 made as the appropriate controls to be applied to 

2 commodities shall be made public. 

3 (2) PUBLICATION ON DEPARTMENT OF STATE’S

4 INTERNET WEBSITE.—The Secretary shall— 

5 (A) publish a commodity jurisdiction deter6 mination referred to in paragraph (1) on the 

7 Internet website of the Department of State not 

8 later than 30 days after the date of the deter9 mination, which includes— 

10 (i) the name of the manufacturer of 

11 the item; 

12 (ii) a brief general description of the 

13 item; 

14 (iii) the model or part number of the 

15 item; and 

16 (iv) the designation under which the 

17 item has been designated, except that— 

18 (I) the name of the person or 

19 business organization that sought the 

20 commodity jurisdiction determination 

21 shall not be published if the person or 

22 business organization is not the man23 ufacturer of the item; and 

24 (II) the names of the customers, 

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1 etary information relating to the item 

2 indicated by the person or business 

3 organization that sought the com4 modity jurisdiction determination 

5 shall not be published; and 

6 (B) maintain on the Internet website of 

7 the Department of State an archive, that is ac8 cessible to the general public and other depart9 ments and agencies of the United States, of the 

10 information published under subparagraph (A). 

11 (g) RULE OF CONSTRUCTION.—Nothing in this sec12 tion shall be construed to prohibit the President from un13 dertaking a thorough review of the national security and 

14 foreign policy implications of a proposed export of items 

15 on the United States Munitions List. 

16 SEC. 4406. AVAILABILITY OF INFORMATION ON THE STATUS 

17 OF LICENSE APPLICATIONS. 

18 (a) IN GENERAL.—The Secretary shall make avail19 able to persons who have pending license applications 

20 under this chapter and the appropriate congressional com21 mittees the ability to access electronically current informa22 tion on the status of each license application required to 

23 be submitted under this chapter. 


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1 (b) MATTERS TO BE INCLUDED.—The information 

2 referred to in subsection (a) shall be limited to the fol3 lowing: 

4 (1) The case number of the license application. 

5 (2) The date on which the license application is 

6 received by the Department of State and becomes an 

7 ‘‘open application’’. 

8 (3) The date on which the Directorate of De9 fense Trade Controls makes a determination with re10 spect to the license application or transmits it for 

11 interagency review, if required. 

12 (4) The date on which the interagency review 

13 process for the license application is completed, if 

14 such a review process is required. 

15 (5) The date on which the Department of State 

16 begins consultations with the appropriate congres17 sional committees with respect to the license applica18 tion. 

19 (6) The date on which the license application is 

20 sent to the appropriate congressional committees. 


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1 SEC. 4407. REQUIREMENT TO ENSURE ADEQUATE STAFF 

2 AND RESOURCES FOR THE DIRECTORATE OF 

3 DEFENSE TRADE CONTROLS OF THE DEPART4 MENT OF STATE. 

5 (a) REQUIREMENT.—The Secretary shall ensure that 

6 there are the necessary staff and resources to carry out 

7 this subtitle. 

8 (b) MINIMUM NUMBER OF LICENSING OFFICERS.— 

9 The Secretary should ensure that there is at least 1 licens10 ing officer for every 1,250 applications for licenses and 

11 other authorizations to export items on the United States 

12 Munitions List or successor list. 

13 (c) MINIMUM NUMBER OF STAFF FOR COMMODITY

14 JURISDICTION DETERMINATIONS.—The Secretary shall 

15 ensure that the Directorate of Defense Trade Controls 

16 has, to the extent practicable, not less than three individ17 uals assigned to review applications for commodity juris18 diction determinations. 

19 SEC. 4408. OVERSEAS MANAGEMENT OF ASSISTANCE AND 

20 SALES PROGRAMS. 

21 (a) IN GENERAL.—In order to carry out the Presi22 dent’s responsibilities for the management of international 

23 security assistance programs conducted under this title, 

24 the President may assign members of the United States 

25 Armed Forces, personnel of the Department of Defense, 

26 the Department of State, or any other Federal agency, 


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1 to a foreign country to perform one or more of the fol2 lowing functions: 

3 (1) Equipment and services case management. 

4 (2) Training management. 

5 (3) Program monitoring. 

6 (4) Evaluation and planning of the host govern7 ment’s military capabilities and requirements. 

8 (5) Administrative support. 

9 (6) Promoting rationalization, standardization, 

10 interoperability, and other defense cooperation meas11 ures. 

12 (7) Liaison functions exclusive of advisory and 

13 training assistance. 

14 (b) ADVISORY AND TRAINING ASSISTANCE.—Advi15 sory and training assistance conducted by military per16 sonnel assigned under this section shall be kept to an ab17 solute minimum. It is the sense of Congress that advisory 

18 and training assistance conducted in countries to which 

19 military personnel are assigned under this section should 

20 be provided primarily by other personnel who are not as21 signed under this section and who are detailed for limited 

22 periods to perform specific tasks. 

23 (c) LIMITATION ON NUMBER OF UNITED STATES

24 ARMED FORCES MEMBERS.— 

25 (1) LIMITATION.— 


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1 (A) IN GENERAL.—Except as provided in 

2 subparagraph (C), the number of members of 

3 the United States Armed Forces assigned to a 

4 foreign country under this section in a fiscal 

5 year may not exceed 12 unless specifically au6 thorized by Congress. 

7 (B) WAIVER.—The President may waive 

8 the limitation in subparagraph (A) with respect 

9 to the number of members of the United States 

10 Armed Forces assigned to a foreign country if 

11 the President determines and reports to the ap12 propriate congressional committees 30 days 

13 prior to the introduction of the additional mem14 bers of the United States Armed Forces in the 

15 foreign country, that United States national in16 terests require that more than 12 members of 

17 the United States Armed Forces be assigned 

18 under this section to carry out international se19 curity assistance programs in the foreign coun20 try. 

21 (C) EXEMPTED COUNTRIES.—The limita22 tion in subparagraph (A) shall not apply with 

23 respect to Pakistan, Tunisia, El Salvador, Hon24 duras, Israel, Colombia, Indonesia, the Republic 

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1 dan, Morocco, Saudi Arabia, Greece, Portugal, 

2 Spain, and Turkey. 

3 (2) CONGRESSIONAL BUDGET JUSTIFICA4 TION.—The total number of members of the United 

5 States Armed Forces assigned to a foreign country 

6 under this section in a fiscal year may not exceed 

7 the number justified to Congress for that country in 

8 the congressional budget justification documents for 

9 that fiscal year, unless the appropriate congressional 

10 committees are notified 30 days in advance of the 

11 introduction of the additional members of the United 

12 States Armed Forces. 

13 (d) COSTS.—The entire costs (excluding salaries of 

14 members of the United States Armed Forces (other than 

15 the Coast Guard)) of overseas management of inter16 national security assistance programs under this section 

17 shall be charged to or reimbursed from funds made avail18 able to carry out this chapter, other than any such costs 

19 which are either paid directly for such defense services 

20 under section 4311 or reimbursed from charges for serv21 ices collected from foreign governments pursuant to sec22 tion 4311 and section 4402. 

23 (e) SUPERVISION OF CHIEF OF DIPLOMATIC MIS24 SION.—Members of the United States Armed Forces as25 signed to a foreign country under this section shall serve 


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1 under the direction and supervision of the Chief of the 

2 United States Diplomatic Mission to that country. 

3 (f) GUIDANCE REGARDING PURCHASES.—The Presi4 dent shall continue to instruct United States diplomatic 

5 and military personnel in United States missions that such 

6 personnel should not encourage, promote, or influence the 

7 purchase by any foreign country of United States-made 

8 military equipment, unless such personnel are specifically 

9 instructed to do so by an appropriate official of the execu10 tive branch. 

11 SEC. 4409. DESIGNATION OF MAJOR UNITED STATES AL12 LIES. 

13 (a) NOTICE TO CONGRESS.—The President shall no14 tify Congress in writing at least 30 days before— 

15 (1) designating a country as a major United 

16 States ally for purposes of this Act; or 

17 (2) terminating such a designation. 

18 (b) INITIAL DESIGNATIONS.—Egypt, Argentina, 

19 Pakistan, Bahrain, the Philippines, Jordan, Thailand, Ku20 wait, and Morocco shall be deemed to have been so des21 ignated by the President as of the date of the enactment 

22 of this Act, and the President is not required to notify 

23 Congress of such designation of those countries. 


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1 SEC. 4410. DEPLETED URANIUM AMMUNITION. 

2 (a) PROHIBITION.—Except as provided in subsection 

3 (b), none of the funds made available to carry out this 

4 Act or any other Act may be made available to facilitate 

5 in any way the sale of M833 or M900 antitank shells or 

6 any comparable antitank shells containing a depleted ura7 nium penetrating component to any country other than 

8 a country that is a strategic United States ally. 

9 (b) EXCEPTION.—The prohibition in subsection (a) 

10 shall not apply with respect to the use of funds to facilitate 

11 the sale of antitank shells to a country if the President 

12 determines that to do so is in the national security interest 

13 of the United States. 

14 SEC. 4411. DEFINITIONS. 

15 In this title: 

16 (1) APPROPRIATE CONGRESSIONAL COMMIT17 TEES.—The term ‘‘appropriate congressional com18 mittees’’ means— 

19 (A) the Committee on Foreign Affairs and 

20 the Committee on Appropriations of the House 

21 of Representatives; and 

22 (B) the Committee on Foreign Relations 

23 and the Committee on Appropriations of the 

24 Senate. 

25 (2) CASH FLOW FINANCING.—The term ‘‘cash 

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1 ference between the total estimated price of a Letter 

2 of Offer and Acceptance or other purchase agree3 ment that has been approved for financing under 

4 this title and the amount of the financing that has 

5 been approved therefor. 

6 (3) CATEGORY I SPACE LAUNCH VEHICLE SYS7 TEM.—The term ‘‘Category I space launch vehicle 

8 system’’ means a category I system as defined in the 

9 MTCR Annex for the launching of payloads into 

10 outer space, as well as the specially designed produc11 tion facilities for these systems. 

12 (4) DEFENSE ARTICLE.— 

13 (A) IN GENERAL.—The term ‘‘defense arti14 cle’’— 

15 (i) includes— 

16 (I) any weapon, weapons system, 

17 munition, aircraft, vessel, boat, or 

18 other implement of war and related 

19 technical data; 

20 (II) any property, installation, 

21 commodity, material, equipment, sup22 ply, or goods used for the purposes of 

23 making military sales; 

24 (III) any machinery, facility, tool, 

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1 essary for the manufacture, produc2 tion, processing, repair, servicing, 

3 storage, construction, transportation, 

4 operation, or use of any article listed 

5 in this paragraph; and 

6 (IV) any significant component 

7 or part of any article listed in this 

8 paragraph that has been specifically 

9 designed or significantly modified for 

10 a military application; but 

11 (ii) does not include— 

12 (I) merchant vessels; or 

13 (II) source material (except ura14 nium depleted in the isotope 235 

15 which is incorporated in defense arti16 cles solely to take advantage of high 

17 density or pyrophoric characteristics 

18 unrelated to radioactivity), byproduct 

19 material, special nuclear material, 

20 production facilities, utilization facili21 ties, or atomic weapons or articles in22 volving Restricted Data, as defined by 

23 the Atomic Energy Act of 1954. 

24 (B) ADDITIONAL TERMS.—In subpara25 graph (A)(i)(IV)— 


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1 (i) the term ‘‘significant component or 

2 part’’ means a component or part that is 

3 essential to a military function; and 

4 (ii) the term ‘‘significantly modified’’ 

5 means a modification that constitutes an 

6 alteration of 25 percent or greater of the 

7 component or part from a non-military 

8 version. 

9 (5) DEFENSE SERVICE.— 

10 (A) IN GENERAL.—The term ‘‘defense 

11 service’’— 

12 (i) includes any service, test, inspec13 tion, repair, training, publication, technical 

14 or other assistance, or defense information 

15 used for the purposes of making military 

16 sales; but 

17 (ii) does not include design and con18 struction services under section 4311. 

19 (B) ADDITIONAL TERM.—In subparagraph 

20 (A)(i), the term ‘‘defense information’’ includes 

21 any document, writing, sketch, photograph, 

22 plan, model, specification, design, prototype, or 

23 other recorded or oral information relating to 

24 any defense article or defense service, but does 

25 not include Restricted Data as defined by the 


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1 Atomic Energy Act of 1954 and data removed 

2 from the Restricted Data category under sec3 tion 142d of that Act. 

4 (6) DESIGN AND CONSTRUCTION SERVICES.— 

5 The term ‘‘design and construction services’’ means, 

6 with respect to sales under section 4251, the design 

7 and construction of real property facilities, including 

8 necessary construction equipment and materials, en9 gineering services, construction contract manage10 ment services relating thereto, and technical advi11 sory assistance in the operation and maintenance of 

12 real property facilities provided or performed by the 

13 Department of Defense or by a contractor pursuant 

14 to a contract with such department or agency. 

15 (7) END ITEM.—The term ‘‘end item’’ means 

16 an assembled article that is ready for its intended 

17 use and for which only ammunition, fuel, or another 

18 energy source is required to place the item in its op19 erating state. 

20 (8) EXCESS DEFENSE ARTICLE.—The term 

21 ‘‘excess defense article’’ means defense articles 

22 (other than construction equipment, including trac23 tors, scrapers, loaders, graders, bulldozers, dump 

24 trucks, generators, and compressors) owned by the 

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1 ticipation of security assistance or sales require2 ments, or pursuant to a security assistance or sales 

3 order, which is in excess of the Approved Force Ac4 quisition Objective and Approved Force Retention 

5 Stock of all Department of Defense Components at 

6 the time such articles are dropped from inventory by 

7 the supplying agency for delivery to countries or 

8 international organizations under this Act. 

9 (9) INCENTIVE PAYMENTS.—The term ‘‘incen10 tive payments’’ means direct monetary compensation 

11 made by a United States supplier of defense articles 

12 or defense services or by any employee, agent, or 

13 subcontractor thereof to any other United States 

14 person to induce or persuade that United States per15 son to purchase or acquire goods or services pro16 duced, manufactured, grown, or extracted, in whole 

17 or in part, in the foreign country which is pur18 chasing those defense articles or defense services 

19 from the United States supplier. 

20 (10) MAJOR DEFENSE EQUIPMENT.—The term 

21 ‘‘major defense equipment’’ means any item of sig22 nificant military equipment on the United States 

23 Munitions List having a nonrecurring research and 

24 development cost of more than $50,000,000 or a 

25 total production cost of more than $200,000,000. 


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1 (11) MAJOR UNITED STATES ALLY.—The term 

2 ‘‘major United States ally’’ means a country that is 

3 designated in accordance with section 4409 as a 

4 major United States ally for purposes of this Act. 

5 (12) NATO/SHAPE PROJECT.—The term 

6 ‘‘NATO/SHAPE project’’ means a common-funded 

7 project supported by allocated credits from North 

8 Atlantic Treaty Organization bodies or by host na9 tions with NATO Infrastructure funds. 

10 (13) NUCLEAR EXPLOSIVE DEVICE.—The term 

11 ‘‘nuclear explosive device’’ has the meaning given 

12 that term in section 830(4) of the Nuclear Prolifera13 tion Prevention Act of 1994. 

14 (14) OFFSET AGREEMENT.—The term ‘‘offset 

15 agreement’’ means an agreement, arrangement, or 

16 understanding between a United States supplier of 

17 defense articles or defense services and a foreign 

18 country under which the supplier agrees to purchase 

19 or acquire, or to promote the purchase or acquisition 

20 by other United States persons of, goods or services 

21 produced, manufactured, grown, or extracted, in 

22 whole or in part, in that foreign country in consider23 ation for the purchase by the foreign country of de24 fense articles or defense services from the supplier. 


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1 (15) SECURITY ASSISTANCE SURVEY.—The 

2 term ‘‘security assistance survey’’ means any survey 

3 or study conducted in a foreign country by United 

4 States Government personnel for the purpose of as5 sessing the needs of that country for security assist6 ance, and includes defense requirement surveys, site 

7 surveys, general surveys or studies, and engineering 

8 assessment surveys. 

9 (16) SIGNIFICANT MILITARY EQUIPMENT.—The 

10 term ‘‘significant military equipment’’ means arti11 cles— 

12 (A) for which special export controls are 

13 warranted because of the capacity of such arti14 cles for substantial military utility or capability; 

15 and 

16 (B) identified on the United States Muni17 tions List. 

18 (17) SMALL ARM OR LIGHT WEAPON.—The 

19 term ‘‘small arm or light weapon’’ means— 

20 (A) an item listed in Category I(a) of the 

21 United States Munitions List, 

22 (B) an item listed in Category III (as it 

23 applies to Category I(a)) of the United States 

24 Munitions List, or 


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1 (C) a grenade listed in Category IV(a) of 

2 the United States Munitions List, 

3 that requires a license for international export under 

4 this title. 

5 (18) STRATEGIC UNITED STATES ALLY.—The 

6 term ‘‘strategic United States ally’’ means any mem7 ber country of the North Atlantic Treaty Organiza8 tion (NATO), Australia, Israel, Japan, the Republic 

9 of Korea, or New Zealand. 

10 (19) TRAINING.—The term ‘‘training’’ includes 

11 formal or informal instruction of foreign students in 

12 the United States or overseas by officers or employ13 ees of the United States, contract technicians, or 

14 contractors (including instruction at civilian institu15 tions), or by correspondence courses, technical, edu16 cational, or information publications and media of 

17 all kinds, training aid, orientation, training exercise, 

18 and military advice to foreign military units and 

19 forces. 

20 (20) UNITED STATES.—The term ‘‘United 

21 States’’, when used geographically, means the sev22 eral States, the District of Columbia, the Common23 wealth of Puerto Rico, the Commonwealth of the 

24 Northern Mariana Islands, and any territory or pos25 session of the United States. 


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1 (21) VALUE.—The term ‘‘value’’ means, in the 

2 case of an excess defense article, except as otherwise 

3 provided in section 4311(a), not less than the great4 er of— 

5 (A) the gross cost incurred by the United 

6 States Government in repairing, rehabilitating, 

7 or modifying such article, plus the scrap value; 

8 or 

9 (B) the market value, if ascertainable. 

10 (22) WEAPON SYSTEM PARTNERSHIP AGREE11 MENT.—The term ‘‘weapon system partnership 

12 agreement’’ means an agreement between two or 

13 more member countries of the Maintenance and 

14 Supply Agency of the North Atlantic Treaty Organi15 zation that— 

16 (A) is entered into pursuant to the terms 

17 of the Charter of the North Atlantic Treaty Or18 ganization; and 

19 (B) is for the common logistic support of 

20 a specific weapon system common to the par21 ticipating countries. 

22 (23) WEAPONS OF MASS DESTRUCTION.—The 

23 term ‘‘weapons of mass destruction’’ has the mean24 ing given such term in section 1403(1) of the De25 fense Against Weapons of Mass Destruction Act of 


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1 1996 (title XIV of Public Law 104–201; 110 Stat. 

2 2717; 50 U.S.C. 2302(1)). 

3 TITLE V—COUNTERING 

4 TRANSNATIONAL THREATS 

5 Subtitle A—Nonproliferation 

6 Authorities 

7 CHAPTER 1—NUCLEAR 

8 NONPROLIFERATION 

9 SEC. 5111. AUTHORIZATION OF ASSISTANCE TO PROHIBIT 

10 THE PROLIFERATION OF NUCLEAR, CHEM11 ICAL, AND BIOLOGICAL WEAPONS. 

12 (a) AUTHORIZATION OF ASSISTANCE.—The Presi13 dent is authorized to provide, on such terms and condi14 tions as the President may determine, foreign assistance 

15 to any country or organization in order to carry out the 

16 purposes described in subsection (b). 

17 (b) PURPOSES.—The purposes of assistance under 

18 this section are to prohibit the proliferation of nuclear, 

19 chemical, and biological weapons and the means to deliver 

20 such weapons, through support of activities designed— 

21 (1) to enhance the nonproliferation capabilities 

22 of a country or organization by providing training 

23 and equipment to detect, deter, monitor, interdict, 

24 and counter proliferation; 


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1 (2) to strengthen the bilateral ties of the United 

2 States with a country or organization by offering as3 sistance in this area of vital national security inter4 est; 

5 (3) to accomplish the activities and objectives 

6 set forth in sections 503 and 504 of the FREEDOM 

7 Support Act (22 U.S.C. 5853 and 5854), without re8 gard to the limitation of those sections to the inde9 pendent states of the former Soviet Union; and 

10 (4) to promote multilateral activities, including 

11 cooperation with international organizations, relating 

12 to nonproliferation. 

13 (c) ACTIVITIES SUPPORTED.—Assistance under this 

14 section may include training services and the provision of 

15 funds, equipment, and other commodities related to the 

16 detection, deterrence, monitoring, interdiction, and pre17 vention or countering of proliferation, the establishment 

18 of effective nonproliferation laws and regulations, and the 

19 apprehension of those individuals involved in acts of pro20 liferation of such weapons. 

21 SEC. 5112. EDUCATION AND TRAINING TO ENHANCE NON22 PROLIFERATION AND EXPORT CONTROL CA23 PABILITIES. 

24 (a) IN GENERAL.—The Secretary is authorized to 

25 provide education and training to appropriate military and 


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1 civilian personnel of foreign countries for the purpose of 

2 enhancing the nonproliferation and export control capa3 bilities of such personnel through their attendance in spe4 cial courses of instruction conducted by the United States. 

5 Such education and training may be provided on such 

6 terms and conditions as the Secretary may determine and 

7 consistent with this subtitle but whenever feasible on a re8 imbursable basis. 

9 (b) ADMINISTRATION OF COURSES.—The Secretary 

10 shall have overall responsibility for the development and 

11 conduct of international nonproliferation education and 

12 training programs under this section, and may utilize 

13 other Federal agencies, as appropriate, to recommend per14 sonnel for the education and training programs and to ad15 minister specific courses of instruction. 

16 (c) PURPOSES.—Education and training activities 

17 conducted under this section shall be— 

18 (1) of a technical nature, emphasizing tech19 niques for detecting, deterring, monitoring, inter20 dicting, and countering proliferation; 

21 (2) designed to encourage effective and mutu22 ally beneficial relations and increased understanding 

23 between the United States and other countries; and 

24 (3) designed to improve the ability of other 

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1 fectiveness, thereby contributing to greater self-reli2 ance by such countries. 

3 (d) PRIORITY TO CERTAIN COUNTRIES.—In selecting 

4 personnel for education and training programs under this 

5 section, priority should be given to personnel from coun6 tries determined by the Secretary to be countries fre7 quently transited by proliferation-related shipments of 

8 cargo. 

9 SEC. 5113. OPPOSITION OF WITHDRAWAL FROM TREATY ON 

10 THE NON-PROLIFERATION OF NUCLEAR 

11 WEAPONS. 

12 (a) STATEMENT OF POLICY.—It is the policy of the 

13 United States to oppose the withdrawal of any country 

14 that is a party to the Treaty on the Non-Proliferation of 

15 Nuclear Weapons (hereinafter in this section referred to 

16 as the ‘‘Treaty’’) and to use all political, economic, and 

17 diplomatic means at its disposal to deter, prevent, and 

18 sanction any such withdrawal from the Treaty. 

19 (b) LIMITATION ON ASSISTANCE.— 

20 (1) IN GENERAL.—Notwithstanding any other 

21 provision of law, no foreign assistance (other than 

22 humanitarian assistance) under any provision of law 

23 may be provided to a country that has withdrawn 

24 from the Treaty. 


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1 (2) WAIVER.—The President may waive the re2 quirements of paragraph (1) on a case-by-case basis 

3 if the President determines and notifies the appro4 priate congressional committees that such waiver is 

5 in the vital national security interest of the United 

6 States. 

7 (c) RETURN OF ALL UNITED STATES-ORIGIN MATE8 RIALS AND EQUIPMENT.—The United States shall seek 

9 the return of any material, equipment or components 

10 transferred under an Agreement for Civil Nuclear Co11 operation that is in force pursuant to the authority of sec12 tion 123 of the Atomic Energy Act of 1954 on or after 

13 the date of the enactment of this Act, and any special fis14 sionable material produced through the use of such mate15 rial, equipment or components, previously provided to a 

16 country that withdraws from the Treaty. 

17 SEC. 5114. MATTERS RELATING TO INTERNATIONAL ATOM18 IC ENERGY AGENCY. 

19 (a) PAYMENT OF UNITED STATES DUES.—Not later 

20 than January 31, 2014, and January 31 of each suc21 ceeding year, the United States shall pay its full assessed 

22 contribution to the regular operating budget of the Inter23 national Atomic Energy Agency (IAEA). 

24 (b) ADDITIONAL PROTOCOL AS A CRITERION FOR

25 UNITED STATES ASSISTANCE.— 


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1 (1) STATEMENT OF POLICY.—It is the policy of 

2 the United States to ensure that each country that 

3 is a party to the Treaty on the Non-Proliferation of 

4 Nuclear Weapons should bring into force an Addi5 tional Protocol to its safeguards agreement with the 

6 IAEA. 

7 (2) CRITERION FOR ASSISTANCE.—The United 

8 States shall, when considering the provision of as9 sistance under this Act, take into consideration 

10 whether the proposed recipient has in force an Addi11 tional Protocol to its safeguards agreement with the 

12 IAEA. 

13 SEC. 5115. ARMS CONTROL AND NONPROLIFERATION 

14 SCHOLARSHIP PROGRAM. 

15 (a) ESTABLISHMENT.— 

16 (1) IN GENERAL.—The Secretary shall establish 

17 a scholarship program (to be known as the ‘‘Arms 

18 Control and Nonproliferation Scholarship Program’’) 

19 to award scholarships for the purpose of recruiting 

20 and preparing students for civilian careers in the 

21 fields of nonproliferation, arms control, and inter22 national security to meet the critical needs of the 

23 Department of State. 

24 (2) SELECTION OF RECIPIENTS.— 


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1 (A) MERIT AND DEPARTMENT NEEDS.— 

2 Individuals shall be selected to receive scholar3 ships under this section through a competitive 

4 process primarily on the basis of academic 

5 merit and the arms control and nonproliferation 

6 needs of the Department of State. 

7 (B) DEMONSTRATED COMMITMENT.—Indi8 viduals selected under this section shall have a 

9 demonstrated interest in public service and a 

10 commitment to the field of study for which the 

11 scholarship is awarded. 

12 (3) CONTRACTUAL AGREEMENTS.—In order to 

13 carry out the scholarship program, the Secretary 

14 shall enter into contractual agreements with individ15 uals selected under paragraph (2) pursuant to which 

16 such individuals agree to serve as full-time employ17 ees of the Department of State following achieve18 ment of the specified degree, for a period to be de19 termined by the Secretary, not to exceed 6 years, in 

20 arms control and nonproliferation positions needed 

21 by the Department of State and for which the indi22 viduals are qualified, in exchange for receiving a 

23 scholarship. 


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1 (b) ELIGIBILITY.—Except as provided in subsection 

2 (f), in order to be eligible to participate in the scholarship 

3 program, an individual shall— 

4 (1) be enrolled or accepted for enrollment as a 

5 full-time student at an institution of higher edu6 cation and be pursuing or intend to pursue an un7 dergraduate or graduate education degree in an aca8 demic field or discipline specified in the list made 

9 available under subsection (d); and 

10 (2) be a United States citizen. 

11 (c) APPLICATION.—An individual seeking a scholar12 ship under this section shall submit to the Secretary an 

13 application at such time, in such manner, and containing 

14 such information, agreements, or assurances as the Sec15 retary may require. 

16 (d) PROGRAMS AND FIELDS OF STUDY.—The Sec17 retary shall make publicly available a list of academic pro18 grams and fields of study for which scholarships under 

19 this section may be awarded. 

20 (e) SCHOLARSHIPS.— 

21 (1) IN GENERAL.—The Secretary may award a 

22 scholarship under this section for an academic year 

23 if the individual applying for the scholarship has 

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1 demic program leading to a degree in a program or 

2 field of study specified on the list made available 

3 under subsection (d). 

4 (2) LIMITATION ON YEARS.—An individual may 

5 not receive a scholarship under this section for more 

6 than 4 academic years, unless the Secretary grants 

7 a waiver. 

8 (3) STUDENT RESPONSIBILITIES.—A scholar9 ship recipient shall maintain satisfactory academic 

10 progress for purposes of continued participation in 

11 the scholarship program. 

12 (4) AMOUNT.—The dollar amount of a scholar13 ship awarded under this section for an academic 

14 year shall be determined under regulations issued by 

15 the Secretary, but shall in no case exceed the cost 

16 of tuition, fees, and other authorized expenses as de17 termined by the Secretary. 

18 (5) USE OF SCHOLARSHIPS.—A scholarship 

19 awarded under this section may be expended for tui20 tion, fees, and other authorized expenses as estab21 lished by the Secretary by regulation. 

22 (6) PAYMENT TO INSTITUTION OF HIGHER

23 EDUCATION.—The Secretary may enter into a con24 tractual agreement with an institution of higher edu25 cation under which the amounts provided for a 


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1 scholarship under this section for tuition, fees, and 

2 other authorized expenses are paid directly to the in3 stitution with respect to which such scholarship is 

4 awarded. 

5 (f) SPECIAL CONSIDERATION FOR CURRENT EM6 PLOYEES.—Notwithstanding subsection (b), up to 5 per7 cent of the scholarships awarded under this section may 

8 be set aside for individuals who are Federal employees on 

9 the date of the enactment of this Act to enhance the edu10 cation of such employees in areas of critical arms control 

11 or nonproliferation needs of the Department of State, for 

12 undergraduate or graduate education through enrollment 

13 in a graduate degree program under the scholarship on 

14 a full-time or part-time basis. 

15 (g) REPAYMENT.— 

16 (1) IN GENERAL.—A scholarship recipient who 

17 fails to maintain a high level of academic standing, 

18 as defined by the Secretary who is dismissed for dis19 ciplinary reasons from the educational institution 

20 such recipient is attending, or who voluntarily termi21 nates academic training before graduation from the 

22 educational program for which the scholarship was 

23 awarded shall be in breach of the contractual agree24 ment under subsection (a)(3) and, in lieu of any 

25 service obligation arising under such agreement, 


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1 shall be liable to the United States for repayment 

2 within 1 year after the date of such default of all 

3 scholarship funds paid to such recipient and to the 

4 institution of higher education on the behalf of such 

5 recipient under such agreement. The repayment pe6 riod may be extended by the Secretary if the Sec7 retary determines such extension to be necessary, as 

8 established by regulation. 

9 (2) LIABILITY.—A scholarship recipient who, 

10 for any reason, fails to begin or complete the service 

11 obligation under the contractual agreement under 

12 subsection (a)(3) after completion of academic train13 ing, or fails to comply with the terms and conditions 

14 of deferment established by the Secretary under 

15 paragraph (1), shall be in breach of such contractual 

16 agreement and shall be liable to the United States 

17 for an amount equal to— 

18 (A) the total amount of the scholarship re19 ceived by such recipient under this section; and 

20 (B) the total amount of interest that would 

21 have been payable under a direct unsubsidized 

22 loan issued through the Department of Edu23 cation’s Direct Loan Program. 

24 (h) REGULATIONS.—The Secretary shall prescribe 

25 regulations necessary to carry out this section. 


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1 (i) CONVERSION.—The Secretary is authorized to 

2 convert the status of a scholarship recipient to a member 

3 of the Foreign Service, as defined in section 103 of the 

4 Foreign Service Act of 1980, following the successful com5 pletion of the period of service described in subsection 

6 (a)(3). 

7 SEC. 5116. ARMS CONTROL AND NONPROLIFERATION RO8 TATION PROGRAM. 

9 (a) ESTABLISHMENT.—The Secretary, in consulta10 tion with the heads of other relevant Federal agencies, 

11 shall establish the Arms Control and Nonproliferation Ro12 tation Program (in this section referred to as the ‘‘Rota13 tion Program’’) for personnel of such agencies. The Rota14 tion Program shall use applicable best practices, including 

15 those prescribed by the Chief Human Capital Officers 

16 Council. Personnel of a relevant Federal agency partici17 pating in the Rotation Program may be detailed to any 

18 other relevant Federal agency on a nonreimbursable basis. 

19 (b) GOALS.—The Rotation Program shall— 

20 (1) be established in accordance with the 

21 human capital strategic plan of the Department of 

22 State; 

23 (2) provide midlevel personnel of relevant Fed24 eral agencies the opportunity to broaden their 

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1 eral agencies, including to other bureaus and offices 

2 of the Department of State; 

3 (3) expand the knowledge base of the Depart4 ment of State and other relevant Federal agencies; 

5 (4) build professional relationships and contacts 

6 among employees of relevant Federal agencies; 

7 (5) invigorate the Department of State’s arms 

8 control and nonproliferation workforce with profes9 sionally rewarding opportunities; and 

10 (6) incorporate human capital strategic plans 

11 and activities of the Department of State, and ad12 dress critical human capital deficiencies, professional 

13 development, recruitment and retention efforts, and 

14 succession planning within the Department of State. 

15 (c) RESPONSIBILITIES.—The Secretary shall— 

16 (1) provide oversight of the establishment and 

17 implementation of the Rotation Program; 

18 (2) establish a framework that supports the 

19 goals of the Rotation Program and promotes cross 

20 disciplinary rotational opportunities; 

21 (3) establish eligibility for personnel of other 

22 relevant agencies to participate in the Rotation Pro23 gram and select participants from among the appli24 cants; 


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1 (4) establish incentives for personnel to partici2 pate in the Rotation Program, including through 

3 promotions and employment preferences; 

4 (5) ensure that the Rotation Program provides 

5 professional education and training; 

6 (6) ensure that the Rotation Program develops 

7 qualified employees and future leaders with broad 

8 based experience throughout the Department of 

9 State; and 

10 (7) provide for greater interaction among em11 ployees of relevant Federal agencies. 

12 (d) ALLOWANCES, PRIVILEGES, AND BENEFITS.—All 

13 allowances, privileges, rights, seniority, and other benefits 

14 of personnel participating in the Rotation Program shall 

15 be preserved. 

16 (e) REPORTING.—Not later than 1 year after the 

17 date of the establishment of the Rotation Program, the 

18 Secretary shall submit to the appropriate congressional 

19 committees and the Committee on Armed Services of the 

20 House of Representatives and the Committee on Armed 

21 Services of the Senate a report on the status of the Rota22 tion Program, including a description of the Rotation Pro23 gram, the number of individuals participating, and how 

24 the Rotation Program is used in succession planning and 

25 leadership development. 


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1 (f) DEFINITION.—For the purposes of this section, 

2 the term ‘‘relevant Federal agency’’ means the Depart3 ment of State and any other Federal agency that is in4 volved in United States arms control and nonproliferation 

5 activities. 

6 CHAPTER 2—MISSILE 

7 NONPROLIFERATION 

8 SEC. 5121. LICENSING. 

9 (a) ESTABLISHMENT OF LIST OF CONTROLLED

10 ITEMS.—The Secretary, in consultation with the Secretary 

11 of Defense and the heads of other appropriate Federal 

12 agencies, shall establish and maintain, as part of the 

13 United States Munitions List, a list of all items on the 

14 Missile Technology Control Regime (MTCR) Annex the 

15 export of which is not controlled under section 6(l) of the 

16 Export Administration Act of 1979 (as continued in effect 

17 under the International Emergency Economic Powers 

18 Act). 

19 (b) REFERRAL OF LICENSE APPLICATIONS.— 

20 (1) IN GENERAL.—A determination of the Sec21 retary to approve a license for the export of an item 

22 on the list established under subsection (a) may be 

23 made only after the license application is referred to 

24 the Secretary of Defense. 


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1 (2) COORDINATION.—Not later than 10 days 

2 after a license is issued for the export of an item on 

3 the list established under subsection (a), the Sec4 retary shall provide to the Secretary of Defense and 

5 the Secretary of Commerce the license application 

6 and accompanying documents issued to the appli7 cant, to the extent that the relevant Secretary indi8 cates the need to receive such application and docu9 ments. 

10 (c) INFORMATION SHARING.—The Secretary shall es11 tablish a procedure for sharing information with appro12 priate officials of the intelligence community, as deter13 mined by the Director of National Intelligence, and with 

14 other appropriate Federal departments and agencies, that 

15 will ensure effective monitoring of transfers of MTCR 

16 equipment or technology and other missile technology. 

17 (d) EXPORTS TO SPACE LAUNCH VEHICLE PRO18 GRAMS.—Not later than 15 days after the issuance of a 

19 license (including any brokering license) for the export of 

20 items valued at less than $50,000,000 that are controlled 

21 under this Act pursuant to United States obligations 

22 under the MTCR and are goods or services that are in23 tended to support the design, utilization, development, or 

24 production of a space launch vehicle system listed in Cat25 egory I of the MTCR Annex, the Secretary shall transmit 


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1 to the Congress a report describing the licensed export and 

2 rationale for approving such export, including the consist3 ency of such export with United States missile non4 proliferation policy. The requirement contained in the pre5 ceding sentence shall not apply to licenses for exports to 

6 countries that were members of the MTCR as of April 

7 17, 1987. 

8 SEC. 5122. DENIAL OF THE TRANSFER OF MISSILE EQUIP9 MENT OR TECHNOLOGY BY UNITED STATES 

10 PERSONS. 

11 (a) SANCTIONS.— 

12 (1) IN GENERAL.—If the President determines 

13 that a United States person knowingly— 

14 (A) exports, transfers, or otherwise en15 gages in the trade of any item on the MTCR 

16 Annex, in violation of the provisions of section 

17 4311 of this Act, section 5 or 6 of the Export 

18 Administration Act of 1979 (as continued in ef19 fect under the International Emergency Eco20 nomic Powers Act), or any regulations or orders 

21 issued under any such provisions of law, 

22 (B) conspires to or attempts to engage in 

23 such export, transfer, or trade, or 

24 (C) facilitates such export, transfer, or 

25 trade by any other person, 


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1 then the President shall impose the applicable sanc2 tions described in paragraph (2). 

3 (2) APPLICABLE SANCTIONS.—The sanctions 

4 which apply to a United States person under para5 graph (1) are the following: 

6 (A) If the item on the MTCR Annex in7 volved in the export, transfer, or trade is missile 

8 equipment or technology within category II of 

9 the MTCR Annex, then the President shall 

10 deny to such United States person for a period 

11 of 2 years— 

12 (i) United States Government con13 tracts relating to missile equipment or 

14 technology; and 

15 (ii) licenses for the transfer of missile 

16 equipment or technology controlled under 

17 this Act. 

18 (B) If the item on the MTCR Annex in19 volved in the export, transfer, or trade is missile 

20 equipment or technology within category I of 

21 the MTCR Annex, then the President shall 

22 deny to such United States person for a period 

23 of not less than 2 years— 

24 (i) all United States Government con25 tracts, and 


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1 (ii) all export licenses and agreements 

2 for items on the United States Munitions 

3 List. 

4 (b) DISCRETIONARY SANCTIONS.—In the case of any 

5 determination made pursuant to subsection (a), the Presi6 dent may pursue any penalty provided in section 4372. 

7 (c) PRESUMPTION.—In determining whether to apply 

8 sanctions under subsection (a) to a United States person 

9 involved in the export, transfer, or trade of an item on 

10 the MTCR Annex, it should be a rebuttable presumption 

11 that such item is designed for use in a missile listed in 

12 the MTCR Annex if the President determines that the 

13 final destination of the item is a country the government 

14 of which the Secretary has determined, for purposes of 

15 6(j)(1)(A) of the Export Administration Act of 1979 (as 

16 continued in effect under the International Emergency 

17 Economic Powers Act), has repeatedly provided support 

18 for acts of international terrorism (as such term is defined 

19 in section 9401(h)). 

20 (d) WAIVER.—The President may waive the imposi21 tion of sanctions under subsection (a) with respect to a 

22 product or service if the President certifies to Congress 

23 that— 

24 (1) the product or service is essential to the na25 tional security of the United States; and 


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1 (2) such person is a sole source supplier of the 

2 product or service, the product or service is not 

3 available from any alternative reliable supplier, and 

4 the need for the product or service cannot be met in 

5 a timely manner by improved manufacturing proc6 esses or technological developments. 

7 SEC. 5123. TRANSFERS OF MISSILE EQUIPMENT OR TECH8 NOLOGY BY FOREIGN PERSONS. 

9 Notwithstanding section 11201(2), section 73 of the 

10 Arms Export Control Act shall not be repealed and shall 

11 remain in effect as on the day before the date of the enact12 ment of this Act. 

13 SEC. 5124. NOTIFICATION OF ADMITTANCE OF MTCR AD14 HERENTS. 

15 (a) POLICY REPORT.—Following any action by the 

16 United States that results in a country becoming a MTCR 

17 adherent, the President shall transmit promptly to the 

18 Congress a report which describes the rationale for such 

19 action, together with an assessment of that country’s non20 proliferation policies, practices, and commitments. Such 

21 report shall also include the text of any agreements or un22 derstandings between the United States and such country 

23 regarding the terms and conditions of the country’s adher24 ence to the MTCR. 


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1 (b) INTELLIGENCE ASSESSMENT REPORT.—At such 

2 times that a report is transmitted pursuant to subsection 

3 (a), the Director of National Intelligence shall promptly 

4 prepare and submit to Congress a separate report con5 taining any credible information indicating that the coun6 try described in subsection (a) has engaged in any activity 

7 identified under subparagraph (A), (B), or (C) of section 

8 5123(a)(1) within the previous two years. 

9 SEC. 5125. AUTHORITY RELATING TO MTCR ADHERENTS. 

10 Notwithstanding section 5123(b), the President may 

11 take the actions under section 5123(a)(2) under the cir12 cumstances described in section 5126(b)(2). 

13 SEC. 5126. DEFINITIONS. 

14 (a) IN GENERAL.—In this chapter— 

15 (1) the term ‘‘missile’’ means a category I sys16 tem as defined in the MTCR Annex, and any other 

17 unmanned delivery system of similar capability, as 

18 well as the specially designed production facilities for 

19 these systems; 

20 (2) the term ‘‘Missile Technology Control Re21 gime’’ or ‘‘MTCR’’ means the policy statement, be22 tween the United States, the United Kingdom, the 

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1 strict sensitive missile-relevant transfers based on 

2 the MTCR Annex, and any amendments thereto; 

3 (3) the term ‘‘MTCR adherent’’ means a coun4 try that participates in the MTCR or that, pursuant 

5 to an international understanding to which the 

6 United States is a party, controls MTCR equipment 

7 or technology in accordance with the criteria and 

8 standards set forth in the MTCR; 

9 (4) the term ‘‘MTCR Annex’’ means the Guide10 lines and Equipment and Technology Annex of the 

11 MTCR, and any amendments thereto; 

12 (5) the terms ‘‘missile equipment or tech13 nology’’ and ‘‘MTCR equipment or technology’’ 

14 mean those items listed in category I or category II 

15 of the MTCR Annex; 

16 (6) the term ‘‘United States person’’ has the 

17 meaning given that term in section 16(2) of the Ex18 port Administration Act of 1979 (as continued in ef19 fect under the International Emergency Economic 

20 Powers Act); 

21 (7) the term ‘‘foreign person’’ means any per22 son other than a United States person; 

23 (8) the term ‘‘person’’— 

24 (A) means a natural person as well as a 

25 corporation, business association, partnership, 


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1 society, trust, any other nongovernmental enti2 ty, organization, or group, and any govern3 mental entity operating as a business enter4 prise, and any successor of any such entity; and 

5 (B) in the case of a country with a non6 market economy (excluding former members of 

7 the Warsaw Pact), includes— 

8 (i) all activities of that government re9 lating to the development or production of 

10 any missile equipment or technology; and 

11 (ii) all activities of that government 

12 affecting the development or production of 

13 electronics, space systems or equipment, 

14 and military aircraft; and 

15 (9) the term ‘‘otherwise engaged in the trade 

16 of’’ means, with respect to a particular export or 

17 transfer, to be a freight forwarder or designated ex18 porting agent, or a consignee or end user of the item 

19 to be exported or transferred. 

20 (b) INTERNATIONAL UNDERSTANDING DEFINED.— 

21 For purposes of subsection (a)(3), as it relates to any 

22 international understanding concluded with the United 

23 States after January 1, 2000, the term ‘‘international un24 derstanding’’ means— 


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1 (1) any specific agreement by a country not to 

2 export, transfer, or otherwise engage in the trade of 

3 any MTCR equipment or technology that contributes 

4 to the acquisition, design, development, or produc5 tion of missiles in a country that is not an MTCR 

6 adherent and would be, if it were United States-ori7 gin equipment or technology, subject to the jurisdic8 tion of the United States under this Act; or 

9 (2) any specific understanding by a country 

10 that, notwithstanding section 5123(b), the United 

11 States retains the right to take the actions under 

12 section 5123(a)(2) in the case of any export or 

13 transfer of any MTCR equipment or technology that 

14 contributes to the acquisition, design, development, 

15 or production of missiles in a country that is not an 

16 MTCR adherent and would be, if it were United 

17 States-origin equipment or technology, subject to the 

18 jurisdiction of the United States under this Act. 

19 CHAPTER 3—CHEMICAL AND BIOLOGICAL 

20 NONPROLIFERATION 

21 SEC. 5131. SANCTIONS AGAINST CERTAIN FOREIGN PER22 SONS. 

23 Notwithstanding section 11201(2), section 81 of the 

24 Arms Export Control Act shall not be repealed and shall 


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1 remain in effect as on the day before the date of the enact2 ment of this Act. 

3 Subtitle B—Counter-Narcotics 

4 Authorities 

5 SEC. 5201. FINDINGS. 

6 Congress finds the following: 

7 (1) International narcotics trafficking poses a 

8 major transnational threat in today’s world, and its 

9 suppression is among the most important foreign 

10 policy objectives of the United States. 

11 (2) International criminal activities, particularly 

12 international narcotics trafficking, money laun13 dering, and corruption, endanger political and eco14 nomic stability and democratic development, and as15 sistance for the prevention and suppression of inter16 national criminal activities should be a priority for 

17 the United States. 

18 (3) Effective international cooperation is nec19 essary to control the illicit cultivation, production, 

20 and smuggling of, trafficking in, and abuse of nar21 cotic and psychotropic drugs and other controlled 

22 substances. 

23 (4) In order for countries to effectively combat 

24 narcotics trafficking and other transnational crimes, 

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1 clude an honest police force, independent courts, and 

2 effective prisons. 

3 (5) Given the magnitude of United States 

4 counter-narcotics efforts, as well as its impact and 

5 significance on other dimensions of United States bi6 lateral relations, it is essential that a process be put 

7 into place that allows the periodic, comprehensive 

8 evaluation of these efforts and their foreign policy 

9 implications. 

10 SEC. 5202. STATEMENT OF POLICY. 

11 It shall be the policy of the United States to— 

12 (1) support international narcotics control pro13 grams that have, as priority goals, the suppression 

14 of the illicit manufacture of and trafficking in nar15 cotic and psychotropic drugs and other controlled 

16 substances, money laundering, and the diversion of 

17 precursor chemicals, and the progressive elimination 

18 of the illicit cultivation of the crops from which nar19 cotic and psychotropic drugs and other controlled 

20 substances are derived; 

21 (2) encourage the international community to 

22 provide assistance, where appropriate, to those pro23 ducer and transit countries that require assistance 

24 in discharging these primary obligations; 


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1 (3) use its voice and vote in multilateral devel2 opment banks to promote the development and im3 plementation in the major illicit drug producing 

4 countries of programs for the reduction and eventual 

5 eradication of narcotic drugs and other controlled 

6 substances, including appropriate assistance in con7 junction with effective programs of illicit crop eradi8 cation; 

9 (4) ensure that countries adopt comprehensive 

10 domestic measures against money laundering and 

11 cooperate with each other in money laundering in12 vestigations, prosecutions, and related forfeiture ac13 tions; and 

14 (5) endeavor to develop and promote global, re15 gional, sub-regional, and bilateral cooperation among 

16 judicial, law enforcement and financial regulatory 

17 authorities in order to combat money-laundering, 

18 narcotics trafficking, and other transnational crimes. 

19 SEC. 5203. GOAL AND OBJECTIVES. 

20 (a) GOAL.—The goal of foreign assistance under this 

21 subtitle is to help relevant countries build the capacity re22 quired to combat and reduce narcotics trafficking, money 

23 laundering, and other transnational crimes. 

24 (b) OBJECTIVES.—In furtherance of the goal de25 scribed in subsection (a), foreign assistance under this 


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1 subtitle shall be provided to achieve the following objec2 tives: 

3 (1) Increase the professionalization, trans4 parency, and accountability of law enforcement, judi5 cial and penal personnel in the relevant country. 

6 (2) Improve the ability of law enforcement to 

7 prevent crimes, pursue and apprehend criminals, and 

8 increase security within their country. 

9 (3) Strengthen the capacity of the judicial sys10 tem to hear and prosecute cases. 

11 SEC. 5204. GENERAL AUTHORITIES. 

12 (a) AUTHORITIES OF THE PRESIDENT.—The Presi13 dent is authorized to conclude agreements, including recip14 rocal maritime agreements, with United States State and 

15 local governments and with other countries to facilitate 

16 control of the production, processing, transportation, and 

17 distribution of narcotic and psychotropic drugs and other 

18 controlled substances. 

19 (b) AUTHORITIES OF THE SECRETARY.—Notwith20 standing any other provision of law restricting assistance 

21 to foreign countries except sections 8101, 8102, and 8401, 

22 the Secretary is authorized to provide foreign assistance 

23 to any country or international organization, on such 

24 terms and conditions as the Secretary may determine, for 


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1 the control of narcotic and psychotropic drugs and other 

2 controlled substances, or for related anticrime purposes. 

3 (c) COORDINATION OF ALL UNITED STATES

4 ANTINARCOTICS ASSISTANCE TO FOREIGN COUNTRIES.— 

5 (1) RESPONSIBILITY OF SECRETARY OF

6 STATE.—The Secretary shall be responsible for co7 ordinating and approving all foreign assistance pro8 vided by the United States Government to support 

9 international efforts to combat crime and illicit nar10 cotics production or trafficking. 

11 (2) RULE OF CONSTRUCTION.—Nothing in 

12 paragraph (1) shall be construed to limit or impair 

13 the authority or responsibility of any other Federal 

14 agency with respect to law enforcement, domestic se15 curity operations, or intelligence activities as defined 

16 in Executive Order No. 12333. 

17 (d) USE OF HERBICIDES FOR AERIAL ERADI18 CATION.— 

19 (1) MONITORING.—The Secretary, with the as20 sistance of the heads of other appropriate Federal 

21 agencies, shall monitor any use under this subtitle of 

22 a herbicide for aerial eradication in order to deter23 mine the impact of such use on the environment and 

24 on the health of individuals. 


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1 (2) REPORT UPON DETERMINATION OF HARM

2 TO ENVIRONMENT OR HEALTH.—If the Secretary 

3 determines that any such use is harmful to the envi4 ronment or the health of individuals, the Secretary 

5 shall immediately report that determination to the 

6 appropriate congressional committees, together with 

7 such recommendations as the Secretary determines 

8 appropriate. 

9 SEC. 5205. AUTHORIZATION OF BUREAU OF INTER10 NATIONAL NARCOTICS AND LAW ENFORCE11 MENT. 

12 (a) ESTABLISHMENT.—There is established in the 

13 Department of State a Bureau of International Narcotics 

14 and Law Enforcement (in this section referred to as the 

15 ‘‘Bureau’’). 

16 (b) HEAD OF BUREAU.—The head of the Bureau 

17 shall be an Assistant Secretary of International Narcotics 

18 and Law Enforcement. 

19 (c) RESPONSIBILITIES.—The Bureau shall be respon20 sible for supervision (including policy oversight of re21 sources), coordinating, and overseeing programs related to 

22 international counternarcotics and law enforcement activi23 ties, including— 

24 (1) strengthening criminal justice systems; 


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1 (2) countering the flow of illegal narcotics, in2 cluding through building interdiction capabilities of 

3 partner countries and strengthening law enforcement 

4 and judicial authorities; and 

5 (3) minimizing transnational crime 

6 SEC. 5206. USE OF FUNDS. 

7 (a) TREATMENT OF FUNDS.—Funds transferred to 

8 and consolidated with funds appropriated to carry out this 

9 subtitle may be made available on such terms and condi10 tions as are applicable to funds appropriated to carry out 

11 this subtitle. Funds so transferred or consolidated shall 

12 be apportioned directly to the bureau within the Depart13 ment of State responsible for administering this subtitle. 

14 (b) CONTRIBUTIONS.— 

15 (1) IN GENERAL.—To ensure local commitment 

16 to the activities assisted under this subtitle, a coun17 try receiving assistance under this subtitle should 

18 contribute an appropriate share of the costs of any 

19 narcotics control program, project, or activity for 

20 which such assistance is to be provided. A country 

21 may contribute such costs on an in kind basis. 

22 (2) ACCEPTANCE.—The Secretary is authorized 

23 to accept contributions from foreign governments to 

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1 tion to the applicable appropriation account and may 

2 be used under the same terms and conditions as 

3 funds appropriated to carry out this subtitle. 

4 (c) ADMINISTRATIVE ASSISTANCE.— 

5 (1) IN GENERAL.—Except as provided in para6 graph (2), personnel funded pursuant to this section 

7 are authorized to provide administrative assistance 

8 to personnel assigned to the Bureau of International 

9 Narcotics and Law Enforcement. 

10 (2) LIMITATION.—Paragraph (1) shall not 

11 apply to the extent that it would result in a reduc12 tion in funds available for counter-narcotics and 

13 anticrime assistance to foreign countries. 

14 (d) ADVANCE NOTIFICATION OF TRANSFER OF

15 SEIZED ASSETS.—The Secretary shall notify the appro16 priate congressional committees at least 10 days prior to 

17 any transfer by the United States Government to a foreign 

18 country for narcotics control purposes of any property or 

19 funds seized by or otherwise forfeited to the United States 

20 Government in connection with narcotics-related activity. 

21 (e) EXCESS PROPERTY.—For purposes of this sub22 title, the Secretary may use the authority of section 

23 10506, without regard to the restrictions of such section, 

24 to receive nonlethal excess property from any United 

25 States Government department or agency for the purpose 


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1 of providing such property to a foreign government under 

2 the same terms and conditions as funds authorized to be 

3 appropriated for the purposes of this subtitle. 

4 SEC. 5207. REQUIREMENTS RELATING TO AIRCRAFT AND 

5 OTHER EQUIPMENT. 

6 (a) RETENTION OF TITLE TO AIRCRAFT.— 

7 (1) IN GENERAL.— 

8 (A) LEASE OR LOAN BASIS.—Except as 

9 provided in paragraph (2), any aircraft made 

10 available to a foreign country under this chap11 ter, or made available to a foreign country pri12 marily for narcotics-related purposes under any 

13 other provision of law, shall be provided only on 

14 a lease or loan basis. 

15 (B) EFFECTIVE DATE.—Subparagraph (A) 

16 applies to aircraft made available at any time 

17 after the enactment of this Act. 

18 (2) EXCEPTIONS.— 

19 (A) CONTRARY TO NATIONAL INTEREST.— 

20 The Secretary is authorized to transfer title of 

21 aircraft by sale or grant if he or she— 

22 (i) determines that the application of 

23 paragraph (1) with respect to particular 

24 aircraft would be contrary to the national 

25 interest of the United States; and 


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1 (ii) the Secretary notifies the appro2 priate congressional committees in accord3 ance with the procedures applicable to re4 programming notifications under section 

5 8401. 

6 (B) FORFEITURE.—Paragraph (1) shall 

7 not apply with respect to aircraft made avail8 able to a foreign country under any provision of 

9 law that authorizes property that has been civ10 illy or criminally forfeited to the United States 

11 to be made available to foreign countries. 

12 (3) ASSISTANCE FOR LEASING OF AIRCRAFT.— 

13 (A) IN GENERAL.—For purposes of satis14 fying the requirement of paragraph (1), funds 

15 made available for the Foreign Military Financ16 ing Program under title IV may be used to fi17 nance the leasing of aircraft under that title. 

18 (B) COST OF LEASE.—Section 4351(a)(3) 

19 shall not apply with respect to leases so fi20 nanced, rather the entire cost of any such lease 

21 (including any renewals) shall be an initial, one 

22 time payment of the amount which would be 

23 the sales price for the aircraft if they were sold 

24 under section 4311(a)(2) or section 4312 (as 

25 appropriate). 


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1 (b) PERMISSIBLE USES OF AIRCRAFT AND OTHER

2 EQUIPMENT.— 

3 (1) IN GENERAL.—The Secretary shall take all 

4 reasonable steps to ensure that aircraft and other 

5 equipment made available to foreign countries under 

6 this chapter are used only in ways that are con7 sistent with the purposes for which such equipment 

8 was made available. 

9 (2) EXCEPTION.—Paragraph (1) shall not 

10 apply to aircraft or other equipment if the Secretary 

11 makes a determination under section 10508(b) that 

12 there is an emergency need which requires the use 

13 of the aircraft or other equipment. 

14 (c) REPORTS.—In the reports submitted pursuant to 

15 section 5211, the Secretary shall discuss— 

16 (1) the actions taken by the United States Gov17 ernment to prevent misuse of such equipment by 

18 that foreign country; and 

19 (2) any credible information indicating misuse 

20 by a foreign country of aircraft or other equipment 

21 made available under this chapter; and(3) the ac22 tions taken by the United States Government to pre23 vent future misuse of such equipment by that for24 eign country. 

25 (d) RECORDS OF AIRCRAFT USE.— 


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1 (1) REQUIREMENT TO MAINTAIN RECORDS.— 

2 The President shall maintain detailed records on the 

3 use of any aircraft made available to a foreign coun4 try under this chapter, including aircraft made avail5 able before the enactment of this section. 

6 (2) CONGRESSIONAL ACCESS TO RECORDS.— 

7 The President shall make the records maintained 

8 pursuant to paragraph (1) available upon request to 

9 the appropriate congressional committees. 

10 SEC. 5208. RESTRICTIONS. 

11 (a) PARTICIPATION IN FOREIGN POLICE ACTIONS.— 

12 Participation in foreign police actions under this subtitle 

13 shall be subject to the requirements of section 3303(d). 

14 (b) PROCUREMENT OF WEAPONS AND AMMUNI15 TION.— 

16 (1) PROHIBITION.—Except as provided in para17 graph (2), funds made available to carry out this 

18 subtitle shall not be made available for the procure19 ment of weapons or ammunition. 

20 (2) EXCEPTIONS.—Paragraph (1) shall not 

21 apply with respect to funds for the procurement of— 

22 (A) weapons or ammunition provided only 

23 for the defensive arming of aircraft used for 

24 narcotics-related purposes; or 


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1 (B) firearms and related ammunition pro2 vided only for defensive purposes to employees 

3 or contract personnel of the Department of 

4 State engaged in activities under this subtitle, 

5 if, at least 15 days before obligating those 

6 funds, the President notifies the appropriate 

7 congressional committees in accordance with 

8 the procedures applicable to reprogramming no9 tifications under section 8401. 

10 (c) LIMITATIONS ON ACQUISITION OF REAL PROP11 ERTY AND CONSTRUCTION OF FACILITIES.— 

12 (1) ACQUISITION OF REAL PROPERTY.— 

13 (A) PROHIBITION.—Funds made available 

14 to carry out this subtitle may not be used to ac15 quire (by purchase or other means) any land or 

16 other real property for use by foreign military, 

17 paramilitary, or law enforcement forces. 

18 (B) EXCEPTION FOR CERTAIN LEASES.— 

19 Subparagraph (A) shall not apply to the acqui20 sition of real property by lease of a duration 

21 not to exceed 2 years. 

22 (C) EXCEPTION FOR INTERNATIONAL

23 TRAINING ACADEMIES.—Subparagraph (A) 

24 shall not apply to the acquisition of land of real 

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1 cial, prosecutorial, law enforcement, or regu2 latory officials. 

3 (2) CONSTRUCTION OF FACILITIES.— 

4 (A) LIMITATION.—Funds made available 

5 to carry out this subtitle may not be used for 

6 construction of facilities for use by foreign mili7 tary, paramilitary, or law enforcement forces 

8 unless, at least 15 days before obligating funds 

9 for such construction, the President notifies the 

10 appropriate congressional committees in accord11 ance with procedures applicable to reprogram12 ming notifications under section 8401. 

13 (B) EXCEPTION.—Paragraph (1) shall not 

14 apply to the construction of facilities which 

15 would require the obligation of less than 

16 $750,000 under this subtitle. 

17 SEC. 5209. INTERNATIONAL COUNTER-NARCOTICS STRAT18 EGY. 

19 (a) STRATEGY REQUIRED.—Not later than 1 year 

20 after the date of the enactment of this Act, and every 4 

21 years thereafter, the Secretary shall submit to the appro22 priate congressional committees a comprehensive counter23 narcotics strategy. The strategy shall include— 

24 (1) a list of the countries which the Secretary 

25 determines to be— 


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1 (A) a major illicit drug-producing country; 

2 (B) a major illicit drug-transit country; 

3 (C) a major money-laundering country; or 

4 (D) a major source of precursor chemicals; 

5 (2) defined objectives for the activities of the 

6 Department of State relating to counter-narcotics, 

7 for each region and country it plans to target; 

8 (3) a description of how such objectives relate 

9 to, are informed by, and will be coordinated with 

10 those of relevant countries, as well as with those of 

11 other bilateral and multilateral donors; 

12 (4) a definition of the respective roles of each 

13 Federal department and agency in carrying out the 

14 strategy, and the mechanisms for coordination; 

15 (5) a description of the types of policies and 

16 programs needed to achieve such objectives; 

17 (6) an analysis of the key opportunities and 

18 challenges for achieving favorable results in the next 

19 4-year period; 

20 (7) a list of indicators and other measurements 

21 of success to be used in assessing impact, to include 

22 the indicators listed in section 5210(a)(6); 

23 (8) the amounts devoted to similar purposes in 

24 the previous 4-year period, the results achieved and 

25 the lessons learned; and 


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1 (9) an estimate of the requirements for human 

2 and financial resources and overseas infrastructure 

3 to carry out the strategy over the next 4-year period. 

4 (b) IMPLEMENTATION.—None of the funds made 

5 available under this title may be obligated or expended for 

6 any programs, projects, or activities to implement a strat7 egy required under subsection (a) until at least 15 days 

8 after the strategy is transmitted to the appropriate con9 gressional committees pursuant to subsection (a). 

10 (c) DEFINITIONS.—In this section— 

11 (1) the term ‘‘major illicit drug-producing coun12 try’’ means a country that illicitly produces during 

13 a fiscal year 5 metric tons or more of opium or 

14 opium derivative, 500 metric tons or more of coca, 

15 or 500 metric tons or more of marijuana; 

16 (2) the term ‘‘major illicit drug-transit country’’ 

17 means a country— 

18 (A) that is a significant direct source of il19 licit narcotic or psychotropic drugs or other 

20 controlled substances significantly affecting the 

21 United States; 

22 (B) through which are transported such 

23 drugs or substances; or 

24 (C) through which significant sums of 

25 drug-related profits or monies are laundered 


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1 with the knowledge or complicity of the govern2 ment; 

3 (3) the term ‘‘major money-laundering country’’ 

4 means a country whose financial institutions engage 

5 in currency transactions involving significant 

6 amounts of proceeds from international narcotics 

7 trafficking; and 

8 (4) the term ‘‘major source of precursor chemi9 cals’’ means a country that is among the top 5 pro10 ducers or the top 5 exporters of a listed chemical 

11 under section 102(33) of the Controlled Substances 

12 Act (21 U.S.C. 802(33)). 

13 SEC. 5210. INTERNATIONAL NARCOTICS CONTROL ASSIST14 ANCE REPORT. 

15 (a) REPORT.—Not later than 1 year after the date 

16 of the enactment of this Act, and annually thereafter, the 

17 President shall transmit to the appropriate congressional 

18 committees a report on international narcotics control as19 sistance. Such report shall, for each country— 

20 (1) describe the types and amounts of inter21 national narcotics control assistance provided or pro22 posed to be provided by each Federal agency for the 

23 preceding fiscal year, the current fiscal year, and the 

24 next fiscal year; 


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1 (2) include all transfers that were made by each 

2 Federal agency during the preceding fiscal year for 

3 narcotics control or anti-crime purposes of any prop4 erty seized by or otherwise forfeited to the United 

5 States Government in connection with narcotics-re6 lated activity, including an estimate of the fair mar7 ket value and physical condition of each item of 

8 property transferred; 

9 (3) discuss the extent to which the country is 

10 meeting the goals and objectives of the United Na11 tions Convention Against Illicit Traffic in Narcotic 

12 Drugs and Psychotropic Substances, and the key 

13 areas in which improvements are needed; 

14 (4) explain how the strategy described under 

15 section 5209 is being implemented; 

16 (5) describe any progress made toward achiev17 ing the goal and objectives in section 5203; 

18 (6) identify the indicators and metrics to be 

19 used in assessing the impact of international nar20 cotics control assistance, including the impact of the 

21 use of herbicides for aerial eradication on the envi22 ronment, the health of individuals, and internal dis23 placement; and 

24 (7) list any contributions under section 5206(b) 

25 received in the preceding fiscal year, the amount of 


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1 such contributions, and the purposes for which such 

2 contributions were used. 

3 (b) DEFINITION.—In this section, the term ‘‘inter4 national narcotics control assistance’’ means foreign as5 sistance provided by any Federal agency to combat or con6 trol the transit, production, or financing of illicit narcotics. 

7 SEC. 5211. NARCOTICS STRATEGY EVALUATION. 

8 (a) IN GENERAL.—The Comptroller General of the 

9 United States shall conduct an impact evaluation of pro10 grams carried out by the Bureau of International Nar11 cotics and Law Enforcement, using rigorous quantitative 

12 data analysis. The evaluation shall measure progress made 

13 on the following indicators, as appropriate: 

14 (1) Supply Side Factors, such as— 

15 (A) estimated illicit drug production; 

16 (B) estimated illicit drug transshipment; 

17 (C) estimated illicit drug production and 

18 transshipment as a percentage of GDP; 

19 (D) number of individuals and households 

20 estimated to be involved in illicit drug produc21 tion and transshipment; 

22 (E) number and average size of illicit 

23 drug-crop cultivation plots; 

24 (F) farm-gate price of illicit drug crop; and 


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1 (G) in-country price and purity of illicit 

2 drug. 

3 (2) Disruption of Networks, such as— 

4 (A) drug seizures as a percentage of total 

5 estimated drug production and transshipment; 

6 and 

7 (B) arrests and convictions of major nar8 cotics-related organized crime figures. 

9 (3) Economic well-being and governance, such 

10 as— 

11 (A) presence of government institutions 

12 (such as security forces, civilian ministries, local 

13 government, justice system) in zones of greatest 

14 drug production; 

15 (B) perceptions of police competence; 

16 (C) number of individuals and households 

17 formerly involved in drug production and trans18 shipment who are now benefitting from develop19 ment and alternative income programs; 

20 (D) level of drug-related violence as a per21 centage of overall violence; and 

22 (E) poverty and unemployment rates in de23 partments, States or provinces with the greatest 

24 drug production and transshipment. 


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1 (b) SUBMISSION.—The results of the evaluation re2 quired under subsection (a) shall be submitted to the ap3 propriate congressional committees not later than 4 years 

4 after the date of the enactment of this Act and every 4 

5 years thereafter. 

6 Subtitle C—Counter-Terrorism 

7 Authorities 

8 SEC. 5301. PURPOSES. 

9 Activities conducted under this subtitle shall be de10 signed to— 

11 (1) build the capacity of foreign law enforce12 ment and security personnel to detect, deter and 

13 counter terrorism; 

14 (2) counter and ameliorate the conditions and 

15 circumstances that foster terrorist and violent ex16 tremist ideologies, activity and recruitment; 

17 (3) increase respect for human rights by shar18 ing with foreign civil authorities modern, humane, 

19 and effective antiterrorism techniques; and 

20 (4) enhance bilateral and multilateral partner21 ships to counter terrorism and violent extremism. 

22 SEC. 5302. ASSISTANCE TO COUNTRIES AND MULTILAT23 ERAL ORGANIZATIONS FOR COUNTER-TER24 RORISM ACTIVITIES. 

25 (a) ASSISTANCE TO COUNTRIES.— 


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1 (1) IN GENERAL.—Notwithstanding any other 

2 provision of law that restricts assistance to foreign 

3 countries (other than sections 9101, 9102, 9401, 

4 and 9402), the Secretary, acting through the Assist5 ant Secretary for Counterterrorism or other appro6 priate senior official, is authorized to provide, on 

7 such terms and conditions as the Secretary may de8 termine— 

9 (A) assistance to foreign countries in order 

10 to enhance the ability of their law enforcement 

11 and security personnel to deter terrorists and 

12 terrorist groups from engaging in international 

13 terrorist acts such as bombing, kidnaping, as14 sassination, hostage taking, and hijacking; and 

15 (B) in coordination with the Adminis16 trator, assistance to foreign countries, including 

17 nongovernmental organizations, to enhance 

18 their ability to counter violent extremism and 

19 radicalization and to counter the appeal of ter20 rorist and other extremist organizations. 

21 (2) ASSISTANCE.—Assistance under paragraph 

22 (1)(A) may include the following: 

23 (A) Consistent with section 3303, the pro24 vision of equipment, supplies, and training to 

25 build the capacity of foreign law enforcement or 


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1 security forces to conduct counter-terrorist op2 erations and respect human rights. 

3 (B) Training services and the provision of 

4 equipment and other commodities related to de5 tection and disposal of bombs (including impro6 vised explosive devices), management of hostage 

7 situations, physical security, and other matters 

8 relating to the detection, deterrence, and pre9 vention of acts of terrorism, the resolution of 

10 terrorist incidents, and the apprehension of 

11 those involved in such acts. 

12 (C) Support and cooperation with foreign 

13 banking, regulatory, and other officials to 

14 counter the financing of terrorist activities. 

15 (b) ASSISTANCE TO MULTILATERAL ORGANIZA16 TIONS.—The Secretary is authorized to provide, on such 

17 terms and conditions as the Secretary may determine, sup18 port to multilateral organizations for international and re19 gional counterterrorism cooperation programs, including 

20 the Regional Strategic Initiative. Such support may be 

21 provided in the form of grants, contracts, or voluntary 

22 contributions to such organizations. 

23 (c) PAYMENT.— 

24 (1) IN GENERAL.—If the Secretary determines 

25 it to be consistent with and in furtherance of the 


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1 purposes of this subtitle, and on such terms and 

2 conditions consistent with this Act as the Secretary 

3 may determine, any Federal agency is authorized to 

4 provide services and commodities, without charge to 

5 funds available to carry out this subtitle, to an eligi6 ble foreign country, subject to payment in advance 

7 of the value thereof (within the meaning of section 

8 4411) in United States dollars by the foreign coun9 try. 

10 (2) CREDITING.—Collections under this subtitle 

11 shall be credited to the currently applicable appro12 priation, account, or fund of the agency providing 

13 such services and commodities and shall be available 

14 for the purposes for which such appropriation, ac15 count, or fund is authorized to be used. 

16 (3) VALUE.—The value in terms of original ac17 quisition cost of all equipment and commodities pro18 vided under this subtitle in any fiscal year shall not 

19 exceed 30 percent of the funds made available to 

20 carry out this subtitle for that fiscal year. 

21 (d) CONSULTATION.—Consistent with section 

22 1(c)(2)(C) of the State Department Basic Authorities Act 

23 of 1956 (as added by section 3105), the Assistant Sec24 retary of State for Democracy, Human Rights and Labor 

25 shall be consulted in determinations of foreign countries 


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1 that will be provided assistance under this subtitle and de2 terminations of the nature of assistance to be provided to 

3 each such country. 

4 (e) LIMITATION.—Arms and ammunition may be pro5 vided under this subtitle only if such arms and ammuni6 tion are directly related to counterterrorism assistance. 

7 (f) RULE OF CONSTRUCTION.—Nothing in this sub8 title shall apply to information exchange activities con9 ducted by Federal agencies under any other authority for 

10 such purposes 

11 SEC. 5303. COUNTER-TERRORISM RESPONSIBILITIES OF 

12 THE DEPARTMENT OF STATE. 

13 (a) IN GENERAL.—Section 1 of the State Depart14 ment Basic Authorities Act of 1956 (22 U.S.C. 2651a) 

15 is amended— 

16 (1) in subsection (c)(1), by striking ‘‘24’’ and 

17 inserting ‘‘25’’; and 

18 (2) in subsection (e) to read as follows: 

19 ‘‘(e) COUNTERTERRORISM RESPONSIBILITIES.— 

20 ‘‘(1) IN GENERAL.—The Secretary of State 

21 shall be responsible for the overall supervision (in22 cluding policy oversight of resources) of counterter23 rorism activities and may designate an Assistant 

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1 rectly to the Secretary as appropriate, to assist in 

2 such activities. 

3 ‘‘(2) TRANSFER AUTHORITY.—The Secretary of 

4 State may transfer any authority, duty, or function 

5 assigned to the Coordinator for Counterterrorism or 

6 to the Office of the Coordinator for Counterter7 rorism to the Assistant Secretary or other senior of8 ficial designated by the Secretary of State under 

9 paragraph (1) or to the Bureau of Counterterrorism 

10 (as the case may be).’’. 

11 (b) CONFORMING AMENDMENT.—Section 5315 of 

12 title 5, United States Code, is amended in the item relat13 ing to Assistant Secretaries of State, by striking ‘‘(24)’’ 

14 and inserting ‘‘(25)’’. 

15 TITLE VI—SUSTAINING THE 

16 GLOBAL ENVIRONMENT 

17 SEC. 6001. FINDINGS AND STATEMENT OF POLICY. 

18 (a) FINDINGS.—Congress finds the following: 

19 (1) Sound natural resource management, 

20 healthy ecosystems, and biological diversity are vital 

21 to alleviating poverty in developing countries that 

22 depend on natural resources for water, food, medi23 cine, energy, household products, and tourism and 

24 trade. 


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1 (2) Proper management and protection of nat2 ural resources can mitigate instability, conflict, and 

3 corruption in many developing countries. 

4 (3) Poaching and the illegal trafficking of wild5 life represent significant threats to preserving bio6 logical diversity and can lead to crime and corrup7 tion. 

8 (4) Establishing protected areas can preserve 

9 wildlife and plant species from degradation and 

10 guard against the illegal wildlife trade. 

11 (5) Strengthening the indigenous capacity of 

12 partner countries to manage their natural resources 

13 improves the long-term sustainability of conservation 

14 programs and is essential for economic growth in de15 veloping countries. 

16 (b) STATEMENT OF POLICY.—It is the policy of the 

17 United States to work in cooperation with the inter18 national community, including nongovernmental organiza19 tions, to reduce biodiversity loss, adapt to and mitigate 

20 climate change, and integrate principles of environmental 

21 sustainability into policies and programs for international 

22 development. 


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1 Subtitle A—Debt-for-Nature 

2 Exchanges 

3 SEC. 6101. FINDINGS AND STATEMENT OF POLICY. 

4 (a) FINDINGS.—Congress finds the following: 

5 (1) Poverty and economic pressures on the pop6 ulations of developing countries have led to environ7 mental degradation that exacerbate existing chal8 lenges and imperil long-term, sustainable develop9 ment. 

10 (2) Debt reduction can reduce economic pres11 sures on developing countries and provide funds for 

12 environmental conservation and development. 

13 (3) Identifying and developing economic bene14 fits to local communities from sustainable use of the 

15 environment is critical to the protection of eco16 systems and to overall development. 

17 (4) Tropical forests provide a wide range of 

18 benefits to humankind by— 

19 (A) harboring a major share of the Earth’s 

20 biological and terrestrial resources, which are 

21 the basis for developing pharmaceutical prod22 ucts and revitalizing agricultural crops; 

23 (B) playing a critical role as carbon sinks 

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1 phere, thus moderating potential global climate 

2 change; and 

3 (C) regulating hydrological cycles on which 

4 far-flung agricultural and coastal resources de5 pend. 

6 (5) Coral reefs and associated coastal marine 

7 ecosystems provide a wide range of benefits to hu8 mankind by— 

9 (A) harboring more species per unit area 

10 than any other marine habitat, providing the 

11 basis for developing pharmaceutical products 

12 and fostering a growing marine tourism sector; 

13 (B) providing a major source of food and 

14 jobs for hundreds of millions of coastal resi15 dents; and 

16 (C) serving as natural storm barriers, thus 

17 protecting vulnerable shorelines and commu18 nities from storm waves and erosion. 

19 (b) STATEMENT OF POLICY.—It is the policy of the 

20 United States to work in cooperation with partner coun21 tries and nongovernmental organizations to protect and 

22 sustainably manage tropical forests, coral reefs, and other 

23 natural ecosystems, including through debt-for-nature ex24 changes. 


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1 SEC. 6102. DEFINITIONS. 

2 As used in this subtitle: 

3 (1) ADMINISTERING BODY.—The term ‘‘admin4 istering body’’ means the entity provided for in sec5 tion 6107(c). 

6 (2) PARTNER COUNTRY.—The term ‘‘partner 

7 country’’ means an eligible country with respect to 

8 which the authority of paragraph (1) or (2) of sec9 tion 6105(a) or section 6106(a)(1) is exercised. 

10 (3) DEBT-FOR-NATURE AGREEMENT.—The 

11 term ‘‘Debt-for-Nature Agreement’’ or ‘‘Agreement’’ 

12 means a Debt-for-Nature Agreement provided for in 

13 section 6107. 

14 (4) DEBT-FOR-NATURE FACILITY.—The term 

15 ‘‘Debt-for-Nature Facility’’ or ‘‘Facility’’ means the 

16 Debt-for-Nature Facility established in the Depart17 ment of the Treasury by section 6103. 

18 (5) DEBT-FOR-NATURE FUND.—The term 

19 ‘‘Debt-for-Nature Fund’’ or ‘‘Fund’’ means a Debt20 for-Nature Fund provided for in section 6109. 

21 (6) ELIGIBLE COUNTRY.—The term ‘‘eligible 

22 country’’ means a country described in section 6104. 

23 SEC. 6103. ESTABLISHMENT OF THE FACILITY. 

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1 ity’’ for the purpose of providing for the administration 

2 of debt reduction in accordance with this subtitle. 

3 SEC. 6104. ELIGIBILITY FOR BENEFITS. 

4 To be eligible for benefits from the Facility under this 

5 subtitle, a country shall be a developing country the gov6 ernment of which— 

7 (1) is democratically elected; 

8 (2) does not support acts of international ter9 rorism; 

10 (3) does not engage in a consistent pattern of 

11 gross violations of internationally recognized human 

12 rights; 

13 (4) has in effect, has received approval for, or, 

14 as appropriate in exceptional circumstances, is mak15 ing significant progress toward— 

16 (A) an International Monetary Fund 

17 standby arrangement, extended International 

18 Monetary Fund arrangement, or an arrange19 ment under the structural adjustment facility or 

20 enhanced structural adjustment facility, or in 

21 exceptional circumstances, an International 

22 Monetary Fund-monitored program or its 

23 equivalent, unless the President determines that 

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1 nificant adverse social or environmental effects; 

2 and 

3 (B) as appropriate, structural or sectoral 

4 adjustment loans from the International Bank 

5 for Reconstruction and Development or the 

6 International Development Association, unless 

7 the President determines that the resulting ad8 justment requirements could reasonably be ex9 pected to have significant adverse social or envi10 ronmental effects; and 

11 (5) if appropriate, has agreed with its commer12 cial bank lenders on a satisfactory financing pro13 gram, including, as appropriate, debt or debt service 

14 reduction. 

15 SEC. 6105. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE 

16 SWAPS AND DEBT BUYBACKS. 

17 (a) LOANS AND CREDITS ELIGIBLE FOR SALE, RE18 DUCTION, OR CANCELLATION.— 

19 (1) DEBT-FOR-NATURE SWAPS.— 

20 (A) IN GENERAL.—Notwithstanding any 

21 other provision of law, the President may, in 

22 accordance with this section, sell to any eligible 

23 purchaser described in subparagraph (B) any 

24 concessional loans described in section 6106 or 

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1 ceipt of payment from an eligible purchaser de2 scribed in subparagraph (B), reduce or cancel 

3 such loans (or credits) or portion thereof under 

4 an Agreement, only for the purpose of facili5 tating a debt-for-nature swap to support eligible 

6 activities described in section 6108. 

7 (B) ELIGIBLE PURCHASER.—A loan or 

8 credit may be sold, reduced, or canceled under 

9 subparagraph (A) only to a purchaser who pre10 sents plans satisfactory to the President for 

11 using the loan or credit for the purpose of en12 gaging in debt-for-nature swaps to support eli13 gible activities described in section 6108. 

14 (2) DEBT BUYBACKS.—Notwithstanding any 

15 other provision of law, the President may, in accord16 ance with this section, sell to any eligible country 

17 any concessional loans described in section 6106 or 

18 any credits described in section 6106, or on receipt 

19 of payment from an eligible country, reduce or can20 cel such loans (or credits) or portion thereof under 

21 an Agreement, only for the purpose of facilitating a 

22 debt buyback by an eligible country of its own quali23 fied debt, only if the eligible country uses an addi24 tional amount of the local currency of the eligible 

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1 cent of the price paid for such debt by such eligible 

2 country, or the difference between the price paid for 

3 such debt and the face value of such debt, to sup4 port eligible activities described in section 6108. 

5 (3) LIMITATION.—The authority provided by 

6 paragraphs (1) and (2) shall be available only to the 

7 extent that appropriations for the cost (as defined in 

8 section 502(5) of the Federal Credit Reform Act of 

9 1990) of the modification of any debt pursuant to 

10 such paragraphs are made in advance. 

11 (4) TERMS AND CONDITIONS.—Notwithstanding 

12 any other provision of law, the President shall, in ac13 cordance with this section, establish the terms and 

14 conditions under which loans and credits may be 

15 sold, reduced, or canceled pursuant to this section. 

16 (5) ADMINISTRATION.— 

17 (A) IN GENERAL.—When the President de18 termines a purchaser to be an eligible purchaser 

19 pursuant to paragraph (1)(B), the Adminis20 trator or the Secretary of Agriculture, as the 

21 case may be, shall carry out the sale, reduction, 

22 or cancellation of a loan pursuant to such para23 graph. 

24 (B) ADDITIONAL REQUIREMENT.—The Ad25 ministrator or Secretary of Agriculture, as the 


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1 case may be, shall make an adjustment in its 

2 accounts to reflect the sale, reduction, or can3 cellation. 

4 (b) DEPOSIT OF PROCEEDS.—The proceeds from the 

5 sale, reduction, or cancellation of any loan sold, reduced, 

6 or canceled pursuant to this section shall be deposited in 

7 the United States Government account or accounts estab8 lished for the repayment of such loan. 

9 SEC. 6106. REDUCTION OF DEBT OWED TO THE UNITED 

10 STATES AS A RESULT OF CONCESSIONAL 

11 LOANS OR CREDITS UNDER THIS ACT AND 

12 CERTAIN OTHER PROVISIONS OF LAW. 

13 (a) AUTHORITY TO REDUCE DEBT.— 

14 (1) AUTHORITY.—The President may reduce 

15 the amount owed to the United States (or any Fed16 eral agency) that is outstanding as of the date of the 

17 enactment of this Act as a result of concessional 

18 loans or credits made to an eligible country by the 

19 United States under this Act, the Foreign Assist20 ance Act of 1961 (as such Act was in effect on the 

21 day before the date of the enactment of this Act), 

22 title I of the Agricultural Trade Development and 

23 Assistance Act of 1954 (7 U.S.C. 1701 et seq.), or 

24 predecessor foreign economic assistance legislation. 


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1 (2) CERTAIN PROHIBITIONS INAPPLICABLE.—A 

2 reduction of debt pursuant to this section shall not 

3 be considered foreign assistance for purposes of any 

4 provision of law limiting assistance to a country. 

5 (b) IMPLEMENTATION OF DEBT REDUCTION.— 

6 (1) IN GENERAL.—Any debt reduction pursuant 

7 to subsection (a) shall be accomplished at the direc8 tion of the Facility under an Agreement by the ex9 change of a new obligation for obligations of the 

10 type referred to in subsection (a) outstanding as of 

11 the date specified in subsection (a)(1). 

12 (2) EXCHANGE OF OBLIGATIONS.— 

13 (A) IN GENERAL.—The Facility shall no14 tify the Administrator or the Secretary of Agri15 culture of an agreement entered into under 

16 paragraph (1) with an eligible country to ex17 change a new obligation for outstanding obliga18 tions. 

19 (B) ADDITIONAL REQUIREMENT.—At the 

20 direction of the Facility, the old obligations that 

21 are the subject of the Agreement shall be can22 celed and a new debt obligation for the country 

23 shall be established relating to the Agreement, 

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1 justment in the respective agency’s accounts to 

2 reflect the debt reduction. 

3 (c) ADDITIONAL TERMS AND CONDITIONS.— 

4 (1) REPAYMENT OF PRINCIPAL.—The principal 

5 amount of each new obligation issued pursuant to 

6 subsection (b) shall be repaid in United States dol7 lars. 

8 (2) DEPOSIT OF PAYMENTS.—Principal repay9 ments of new obligations shall be deposited in the 

10 United States Government account established for 

11 principal repayments of the obligations for which 

12 those obligations were exchanged. 

13 (d) INTEREST.—Principal repayments of new obliga14 tions shall be deposited in the United States Government 

15 account established for principal repayments of the obliga16 tions for which those obligations were exchanged. 

17 (1) RATE OF INTEREST.—Each new obligation 

18 issued by a partner country pursuant to subsection 

19 (b) shall bear interest at a concessional rate. 

20 (2) CURRENCY OF INTEREST PAYMENT; DEPOS21 ITS.— 

22 (A) LOCAL CURRENCY.—If the partner 

23 country has entered into a Debt-for-Nature 

24 Agreement, interest shall be paid in the local 

25 currency of the partner country and deposited 


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1 in the Debt-for-Nature Fund of such country. 

2 Such interest shall be the property of the part3 ner country, until such time as it is disbursed 

4 pursuant to section 6109(b)(3). Such local cur5 rencies shall be used for the purposes specified 

6 in the Agreement. 

7 (B) UNITED STATES DOLLARS.—If the 

8 partner country has not entered into a Debt9 for-Nature Agreement, interest shall be paid in 

10 United States dollars and deposited in the 

11 United States Government account established 

12 for interest payments of the obligations for 

13 which the new obligations were exchanged. 

14 (3) INTEREST ALREADY PAID.—If a partner 

15 country enters into a Debt-for-Nature Agreement 

16 subsequent to the date on which interest first be17 came due on the newly issued obligation, any inter18 est already paid on such new obligation shall not be 

19 redeposited into the Debt-for-Nature Fund estab20 lished for that country. 

21 SEC. 6107. DEBT-FOR-NATURE AGREEMENT. 

22 (a) AUTHORITY.—The President is authorized to 

23 enter into a Debt-for-Nature Agreement with any eligible 

24 country concerning the operation and use of the Debt-for25 Nature Fund for the country. 


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1 (b) CONTENTS OF AGREEMENT.—An Agreement 

2 with an eligible country shall— 

3 (1) require— 

4 (A) the establishment of a Fund for the 

5 country; or 

6 (B) in the case of a country with respect 

7 to which a fund has been established under part 

8 IV (relating to Enterprise for the Americas Ini9 tiative) or part V (relating to debt reduction for 

10 developing countries with tropical forests) of the 

11 Foreign Assistance Act of 1961 (as such Act 

12 was in effect on the day before the date of the 

13 enactment of this Act), the continued utilization 

14 of such fund; 

15 (2) require the country to make prompt dis16 bursements from the Fund to the administering 

17 body described in subsection (c); 

18 (3) when appropriate, seek to maintain the 

19 value of the local currency resources of the Fund in 

20 terms of United States dollars; 

21 (4) contain reasonable provisions for the en22 forcement of the terms of the Agreement; and 

23 (5) establish criteria and priorities guiding the 

24 disbursement of grants consistent with the eligible 

25 activities in section 6108. 


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1 (c) ADMINISTERING BODY.— 

2 (1) IN GENERAL.—Amounts disbursed from the 

3 Fund in each partner country shall be administered 

4 by a body constituted under the laws of that coun5 try. 

6 (2) COMPOSITION.— 

7 (A) IN GENERAL.—The administering body 

8 shall consist of— 

9 (i) one or more individuals appointed 

10 by the United States Government; 

11 (ii) one or more individuals appointed 

12 by the government of the partner country; 

13 and 

14 (iii) individuals who represent a broad 

15 range of— 

16 (I) environmental nongovern17 mental organizations of, or active in, 

18 the partner country; 

19 (II) local community development 

20 nongovernmental organizations of the 

21 partner country; and 

22 (III) scientific, academic, or in23 stitutions of the partner country. 

24 (B) ADDITIONAL REQUIREMENT.—A ma25 jority of the members of the administering body 


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1 shall be individuals described in subparagraph 

2 (A)(iii). 

3 (3) RESPONSIBILITIES.—The administering 

4 body shall— 

5 (A) receive proposals for grant assistance 

6 from eligible grant recipients (as determined 

7 under subsection (d)) and make grants to eligi8 ble grant recipients in accordance with the pri9 orities agreed upon in the Agreement, con10 sistent with section 6108; 

11 (B) be responsible for the management of 

12 the program and oversight of grant activities 

13 funded from resources of the Fund; 

14 (C) consult with local communities on the 

15 planning, development, and implementation of 

16 plans, programs, and activities associated with 

17 the disbursements of grants; 

18 (D) be subject, on an annual basis, to an 

19 audit of financial statements conducted in ac20 cordance with generally accepted auditing 

21 standards by an independent auditor; 

22 (E) be required to grant to representatives 

23 of the United States Government Accountability 

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1 troller General of the United States may re2 quest; and 

3 (F) present an annual plan on activities 

4 for the upcoming year for review and an annual 

5 report on the activities the administering body 

6 undertook during the previous year to the Sec7 retary of State, the Secretary of the Treasury, 

8 the Administrator, the government of the part9 ner country, and, if appropriate, the nongovern10 mental organization. 

11 (d) GRANT RECIPIENTS.— 

12 (1) IN GENERAL.—Grants made from the Fund 

13 shall be made to— 

14 (A) nongovernmental environmental, for15 estry, conservation, and indigenous peoples or16 ganizations of, or active in, the partner country; 

17 (B) other appropriate local or regional en18 tities of, or active in, the partner country; or 

19 (C) in exceptional circumstances, the gov20 ernment of the partner country. 

21 (2) PRIORITY.—In providing grants under 

22 paragraph (1), priority shall be given to projects 

23 that are run by local nongovernmental organizations 

24 and other private entities and that involve local com25 munities in their planning and execution. 


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1 (e) REVIEW OF LARGER GRANTS.—Any grant of 

2 more than $250,000 from a Fund shall be subject to ap3 proval by the Government of the United States and the 

4 government of the partner country. 

5 (f) ELIGIBILITY CRITERIA.—In the event that a 

6 country ceases to meet the eligibility requirements set 

7 forth in section 6104, then grants from the Fund for that 

8 country may only be made to nongovernmental organiza9 tions until such time as the country meets the eligibility 

10 requirements set forth in section 6104. 

11 (g) USE OF FUNDS TO CONDUCT PROGRAM AUDITS

12 AND EVALUATION.—Of the amounts made available to 

13 carry out this subtitle for a fiscal year, up to one percent 

14 is authorized to be made available to carry out audits, 

15 evaluations, monitoring, and administration of programs 

16 under this subtitle, including personnel costs associated 

17 with such audits, evaluations, monitoring, and administra18 tion. 

19 (h) CONGRESSIONAL NOTIFICATION.—The President 

20 shall notify the appropriate congressional committees of 

21 the President’s intention to enter into an Agreement with 

22 an eligible country at least 15 days in advance of entering 

23 into such Agreement. 


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1 SEC. 6108. ELIGIBLE ACTIVITIES. 

2 (a) IN GENERAL.—Grants made from the Fund shall 

3 be used for— 

4 (1) restoration, conservation, or sustainable use 

5 of terrestrial and marine animal and plant species; 

6 (2) establishment, restoration, protection, and 

7 maintenance of parks, protected areas, and reserves; 

8 (3) development and implementation of scientif9 ically sound systems of natural resource manage10 ment, including land and water and ecosystem man11 agement practices; 

12 (4) development and implementation of pro13 grams to address the effects of climate change on 

14 environmental resources; 

15 (5) training programs to strengthen conserva16 tion institutions and increase scientific, technical, 

17 and managerial capabilities of local individuals and 

18 organizations involved in conservation efforts; or 

19 (6) research and identification of medicinal uses 

20 of plant life to treat human diseases, illnesses, and 

21 health related concerns. 

22 (b) PRIORITIZING ACTIVITIES.—In cooperation with 

23 the partner country and nongovernmental organizations, 

24 the President shall seek to identify those areas, which be25 cause of an imminent threat, are in particular need of imVerDate Mar 15 2010 22:23 Apr 26, 2013 Jkt 029200 PO 00000 Frm 00549 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793

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1 mediate attention to prevent the loss of unique biological 

2 life or valuable ecosystem. 

3 SEC. 6109. DEBT-FOR-NATURE FUND. 

4 (a) ESTABLISHMENT.—Each partner country that 

5 enters into a Debt-for-Nature Agreement under section 

6 6107 shall be required to establish a Debt-for-Nature 

7 Fund to receive payments of interest and principal on new 

8 obligations undertaken by the partner country under this 

9 subtitle. 

10 (b) REQUIREMENTS RELATING TO OPERATION OF

11 FUND.—The following terms and conditions shall apply 

12 to the Fund: 

13 (1) DEPOSITS.—Local currencies deposited in 

14 the Fund shall not be considered foreign assistance 

15 for purposes of any provision of law limiting assist16 ance to a country. 

17 (2) INVESTMENT.—Deposits made in the Fund 

18 shall be invested until disbursed. Any return on such 

19 investment may be retained by the Fund, without 

20 deposit in the Treasury of the United States and 

21 without further appropriation by Congress. 

22 (3) DISBURSEMENTS.—Funds in the Fund 

23 shall be disbursed pursuant to a Debt-for-Nature 

24 Agreement authorized under section 6107. 


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1 SEC. 6110. RESPONSIBILITIES TO THE CONGRESS. 

2 (a) CONSULTATIONS WITH THE CONGRESS.—The 

3 President shall consult with the appropriate congressional 

4 committees on a periodic basis to review the operation of 

5 the Facility under this subtitle and the eligibility of coun6 tries for benefits from the Facility under this subtitle. 

7 (b) REPORT TO CONGRESS.—Not later than Decem8 ber 31 of each year, the President shall prepare and trans9 mit to Congress an annual report concerning the oper10 ations of the Debt-for-Nature Facility under this subtitle 

11 for the prior fiscal year. Such report shall include— 

12 (1) a description of the activities undertaken by 

13 such Facility during the previous fiscal year; 

14 (2) a description of any Agreement entered into 

15 under this subtitle; 

16 (3) a report on Debt-for-Nature Funds that 

17 have been established under this subtitle and on the 

18 operations of such Funds; and 

19 (4) a description of any grants that have been 

20 provided by administering bodies pursuant to Debt21 for-Nature Agreements under this subtitle. 

22 SEC. 6111. GENERAL SAVINGS CLAUSE. 

23 An agreement in effect on the day before the date 

24 of the enactment of this Act under part IV (relating to 

25 Enterprise for the Americas Initiative) or part V (relating 

26 to debt reduction for developing countries with tropical 


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1 forests) of the Foreign Assistance Act of 1961 (as such 

2 parts were in effect on the day before the date of the en3 actment of this Act) shall remain in effect subject to the 

4 terms and conditions under such agreement. 

5 Subtitle B—Commercial Debt-for6 Nature Exchanges 

7 SEC. 6201. COMMERCIAL DEBT-FOR-NATURE EXCHANGE 

8 DEFINED. 

9 For purposes of this subtitle, the term ‘‘commercial 

10 debt-for-nature exchange’’ means the cancellation or re11 demption of the foreign debt of the government of a coun12 try in exchange for— 

13 (1) the government’s making available local cur14 rencies (including through the issuance of bonds) 

15 that are used only for eligible projects involving the 

16 conservation or protection of the environment in that 

17 country (as described in section 6203); 

18 (2) the government’s financial resource or pol19 icy commitment to take certain specified actions to 

20 ensure the restoration, protection, or sustainable use 

21 of natural resources within that country; or 

22 (3) a combination of assets and actions under 

23 both paragraphs (1) and (2). 


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1 SEC. 6202. AUTHORIZATION FOR COMMERCIAL DEBT EX2 CHANGES. 

3 (a) IN GENERAL.—The Administrator is authorized 

4 to provide grants, on such terms and conditions as the 

5 Administrator may determine, to nongovernmental organi6 zations for the purchase on the open market of discounted 

7 commercial debt of a foreign government of an eligible 

8 country described in section 6204 which will be canceled 

9 or redeemed under agreed upon terms with that govern10 ment as part of a commercial debt-for-nature exchange. 

11 (b) INTEREST.—Notwithstanding any other provision 

12 of law, a grantee (or any subgrantee) of the grants re13 ferred to in subsection (a) may retain, without deposit in 

14 the Treasury of the United States and without further ap15 propriation by Congress, interest earned on the proceeds 

16 of any resulting commercial debt-for-nature exchange 

17 pending the disbursements of such proceeds and interest 

18 for approved program purposes, which may include the es19 tablishment of an endowment, the income of which is used 

20 for such purposes. 

21 SEC. 6203. ELIGIBLE PROJECTS. 

22 (a) IN GENERAL.—The Administrator shall seek to 

23 ensure that commercial debt-for-nature exchanges under 

24 this subtitle support one or more of the eligible activities 

25 listed in section 6108 by either the relevant government, 


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1 a local private conservation group, or a combination there2 of. 

3 (b) IDENTIFICATION OF CERTAIN AREAS.—In co4 operation with nongovernmental organizations and the rel5 evant country, the Administrator shall seek to identify 

6 those areas, which because of an imminent threat, are in 

7 particular need of immediate attention to prevent the loss 

8 of unique biological life or valuable ecosystem. 

9 SEC. 6204. ELIGIBLE COUNTRIES. 

10 In order for a foreign country to be eligible to partici11 pate in a commercial debt-for-nature exchange under this 

12 subtitle the foreign country shall be a developing country 

13 that— 

14 (1) meets the requirements of section 6104; and 

15 (2) the Administrator determines— 

16 (A) is fully committed to the long-term via17 bility of the program or project that is to be un18 dertaken through the commercial debt-for-na19 ture exchange; 

20 (B) has prepared a long-term plan, or a 

21 private conservation group has prepared a long22 term plan for the country, which adequately 

23 provides for the long-term viability of the pro24 gram or project that is to be undertaken 

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1 change or that such a plan will be prepared in 

2 a timely manner; and 

3 (C) has a government agency or a local 

4 nongovernmental organization, or combination 

5 thereof, with the capability, commitment, and 

6 record of environmental concern to oversee the 

7 long-term viability of the program or project 

8 that is to be undertaken through the commer9 cial debt-for-nature exchange. 

10 SEC. 6205. PROHIBITION. 

11 The United States Government is prohibited from ac12 cepting title or interest in any land in a foreign country 

13 as a condition on the commercial debt-for-nature ex14 change. 

15 TITLE VII—EXPANDING PROS16 PERITY THROUGH TRADE 

17 AND INVESTMENT 

18 SEC. 7001. FINDINGS. 

19 Congress finds the following: 

20 (1) Fostering economic growth is essential to 

21 sustaining the impact of United States development 

22 assistance. 

23 (2) United States development assistance must 

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1 vate investment, which can be stimulated by United 

2 States-sponsored programs. 

3 (3) Attracting and retaining private investment 

4 requires improvements in the investment climate of 

5 developing countries, which require United States 

6 technical assistance. 

7 (4) Increasing exports is necessary for sus8 tained economic growth in most developing coun9 tries, because domestic consumption is usually inad10 equate to stimulate and sustain increases in gross 

11 domestic product, employment, and personal income. 

12 (5) For most developing countries, receipt of 

13 additional loans would be counterproductive, exacer14 bating existing high debt levels that consume scarce 

15 domestic financial resources. 

16 SEC. 7002. AUTHORITY FOR COORDINATION. 

17 (a) IDENTIFICATION OF PRIORITY COUNTRIES.—In 

18 preparing the United States Strategy for Global Develop19 ment under section 1017, the Interagency Policy Com20 mittee on Global Development shall identify a list of pri21 ority countries which would substantially benefit from 

22 United States programs to stimulate private investment 

23 flows and to provide technical assistance to attract and 

24 sustain such investment, taking into account each coun25 try’s— 


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1 (1) high-level political leadership and commit2 ment to development progress; 

3 (2) potential for rapid and sustained economic 

4 growth; and 

5 (3) importance to United States national inter6 ests and development goals. 

7 (b) JOINT COUNTRY ACTION PLAN.—For each coun8 try identified as a priority country under subsection (a), 

9 the Interagency Policy Committee on Global Development 

10 shall— 

11 (1) undertake a rigorous joint analysis of con12 straints to growth, in partnership with the priority 

13 country and in consultation with the United States, 

14 international, and local private sectors, the donor 

15 community, civil society organizations, and relevant 

16 experts; 

17 (2) develop a joint country action plan that out18 lines potential tools, reforms, technical assistance, 

19 and resources that can be applied over the next five 

20 years to address the highest-priority constraints to 

21 growth; 

22 (3) coordinate and integrate the joint country 

23 action plan with Country Development Cooperation 

24 Strategies and related policies and programs; and 


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1 (4) establish high-level mutual accountability 

2 for implementation, including through transparency 

3 and fact-based monitoring and evaluation. 

4 (c) DIRECTION OF RESOURCES.—The Interagency 

5 Policy Committee on Global Development may direct the 

6 resources of the Department of State, the United States 

7 Agency for International Development, the Overseas Pri8 vate Investment Corporation, the Trade and Development 

9 Agency, and the Millennium Challenge Corporation to be 

10 made available to carry out the country plan. 

11 Subtitle A—Overseas Private 

12 Investment Corporation 

13 SEC. 7101. CREATION AND PURPOSE. 

14 (a) CREATION.—There is established the Overseas 

15 Private Investment Corporation (in this subtitle referred 

16 to as the ‘‘Corporation’’), which shall be an agency of the 

17 United States under the policy guidance of the Secretary 

18 of State and the Interagency Policy Committee on Global 

19 Development. 

20 (b) PURPOSE.— 

21 (1) IN GENERAL.—The primary purpose of the 

22 Corporation shall be to mobilize and facilitate the 

23 participation of United States private capital in the 

24 economic and social development of less developed 

25 countries, thereby complementing the foreign policy 


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1 and development assistance objectives of the United 

2 States. 

3 (2) RESPONSIBILITIES.—In carrying out its 

4 purpose, the Corporation shall undertake— 

5 (A) to conduct financing, insurance, and 

6 reinsurance operations on a self-sustaining 

7 basis, taking into account in its financing oper8 ations the economic and financial soundness of 

9 projects; 

10 (B) to use private credit and investment 

11 institutions and the Corporation’s guaranty au12 thority as the principal means of mobilizing 

13 capital investment funds; 

14 (C) to broaden private participation and 

15 revolve its funds through selling its direct loans 

16 to private investors whenever it can appro17 priately do so on satisfactory terms; 

18 (D) to conduct its insurance operations 

19 with due regard to principles of risk manage20 ment, including efforts to share its insurance 

21 risks and reinsurance risks; 

22 (E) to support the expansion of private en23 terprise and market-based economies; 

24 (F) to conduct its activities in coordination 

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1 al Development, so as to carry out the foreign 

2 policy and development strategy of the United 

3 States; and 

4 (G) to advise and assist agencies of the 

5 United States and other organizations, both 

6 public and private, national and international, 

7 with respect to projects and programs relating 

8 to the development of private enterprise in less 

9 developed countries. 

10 SEC. 7102. PROHIBITIONS AND RESTRICTIONS. 

11 (a) PROHIBITIONS.—The Corporation shall— 

12 (1) decline to issue any contract of insurance or 

13 reinsurance, or any guaranty, or to enter into any 

14 agreement to provide financing for a proposed in15 vestment, if the Corporation determines that such 

16 investment is likely to cause a reduction in the em17 ployment of United States persons; 

18 (2) decline to insure, reinsure, guarantee, or fi19 nance any investment that would reduce exports of 

20 goods or services of United States origin or other21 wise negatively affect the balance of trade of the 

22 United States; 

23 (3) decline to insure, reinsure, guarantee, or fi24 nance any investment in connection with a project 

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1 fect the environment, or cause a health or safety 

2 hazard; and 

3 (4) decline to insure, reinsure, guarantee, or fi4 nance any investment in connection with a project 

5 that the Corporation determines will negatively af6 fect the human rights, employment, living standard, 

7 social welfare, or culture of any persons in the coun8 try where the project is to be located. 

9 (b) WORKER RIGHTS.— 

10 (1) PROTECTION OF WORKER RIGHTS.—The 

11 Corporation may insure, reinsure, guarantee, or fi12 nance a project only if the country in which the 

13 project is to be undertaken is taking steps to adopt 

14 and implement laws that extend internationally rec15 ognized worker rights, as defined in section 507(4) 

16 of the Trade Act of 1974, to workers in that country 

17 (including any designated zone in that country). The 

18 Corporation shall also include the following lan19 guage, in substantially the following form, in all con20 tracts that the Corporation enters into with eligible 

21 investors to provide financial support under this sub22 title: 

23 ‘‘The investor and all parties involved in the 

24 project agree to protect the right of employees of the 

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1 tion and their right to organize and bargain collec2 tively. The investor and all parties involved in the 

3 project further agree to comply with core labor 

4 standards of the International Labor Organization 

5 and United Nations declarations on workers and 

6 worker rights relating to a minimum age for employ7 ment of children, acceptable conditions of work with 

8 respect to minimum wages, hours of work, and occu9 pational health and safety, and a prohibition on the 

10 use of forced labor.’’. 

11 (2) USE OF ANNUAL REPORTS ON WORKERS

12 RIGHTS.—The Corporation shall, in making its de13 terminations under paragraph (1), use the reports 

14 submitted to the Congress pursuant to section 504 

15 of the Trade Act of 1974. 

16 (3) WAIVER.—Paragraph (1) shall not prohibit 

17 the Corporation from providing any insurance, rein18 surance, guaranty, or financing with respect to a 

19 country if the President determines that such activi20 ties by the Corporation would be in the national eco21 nomic or foreign policy interests of the United 

22 States. Any such determination shall be reported in 

23 writing to the Congress, together with the reasons 

24 for the determination. 

25 (c) ENVIRONMENTAL IMPACT.— 


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1 (1) IN GENERAL.—The Board of Directors of 

2 the Corporation shall not consider or approve any 

3 action proposed to be taken by the Corporation that 

4 is likely to have adverse environmental impacts, un5 less for a period of at least 60 days before the date 

6 of the vote— 

7 (A) an environmental impact assessment, 

8 or initial environmental audit, analyzing the en9 vironmental impacts of the proposed action and 

10 of alternatives to the proposed action has been 

11 completed by the project applicant and made 

12 available to the Board of Directors; and 

13 (B) such assessment or audit has been 

14 made available to the public of the United 

15 States, locally affected groups in the host coun16 try, and host country nongovernmental organi17 zations. 

18 (2) COMPLIANCE WITH EXTRACTIVE INDUS19 TRIES TRANSPARENCY INITIATIVE.—The Board of 

20 Directors shall ensure that the projects for which 

21 the Corporation provides insurance, reinsurance, a 

22 guaranty, or financing are in compliance with the 

23 Extractive Industries Transparency Initiative, or any 

24 successor international standard. 


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1 SEC. 7103. CAPITAL OF THE CORPORATION. 

2 The capital stock of the Corporation issued before the 

3 date of the enactment of this Act and held by the Sec4 retary of the Treasury as of such date of enactment shall 

5 continue to be the capital stock of the Corporation on and 

6 after such date of enactment. 

7 SEC. 7104. ORGANIZATION AND MANAGEMENT. 

8 (a) STRUCTURE OF THE CORPORATION.—The Cor9 poration shall have a Board of Directors, a President, an 

10 Executive Vice President, and such other officers and staff 

11 as the Board of Directors may determine. 

12 (b) BOARD OF DIRECTORS.— 

13 (1) IN GENERAL.—All powers of the Corpora14 tion shall vest in and be exercised by or under the 

15 authority of its Board of Directors (hereinafter in 

16 this subtitle referred to as the ‘‘Board’’), which shall 

17 consist of 15 Directors, including the Chairman, 

18 with 8 Directors constituting a quorum for the 

19 transaction of business. 

20 (2) MEMBERSHIP.— 

21 (A) PRESIDENTIAL APPOINTEES.—Eight 

22 Directors shall be appointed by the President of 

23 the United States, by and with the advice and 

24 consent of the Senate, and may not be officers 

25 or employees of the United States Government. 

26 Two of the 8 Directors appointed under the 


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1 preceding sentence shall be experienced in inter2 national development, 2 shall be experienced in 

3 international labor and human rights, 2 shall be 

4 experienced in environmental protection, and 2 

5 shall be experienced in insurance and inter6 national finance. Each such Director shall be 

7 appointed for a term of not more than 3 years. 

8 The terms of not more than 3 such Directors 

9 may expire in any one year. Such Directors 

10 shall serve until their successors are appointed 

11 and qualified, and may be reappointed. 

12 (B) OFFICERS OF THE GOVERNMENT.— 

13 The remaining Directors shall be principal offi14 cers of the United States Government, includ15 ing the President of the Corporation, the Ad16 ministrator of the Agency for International De17 velopment, and one such officer of the Depart18 ment of State, the Department of the Treasury, 

19 the Environmental Protection Agency, the De20 partment of Labor, and the Department of 

21 Commerce, who are designated by and serve at 

22 the pleasure of the President of the United 

23 States. 

24 (3) CHAIR AND VICE CHAIR.—There shall be a 

25 Chair and a Vice Chair of the Board, both of whom 


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1 shall be designated by the President of the United 

2 States from among the Directors of the Board des3 ignated under paragraph (2)(B). 

4 (4) COMPENSATION.—All Directors who are not 

5 officers of the Corporation or officers of the United 

6 States Government shall be compensated at a rate 

7 equivalent to that of level IV of the Executive Sched8 ule under section 5315 of title 5, United States 

9 Code, when actually engaged in the business of the 

10 Corporation, and may be paid per diem in lieu of 

11 subsistence at the applicable rate prescribed in the 

12 standardized Government travel regulations, while 

13 away from their homes or usual places of business. 

14 (c) PRESIDENT OF THE CORPORATION.—The Presi15 dent of the Corporation shall be appointed by the Presi16 dent of the United States, by and with the advice and con17 sent of the Senate, and shall serve at the pleasure of the 

18 President. The President of the Corporation shall be its 

19 Chief Executive Officer and shall be responsible for the 

20 operations and management of the Corporation, subject 

21 to bylaws and policies established by the Board. 

22 (d) OFFICERS AND STAFF.— 

23 (1) IN GENERAL.—The Executive Vice Presi24 dent of the Corporation shall be appointed by the 

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1 vice and consent of the Senate, and shall serve at 

2 the pleasure of the President. Other officers, attor3 neys, employees, and agents shall be selected and 

4 appointed by the Corporation, and shall be vested 

5 with such powers and duties as the Corporation may 

6 determine. 

7 (2) APPLICABILITY OF CIVIL SERVICE LAWS.— 

8 Of the persons employed by the Corporation under 

9 paragraph (1), not more than 20 may be appointed, 

10 compensated, or removed without regard to the civil 

11 service laws and regulations, except that under such 

12 regulations as the President of the United States 

13 may prescribe, officers and employees of the United 

14 States Government who are appointed to any of such 

15 positions may be entitled, upon removal from such 

16 position, except for cause, to reinstatement to the 

17 position occupied at the time of appointment or to 

18 a position of comparable grade and salary. Such po19 sitions shall be in addition to those otherwise au20 thorized by law, including those authorized by sec21 tion 5108 of title 5, United States Code. 

22 (e) INSPECTOR GENERAL.—The Board shall appoint 

23 and maintain an Inspector General in the Corporation, in 

24 accordance with the Inspector General Act of 1978 (5 

25 U.S.C. App.). 


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1 SEC. 7105. INVESTMENT INSURANCE AND OTHER PRO2 GRAMS. 

3 (a) INVESTMENT INSURANCE.— 

4 (1) IN GENERAL.—The Corporation may issue 

5 insurance, upon such terms and conditions as the 

6 Corporation may determine, to eligible investors, as7 suring protection in whole or in part against any or 

8 all of the following risks with respect to projects 

9 which the Corporation has approved: 

10 (A) Inability to convert into United States 

11 dollars other currencies, or credits in such cur12 rencies, received as earnings or profits from the 

13 approved project, as repayment or return of the 

14 investment therein, in whole or in part, or as 

15 compensation for the sale or disposition of all 

16 or any part thereof. 

17 (B) Loss of investment, in whole or in 

18 part, in the approved project due to expropria19 tion or confiscation by action of a foreign gov20 ernment or any political subdivision thereof. 

21 (C) Loss due to war, revolution, insurrec22 tion, or civil strife. 

23 (D) Loss due to business interruption 

24 caused by any of the risks set forth in subpara25 graphs (A), (B), and (C). 


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1 (2) SHARED LIABILITIES.—Recognizing that 

2 major private investments in less developed friendly 

3 countries or areas are often made by enterprises in 

4 which there is multinational participation, including 

5 significant United States private participation, the 

6 Corporation may make arrangements with foreign 

7 governments (including agencies, instrumentalities, 

8 or political subdivisions thereof) or with multilateral 

9 organizations and institutions for sharing liabilities 

10 assumed under investment insurance for such invest11 ments and may in connection therewith issue insur12 ance to investors that do not otherwise qualify as eli13 gible investors, except that— 

14 (A) liabilities assumed by the Corporation 

15 under the authority of this paragraph shall be 

16 consistent with the purposes of this subtitle; 

17 and 

18 (B) the maximum share of liabilities so as19 sumed may not exceed the proportionate par20 ticipation by eligible investors in the project. 

21 (3) LIMITATION ON SINGLE INVESTORS.—Not 

22 more than 10 percent of the maximum contingent li23 ability of investment insurance that the Corporation 

24 is permitted to have outstanding under section 

25 7106(a)(1) may be issued to a single investor. 


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1 (4) REPORTS TO CONGRESS ON CERTAIN

2 RISKS.—Before issuing insurance for the first time 

3 for loss due to business interruption, and in each 

4 subsequent instance in which a significant expansion 

5 is proposed in the type of risk to be insured under 

6 the definition of ‘‘civil strife’’ or ‘‘business interrup7 tion’’, the Corporation shall, at least 60 days before 

8 such insurance is issued, submit to the Committee 

9 on Foreign Relations of the Senate and the Com10 mittee on Foreign Affairs of the House of Rep11 resentatives a report with respect to such insurance, 

12 including a thorough analysis of the risks to be cov13 ered, anticipated losses, and proposed rates and re14 serves and, in the case of insurance for loss due to 

15 business interruption, an explanation of the under16 writing basis upon which the insurance is to be of17 fered. Any such report with respect to insurance for 

18 loss due to business interruption shall be considered 

19 in accordance with the procedures applicable to re20 programming notifications pursuant to section 8401 

21 of this Act. 

22 (b) INVESTMENT GUARANTIES.—The Corporation 

23 may issue to eligible investors guaranties of loans and 

24 other investments made by such investors assuring against 

25 loss due to such risks and upon such terms and conditions 


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1 as the Corporation may determine, subject to the fol2 lowing: 

3 (1) Such guaranties on other than loan invest4 ments may not exceed 75 percent of such invest5 ment. 

6 (2) Except for loan investments for credit 

7 unions made by eligible credit unions or credit union 

8 associations, the aggregate amount of investment 

9 (exclusive of interest and earnings) so guaranteed 

10 with respect to any project may not exceed, at the 

11 time of issuance of any such guaranty, 75 percent 

12 of the total investment committed to any such 

13 project as determined by the Corporation, such de14 termination to be conclusive for purposes of the Cor15 poration’s authority to issue any such guaranty. 

16 (3) Not more than 15 percent of the maximum 

17 contingent liability of investment guaranties that the 

18 Corporation is permitted to have outstanding under 

19 section 7106(a)(1) may be issued to a single inves20 tor. 

21 (c) DIRECT LOANS.— 

22 (1) AUTHORITY.—The Corporation may make 

23 loans in United States dollars repayable in dollars or 

24 loans in foreign currencies (including, without re25 gard to section 1306 of title 31, United States Code, 


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1 such foreign currencies that the Secretary of the 

2 Treasury may determine to be excess to the normal 

3 requirements of the United States and the Director 

4 of the Office of Management and Budget may allo5 cate) to firms privately owned or of mixed private 

6 and public ownership, upon such terms and condi7 tions as the Corporation may determine. 

8 (2) PORTION OF LOAN FOR TECHNOLOGIES AND

9 PROJECTS IN THE UNITED STATES.—The Corpora10 tion may designate up to 25 percent of any loan 

11 under this subsection for use in the development or 

12 adaptation in the United States of new technologies 

13 or new products or services that are to be used in 

14 the project for which the loan is made and are likely 

15 to contribute to the economic or social development 

16 of less developed countries. 

17 (3) RESTRICTION ON EXTRACTION OF OIL, GAS, 

18 AND MINERALS.—No loan may be made under this 

19 subsection to finance any operation for the extrac20 tion of oil or gas. The aggregate amount of loans 

21 under this subsection to finance operations for the 

22 mining or other extraction of any deposit of ore or 

23 other nonfuel minerals may not in any fiscal year ex24 ceed $4,000,000. 


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1 (d) INVESTMENT ENCOURAGEMENT.—The Corpora2 tion may initiate and support through financial participa3 tion, incentive grant, or otherwise, and on such terms and 

4 conditions as the Corporation may determine, the identi5 fication, assessment, surveying, and promotion of private 

6 investment opportunities, using wherever feasible and ef7 fective the facilities of private investors, except that— 

8 (1) the Corporation may not finance any survey 

9 to ascertain the existence, location, extent, or quality 

10 of, or to determine the feasibility of undertaking op11 erations for the extraction of, oil or gas; and 

12 (2) expenditures financed by the Corporation 

13 during any fiscal year on surveys to ascertain the ex14 istence, location, extent, or quality of, or to deter15 mine the feasibility of undertaking operations for the 

16 extraction of, nonfuel minerals may not exceed 

17 $200,000. 

18 (e) SPECIAL ACTIVITIES.—The Corporation may ad19 minister and manage special projects and programs, in20 cluding programs of financial and advisory support that 

21 provide private technical, professional, or managerial as22 sistance in the development of human resources, skills, 

23 technology, capital savings, and intermediate financial and 

24 investment institutions and cooperatives and including the 

25 initiation of incentives, grants, and studies for renewable 


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1 energy and other small business activities. The funds for 

2 such projects and programs may, with the Corporation’s 

3 concurrence, be transferred to it for such purposes under 

4 the authority of section 10505(a) or from other sources, 

5 public or private. Administrative funds may not be made 

6 available for incentives, grants, and studies for renewable 

7 energy and other small business activities. 

8 (f) OTHER INSURANCE FUNCTIONS.— 

9 (1) REINSURANCE, ETC.—The Corporation may 

10 make and carry out contracts of insurance or rein11 surance, or agreements to associate or share risks, 

12 with insurance companies, financial institutions, any 

13 other persons, or groups thereof, and employing 

14 such companies, institutions, persons, or groups 

15 where appropriate, as its agent, or acting as their 

16 agent, in the issuance and servicing of insurance, the 

17 adjustment of claims, the exercise of subrogation 

18 rights, the ceding and accepting of reinsurance, and 

19 in any other matter incident to an insurance busi20 ness, except that such agreements and contracts 

21 shall be consistent with the purposes of the Corpora22 tion set forth in section 7101 and shall be on equi23 table terms. 

24 (2) RISK SHARING.—The Corporation may 

25 enter into pooling or other risk-sharing agreements 


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1 with multinational insurance or financing agencies 

2 or groups of such agencies. 

3 (3) HOLDING OWNERSHIP INTERESTS.—The 

4 Corporation may hold an ownership interest in any 

5 association or other entity established for the pur6 poses of sharing risks under investment insurance. 

7 (4) REINSURANCE OF CERTAIN LIABILITIES.— 

8 The Corporation may issue, upon such terms and 

9 conditions as it may determine, reinsurance of liabil10 ities assumed by other insurers or groups thereof 

11 with respect to risks referred to in subsection (a)(1). 

12 (5) LIMIT ON REINSURANCE.—The amount of 

13 reinsurance of liabilities under this subtitle that the 

14 Corporation may issue may not in the aggregate ex15 ceed at any one time an amount equal to the amount 

16 authorized for the maximum contingent liability out17 standing at any one time under section 7106(a)(1). 

18 All reinsurance issued by the Corporation under this 

19 subsection shall require that the reinsured party re20 tain for that party’s own account specified portions 

21 of liability, whether first loss or otherwise. 

22 (g) LOCAL CURRENCY GUARANTIES FOR ELIGIBLE

23 INVESTORS.—The Corporation may issue to eligible inves24 tors, or to local financial institutions, guaranties, denomi25 nated in currencies other than United States dollars, of 


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1 loans and other investments made to projects sponsored 

2 by or significantly involving eligible investors, assuring 

3 against loss due to such risks and upon such terms and 

4 conditions as the Corporation may determine, for projects 

5 that the Corporation determines to have significant devel6 opmental effects or as the Corporation determines to be 

7 necessary or appropriate to carry out the purposes of this 

8 subtitle. 

9 (h) PUBLIC HEARINGS.— 

10 (1) ANNUAL PUBLIC HEARINGS.—The Board 

11 shall hold at least one public hearing each year in 

12 order to afford an opportunity for any person to 

13 present views as to whether the Corporation is car14 rying out its activities in accordance with section 

15 7101 and this section or whether any investment in 

16 a particular country should have been or should be 

17 extended insurance, reinsurance, guaranties, or fi18 nancing under this subtitle. 

19 (2) HEARINGS IN CONNECTION WITH BOARD

20 MEETINGS.—In conjunction with each meeting of its 

21 Board, the Corporation shall hold a public hearing 

22 in order to afford an opportunity for any person to 

23 present views regarding the activities of the Cor24 poration. Such views shall be made part of the 

25 record. 


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1 SEC. 7106. ISSUING AUTHORITY; DIRECT LOAN AUTHORITY; 

2 DISCHARGE OF LIABILITIES. 

3 (a) ISSUING AUTHORITY.— 

4 (1) MAXIMUM CONTINGENT LIABILITY.—The 

5 maximum contingent liability outstanding at any one 

6 time pursuant to insurance issued under section 

7 7105(a), and the amount of financing issued under 

8 subsections (b) and (c) of section 7105, may not ex9 ceed in the aggregate $50,000,000,000. 

10 (2) PAYMENT OF SUBSIDY AND ADMINISTRA11 TIVE COSTS.—Subject to spending authority pro12 vided in appropriations Acts pursuant to section 

13 504(b) of the Federal Credit Reform Act of 1990, 

14 the Corporation may transfer such sums as are nec15 essary from its noncredit activities to pay for the 

16 subsidy and administrative costs of the investment 

17 guaranties and direct loan programs under sub18 sections (b) and (c) of section 7105. 

19 (b) NONCREDIT ACCOUNT REVOLVING FUND.— 

20 There is established in the Treasury of the United States 

21 a noncredit account revolving fund, which shall be avail22 able for discharge of liabilities, as provided in subsection 

23 (c), until such time as all such liabilities have been dis24 charged or have expired or until all of the fund has been 

25 expended in accordance with the provisions of this section. 

26 Such fund shall be funded by— 


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1 (1) the funds remaining, on the day before the 

2 date of the enactment of this Act, in the noncredit 

3 account revolving fund established under section 

4 235(c) of the Foreign Assistance Act of 1961; 

5 (2) such sums as are appropriated pursuant to 

6 subsection (d) for such purpose; and 

7 (3) additional amounts as may be transferred 

8 to such fund pursuant to section 7107. 

9 (c) ORDER OF PAYMENTS TO DISCHARGE LIABIL10 ITIES.—Any payment made to discharge liabilities under 

11 investment insurance or reinsurance issued under section 

12 7105 or under similar predecessor guaranty authority, 

13 shall be paid first out of the noncredit account revolving 

14 fund, as long as such fund remains available, and there15 after out of funds made available pursuant to subsection 

16 (d) of this section. Any payments made to discharge liabil17 ities under guaranties issued under subsection (b) or (c) 

18 of section 7105 shall be paid in accordance with the Fed19 eral Credit Reform Act of 1990. 

20 (d) AUTHORIZATION OF APPROPRIATIONS.— 

21 (1) IN GENERAL.—There are authorized to be 

22 appropriated to the Corporation, to remain available 

23 until expended, such amounts as may be necessary 

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1 ities under insurance, reinsurance, or guaranties 

2 issued by the Corporation or issued under prede3 cessor guaranty authority, or to discharge obliga4 tions of the Corporation purchased by the Secretary 

5 of the Treasury pursuant to this subsection. 

6 (2) LIMITATION ON APPROPRIATIONS.—No ap7 propriations may be made to augment the noncredit 

8 account revolving fund until the amount of funds in 

9 the noncredit account revolving fund is less than 

10 $25,000,000. Any appropriations to augment the 

11 noncredit account revolving fund shall then only be 

12 made either pursuant to specific authorization en13 acted after the date of the enactment of this Act, or 

14 to satisfy the full faith and credit provision of sec15 tion 7108(c). 

16 (3) ISSUANCE OF TREASURY INSTRUMENTS.— 

17 In order to discharge liabilities under investment in18 surance or reinsurance, the Corporation may issue 

19 from time to time for purchase by the Secretary of 

20 the Treasury its notes, debentures, bonds, or other 

21 obligations, except that the aggregate amount of 

22 such obligations outstanding at any one time may 

23 not exceed $100,000,000. Any such obligation shall 

24 be repaid to the Treasury within one year after the 

25 date of issue of such obligation. Any such obligation 


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1 shall bear interest at a rate determined by the Sec2 retary of the Treasury, taking into consideration the 

3 current average market yield on outstanding market4 able obligations of the United States of comparable 

5 maturities during the month preceding the issuance 

6 of the obligation. The Secretary of the Treasury 

7 shall purchase any obligation of the Corporation 

8 issued under this subsection, and for such purchase 

9 the Secretary may use as a public debt transaction 

10 the proceeds of the sale of any securities issued 

11 under chapter 31 of title 31, United States Code (or 

12 the Second Liberty Bond Act), after the date of the 

13 enactment of the Overseas Private Investment Cor14 poration Amendments Act of 1974. The purpose for 

15 which securities may be issued under such chapter 

16 shall include any such purchase. 

17 SEC. 7107. INCOME AND REVENUES. 

18 In order to carry out the purposes of the Corporation, 

19 all revenues and income transferred to or earned by the 

20 Corporation, from whatever source derived, shall be held 

21 by the Corporation and shall be available to carry out its 

22 purposes, including without limitation— 

23 (1) payment of all expenses of the Corporation, 

24 including investment promotion expenses; 


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1 (2) transfers and additions to the insurance or 

2 guaranty reserves, noncredit account revolving fund, 

3 and such other funds or reserves as the Corporation 

4 may establish, at such time and in such amounts as 

5 the Board may determine; and 

6 (3) payment of dividends, on capital stock, 

7 which shall consist of and be paid from net earnings 

8 of the Corporation after payments, transfers, and 

9 additions under paragraphs (1) and (2). 

10 SEC. 7108. GENERAL PROVISIONS RELATING TO INSUR11 ANCE, GUARANTY, AND FINANCING PRO12 GRAM. 

13 (a) AGREEMENT WITH HOST COUNTRY.—Insurance, 

14 guaranties, and reinsurance issued under this subtitle 

15 shall cover investment made in connection with projects 

16 in any less developed country with the government to 

17 which the President of the United States has agreed to 

18 institute a program for insurance, guaranties, or reinsur19 ance. 

20 (b) PROTECTION OF INTERESTS OF CORPORATION.— 

21 The Corporation shall determine that suitable arrange22 ments exist for protecting the interest of the Corporation 

23 in connection with any insurance, guaranty, or reinsurance 

24 issued under this subtitle, including arrangements con25 cerning ownership, use, and disposition of the currency, 


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1 credits, assets, or investments on account of which pay2 ment under such insurance, guaranty, or reinsurance is 

3 to be made, and right, title, claim, or cause of action exist4 ing in connection therewith. 

5 (c) FULL FAITH AND CREDIT OF THE UNITED

6 STATES.—All insurance, reinsurance, and guaranties 

7 issued under this subtitle or predecessor guaranty author8 ity shall constitute obligations, in accordance with the 

9 terms of such insurance, reinsurance, or guaranties, of the 

10 United States of America and the full faith and credit of 

11 the United States of America is hereby pledged for the 

12 full payment and performance of such obligations. 

13 (d) FEES.— 

14 (1) IN GENERAL.—Fees may be charged for 

15 providing insurance, reinsurance, guaranties, financ16 ing, and other services under this subtitle in 

17 amounts to be determined by the Corporation. In 

18 the event fees charged for insurance, reinsurance, 

19 guaranties, financing, or other services are reduced, 

20 fees to be paid under existing contracts for the same 

21 type of insurance, reinsurance, guaranties, financing, 

22 or services and for similar guaranties issued under 

23 predecessor guaranty authority may be reduced. 

24 (2) CREDIT TRANSACTION COSTS.—Project-spe25 cific transaction costs incurred by the Corporation 


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1 relating to loan obligations or loan guaranty commit2 ments covered by the provisions of the Federal Cred3 it Reform Act of 1990, including the costs of 

4 project-related travel and expenses for legal rep5 resentation provided by persons outside the Corpora6 tion and other similar expenses that are charged to 

7 the borrower, shall be paid out of the appropriate fi8 nance account established pursuant to section 

9 505(b) of that Act. 

10 (3) NONCREDIT TRANSACTION COSTS.—Fees 

11 paid for the project-specific transaction costs and 

12 other direct costs associated with services provided 

13 to specific investors or potential investors pursuant 

14 to section 7105 (other than those covered in para15 graph (2)), including financing, insurance, reinsur16 ance, missions, seminars, conferences, and other 

17 preinvestment services, shall be available for obliga18 tion for the purposes for which they were collected, 

19 notwithstanding any other provision of law. 

20 (e) LIMITATION ON TERM OF ASSISTANCE.—No in21 surance, guaranty, or reinsurance of any equity invest22 ment may extend beyond 20 years from the date of 

23 issuance. 

24 (f) LIMITATION ON COMPENSATION.— 


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1 (1) IN GENERAL.—Compensation for any insur2 ance, reinsurance, or guaranty issued under this 

3 subtitle may not exceed the dollar value, as of the 

4 date of the investment, of the investment made in 

5 the project with the approval of the Corporation, 

6 plus interest, earnings, or profits actually accrued on 

7 such investment to the extent provided by such in8 surance, reinsurance, or guaranties, except that the 

9 Corporation may provide that— 

10 (A) appropriate adjustments in the insured 

11 dollar value be made to reflect the replacement 

12 cost of project assets; 

13 (B) compensation for a claim of loss under 

14 insurance of an equity investment may be com15 puted on the basis of the net book value attrib16 utable to such equity investment on the date of 

17 loss; and 

18 (C) compensation for loss due to business 

19 interruption may be computed on a basis to be 

20 determined by the Corporation that reflects 

21 amounts lost. 

22 (2) LIMITATION ON RISK OF LOSS.—Notwith23 standing paragraph (1), the Corporation shall limit 

24 the amount of direct insurance and reinsurance 

25 issued by it under section 7105 so that risk of loss 


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1 as to at least 10 percent of the total investment of 

2 the insured and its affiliates in the project is borne 

3 by the insured and such affiliates, except that limita4 tion shall not apply to direct insurance or reinsur5 ance of loans by banks or other financial institutions 

6 to unrelated parties. 

7 (g) NO PAYMENT WHEN FRAUD INVOLVED.—No 

8 payment may be made under any guaranty, insurance, or 

9 reinsurance issued under this subtitle for any loss arising 

10 out of fraud or misrepresentation for which the party seek11 ing payment is responsible. 

12 (h) LIMITATION ON INVESTMENT IN FOREIGN INSTI13 TUTIONS.—Insurance, guaranties, or reinsurance issued 

14 under this subtitle of a loan or equity investment of an 

15 eligible investor in a foreign bank, finance company, or 

16 other credit institution shall extend only to such loan or 

17 equity investment and not to any individual loan or equity 

18 investment made by such foreign bank, finance company, 

19 or other credit institution. 

20 (i) SETTLEMENT OF CLAIMS.—Claims arising as a 

21 result of insurance, reinsurance, or guaranty operations 

22 under this subtitle or under predecessor guaranty author23 ity may be settled, and disputes arising as a result thereof 

24 may be arbitrated with the consent of the parties, on such 

25 terms and conditions as the Corporation may determine. 


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1 Payment made pursuant to any such settlement, or as a 

2 result of an arbitration award, shall be final and conclu3 sive, notwithstanding any other provision of law. 

4 (j) PRESUMPTION OF COMPLIANCE OF CON5 TRACTS.—Each guaranty contract executed by such offi6 cer or officers as may be designated by the Board shall 

7 be conclusively presumed to be issued in compliance with 

8 the requirements of this subtitle. 

9 (k) CONSIDERATION OF EFFECT ON BALANCE OF

10 PAYMENTS.—In making a determination to issue insur11 ance, guaranties, or reinsurance under this subtitle, the 

12 Corporation shall consider the possible adverse effect of 

13 the dollar investment under such insurance, guaranty, or 

14 reinsurance upon the balance of payments of the United 

15 States. 

16 (l) VIOLATION OF FOREIGN CORRUPT PRACTICES

17 ACT.— 

18 (1) IN GENERAL.—No payment may be made 

19 under any insurance or reinsurance that is issued 

20 under this subtitle for any loss occurring with re21 spect to a project, if the preponderant cause of such 

22 loss was an act by the investor seeking payment 

23 under this subtitle, by a person possessing majority 

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1 ling person, and a court of the United States has en2 tered a final judgment that such act constituted a 

3 violation under the Foreign Corrupt Practices Act of 

4 1977 or section 30A of the Securities Exchange Act 

5 of 1934. 

6 (2) REGULATIONS TO BAR ELIGIBILITY.—The 

7 Corporation shall adopt regulations setting forth ap8 propriate conditions under which any person con9 victed under the Foreign Corrupt Practices Act of 

10 1977 or section 30A of the Securities Exchange Act 

11 of 1934 for an offense related to a project insured 

12 or otherwise supported by the Corporation shall be 

13 suspended, for a period of not more than 5 years, 

14 from eligibility to receive any insurance, reinsurance, 

15 guaranty, loan, or other financial support authorized 

16 by this subtitle. 

17 (m) NOTIFICATION OF HOST COUNTRY OF HEALTH, 

18 SAFETY, AND ENVIRONMENTAL STANDARDS.— 

19 (1) NOTIFICATION.— 

20 (A) IN GENERAL.—Before finally providing 

21 insurance, reinsurance, guaranties, or financing 

22 under this subtitle for any environmentally sen23 sitive investment in connection with a project in 

24 a country, the Corporation shall notify appro25 priate government officials of that country of— 


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1 (i) all guidelines and other standards 

2 adopted by the International Bank for Re3 construction and Development and any 

4 other international organization relating to 

5 the public health or safety or the environ6 ment that are applicable to the project; 

7 and 

8 (ii) to the maximum extent prac9 ticable, any restriction under any law of 

10 the United States relating to public health 

11 or safety or the environment that would 

12 apply to the project if the project were un13 dertaken in the United States. 

14 (B) CONTENTS OF NOTIFICATION.—The 

15 notification under the subparagraph (A) shall 

16 include a summary of the guidelines, standards, 

17 and restrictions referred to in clauses (i) and 

18 (ii) of subparagraph (A). 

19 (2) CONSIDERATION OF COMMENTS.—Before fi20 nally providing insurance, reinsurance, guaranties, 

21 or financing for any investment subject to paragraph 

22 (1), the Corporation shall take into account any 

23 comments it receives on the project involved that the 

24 Corporation considers relevant to such project. 


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1 (n) PENALTIES FOR FRAUD.—Whoever knowingly 

2 makes any false statement or report, or willfully over3 values any land, property, or security, for the purpose of 

4 influencing in any way the action of the Corporation with 

5 respect to any insurance, reinsurance, guaranty, loan, eq6 uity investment, or other activity of the Corporation under 

7 section 7105, or any change or extension of any such in8 surance, reinsurance, guaranty, loan, equity investment, 

9 or activity, by renewal, deferment of action, or otherwise, 

10 or the acceptance, release, or substitution of security 

11 therefor, shall be fined not more than $1,000,000 or im12 prisoned not more than 30 years, or both. 

13 (o) USE OF LOCAL CURRENCIES.—Direct loans or in14 vestments made in order to preserve the value of funds 

15 received in inconvertible foreign currency by the Corpora16 tion as a result of activities conducted pursuant to section 

17 7105(a) shall not be considered in determining whether 

18 the Corporation has made or has outstanding loans or in19 vestments to the extent of any limitation on obligations 

20 and equity investment imposed by or pursuant to this sub21 title. The provisions of section 504(b) of the Federal Cred22 it Reform Act of 1990 shall not apply to direct loan obliga23 tions made with funds described in this subsection. 


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1 SEC. 7109. GENERAL PROVISIONS AND POWERS. 

2 (a) PRINCIPAL OFFICE AND RESIDENCE.—The Cor3 poration shall have its principal office in the District of 

4 Columbia and shall be deemed, for purposes of venue in 

5 civil actions, to be resident thereof. 

6 (b) CONTINUATION OF STATUS.—Notwithstanding 

7 section 11201(1), section 239(c) of the Foreign Assistance 

8 Act of 1961 shall not be repealed and shall remain in ef9 fect as on the day before the date of the enactment of 

10 this Act. 

11 (c) GENERAL AUTHORITIES.—To carry out the pur12 poses of this subtitle, the Corporation may— 

13 (1) adopt and use a corporate seal, which shall 

14 be judicially noticed; 

15 (2) sue and be sued in its corporate name; 

16 (3) adopt, amend, and repeal bylaws governing 

17 the conduct of its business and the performance of 

18 the powers and duties granted to or imposed upon 

19 it by law; 

20 (4) acquire, hold, or dispose of, upon such 

21 terms and conditions as the Corporation may deter22 mine, any property, real, personal, or mixed, tan23 gible or intangible, or any interest therein; 

24 (5) invest funds derived from fees and other 

25 revenues in obligations of the United States and use 


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1 the proceeds therefrom, including earnings and prof2 its, as it considers appropriate; 

3 (6) indemnify directors, officers, employees, and 

4 agents of the Corporation for liabilities and expenses 

5 incurred in connection with their Corporation activi6 ties; 

7 (7) require bonds of officers, employees, and 

8 agents and pay the premiums therefor; 

9 (8) notwithstanding any other provision of law, 

10 represent itself or contract for representation in all 

11 legal and arbitral proceedings; 

12 (9) enter into limited-term contracts with na13 tionals of the United States for personal services to 

14 carry out activities in the United States and abroad 

15 under subsections (d) and (e) of section 7105; 

16 (10) purchase, discount, rediscount, sell, and 

17 negotiate, with or without its endorsement or guar18 anty, and guarantee notes, participation certificates, 

19 and other evidence of indebtedness (except that the 

20 Corporation may not issue its own securities, except 

21 participation certificates for the purpose of carrying 

22 out section 7101(b)(2)(C) or participation certifi23 cates as evidence of indebtedness held by the Cor24 poration in connection with settlement of claims 

25 under section 7108(i)); 


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1 (11) make and carry out such contracts and 

2 agreements as are necessary and advisable in the 

3 conduct of its business; 

4 (12) exercise the priority of the United States 

5 Government in collecting debts from bankrupt, insol6 vent, or decedents’ estates; 

7 (13) determine the character of and the neces8 sity for its obligations and expenditures, and the 

9 manner in which they shall be incurred, allowed, and 

10 paid, subject to provisions of law specifically applica11 ble to Government corporations; 

12 (14) collect or compromise any obligations as13 signed to or held by the Corporation, including any 

14 legal or equitable rights accruing to the Corporation; 

15 and 

16 (15) take such actions as may be necessary or 

17 appropriate to carry out its powers. 

18 (d) DEVELOPMENT IMPACT PROFILES.—In order to 

19 carry out the purpose set forth in section 7101, the Cor20 poration shall prepare and maintain for each investment 

21 project it insures, finances, or reinsures, a development 

22 impact profile consisting of data appropriate to measure 

23 the projected and actual effects of such project on develop24 ment. Criteria for evaluating projects shall be developed 


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1 in consultation with the United States Agency for Inter2 national Development. 

3 (e) HUMAN RIGHTS.—The Corporation shall take 

4 into account in the conduct of its programs in a country, 

5 in consultation with the Secretary of State, all available 

6 information about observance of and respect for human 

7 rights and fundamental freedoms in such country and the 

8 effect the operation of such programs will have on human 

9 rights and fundamental freedoms in such country. 

10 (f) TAXATION.—The Corporation, including its fran11 chise, capital, reserves, surplus, advances, intangible prop12 erty, and income, shall be exempt from all taxation at any 

13 time imposed by the United States, by any territory, de14 pendency, or possession of the United States, or by any 

15 State, the District of Columbia, or any county, munici16 pality, or local taxing authority. 

17 (g) PUBLICATION OF POLICY GUIDELINES.—The 

18 Corporation shall publish, and make available to appli19 cants for insurance, reinsurance, guaranties, financing, or 

20 other assistance made available by the Corporation under 

21 this subtitle, the policy guidelines of the Corporation relat22 ing to its programs. 

23 SEC. 7110. REPORTS TO THE CONGRESS. 

24 (a) ANNUAL REPORT.—Not later than 3 months 

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1 mit to the Congress a complete and detailed report of its 

2 operations during such fiscal year. Such report shall in3 clude— 

4 (1) an assessment, based upon the development 

5 impact profiles required by section 7109(d), of the 

6 economic and social development impact and benefits 

7 of the projects with respect to which such profiles 

8 are prepared, and of the extent to which the oper9 ations of the Corporation complement or are com10 patible with the development assistance programs of 

11 the United States and other donors; and 

12 (2) a description of any project for which the 

13 Corporation— 

14 (A) refused to provide any insurance, rein15 surance, guaranty, financing, or other financial 

16 support, on account of information received 

17 under section 7109(e); or 

18 (B) notwithstanding such violations, pro19 vided such insurance, reinsurance, guaranty, fi20 nancing, or financial support, on the basis of a 

21 determination that the national security interest 

22 so requires. 

23 (b) PROJECTIONS ON U.S. EMPLOYMENT.— 

24 (1) IN ANNUAL REPORTS.—Each annual report 

25 required by subsection (a) shall contain projections 


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1 of the effects on employment in the United States 

2 of all projects for which, during the preceding fiscal 

3 year, the Corporation initially issued any insurance, 

4 reinsurance, or guaranty or made any direct loan. 

5 Each such report shall include projections of— 

6 (A) the amount of United States exports to 

7 be generated by those projects, both during the 

8 startup phase and over a period of years; 

9 (B) the final destination of the products to 

10 be produced as a result of those projects; and 

11 (C) the impact such production will have 

12 on the production of similar products in the 

13 United States with regard to both domestic 

14 sales and exports. 

15 (2) ANALYSIS OF EACH PROJECT REQUIRED.— 

16 The projections required by this subsection shall be 

17 based on an analysis of each of the projects de18 scribed in paragraph (1). 

19 (3) INFORMATION TO BE INCLUDED.— 

20 (A) IN GENERAL.—In reporting the projec21 tions on employment required by this sub22 section, the Corporation shall specify, with re23 spect to each project— 


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1 (i) any loss of jobs in the United 

2 States caused by the project, whether or 

3 not the project itself creates other jobs; 

4 (ii) any jobs created by the project; 

5 and 

6 (iii) the country in which the project 

7 is located, and the economic sector involved 

8 in the project. 

9 (B) PROTECTION OF PROPRIETARY INFOR10 MATION.—No proprietary information may be 

11 disclosed under subparagraph (A). 

12 (c) RECORDS TO BE MAINTAINED BY CORPORA13 TION.—The Corporation shall maintain as part of its 

14 records a copy of the analysis done of each project in pre15 paring the reports required by subsection (b). 

16 (d) PROTECTION OF CONFIDENTIAL INFORMA17 TION.—Subsection (b) does not require the inclusion in 

18 any report submitted pursuant to that subsection of any 

19 information that would not be required to be made avail20 able to the public pursuant to section 552 of title 5, 

21 United States Code (relating to freedom of information). 

22 SEC. 7111. DEFINITIONS. 

23 In this subtitle: 

24 (1) ELIGIBLE INVESTOR.—The term ‘‘eligible 

25 investor’’ means— 


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1 (A) a United States citizen; and 

2 (B) a corporation, partnership, or other as3 sociation, including a nonprofit association, that 

4 is created under the laws of the United States, 

5 any State or territory thereof, or the District of 

6 Columbia. 

7 (2) EXPROPRIATION.—The term ‘‘expropria8 tion’’ includes any abrogation, repudiation, or im9 pairment by a foreign government, a political sub10 division of a foreign government, or a corporation 

11 owned or controlled by a foreign government, of its 

12 own contract with an investor with respect to a 

13 project, if such abrogation, repudiation, or impair14 ment is not caused by the investor’s own fault or 

15 misconduct, and materially adversely affects the con16 tinued operation of the project. 

17 (3) INVESTMENT.—The term ‘‘investment’’ in18 cludes any contribution or commitment of funds, 

19 commodities, services, patents, processes, or tech20 niques, in the form of— 

21 (A) a loan or loans to an approved project; 

22 (B) the purchase of a share of ownership 

23 in any such project; 

24 (C) participation in royalties, earnings, or 

25 profits of any such project; and 


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1 (D) the furnishing of commodities or serv2 ices pursuant to a lease or other contract. 

3 (4) LOCAL FINANCIAL INSTITUTION.—The term 

4 ‘‘local financial institution’’— 

5 (A) means any bank or financial institu6 tion that is organized under the laws of any 

7 country or area in which the Corporation oper8 ates; but 

9 (B) does not include a branch, however or10 ganized, of a bank or other financial institution 

11 that is organized under the laws of a country 

12 in which the Corporation does not operate. 

13 (5) NONCREDIT ACCOUNT REVOLVING FUND.— 

14 The term ‘‘noncredit account revolving fund’’ means 

15 the noncredit account revolving fund established 

16 under section 7106(b). 

17 (6) NONCREDIT ACTIVITIES.—The term ‘‘non18 credit activities’’ means all activities of the Corpora19 tion other than its loan guaranty program under 

20 section 7105(b) and its direct loan program under 

21 section 7105(c). 

22 (7) PREDECESSOR GUARANTY AUTHORITY.— 

23 The term ‘‘predecessor guaranty authority’’ means 

24 prior guaranty authorities (other than housing guar25 anty authorities) repealed by the Foreign Assistance 


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1 Act of 1969, section 202(b) and 413(b) of the Mu2 tual Security Act of 1954, section 111(b)(3) of the 

3 Economic Cooperation Act of 1948 (exclusive of au4 thority relating to informational media guaranties), 

5 and authorities of the Corporation under title IV of 

6 chapter 2 of part I of the Foreign Assistance Act of 

7 1961. 

8 (8) UNITED STATES PERSON.—The term 

9 ‘‘United States person’’ means— 

10 (A) a United States citizen or national; 

11 and 

12 (B) any other entity that qualifies as an el13 igible investor. 

14 Subtitle B—United States Trade 

15 and Development Agency 

16 SEC. 7201. UNITED STATES TRADE AND DEVELOPMENT 

17 AGENCY. 

18 (a) PURPOSE.—The United States Trade and Devel19 opment Agency (in this subtitle referred to as the ‘‘Agen20 cy’’) shall be an agency of the United States under the 

21 policy guidance of the Secretary of State and the Inter22 agency Policy Committee on Global Development. The pri23 mary purpose of the Agency is to facilitate United States 

24 private sector participation in development projects in de25 veloping countries, consistent with Country Development 


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1 Cooperation Strategies prepared under section 1018. The 

2 Agency may also utilize its authorities and programs in 

3 other countries in furtherance of United States foreign 

4 policy and economic interests. 

5 (b) AUTHORITY TO PROVIDE ASSISTANCE.— 

6 (1) AUTHORITY.—The Director of the Agency 

7 may, under the direction of the Secretary of State 

8 and the Interagency Policy Committee on Global De9 velopment, carry out this subtitle by providing funds 

10 for technical assistance, feasibility studies, architec11 tural and engineering design, and other activities re12 lated to the goals of the United States to attract and 

13 retain private sector investment in countries that are 

14 receiving United States development assistance 

15 under this Act and to promote exports of United 

16 States-origin goods and services. 

17 (2) USE OF FUNDS.—Funds under this section 

18 may be used to provide support for feasibility studies 

19 for the planning, development, and management of, 

20 and procurement for, bilateral and multilateral de21 velopment projects, including training activities un22 dertaken in connection with a project, for the pur23 pose of promoting the use of United States-origin 

24 goods and services in such projects. Funds under 


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1 this section may also be used for architectural and 

2 engineering design, including— 

3 (A) concept design, which establishes the 

4 basic technical and operational criteria for a 

5 project, such as architectural drawings for a 

6 proposed facility, evaluation of site constraints, 

7 procurement requirements, and equipment spec8 ifications; 

9 (B) detail design, which sets forth specific 

10 dimensions and criteria for structural, mechan11 ical, electrical, and architectural operations, and 

12 identifies other resources required for project 

13 operations; and 

14 (C) technical assistance to facilitate the at15 traction and retention of private sector invest16 ment to sustain economic development. 

17 (3) INFORMATION DISSEMINATION.— 

18 (A) BY THE AGENCY.—The Agency shall 

19 disseminate information about its project activi20 ties to the private sector. 

21 (B) COOPERATION OF OTHER AGENCIES.— 

22 Other Federal agencies shall cooperate with the 

23 Agency in order for the Agency to provide more 

24 effectively informational services to persons in 

25 the private sector concerning trade development 


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1 and export promotion related to development 

2 projects. 

3 (4) CONTRIBUTIONS TO COSTS.—The Agency 

4 shall, to the maximum extent practicable, require 

5 corporations and other entities to— 

6 (A) share the costs of technical assistance, 

7 feasibility studies, and other project planning 

8 services funded under this section; and 

9 (B) reimburse the Agency for those funds 

10 provided under this section, if the corporation 

11 or entity concerned succeeds in implementing 

12 the project. 

13 (c) DIRECTOR AND PERSONNEL.— 

14 (1) DIRECTOR.—There shall be at the head of 

15 the Agency a Director who shall be appointed by the 

16 President, by and with the advice and consent of the 

17 Senate. 

18 (2) OFFICERS AND EMPLOYEES.— 

19 (A) IN GENERAL.—The Director may ap20 point such officers and employees of the Agency 

21 as the Director considers appropriate. 

22 (B) FUNCTIONS.—The officers and em23 ployees appointed under this paragraph shall 

24 have such functions as the Director may deter25 mine. 


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1 (C) INAPPLICABILITY OF CIVIL SERVICE

2 LAWS.—Of the officers and employees ap3 pointed under this paragraph, 2 may be ap4 pointed without regard to the provisions of title 

5 5, United States Code, governing appointments 

6 in the competitive service, and may be com7 pensated without regard to the provisions of 

8 chapter 51 or subchapter III of chapter 53 of 

9 such title. 

10 (D) REINSTATEMENT OF CERTAIN EM11 PLOYEES.—Under such regulations as the 

12 President may prescribe, any individual ap13 pointed under subparagraph (C) may be enti14 tled, upon removal (except for cause) from the 

15 position to which the appointment was made, to 

16 reinstatement to the position occupied by that 

17 individual at the time of appointment or to a 

18 position of comparable grade and pay. 

19 (d) ANNUAL REPORT.—The President shall, not later 

20 than December 31 of each year, submit to the appropriate 

21 congressional committees a report on the activities of the 

22 Agency during the preceding fiscal year. 

23 (e) AUDITS.— 

24 (1) IN GENERAL.—The Agency shall be subject 

25 to the provisions of chapter 35 of title 31, United 


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1 States Code, except as otherwise provided in this 

2 section. 

3 (2) INDEPENDENT AUDIT.—An independent 

4 certified public accountant shall perform a financial 

5 and compliance audit of the financial statements of 

6 the Agency each year, in accordance with generally 

7 accepted Government auditing standards for a finan8 cial and compliance audit, taking into consideration 

9 any standards recommended by the Comptroller 

10 General. The independent certified public accountant 

11 shall report the results of such audit to the Director 

12 of the Agency. The financial statements of the Agen13 cy shall be presented in accordance with generally 

14 accepted accounting principles. These financial state15 ments and the report of the accountant shall be in16 cluded in a report that contains, to the extent appli17 cable, the information identified in section 3512 of 

18 title 31, United States Code, and that the Agency 

shall submit to the Congress not later than 61 19 ⁄2

20 months after the end of the last fiscal year covered 

21 by the audit. The Comptroller General may review 

22 the audit conducted by the accountant and the re23 port to the Congress in the manner and at such 

24 times as the Comptroller General considers nec25 essary. 


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1 (3) AUDIT BY COMPTROLLER GENERAL.—The 

2 Comptroller General shall, if the Comptroller Gen3 eral considers it necessary or upon the request of the 

4 Congress, audit the financial statements of the 

5 Agency in the manner provided in paragraph (2). 

6 (4) AVAILABILITY OF INFORMATION.—All 

7 books, accounts, financial records, reports, files, 

8 workpapers, and property belonging to or in use by 

9 the Agency and the accountant who conducts the 

10 audit under paragraph (2), that are necessary for 

11 purposes of this subsection, shall be made available 

12 to the representatives of the Government Account13 ability Office designated by the Comptroller General. 

14 (f) FUNDING FOR TECHNICAL ASSISTANCE GRANTS

15 BY MULTILATERAL DEVELOPMENT BANKS.— 

16 (1) IN GENERAL.—The Agency, in carrying out 

17 its program, may provide, as appropriate, funds to 

18 multilateral development banks for technical assist19 ance grants. 

20 (2) DEFINITIONS.—As used in paragraph (1)— 

21 (A) the term ‘‘technical assistance grants’’ 

22 means funding by multilateral development 

23 banks of services from the United States in 

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1 ported by such banks, including engineering, 

2 design, and consulting services; and 

3 (B) the term ‘‘multilateral development 

4 bank’’ has the meaning given that term in sec5 tion 1701(c) of the International Financial In6 stitutions Act (22 U.S.C. 262r(c)). 

7 Subtitle C—Enterprise Funds 

8 SEC. 7301. FINDINGS. 

9 Congress makes the following findings: 

10 (1) Enterprise funds are an effective mecha11 nism to foster economic growth in support of United 

12 States foreign policy and development goals, by 

13 stimulating private capital flows and expanding fi14 nancing for free market-based private enterprise. 

15 (2) Enterprise funds provide incentives for im16 provements in legal systems, commercial and tax 

17 codes, and accounting practices, as essential founda18 tions for sustained economic growth. 

19 SEC. 7302. PURPOSES. 

20 The purposes of this subtitle are— 

21 (1) to promote the private sector of partner 

22 countries while considering the development impact 

23 of investments and profitability of those investments, 

24 particularly in small- and medium-sized enterprises; 


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1 (2) to promote policies and practices conducive 

2 to strengthening the private sector through loans, 

3 microloans, equity investments, insurance, guaran4 ties, grants, feasibility studies, technical assistance, 

5 training for businesses receiving investment capital, 

6 and other measures; 

7 (3) to promote good corporate governance and 

8 transparency, foster competition, catalyze produc9 tivity improvements in existing businesses, and 

10 strengthen local capital markets; 

11 (4) to promote stability and security through 

12 job creation in the private sector and by fostering 

13 upward economic mobility; and 

14 (5) to promote fiscal sustainability through ex15 panded private sector adherence to tax codes and, 

16 where appropriate, foster improvements in the tax 

17 code and regulatory environment in order to support 

18 economic development. 

19 SEC. 7303. AUTHORITY TO DESIGNATE ENTERPRISE FUNDS. 

20 (a) AUTHORITY.— 

21 (1) IN GENERAL.—The Administrator is au22 thorized to designate private, nonprofit organizations 

23 to operate pursuant to this subtitle as enterprise 

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1 ganizations have been established for the purposes 

2 specified in section 7302. 

3 (2) CONSULTATION.—The Administrator shall 

4 consult with the appropriate congressional commit5 tees before designating an organization under para6 graph (1). 

7 (b) BOARD OF DIRECTORS.— 

8 (1) NUMBER AND APPOINTMENT.—Each enter9 prise fund shall be governed by a board of directors. 

10 Subject to paragraph (3), the board of directors 

11 shall be composed of 9 members appointed by the 

12 Administrator as follows: 

13 (A) Five individuals who are private citi14 zens of the United States. 

15 (B) Three individuals who are private citi16 zens of the country in which the enterprise fund 

17 will operate, to be appointed by the Adminis18 trator in consultation with the government of 

19 such country. 

20 (C) One individual who is an officer or em21 ployee of the United States Agency for Inter22 national Development. 

23 (2) QUALIFICATIONS.—Each member of the 

24 board of directors appointed under paragraph (1) 

25 shall be selected from among individuals who have 


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1 demonstrated expertise in one or more of the fol2 lowing areas: business development, commerce, inter3 national markets, capital investment, banking, and 

4 finance. 

5 (3) NONVOTING MEMBERS.—The Administrator 

6 may appoint not more than 2 additional members of 

7 the board of directors, who may not vote on matters 

8 before the board of directors. If appointed, such ad9 ditional members shall be representatives of non10 governmental organizations that have demonstrated 

11 expertise in the development needs of the country 

12 served by the enterprise fund. 

13 (c) USE OF AMOUNTS.— 

14 (1) IN GENERAL.—The Administrator may use 

15 funds appropriated by Congress to carry out the 

16 purposes specified in section 7302, including pay17 ment of the administrative expenses of the enterprise 

18 fund. 

19 (2) GRANTS.—The Administrator may use 

20 funds appropriated by Congress to make grants to 

21 enterprise funds designated under subsection (a), ex22 cept that such appropriated funds may be used only 

23 for the purposes set forth in section 7302. 

24 (3) COMPLIANCE REQUIREMENTS.— 


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1 (A) IN GENERAL.—The Administrator not 

2 award a grant to an enterprise fund under 

3 paragraph (2) unless the Administrator and en4 terprise fund enter into a grant agreement 

5 under which the enterprise fund agrees to com6 ply with the requirements under this section. 

7 (B) TERMINATION DATE.—Such grant 

8 agreement shall state that the enterprise fund 

9 shall liquidate its assets and dissolve not later 

10 than a date determined by the Administrator, 

11 unless the Administrator determines, after con12 sultation with the appropriate congressional 

13 committees, that the enterprise fund should be 

14 extended. 

15 (C) DISPOSITION OF ASSETS.—At the time 

16 the enterprise fund is dissolved, the assets of 

17 the enterprise fund shall be transferred to the 

18 General Fund of the United States Treasury. 

19 (d) NOTIFICATION TO CONGRESS.— 

20 (1) IN GENERAL.—Not less than 15 days before 

21 designating an organization to operate as an enter22 prise fund under subsection (a), the Administrator 

23 shall provide the information described in paragraph 

24 (2) to the appropriate congressional committees. 


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1 (2) INFORMATION.—The information described 

2 in this paragraph is— 

3 (A) the identity of the organization to be 

4 designated to operate as the enterprise fund 

5 under subsection (a); 

6 (B) the names and qualifications of the in7 dividuals who will comprise the board of direc8 tors of the enterprise fund; and 

9 (C) a copy of the grant agreement between 

10 the Administrator and the enterprise fund. 

11 (e) PUBLIC DISCLOSURE.—Not later than 1 year 

12 after the entry into force of the grant agreement between 

13 the Administrator and an enterprise fund under this sec14 tion, and annually thereafter, the enterprise fund shall 

15 prepare and make available to the public on an Internet 

16 website administered by the enterprise fund a report on 

17 the enterprise fund’s activities during the previous year, 

18 including— 

19 (1) a description of each investment supported 

20 by the enterprise fund, including each type of assist21 ance provided in accordance with section 7303(c); 

22 (2) the amounts invested by the enterprise fund 

23 in each company or project; 

24 (3) the amounts of additional private invest25 ments made in each company or project; 


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1 (4) the amounts of any profits or losses realized 

2 by the enterprise fund in connection with each such 

3 company or project; 

4 (5) the nature and amounts of administrative 

5 expenses incurred by the enterprise fund; and 

6 (6) the annual independent audit of the enter7 prise fund, as required under this subtitle. 

8 SEC. 7304. GAO REPORTS. 

9 Not later than 3 years after the establishment of an 

10 enterprise fund under this subtitle, and every 3 years 

11 thereafter until the enterprise fund is dissolved, the Comp12 troller General of the United States shall submit to the 

13 appropriate congressional committees a report assessing 

14 the activities of the enterprise fund in achieving the pur15 poses of enterprise funds under this subtitle, identifying 

16 obstacles to achieving such purposes, and recommending 

17 such operational improvements in the enterprise fund that 

18 the Comptroller General determines are necessary. 

19 SEC. 7305. OPERATION PROVISIONS. 

20 (a) PRIVATE CHARACTER OF ENTERPRISE FUNDS.— 

21 Nothing in this subtitle shall be construed to make an en22 terprise fund an agency or establishment of the United 

23 States Government, or to make the officers, employees, or 

24 members of the board of directors of an enterprise fund 


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1 officers or employees of the United States for purposes 

2 of title 5, United States Code. 

3 (b) MATTERS TO BE CONSIDERED BY ENTERPRISE

4 FUNDS.—In carrying out this subtitle, each enterprise 

5 fund shall take into account such considerations as inter6 nationally recognized worker rights and other internation7 ally recognized human rights, environmental factors, 

8 United States economic and employment effects, and the 

9 likelihood of commercial viability of the activity receiving 

10 assistance from the enterprise fund. 

11 (c) RETENTION OF INTEREST.—An enterprise fund 

12 may hold funds granted to it pursuant to this subtitle in 

13 interest-bearing accounts, prior to the disbursement of 

14 such funds for purposes specified in section 7302, and 

15 may retain for such program purposes any interest earned 

16 on such deposits without returning such interest to the 

17 Treasury of the United States and without further appro18 priation by the Congress. 

19 (d) USE OF UNITED STATES PRIVATE VENTURE

20 CAPITAL.—In order to maximize the effectiveness of the 

21 activities of the enterprise funds, each enterprise fund may 

22 conduct public offerings or private placements for the pur23 pose of soliciting and accepting United States venture cap24 ital which may be used, separately or together with funds 

25 made available pursuant to this subtitle, for any lawful 


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1 investment purpose that the board of directors of the en2 terprise fund may determine in carrying out this subtitle. 

3 Financial returns on enterprise fund investments that in4 clude a component of private venture capital may be dis5 tributed, at such times and in such amounts as the board 

6 of directors of the enterprise fund may determine, to the 

7 investors of such capital. 

8 (e) NONAPPLICABILITY OF OTHER LAWS.—Executive 

9 branch agencies may conduct programs and activities and 

10 provide services in support of the activities of the enter11 prise funds notwithstanding any other provision of law. 

12 (f) LIMITATION ON PAYMENTS TO ENTERPRISE

13 FUND PERSONNEL.— 

14 (1) BENEFITS BARRED.—No part of the funds 

15 of an enterprise fund shall inure to the benefit of 

16 any board member, officer, or employee of that en17 terprise fund, except as salary or reasonable com18 pensation for services, subject to paragraph (2). 

19 (2) CERATIN COMPENSATION BARRED.—An en20 terprise fund may not pay compensation for services 

21 to— 

22 (A) any board member of the enterprise 

23 fund, except for services as a board member; or 


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1 (B) any firm, association, or entity in 

2 which a board member of the enterprise fund 

3 serves as partner, director, officer, or employee. 

4 (3) EXCEPTION FOR PRIOR SERVICES.—Noth5 ing in paragraph (2) shall preclude payment for 

6 services performed before the date of the enactment 

7 of this subsection, nor for arrangements approved by 

8 the grantor and notified in writing to the Commit9 tees on Appropriations of the House of Representa10 tives and the Senate. 

11 (g) INDEPENDENT PRIVATE AUDITS.—The accounts 

12 of each enterprise fund shall be audited annually in ac13 cordance with generally accepted auditing standards by 

14 independent certified public accountants or independent li15 censed public accountants certified or licensed by a regu16 latory authority of a State or other political subdivision 

17 of the United States. The report of each such independent 

18 audit shall be included in the annual report required by 

19 this section. 

20 (h) GAO AUDITS.—The financial transactions under21 taken pursuant to this subtitle by each enterprise fund 

22 may be audited by the Government Accountability Office 

23 in accordance with such principles and procedures and 

24 under such rules and regulations as may be prescribed by 

25 the Comptroller General of the United States, so long as 


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1 the enterprise fund is in receipt of United States Govern2 ment grants. 

3 (i) RECORDKEEPING REQUIREMENTS.—The enter4 prise funds shall ensure— 

5 (1) that each recipient of assistance provided 

6 through the enterprise funds under this subtitle 

7 keeps— 

8 (A) separate accounts with respect to such 

9 assistance; 

10 (B) such records as may be reasonably 

11 necessary to disclose fully the amount and the 

12 disposition by such recipient of the proceeds of 

13 such assistance, the total cost of the project or 

14 undertaking in connection with which such as15 sistance is given or used, and the amount and 

16 nature of that portion of the cost of the project 

17 or undertaking supplied by other sources; and 

18 (C) such other records as will facilitate an 

19 effective audit; and 

20 (2) that the enterprise funds, or any of their 

21 duly authorized representatives, have access for the 

22 purpose of audit and examination to any books, doc23 uments, papers, and records of the recipient that are 

24 pertinent to assistance provided through the enter25 prise funds under this section. 


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1 (j) ANNUAL REPORTS.—Each enterprise fund shall 

2 publish an annual report, which shall include a com3 prehensive and detailed description of the enterprise 

4 fund’s operations, activities, financial condition, and ac5 complishments under this subtitle for the preceding fiscal 

6 year. This report shall be published not later than January 

7 31 each year, beginning in the calendar year after the cal8 endar year in which the enterprise fund is designated 

9 under this subtitle. 

10 (k) REINVESTMENT.—Returns on investments of an 

11 enterprise fund and other payments to the fund may be 

12 reinvested in projects carried out by the fund without fur13 ther appropriation by Congress. 

14 SEC. 7306. BEST PRACTICES AND PROCEDURES. 

15 To the maximum extent practicable, the board of di16 rectors of each enterprise fund established under this sub17 title should adopt the best practices and procedures used 

18 by enterprise funds, including those for which funding was 

19 made available pursuant to section 201 of the Support for 

20 East European Democracy (SEED) Act of 1989 (22 

21 U.S.C. 5421). 

22 SEC. 7307. EXPERIENCE OF OTHER ENTERPRISE FUNDS. 

23 In implementing this subtitle, the Administrator shall 

24 ensure that the articles of incorporation of each enterprise 

25 fund (including provisions specifying the responsibilities of 


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1 the board of directors of the enterprise fund), the terms 

2 of United States Government grant agreements with the 

3 enterprise fund, and United States Government oversight 

4 of the enterprise fund are, to the maximum extent prac5 ticable, consistent with the Articles of Incorporation of, 

6 the terms of grant agreements with, and the oversight of 

7 the Enterprise Funds established pursuant to section 201 

8 of the Support for East European Democracy (SEED) 

9 Act of 1989 (22 U.S.C. 5421) and comparable provisions 

10 of law. 

11 TITLE VIII—STRATEGIC PLAN12 NING, MONITORING AND 

13 EVALUATION, AND REPORT14 ING 

15 Subtitle A—Strategic Planning 

16 SEC. 8101. QUADRENNIAL DIPLOMACY, DEVELOPMENT, 

17 AND SECURITY REVIEW. 

18 (a) REVIEW OF DIPLOMACY, DEVELOPMENT, AND

19 SECURITY.— 

20 (1) IN GENERAL.—Not later than December 15, 

21 2014, and every 4 years thereafter, the Secretary 

22 and the Administrator shall complete a comprehen23 sive examination (to be known as a ‘‘Quadrennial 

24 Diplomacy, Development, and Security Review’’) of 


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1 United States diplomacy, development, and national 

2 security efforts. 

3 (2) KEY ELEMENTS OF REVIEW.—The review 

4 described in paragraph (1) shall include information 

5 on the following: 

6 (A) The nature of the global challenges 

7 and opportunities facing the United States and 

8 the changes in such challenges and opportuni9 ties over the previous four-year period. 

10 (B) Key objectives and missions for United 

11 States foreign policy and foreign assistance, in12 cluding a clear statement of United States ob13 jectives for development assistance and for se14 curity assistance. 

15 (C) The roles and responsibilities of Fed16 eral agencies in carrying out United States di17 plomacy, promoting global development, and 

18 protecting national security, and the mecha19 nisms for cooperation between such agencies, 

20 including any reforms needed in such agencies 

21 and mechanisms to adapt to changing cir22 cumstances. 

23 (D) The roles of international organiza24 tions and multilateral institutions in advancing 

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1 curity objectives, including the mechanisms for 

2 coordinating and harmonizing development poli3 cies and programs with partner countries and 

4 among donors. 

5 (E) The requirements for overseas infra6 structure necessary to carry out United States 

7 diplomatic, development, and security objec8 tives, including major changes in diplomatic 

9 presence and new investments in technology 

10 and facilities. 

11 (F) A plan, budget, and timetable for im12 plementing the recommendations of the review, 

13 including any legislative requests and executive 

14 orders to be issued. 

15 (3) INTERAGENCY COORDINATION AND CON16 SULTATION.—In conducting each Quadrennial Diplo17 macy, Development, and Security Review, the Sec18 retary and the Administrator shall take into account 

19 the views of the Secretary of Defense, the Secretary 

20 of the Treasury, the Attorney General, and the 

21 heads of all other Federal agencies carrying out 

22 international policies and programs under this Act. 

23 (b) CONSULTATIVE PROCESS.—In conducting the re24 view required under subsection (a), the Secretary and the 

25 Administrator shall consult with— 


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1 (1) the appropriate congressional committees; 

2 (2) a variety of civil society groups, including 

3 private businesses, nongovernmental organizations 

4 involved in diplomacy, development, and security, 

5 and experts at academic institutions or institutions 

6 involved in the study of foreign policy, international 

7 development, or national security; and 

8 (3) appropriate international organizations and 

9 partner countries. 

10 (c) REPORT.— 

11 (1) ADDITIONAL ELEMENTS.—The Secretary 

12 and the Administrator shall transmit to the appro13 priate congressional committees a report upon com14 pletion of each Quadrennial Diplomacy, Develop15 ment, and Security Review. The report shall include, 

16 in addition to all the elements identified in sub17 section (a)(2)— 

18 (A) the assumptions used to inform the re19 view, including those regarding— 

20 (i) key global challenges and opportu21 nities facing the United States over the 

22 next 10-year period; 

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1 sonnel to respond to such challenges and 

2 opportunities; 

3 (iii) the cooperation and capacity of 

4 partner countries and international institu5 tions in addressing such challenges and op6 portunities; 

7 (iv) the levels of engagement in oper8 ations other than war and smaller-scale 

9 contingencies and withdrawal from such 

10 operations and contingencies; 

11 (v) the intensity, duration, and mili12 tary and political end-states of conflicts 

13 and smaller-scale contingencies that arise 

14 in the diplomatic, development, and secu15 rity context; 

16 (vi) the anticipated roles and missions 

17 of the reserve components available to ci18 vilian agencies, including capabilities and 

19 resources necessary to assure that such re20 serve components can capably discharge 

21 such roles and missions; and 

22 (vii) the extent to which diplomatic, 

23 development, and security personnel need 

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1 cessfully carry out the full range of mis2 sions called for in the review; 

3 (B) a description of the process by which 

4 the review was conducted, including participa5 tion of personnel of the Department of State 

6 and the United States Agency for International 

7 Development, coordination and consultation 

8 with other Federal agencies, and consultations 

9 as required under subsection (b); and 

10 (C) lessons learned during the review proc11 ess and recommendations for improvements in 

12 future years. 

13 (2) PUBLIC AVAILABILITY.—The report re14 quired under this subsection shall be made publicly 

15 available on the Internet upon transmission to the 

16 appropriate congressional committees. 

17 SEC. 8102. COMPREHENSIVE WORKFORCE AND HUMAN RE18 SOURCES STRATEGY. 

19 (a) PLAN REQUIRED.—The Administrator shall, not 

20 later than 1 year after the date of the enactment of this 

21 Act and every 5 years thereafter, develop a comprehensive 

22 workforce and human resources strategy, or review and 

23 modify as necessary the existing strategy, to strengthen 

24 the capacity of the Agency to carry out its mandate under 

25 section 10201. 


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1 (b) CONTENTS.—The strategy required under sub2 section (a) shall include— 

3 (1) an assessment of the implications of current 

4 development strategies and foreign policy priorities 

5 for technical and policy expertise; 

6 (2) the number, types, and level of specialists 

7 and generalists projected to be needed in each func8 tional and geographic area, including support, man9 agement, and administrative functions; 

10 (3) the number, types, and level of specialists 

11 and generalists currently employed by the Agency, 

12 by bureau and office and by employment category; 

13 (4) an analysis of the workloads and com14 petencies of existing staff, by bureau and office and 

15 by employment category; 

16 (5) the impact on paragraphs (3) and (4) of 

17 projected retirement and attrition rates over the 

18 next 5 years; 

19 (6) the steps needed to recruit, retain, and de20 velop the necessary professional expertise, including 

21 through education and training, details, fellowships, 

22 scholarships and exchanges; 

23 (7) an assessment of the suitability of overseas 

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1 ty, physical integrity, access and location consider2 ations; 

3 (8) a prioritized plan for capital improvements; 

4 (9) projected human resource challenges, in5 cluding bureaucratic and legislative constraints, and 

6 recommended options for meeting such challenges; 

7 and 

8 (10) the assumptions regarding program and 

9 policy priorities and budget levels on which the 

10 strategy is based. 

11 (c) EMPLOYMENT CATEGORY.—For the purposes of 

12 this section, the term ‘‘employment category’’ means the 

13 statutory authority under which an individual is employed, 

14 and includes civil service, Foreign Service, excepted serv15 ice, personal services contractors, detailees, and locally 

16 employed staff. 

17 (d) TRANSMISSION TO CONGRESS.—The plan re18 quired under subsection (a) shall be transmitted to the 

19 appropriate congressional committees not later than 180 

20 days after the date of the enactment of this Act, and every 

21 5 years thereafter. Such plan may be updated at any time, 

22 and such update shall be transmitted accordingly. 

23 (e) MID-LEVEL HIRING AUTHORITY.—If the Admin24 istrator certifies that such hiring is necessary to meet the 

25 workforce requirements of the Agency as set forth in the 


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1 plan required under subsection (a), the Administrator is 

2 authorized, notwithstanding section 307 of the Foreign 

3 Service Act of 1980, to hire up to 30 mid-career profes4 sionals, which may include individuals currently employed 

5 as personal services contractors, in each of the 3 fiscal 

6 years following the date of the enactment of this Act. 

7 Subtitle B—Monitoring and 

8 Evaluation 

9 SEC. 8201. MONITORING AND EVALUATION OF FOREIGN AS10 SISTANCE. 

11 (a) IN GENERAL.—The President shall develop and 

12 implement a rigorous system to evaluate the effectiveness 

13 and efficiency of foreign assistance. 

14 (b) COMPONENTS OF SYSTEM.—In order to avoid du15 plication, ensure comprehensive coverage, promote high 

16 and uniform standards, and facilitate comparability of re17 sults and the development of a strong body of evidence, 

18 the system required under subsection (a) shall include— 

19 (1) a method of coordinating evaluation activi20 ties among all Federal agencies carrying out foreign 

21 assistance; and 

22 (2) a process for consulting with relevant stake23 holders and subject matter experts, as appropriate, 

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1 uation activities and dissemination of evaluation 

2 findings. 

3 (c) REQUIRED ACTIONS.—In carrying out subsection 

4 (a), the President shall ensure that the head of each Fed5 eral agency takes the following actions with regard to for6 eign assistance carried out by that agency: 

7 (1) Establish measurable and meaningful per8 formance objectives, including disaggregation by sex 

9 and age where appropriate. 

10 (2) Establish criteria for the selection of pro11 grams, projects, and activities to be subject to var12 ious evaluation methodologies, with a particular em13 phasis on impact evaluation. 

14 (3) Establish or designate an organizational 

15 unit with adequate staff and resources to oversee 

16 and provide technical support for evaluation activi17 ties. 

18 (4) Develop a plan for improving the capacity 

19 of the agency to conduct rigorous, relevant, and ob20 jective program monitoring and evaluation, including 

21 by— 

22 (A) providing relevant education and train23 ing opportunities; 


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1 (B) encouraging the adoption of improved 

2 methodologies for data collection and analysis; 

3 and 

4 (C) ensuring that best practices are shared 

5 within and between agencies. 

6 (5) Establish guidelines for enhancing, in co7 operation with other donors, the capacity of partner 

8 countries to monitor the use of and evaluate the im9 pact of donor assistance. 

10 (6) Establish a process for applying the find11 ings and results of monitoring and evaluation activi12 ties, including impact evaluation research, into fu13 ture program planning, budgeting, design, and im14 plementation. 

15 (7) Establish a policy for the publication of pro16 gram evaluations. 

17 (8) Develop, in consultation with relevant stake18 holders an annual evaluation plan that describes how 

19 the agency will meet the requirements of this sec20 tion. 

21 (9) Identify the source or mechanism of funding 

22 to conduct monitoring and evaluation of foreign as23 sistance carried out by such agency. 

24 (d) SUBMISSION OF EVALUATION PLANS.—The 

25 President shall ensure that the evaluation plans required 


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1 by subsection (c)(8) are submitted to the appropriate con2 gressional committees each year along with the annual 

3 budget presentation, and are published on a government 

4 Internet website. 

5 (e) LOCAL PERFORMANCE.—To the extent feasible 

6 and appropriate, evaluation activities carried out pursuant 

7 to the requirements of this section shall be carried out by, 

8 or with the participation of, organizations in the partner 

9 country. 

10 (f) DEFINITIONS.—In this section: 

11 (1) EVALUATION.—The term ‘‘evaluation’’ 

12 means the systematic and objective determination 

13 and assessment of the design, implementation, and 

14 results of an on-going or completed program, 

15 project, or activity, including an explanation of the 

16 reasons or causes for the observed results. 

17 (2) IMPACT.—The term ‘‘impact’’ means a 

18 long-term effect of a program, project, or activity, 

19 whether positive or negative, direct or indirect, in20 tended or unintended. 

21 (3) IMPACT EVALUATION RESEARCH.—The 

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1 tributed to a foreign assistance program, project, or 

2 activity rather than to other factors. 

3 SEC. 8202. MONITORING AND EVALUATION OF HUMANI4 TARIAN ASSISTANCE. 

5 (a) DIVISION OF RESPONSIBILITIES.—The Depart6 ment of State shall be responsible for monitoring and eval7 uating humanitarian assistance carried out by the Depart8 ment of State, and USAID shall be responsible for moni9 toring and evaluating humanitarian assistance carried out 

10 by USAID. 

11 (b) CONGRESSIONAL NOTIFICATION.—The Secretary 

12 or the Administrator, as appropriate, shall notify the ap13 propriate congressional committees if assistance made 

14 available under this subtitle is not sufficient to meet inter15 national humanitarian standards. Such notification shall 

16 include a description of the standards not being met, the 

17 resources that would be required to meet such standards, 

18 and the reasons why such resources are not available. 

19 (c) ROLE OF THE OFFICE OF FOOD FOR PEACE.— 

20 The Office of Food for Peace (FFP) of the Agency shall 

21 be responsible for tracking and monitoring the nutritional 

22 outcomes of emergency food assistance provided under 

23 this Act and title II of the Agricultural Trade Develop24 ment and Assistance Act of 1954 (Public Law 83–480). 


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1 (d) MONITORING AND EVALUATION REQUIRED.— 

2 The authorities of sections 1904 and 1905 shall not be 

3 used to vitiate the requirement of section 8201 for moni4 toring and evaluation of foreign assistance. 

5 Subtitle C—Reporting 

6 Requirements 

7 SEC. 8301. TRANSPARENCY AND ACCOUNTABILITY IN 

8 BUDGETING. 

9 (a) IN GENERAL.—The Secretary, the Administrator, 

10 and the Chief Executive Officer of the Millennium Chal11 lenge Corporation shall maintain an online database of in12 formation, easily accessible to the public, which contains 

13 the information described in subsection (b) for each 

14 project and activity within their respective areas of respon15 sibility, including for any project or activity for which 

16 funds are transferred to another Federal agency for obli17 gation. 

18 (b) DATABASE REQUIREMENTS.— 

19 (1) CONTENT.—Each project and activity shall 

20 be identified separately in such database, and for 

21 each project and activity the database shall include, 

22 at a minimum— 

23 (A) a brief description of the nature of the 

24 project or activity; 


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1 (B) the geographic location or locations in 

2 which the project or activity is being carried 

3 out; 

4 (C) the specific objectives and timetable of 

5 the project or activity; 

6 (D) the indicators, which shall be quan7 titative wherever possible and relevant, used to 

8 define the successful achievement of the goals 

9 of the project or activity; 

10 (E) the number and demographic charac11 teristics of the intended beneficiaries of the 

12 project or activity; 

13 (F) each sector, theme, goal and objective 

14 toward which the project or activity will be 

15 counted; 

16 (G) names and descriptions of the imple17 menting partners of the project or activity; 

18 (H) the amount of United States foreign 

19 assistance funds obligated for each such project 

20 or activity and the source of those funds; 

21 (I) expenditures of funds for the project or 

22 activity on a quarterly basis; 

23 (J) the contributions toward the project or 

24 activity provided by the partner country; 


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1 (K) any conditions placed on the use of 

2 United States Government funds obligated for 

3 the project or activity, and whether those condi4 tions have been met; 

5 (L) the evaluation and monitoring plan for 

6 each such project or activity; 

7 (M) semiannual updates on results 

8 achieved to date for each such project or activ9 ity; and 

10 (N) if a project or activity has been ex11 tended, suspended, terminated, or significantly 

12 modified, the reasons for such action. 

13 (2) ADMINISTRATIVE COSTS.—In addition to 

14 the information relating to specific projects and ac15 tivities as required under paragraph (1), the data16 base shall contain, for each overseas mission, infor17 mation on all overhead and administrative costs, in18 cluding— 

19 (A) for the previous fiscal year, numbers of 

20 staff in each employment category, housing and 

21 facilities operation and maintenance expenses, 

22 salaries and benefits, travel and transportation 

23 expenses, and other support costs; and 


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1 (B) for the coming fiscal year, planned 

2 capital investments and projected staff in3 creases or reductions. 

4 (3) TIMING.— 

5 (A) EXISTING PROJECTS AND ACTIVI6 TIES.—For each project and activity in effect 

7 on the date of the enactment of this Act, the 

8 database shall be operative within 6 months of 

9 such date of enactment. 

10 (B) NEW PROJECTS AND ACTIVITIES.—For 

11 each project and activity that has not received 

12 United States Government funding as of the 

13 date of the enactment of this Act, the depart14 ment or agency (as the case may be) shall enter 

15 into the database the information required by 

16 paragraph (1) within 90 days from the date of 

17 the initial obligation of funds for the project or 

18 activity. 

19 (4) MODIFICATIONS.—In the event of any 

20 changes or modifications in any of the elements of 

21 the database for a project or activity, the database 

22 shall be updated as soon as possible but in no event 

23 later than 30 days from the date on which such 

24 changes or modifications have been approved and, 

25 where applicable, agreed to by the partner country. 


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1 (5) REPORTS IN LIEU OF INCLUSION.—If the 

2 Secretary, the Administrator, or the Chief Executive 

3 Officer of the Millennium Challenge Corporation, as 

4 the case may be, makes a determination that the in5 clusion of a required item of information in the 

6 database could reasonably be expected to jeopardize 

7 the health or safety of a private partner or program 

8 beneficiary or would be detrimental to the national 

9 interests of the United States, such item of informa10 tion may be submitted to the appropriate congres11 sional committees in a non-public written report in 

12 lieu of including it in the database, along the rea13 sons for not including it in the database. 

14 (6) STRUCTURE.—The database required under 

15 this section shall be structured so that— 

16 (A) data may be uploaded from overseas 

17 missions; and 

18 (B) users may search the data by word 

19 and sort the data by field. 

20 (c) HARMONIZATION OF DATA.—The information 

21 contained in the database required under subsection (b) 

22 shall include all information provided to the Development 

23 Assistance Committee of the Organization for Economic 

24 Cooperation and Development and the International Aid 

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1 tent possible, be harmonized with the types, categories and 

2 formats of information requested by such organization and 

3 such initiative. 

4 (d) DEFINITION.—In this section, the terms 

5 ‘‘project’’ and ‘‘activity’’ mean a discrete assistance activ6 ity for which funds are made available, including activities 

7 encompassed within a strategy, compact, agreement, ac8 count or program of assistance. 

9 SEC. 8302. CONGRESSIONAL BUDGET JUSTIFICATION. 

10 (a) REQUIREMENT FOR SUBMISSION.—The President 

11 shall prepare, and submit to the Congress not later than 

12 February 1 of each year, a report justifying the resources 

13 requested for all foreign assistance programs. 

14 (b) MATERIALS TO BE INCLUDED.—The report sub15 mitted pursuant to subsection (a) shall include— 

16 (1) a description of each planned country, re17 gional, or centrally funded program for the coming 

18 fiscal year, and the rationale for each such program; 

19 (2) the dollar amount of each program— 

20 (A) as proposed for the coming fiscal year; 

21 (B) as estimated for the current fiscal 

22 year; and 

23 (C) as allocated for the previous fiscal 

24 year; and 


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1 (3) wherever possible, a description of the re2 sults achieved for each such program in the previous 

3 1 to 5 fiscal years. 

4 SEC. 8303. REPORT ON ALLOCATION OF ASSISTANCE 

5 UNDER THIS ACT. 

6 (a) REPORT ON ALLOCATIONS OF ASSISTANCE.—Not 

7 later than 30 days after the date of the enactment of any 

8 law appropriating funds to carry out any provision of this 

9 Act, the President shall notify Congress of— 

10 (1) each foreign country, international organi11 zation, regional program, and centrally funded pro12 gram for which the United States Government in13 tends to provide any portion of the funds under such 

14 law; and 

15 (2) the amount of funds under such law, by cat16 egory of assistance, that the United States Govern17 ment intends to provide to each such country, orga18 nization, and program. 

19 (b) EXCEPTION.—Subsection (a) does not apply with 

20 respect to any law making continuing appropriations. 

21 (c) USE OF SPECIAL AUTHORITY.—The authority of 

22 section 9603 may not be used to waive the provisions of 

23 this section. 


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1 SEC. 8304. SECURITY ASSISTANCE DATABASE. 

2 (a) DATABASE REQUIRED.—The Secretary shall 

3 maintain an online database which contains the informa4 tion described in subsection (b). Such database may be 

5 combined with the database required under section 8301. 

6 (b) CONTENT.—The database required under sub7 section (a) shall include— 

8 (1) the type, dollar value, and quantity of de9 fense articles (including excess defense articles), de10 fense services, and international military education 

11 and training furnished by the United States to each 

12 foreign country and international organization; 

13 (2) the provision of law under which such arti14 cle, service, and education or training was furnished; 

15 (3) the dollar value, quantity, and end user of 

16 semiautomatic assault weapons, or spare parts for 

17 such weapons, the manufacture, transfer, or posses18 sion of which is unlawful under section 922 of title 

19 18, United States Code, receiving a license for ex20 port; and 

21 (4) for military education and training provided 

22 to foreign military personnel, the type of training, 

23 the number of foreign military personnel trained, 

24 their units of operation, and the location of the 

25 training. 

26 (c) MILITARY EDUCATION AND TRAINING.— 


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1 (1) RECORDKEEPING.—With respect to military 

2 education and training provided under subsection 

3 (b)(4), the Secretary of Defense shall develop and 

4 maintain records, which shall not be subject to the 

5 requirements for public availability in subsection (e), 

6 for each foreign military and defense participant in 

7 military education and training activities conducted 

8 under this or any other Act. Such database shall be 

9 made available to the Secretary of State and shall 

10 include the type of instruction received, the dates 

11 and location of such instruction, whether such in12 struction was completed successfully, and, to the ex13 tent practicable, the person’s subsequent military or 

14 defense ministry career and current position and lo15 cation. 

16 (2) REPORT ON VIOLATIONS.—Not later than 

17 March 1 of each year, the Secretary of State shall 

18 submit to the appropriate congressional committees 

19 a report describing any involvement of a foreign 

20 military or defense participant in military education 

21 and training activities under this or any other Act 

22 in a violation of internationally recognized human 

23 rights subsequent to such participation. Such report 

24 shall be in unclassified form, but may include a clas25 sified annex. 


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1 (3) ADDITION TO DATABASE.—The Secretary of 

2 Defense shall ensure that the database required 

3 under subsection (a) is updated to include the infor4 mation reported to Congress pursuant to paragraph 

5 (2) 

6 (d) TIMING.—The Secretary shall ensure that the 

7 database required under this section is operative not later 

8 than 180 days after the date of the enactment of this Act, 

9 and shall prescribe such procedures as are necessary to 

10 ensure that the required information is entered into the 

11 database in a timely manner and continuously updated. 

12 (e) PUBLIC AVAILABILITY.—The database required 

13 under this section shall be made publicly available on the 

14 Internet and shall be structured so that users may search 

15 the data by word and sort the data by field. 

16 (f) FORM.—The database described in subsection (a) 

17 shall be in unclassified form and shall exclude any activity 

18 that is reportable under title V of the National Security 

19 Act of 1947. 

20 SEC. 8305. CLASSIFICATION OF REPORTS. 

21 (a) IN GENERAL.—Unless otherwise specifically pro22 vided by law, all information contained in any report re23 quired to be provided to Congress under this Act shall be 

24 in unclassified form and shall be made available to the 

25 public. 


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1 (b) EXCEPTION.—If the President determines that 

2 publication of a specific item of information in any such 

3 report would be detrimental to the security of the United 

4 States, such item of information may be provided to Con5 gress in a supplemental report in classified form along 

6 with an explanation of why publication of such specific 

7 item would be detrimental to the security of the United 

8 States. 

9 Subtitle D—Congressional 

10 Notification Procedures 

11 SEC. 8401. NOTIFICATION OF PROGRAM CHANGES. 

12 (a) NOTIFICATION OF PROGRAM CHANGES.—Unless 

13 the appropriate congressional committees are notified at 

14 least 15 days in advance, funds appropriated for a fiscal 

15 year to carry out this Act may not be obligated for any 

16 assistance or contributions under this Act— 

17 (1) for a Country Development Cooperation 

18 Strategy, or any significant revision thereof, which 

19 has not been transmitted to the appropriate congres20 sional committees in accordance with section 1018; 

21 (2) for a country, international organization, re22 gional program, or centrally funded program for 

23 which assistance was not included in a Country De24 velopment Cooperation Strategy, or was not justified 


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1 in congressional budget justification documents for 

2 that fiscal year; 

3 (3) more than 10 percent in excess of the 

4 amount allocated pursuant to section 8303 for that 

5 country, international organization, regional pro6 gram, or centrally funded program for that fiscal 

7 year; 

8 (4) for a strategy or objective not justified to 

9 Congress for that country, international organiza10 tion, regional program, or centrally funded program; 

11 (5) for a nonproject assistance activity; or 

12 (6) in the case of assistance administered 

13 through the Department of Defense under this Act, 

14 for the provision of major defense equipment (other 

15 than conventional ammunition) or aircraft, ships, 

16 missiles, or combat vehicles not previously justified 

17 to Congress, or more than ten percent in excess of 

18 the quantities justified to Congress. 

19 (b) APPROPRIATIONS SUBJECT TO REQUIRE20 MENTS.—Subsection (a) applies with respect to all funds 

21 appropriated for assistance and contributions under this 

22 Act other than— 

23 (1) subtitles A and B of title VII (relating to 

24 the Overseas Private Investment Corporation and 

25 the Trade and Development Agency, respectively); 


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1 (2) section 1131 (relating to the development 

2 credit authority); 

3 (3) section 2025 (relating to transition initia4 tives); 

5 (4) section 2022 (relating to complex crisis, sta6 bilization, and prevention fund); and 

7 (5) humanitarian assistance. 

8 (c) WAIVER.—The requirements of subsection (a) 

9 may be waived if the President— 

10 (1) determines that doing so is necessitated by 

11 emergency circumstances; 

12 (2) notifies the appropriate congressional com13 mittees as early as practicable, but in no event later 

14 than three days after taking the action to which 

15 such notification requirement was applicable; and 

16 (3) includes in such notification an explanation 

17 of the circumstances necessitating the use of the au18 thority of this subsection. 

19 SEC. 8402. CONGRESSIONAL NOTIFICATION PARITY. 

20 The President shall ensure that the Committee on 

21 Foreign Affairs of the House of Representatives and the 

22 Committee on Foreign Relations of the Senate are notified 

23 to the same degree and with the same conditions as the 

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1 sistance. The requirements of this section are in addition 

2 to, and not in lieu of, other congressional notification re3 quirements. 

4 SEC. 8403. PRESIDENTIAL FINDINGS AND DETERMINA5 TIONS. 

6 (a) WRITTEN DETERMINATIONS.—In any case in 

7 which the President is required to make a report to the 

8 Congress, or to any committee or officer of either House 

9 of Congress, concerning any finding or determination 

10 under any provision of this Act or related appropriations 

11 Act, such finding or determination shall be reduced to 

12 writing and signed by the President. 

13 (b) EFFECTIVE DATE.—No action shall be taken 

14 pursuant to any such finding or determination prior to 

15 the date on which that finding or determination has been 

16 reduced to writing and signed by the President. 

17 (c) PUBLICATION.—Each such finding or determina18 tion shall be published on the Internet and in the Federal 

19 Register as soon as practicable after it has been reduced 

20 to writing and signed by the President. In any case in 

21 which the President concludes that such publication would 

22 be harmful to the national security of the United States, 

23 only a statement that a determination or finding has been 

24 made by the President, including the name and section 

25 of the Act under which it was made, shall be published. 


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1 TITLE IX—POLICY RESTRIC2 TIONS AND SPECIAL AU3 THORITIES 

4 Subtitle A—Policy Restrictions 

5 SEC. 9001. DEFINITIONS. 

6 In this title: 

7 (1) FOREIGN TERRORIST ORGANIZATION.—The 

8 term ‘‘foreign terrorist organization’’ means an or9 ganization designated as a foreign terrorist organiza10 tion by the Secretary of State in accordance with 

11 section 219(a) of the Immigration and Nationality 

12 Act (8 U.S.C. 1189(a)). 

13 (2) GOVERNMENT.— 

14 (A) IN GENERAL.—The term ‘‘govern15 ment’’, when used with respect to a foreign 

16 country— 

17 (i) means the national government of 

18 the foreign country; and 

19 (ii) includes— 

20 (I) the government of any polit21 ical subdivision of the foreign country; 

22 and 

23 (II) any agency or instrumen24 tality of the national government or 


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1 government of any political subdivi2 sion of the foreign country. 

3 (B) AGENCY OR INSTRUMENTALITY DE4 FINED.—For purposes of subparagraph (A), the 

5 term ‘‘agency or instrumentality of the national 

6 government or government of any political sub7 division of the country’’ means an agency or in8 strumentality of a foreign state as defined in 

9 section 1603(b) of title 28, United States Code, 

10 with each reference in such section to ‘‘a for11 eign state’’ deemed to be a reference to ‘‘the 

12 foreign country’’. 

13 (3) PROVIDE.—The term ‘‘provide’’ includes— 

14 (A) the obligation and expenditure of 

15 funds; and 

16 (B) the sale, lease, grant, transfer, stock17 piling and delivery of foreign assistance. 

18 (4) STATE SPONSOR OF DRUG TRAFFICKING.— 

19 The term ‘‘state sponsor of drug trafficking’’ means 

20 a foreign government that is the subject of a deter21 mination under section 9302(a) which has not been 

22 waived or rescinded. 

23 (5) STATE SPONSOR OF TERRORISM.—The term 

24 ‘‘state sponsor of terrorism’’ means a foreign gov25 ernment that is the subject of a determination under 


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1 section 9401(a) which has not been waived or re2 scinded. 

3 (6) INTERNATIONAL TERRORISM.—The term 

4 ‘‘international terrorism’’ has the meaning given the 

5 term in section 2331 of title 18, United States Code. 

6 CHAPTER 1—HUMAN RIGHTS 

7 SEC. 9101. PROHIBITION ON ASSISTANCE TO GOVERN8 MENTS THAT ENGAGE IN VIOLATIONS OF 

9 HUMAN RIGHTS. 

10 (a) IN GENERAL.—No foreign assistance may be pro11 vided, and no licenses may be issued under the Export 

12 Administration Act of 1979 (as continued in effect under 

13 the International Emergency Economic Powers Act) for 

14 the export of crime control and detection instruments and 

15 equipment, to a foreign government which the Secretary 

16 determines engages in a consistent pattern of gross viola17 tions of internationally recognized human rights, includ18 ing— 

19 (1) mass atrocities; 

20 (2) torture or cruel, inhuman, or degrading 

21 treatment or punishment; 

22 (3) prolonged detention without charges and 

23 trial; 


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1 (4) causing the disappearance of persons by the 

2 abduction and clandestine detention of those per3 sons; or 

4 (5) other flagrant denial of the right to life, lib5 erty, and the security of person. 

6 (b) EXPIRATION OF DETERMINATIONS.—A deter7 mination of the Secretary under subsection (a) shall re8 main in effect until rescinded. 

9 (c) RESCISSION OF DETERMINATIONS.—A deter10 mination of the Secretary under subsection (a) with re11 spect to a foreign government may not be rescinded unless 

12 the President submits to the appropriate congressional 

13 committees a report certifying that the government has 

14 substantially improved its human rights record and no 

15 longer engages in any of the actions described in sub16 section (a). 

17 (d) PUBLICATION.—A determination made under 

18 subsection (a) or a report submitted under subsection (c) 

19 shall be published in the Federal Register and made avail20 able on the Internet website of the Department of State. 

21 (e) LIST.—The Secretary shall include in the annual 

22 report required by section 8302 (relating to congressional 

23 budget justification) a list of foreign governments for 

24 which determinations under subsection (a) are currently 


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1 in effect and the date on which each such determination 

2 became effective. 

3 (f) CONSIDERATIONS.—In determining whether or 

4 not a foreign government meets the criteria described in 

5 subsection (a), the Secretary shall consider— 

6 (1) the extent of cooperation of the government 

7 in permitting an unimpeded investigation of alleged 

8 violations of internationally recognized human rights 

9 by appropriate international organizations, including 

10 the International Committee of the Red Cross, or 

11 groups or persons acting under the authority of such 

12 organizations; 

13 (2) specific actions which have been taken by 

14 the President or Congress because of the human 

15 rights practices or policies of the government; and 

16 (3) whether the government has engaged in or 

17 tolerated particularly severe violations of religious 

18 freedom (as such term is defined in section 3 of the 

19 International Religious Freedom Act of 1998). 

20 (g) WAIVER.—Assistance prohibited by subsection (a) 

21 may be provided, and licenses may be issued, to a foreign 

22 government described in that subsection if, at least 15 

23 days before providing such assistance, the President sub24 mits to the relevant congressional committees— 

25 (1) a certification that— 


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1 (A) extraordinary circumstances exist war2 ranting the provision of such assistance or the 

3 issuance of such license; and 

4 (B) the interests of providing such assist5 ance or issuing such license outweigh the inter6 ests of protecting internationally recognized 

7 human rights; and 

8 (2) a report describing— 

9 (A) the types and amounts of assistance to 

10 be provided or licenses to be issued pursuant to 

11 the waiver; 

12 (B) the justification for such waiver; and 

13 (C) the time period for which such waiver 

14 will be effective. 

15 (h) DEFINITIONS.—In this section— 

16 (1) the term ‘‘genocide’’ means an offense as 

17 described in section 1091 of title 18, United States 

18 Code; and 

19 (2) the term ‘‘relevant congressional commit20 tees’’ means— 

21 (A) the appropriate congressional commit22 tees; and 

23 (B) in the case of licenses to be issued 

24 under the Export Administration Act of 1979 

25 (as continued in effect under the International 


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1 Emergency Economic Powers Act) for the ex2 port of crime control and detection instruments 

3 and equipment, the Committee on Banking, 

4 Housing, and Urban Affairs of the Senate. 

5 SEC. 9102. PROHIBITION ON ASSISTANCE TO CERTAIN 

6 HUMAN RIGHTS VIOLATORS. 

7 (a) IN GENERAL.—No foreign assistance may be pro8 vided to— 

9 (1) any unit of the security forces of a foreign 

10 government, 

11 (2) any agency or instrumentality of a foreign 

12 government, or 

13 (3) a private partner, 

14 if the Secretary has credible information that such unit, 

15 agency or instrumentality, or private partner, as the case 

16 may be, has committed a gross violation of internationally 

17 recognized human rights. 

18 (b) EXCEPTION.—The prohibition in subsection (a) 

19 shall not apply if the Secretary determines and reports 

20 to the appropriate congressional committees that effective 

21 steps and corrective measures are being taken to bring the 

22 responsible members of such unit, agency or instrumen23 tality, or private partner, as the case may be, to justice. 

24 (c) DUTY TO INFORM.— 


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1 (1) IN GENERAL.—In the event that funds are 

2 withheld from any unit pursuant to this section, the 

3 Secretary shall promptly inform the foreign govern4 ment of the basis for such action and shall, to the 

5 maximum extent practicable, assist the government 

6 in taking effective measures to bring the responsible 

7 members of such unit to justice. 

8 (2) PUBLICATION.—The Secretary shall make 

9 publicly available on the Internet website of the De10 partment of State the identity of each unit for which 

11 there is credible information that such unit has com12 mitted a gross violation of internationally recognized 

13 human rights. 

14 (3) EXCEPTION.—The requirements of para15 graphs (1) and (2) shall not apply if the Secretary 

16 determines such application would compromise 

17 United States sources and methods or would jeop18 ardize the health, safety, or human rights of a wit19 ness or informant. 

20 (d) CREDIBLE INFORMATION.—The Secretary shall 

21 establish, and periodically update, procedures to— 

22 (1) maintain a current list of each foreign coun23 try with respect to which the United States provides 

24 training, equipment, or other types of assistance to 


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1 any unit of the security forces of the government of 

2 such country; 

3 (2) facilitate receipt by the Department of 

4 State and United States embassies of information 

5 from individuals and organizations outside the 

6 United States Government about gross violations of 

7 internationally recognized human rights by any enti8 ty described in paragraph (1), (2), or (3) of sub9 section (a); 

10 (3) routinely request and obtain such informa11 tion from the Department of Defense, the Central 

12 Intelligence Agency, and other United States Gov13 ernment sources departments and agencies; 

14 (4) synchronize information obtained from all 

15 sources; 

16 (5) ensure that such information is evaluated 

17 and preserved; 

18 (6) ensure that when vetting an individual for 

19 eligibility to receive United States training the indi20 vidual’s unit is also vetted; and 

21 (7) seek to identify the unit involved when cred22 ible information of a gross violation of internation23 ally recognized human rights exists but the identity 

24 of the unit is lacking. 

25 (e) INVESTIGATIONS.— 


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1 (1) IN GENERAL.—The Secretary is authorized 

2 to use funds made available under title III or title 

3 IV for purposes of gathering, receiving, preserving, 

4 investigating, and evaluating evidence of gross viola5 tions of internationally recognized human rights by 

6 any entity described in paragraph (1), (2), or (3) of 

7 subsection (a). 

8 (2) SUPPLEMENT NOT SUPPLANT.—Funds 

9 made available under paragraph (1) are in addition 

10 to amounts otherwise made available for the pur11 poses described in paragraph (1). 

12 (f) DEFINITIONS.—In this section— 

13 (1) the term ‘‘agency or instrumentality of a 

14 foreign government’’ means an agency or instrumen15 tality of a foreign state as defined in section 1603(b) 

16 of title 28, United States Code; and 

17 (2) the term ‘‘unit’’ means the smallest unit op18 erating in the field. 

19 SEC. 9103. PROHIBITION ON ASSISTANCE TO GOVERN20 MENTS FOLLOWING COUPS D’E ́ TAT. 

21 (a) IN GENERAL.—No foreign assistance may be pro22 vided to a foreign government whose duly elected leader 

23 the Secretary determines has been deposed by violence or 

24 threat of violence. 


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1 (b) EXCEPTIONS.—The prohibition in subsection (a) 

2 shall not apply with respect to a foreign government if 

3 the Secretary determines and reports to the appropriate 

4 congressional committees that— 

5 (1) the purpose and effect of the deposition was 

6 to restore democratic governance; or 

7 (2) subsequent to the deposition, a democrat8 ically elected government has taken office. 

9 (c) PUBLICATION.—A determination made under 

10 subsection (a) shall be published in the Federal Register 

11 and made available on the Internet website of the Depart12 ment of State. 

13 (d) WAIVER.—Assistance prohibited by subsection 

14 (a) may be provided to a foreign government described in 

15 that subsection if, at least 15 days before providing assist16 ance, the Secretary submits to the appropriate congres17 sional committees— 

18 (1) a certification that providing assistance is 

19 important to the national security interest of the 

20 United States; and 

21 (2) a report describing— 

22 (A) the types and amounts of assistance to 

23 be provided pursuant to the waiver; 

24 (B) the justification for the waiver; and 


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1 (C) the time period for which the waiver 

2 will be effective. 

3 SEC. 9104. PROHIBITION ON ASSISTANCE TO GOVERN4 MENTS THAT PROHIBIT OR IMPEDE DELIV5 ERY OF HUMANITARIAN ASSISTANCE. 

6 (a) IN GENERAL.—No foreign assistance may be pro7 vided to a foreign government which the Secretary deter8 mines prohibits or impedes the delivery of humanitarian 

9 assistance. 

10 (b) PUBLICATION.—A determination made under 

11 subsection (a) shall be published in the Federal Register 

12 and made available on the Internet website of the Depart13 ment of State. 

14 (c) WAIVER.—Assistance prohibited by subsection (a) 

15 may be provided to a foreign government described in that 

16 subsection if, at least 15 days before providing assistance, 

17 the Secretary certifies and reports to the appropriate con18 gressional committees that to do so is in the national secu19 rity interest of the United States. 

20 SEC. 9105. PROHIBITION ON USE OF FUNDS TO SUPPORT 

21 OR JUSTIFY TORTURE. 

22 (a) IN GENERAL.—No funds made available to carry 

23 out this Act may be made available to support or justify 

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1 ment or punishment by any official or contract employee 

2 of the United States Government. 

3 (b) REPORTING OF ABUSES.—The Secretary shall 

4 submit to the appropriate congressional committees a re5 port of any credible information that an official or con6 tract employee of the United States Government has en7 gaged in a violation of subsection (a). 

8 SEC. 9106. PROHIBITION ON ASSISTANCE TO GOVERN9 MENTS ENGAGED IN INTIMIDATION AND HAR10 ASSMENT AGAINST INDIVIDUALS IN THE 

11 UNITED STATES. 

12 (a) IN GENERAL.—No foreign assistance may be pro13 vided to a foreign government which the Secretary deter14 mines is engaged in a consistent pattern of acts of intimi15 dation or harassment directed against individuals in the 

16 United States. 

17 (b) PUBLICATION.—A determination made under 

18 subsection (a) shall be published in the Federal Register 

19 and made available on the Internet website of the Depart20 ment of State. 

21 (c) DETERMINATIONS.—The Secretary shall report a 

22 determination under section (a) to the appropriate con23 gressional committees. 


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1 CHAPTER 2—NON-PROLIFERATION 

2 SEC. 9201. PROHIBITION ON ASSISTANCE TO GOVERN3 MENTS THAT TRANSFER NUCLEAR ENRICH4 MENT EQUIPMENT, MATERIALS, OR TECH5 NOLOGY. 

6 (a) IN GENERAL.—No foreign assistance may be pro7 vided to a foreign government which the Secretary deter8 mines has delivered or received nuclear enrichment equip9 ment, materials, or technology to or from any other coun10 try on or after August 4, 1977. 

11 (b) EXCEPTION.—The prohibition in subsection (a) 

12 shall not apply with respect to a foreign government if— 

13 (1) the receiving country had not been des14 ignated as a state sponsor of terrorism before deliv15 ery of such equipment, materials, or technology; 

16 (2) the supplying and receiving countries have 

17 reached agreement to place all such equipment, ma18 terials, or technology, upon delivery, under multilat19 eral auspices and management when available; 

20 (3) the transfers of all such equipment, mate21 rials, or technology occur in compliance with the 

22 Guidelines of the Nuclear Suppliers Group; and 

23 (4) the receiving country has entered into an 

24 agreement with the International Atomic Energy 

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1 rials, technology, and all nuclear fuel and facilities 

2 in the country under the safeguards system of the 

3 IAEA, and is complying with such agreement. 

4 (c) EXPIRATION OF DETERMINATIONS.—A deter5 mination of the Secretary under subsection (a) shall re6 main in effect until rescinded. 

7 (d) RESCISSION OF DETERMINATIONS.—A deter8 mination of the Secretary under subsection (a) with re9 spect to a foreign government may not be rescinded unless 

10 the President submits to the appropriate congressional 

11 committees a report certifying that— 

12 (1) there has been a fundamental change in the 

13 leadership and policies of the government; or 

14 (2) the government has entered into an agree15 ment with the IAEA to place all such equipment, 

16 materials, technology, and all nuclear fuel and facili17 ties in such country under the safeguards system of 

18 the IAEA, and is complying with such agreement. 

19 (e) PUBLICATION.—A determination made under 

20 subsection (a) or a report submitted under subsection (d) 

21 shall be published in the Federal Register and made avail22 able on the Internet website of the Department of State. 

23 (f) LIST.—The Secretary shall include in the annual 

24 report required by section 8302 (relating to congressional 


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1 budget justification) a list of governments for which deter2 minations under subsection (a) are currently in effect. 

3 (g) WAIVER.—Assistance prohibited by subsection (a) 

4 may be provided to a foreign government described in that 

5 subsection if, at least 15 days before providing such assist6 ance, the President certifies and reports to the appropriate 

7 congressional committees that— 

8 (1) the termination of such assistance would 

9 have a serious adverse effect on vital United States 

10 interests; and 

11 (2) the President has received reliable assur12 ances that the government— 

13 (A) if a government of a non-nuclear weap14 on state— 

15 (i) will not acquire or develop nuclear 

16 weapons or assist other countries in doing 

17 so; and 

18 (ii) will ensure that all past and fu19 ture transfers of such equipment, mate20 rials, or technology shall be placed under 

21 an appropriate safeguards system by the 

22 IAEA; and 

23 (B) has taken or will take effective meas24 ures to ensure any future transfers of such 

25 equipment, materials, or technology are made in 


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1 accordance with the Guidelines of the Nuclear 

2 Suppliers Group. 

3 (h) RESOLUTION OF DISAPPROVAL.— 

4 (1) IN GENERAL.—A rescission under sub5 section (d) or waiver under subsection (g) of a deter6 mination under subsection (a) shall cease to be ef7 fective if Congress enacts a joint resolution dis8 approving the proposed rescission or waiver. 

9 (2) JOINT RESOLUTION DESCRIBED.—For the 

10 purposes of paragraph (1), the term ‘‘joint resolu11 tion’’ means only a joint resolution introduced not 

12 later than 30 days after the date of receipt of a re13 port under subsection (d) or (g), as the case may be, 

14 the matter after the resolving clause of which is as 

15 follows: ‘‘That the proposed lllll submitted 

16 to Congress on lllll under section 9201 of 

17 the Global Partnerships Act of 2013 is hereby pro18 hibited.’’, with the first blank space being filled with 

19 ‘‘rescission’’ or ‘‘waiver’’, as appropriate, and the 

20 second blank space being filled with the appropriate 

21 date. 

22 (3) CONGRESSIONAL PROCEDURES.—A joint 

23 resolution described in paragraph (2) and introduced 

24 within the appropriate 30-day period shall be consid25 ered in the Senate and the House of Representatives 


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1 in accordance with paragraphs (3) through (7) of 

2 section 8066(c) of the Department of Defense Ap3 propriations Act, 1985 (as contained in Public Law 

4 98–473), except that references in such paragraphs 

5 to the Committees on Appropriations of the House 

6 of Representatives and the Senate shall be deemed 

7 to be references to the Committee on Foreign Af8 fairs of the House of Representatives and the Com9 mittee on Foreign Relations of the Senate, respec10 tively. 

11 SEC. 9202. PROHIBITION ON ASSISTANCE TO GOVERN12 MENTS THAT TRANSFER NUCLEAR REPROC13 ESSING EQUIPMENT, MATERIALS, OR TECH14 NOLOGY OR NUCLEAR EXPLOSIVE DEVICES. 

15 (a) PROHIBITION.— 

16 (1) IN GENERAL.—No foreign assistance may 

17 be provided, and no loans or credit by a United 

18 States bank or financial institution extended, no 

19 goods subject to licensing by the United States for 

20 national security or foreign policy reasons exported, 

21 and no support by the United States given for any 

22 loan or financial or technical assistance by an inter23 national financial institution, to a government which 

24 the President determines— 


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1 (A) transfers to a non-nuclear-weapon 

2 state a nuclear explosive device, or any design 

3 information or component which is determined 

4 by the President to be important to, and known 

5 by the transferring government to be intended 

6 by the recipient state for use in, the develop7 ment or manufacture of any nuclear explosive 

8 device; 

9 (B) is a non-nuclear-weapon state and— 

10 (i) receives a nuclear explosive device; 

11 (ii) detonates a nuclear explosive de12 vice; 

13 (iii) seeks and receives any design in14 formation or component which is deter15 mined by the President to be important to, 

16 and intended by the recipient state for use 

17 in, the development or manufacture of any 

18 nuclear explosive device; or 

19 (iv) on or after August 8, 1985, ex20 ports illegally (or attempts to export ille21 gally) from the United States any material, 

22 equipment, or technology which would con23 tribute significantly to the ability of such 

24 country to manufacture a nuclear explosive 

25 device, if the President determines that the 


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1 material, equipment, or technology was to 

2 be used by such country in the manufac3 ture of a nuclear explosive device, or 

4 (C) delivers nuclear reprocessing equip5 ment, materials, or technology to any other 

6 country or receives such equipment, materials, 

7 or technology from any other country, on or 

8 after August 4, 1977. 

9 (2) RULE OF CONSTRUCTION.—For purposes of 

10 paragraph (1)(B)(4), an export (or attempted ex11 port) by a person who is an agent of, or is otherwise 

12 acting on behalf of or in the interests of, a country 

13 shall be considered to be an export (or attempted ex14 port) by that country. 

15 (b) EXCEPTION.—The prohibitions under subsection 

16 (a) shall not apply— 

17 (1) to any transaction subject to the reporting 

18 requirements of title V of the National Security Act 

19 of 1947 (relating to congressional oversight of intel20 ligence activities); 

21 (2) to medicines, medical equipment, and hu22 manitarian assistance; or 

23 (3) to any credit, credit guarantee, or financial 

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1 culture to support the purchase of food or other ag2 ricultural commodity. 

3 (c) WAIVER.— 

4 (1) IN GENERAL.—Assistance prohibited by 

5 subsection (a) may be provided to a government de6 scribed in that subsection if the President deter7 mines and certifies to the appropriate congressional 

8 committees that the termination of such assistance 

9 would be seriously prejudicial to the achievement of 

10 United States nonproliferation objectives or other11 wise jeopardize the common defense and security. 

12 (2) SPECIAL AUTHORITY.—Assistance prohib13 ited by subsection (a)(1)(B)(ii) may be provided to 

14 a foreign government described in that subsection if 

15 the President determines and certifies to the appro16 priate congressional committees that the government 

17 has taken a significant compensatory nonprolifera18 tion action, such as the declaration of an unlimited 

19 moratorium on further nuclear detonations, the sig20 nature and entry-into-force of a legally binding 

21 international instrument prohibiting the production 

22 of additional fissile nuclear material, or similar ac23 tion. 

24 (3) EFFECTIVE DATE.—A certification under 

25 paragraph (1) or (2) shall not take effect until 30 


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1 days of continuous session of Congress have elapsed 

2 after its submission. For purposes of this paragraph, 

3 continuity of session of Congress is broken only by 

4 an adjournment of Congress sine die and the days 

5 on which either House is not in session because of 

6 an adjournment of more than 3 days to a day cer7 tain are excluded in the computation of any period 

8 of time in which Congress is in continuous session. 

9 (4) NON-DELEGATION OR TRANSFER.—The 

10 President may not delegate or transfer the Presi11 dent’s power, authority, or discretion to make or 

12 modify determinations under this subsection. 

13 (d) RESOLUTION OF DISAPPROVAL.— 

14 (1) IN GENERAL.—A waiver under subsection 

15 (c) of a determination under subsection (a) shall 

16 cease to be effective if Congress enacts a joint reso17 lution disapproving the proposed waiver. 

18 (2) JOINT RESOLUTION DESCRIBED.—For the 

19 purposes of paragraph (1), the term ‘‘joint resolu20 tion’’ means only a joint resolution introduced not 

21 later than 30 days of continuous session of Congress 

22 (as described in subsection (c)(3)) after receipt of a 

23 certification under subsection (c), the matter after 

24 the resolving clause of which is as follows: ‘‘That the 


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1 proposed waiver under section 9202(c) of the Global 

2 Partnerships Act of 2013 is hereby prohibited.’’. 

3 (3) CONGRESSIONAL PROCEDURES.—A joint 

4 resolution described in paragraph (2) and introduced 

5 within the appropriate period shall be considered in 

6 the Senate and the House of Representatives in ac7 cordance with paragraphs (3) through (7) of section 

8 8066(c) of the Department of Defense Appropria9 tions Act, 1985 (as contained in Public Law 98– 

10 473), except that references in such paragraphs to 

11 the Committees on Appropriations of the House of 

12 Representatives and the Senate shall be deemed to 

13 be references to the Committee on Foreign Affairs 

14 of the House of Representatives and the Committee 

15 on Foreign Relations of the Senate, respectively. 

16 (e) DEFINITIONS.—In this section— 

17 (1) the term ‘‘non-nuclear-weapon state’’ has 

18 the meaning given the term in section 830(5) of the 

19 Nuclear Proliferation Prevention Act of 1994 (22 

20 U.S.C. 6305(5)); and 

21 (2) the term ‘‘nuclear explosive device’’ has the 

22 meaning given that term in section 830(4) of the 

23 Nuclear Proliferation Prevention Act of 1994 (22 

24 U.S.C. 6305(4)). 


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1 SEC. 9203. SECURITY ASSISTANCE TO PAKISTAN. 

2 (a) IN GENERAL.—Security assistance may be pro3 vided to Pakistan after the Secretary makes a certification 

4 in accordance with subsection (b). 

5 (b) CERTIFICATION.—Not less than 15 days before 

6 providing security assistance for Pakistan in a fiscal year, 

7 the Secretary shall transmit a certification to the appro8 priate congressional committees that— 

9 (1) the Government of Pakistan is continuing 

10 to safeguard its nuclear weapons-related facilities, 

11 material, and technology from theft and terrorist at12 tack; and 

13 (2) the Government of Pakistan during the pre14 ceding fiscal year has demonstrated a sustained 

15 commitment to and is making significant efforts to16 wards combating terrorist groups, taking into ac17 count the extent to which the Government of Paki18 stan has made progress on matters such as— 

19 (A) ceasing support, including by any ele20 ments within the Pakistan military or its intel21 ligence agency, to extremist and terrorist 

22 groups, particularly to any group that has con23 ducted attacks against United States or coali24 tion forces in Afghanistan, or against the terri25 tory or people of neighboring countries; 


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1 (B) preventing al Qaeda, the Taliban and 

2 associated terrorist groups, such as Lashkar-e3 Taiba, the Haqqani Network and Jaish-e-Mo4 hammed, from operating in the territory of 

5 Pakistan, including by stopping cross-border at6 tacks into neighboring countries, closing ter7 rorist camps in the Federally Administered 

8 Tribal Areas, dismantling terrorist bases of op9 erations in other parts of the country, including 

10 Quetta and Muridke, and taking action when 

11 provided with intelligence about high-level ter12 rorist targets; and 

13 (C) strengthening counterterrorism and 

14 anti-money laundering laws. 

15 (c) WAIVER.— 

16 (1) IN GENERAL.—The Secretary may waive 

17 the requirement contained in subsection (a) for a fis18 cal year if the Secretary determines that is impor19 tant to the national security interests of the United 

20 States to do so. 

21 (2) PRIOR NOTICE OF WAIVER.—The authority 

22 of paragraph (1) may not be exercised until 7 days 

23 after the Secretary provides to the appropriate con24 gressional committees a written notice of the intent 

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1 tice may be submitted in classified or unclassified 

2 form, as necessary. 

3 (d) EFFECTIVE DATE.—The provisions of this sec4 tion shall take effect on the date on which section 203 

5 of the Enhanced Partnership with Pakistan Act of 2009 

6 (Public Law 111–73) ceases to be effective. 

7 CHAPTER 3—NARCOTICS 

8 SEC. 9301. PROHIBITION ON ASSISTANCE TO DRUG TRAF9 FICKERS. 

10 (a) IN GENERAL.—The Secretary shall take all rea11 sonable steps to ensure that foreign assistance is not pro12 vided to or through any individual or entity that the Sec13 retary knows or has reason to believe— 

14 (1) has been convicted of a violation of, or a 

15 conspiracy to violate, any law or regulation of the 

16 United States or a foreign country relating to nar17 cotic or psychotropic drugs or other controlled sub18 stances; or 

19 (2) is or has been an illicit trafficker in any 

20 such controlled substance or is or has been a know21 ing assistor, abettor, conspirator, or colluder with 

22 others in the illicit trafficking in any such substance. 

23 (b) REGULATIONS.—The Secretary shall issue regula24 tions to carry out this section. 


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1 (c) CONGRESSIONAL NOTIFICATION.—Regulations 

2 issued pursuant to subsection (b) shall be submitted to 

3 the appropriate congressional committees before they take 

4 effect. 

5 (d) UNITED STATES DEFINED.—In this section, the 

6 term ‘‘United States’’ includes each State of the several 

7 States, the District of Columbia, the Commonwealth of 

8 Puerto Rico, American Samoa, Guam, the Commonwealth 

9 of the Northern Mariana Islands, the Virgin Islands of 

10 the United States, and any other territory or possession 

11 of the United States. 

12 SEC. 9302. PROHIBITION ON ASSISTANCE TO STATE SPON13 SORS OF DRUG TRAFFICKING. 

14 (a) IN GENERAL.—No foreign assistance may be pro15 vided to a foreign government which the Secretary deter16 mines has expressly consented to, or with knowledge, al17 lowed, tolerated, or disregarded the recurring use of any 

18 part of the land, waters, or airspace of the country for 

19 the transit, production, or financing of illicit narcotics. 

20 (b) EXPIRATION OF DETERMINATIONS.—A deter21 mination of the Secretary under subsection (a) shall re22 main in effect until rescinded. 

23 (c) RESCISSION OF DETERMINATIONS.—A deter24 mination of the Secretary under subsection (a) with re25 spect to a government may not be rescinded unless the 


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1 President submits to the appropriate congressional com2 mittees a report certifying that such government no longer 

3 expressly consents to, or with knowledge, allows, tolerates, 

4 or disregards the recurring use of any part of the land, 

5 waters, or airspace of the country for the transit, produc6 tion, or financing of illicit narcotics. 

7 (d) PUBLICATION.—A determination made under 

8 subsection (a) and a report submitted under subsection 

9 (c) shall be published in the Federal Register and made 

10 available on the Internet website of the Department of 

11 State. 

12 (e) LIST.—The Secretary shall include in the annual 

13 report required by section 8302 (relating to congressional 

14 budget justification) a list of governments for which deter15 minations under subsection (a) are currently in effect and 

16 the date on which each determination became effective. 

17 (f) WAIVER.—Assistance prohibited by subsection (a) 

18 may be provided to a government described in that sub19 section if, at least 15 days before providing assistance, the 

20 President submits to the appropriate congressional com21 mittees— 

22 (1) a certification that national security inter23 ests or humanitarian reasons justify such a waiver; 

24 and 

25 (2) a report describing— 


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1 (A) the type and amount of assistance to 

2 be provided pursuant to the waiver; 

3 (B) the justification for such waiver; and 

4 (C) the time period for which such waiver 

5 will be effective. 

6 SEC. 9303. PROHIBITION ON REIMBURSEMENTS FOR DRUG 

7 CROP ERADICATIONS. 

8 No foreign assistance may be made available to reim9 burse persons in foreign countries for the eradication of 

10 their illicit drug crops. 

11 CHAPTER 4—TERRORISM 

12 Subchapter A—General Provisions 

13 SEC. 9401. PROHIBITION ON ASSISTANCE TO STATE SPON14 SORS OF TERRORISM. 

15 (a) IN GENERAL.—No foreign assistance may be pro16 vided to a foreign government which the Secretary deter17 mines— 

18 (1) has repeatedly provided support for acts of 

19 international terrorism; or 

20 (2) is controlled by an organization designated 

21 as a terrorist organization under section 219 of the 

22 Immigration and Nationality Act. 

23 (b) EXPIRATION OF DETERMINATIONS.—A deter24 mination of the Secretary under subsection (a) shall re25 main in effect until rescinded. 


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1 (c) RESCISSION OF DETERMINATIONS.—A deter2 mination of the Secretary under subsection (a) with re3 spect to a government may not be rescinded unless the 

4 President submits to the appropriate congressional com5 mittees— 

6 (1) before the proposed rescission would take 

7 effect, a report certifying that— 

8 (A) there has been a fundamental change 

9 in the leadership and policies of the govern10 ment; 

11 (B) the government is not supporting acts 

12 of international terrorism; and 

13 (C) the government has provided assur14 ances that it will not support acts of inter15 national terrorism in the future; or 

16 (2) at least 45 days before the proposed rescis17 sion would take effect, a report justifying the rescis18 sion and certifying that— 

19 (A) the government has not provided any 

20 support for international terrorism during the 

21 preceding 6-month period; and 

22 (B) the government has provided assur23 ances that it will not support acts of inter24 national terrorism in the future. 


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1 (d) PUBLICATION.—A determination made under 

2 subsection (a) or a report submitted under subsection (c) 

3 shall be published in the Federal Register and made avail4 able on the Internet website of the Department of State. 

5 (e) LIST.—The Secretary shall include in the annual 

6 report required by section 8302 (relating to congressional 

7 budget justification) a list of governments for which deter8 minations under subsection (a) are currently in effect. 

9 (f) WAIVER.—Assistance prohibited by subsection (a) 

10 may be provided to a foreign government described in that 

11 subsection if, at least 15 days before providing assistance, 

12 the President submits to the appropriate congressional 

13 committees— 

14 (1) a certification that national security inter15 ests or humanitarian reasons justify a such a waiver; 

16 and 

17 (2) a report describing— 

18 (A) the type and amount of assistance to 

19 be provided pursuant to the waiver; 

20 (B) the justification for such waiver; and 

21 (C) the time period for which such waiver 

22 will be effective. 

23 (g) RESOLUTION OF DISAPPROVAL.— 

24 (1) IN GENERAL.—A rescission under sub25 section (c)(2) or a waiver under subsection (f) of a 


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1 determination under subsection (a) shall cease to be 

2 effective if Congress enacts a joint resolution dis3 approving the proposed rescission or waiver. 

4 (2) JOINT RESOLUTION DESCRIBED.—For the 

5 purposes of paragraph (1), the term ‘‘joint resolu6 tion’’ means only a joint resolution introduced not 

7 later than 45 days after the date of receipt of a re8 port under subsection (c)(2) or not later than 15 

9 days after receipt of a certification under subsection 

10 (f), as the case may be, the matter after the resolv11 ing clause of which is as follows: ‘‘That the proposed 

12 lllll submitted to Congress on lllll 

13 under section 9401 of the Global Partnerships Act 

14 of 2013 is hereby prohibited.’’, with the first blank 

15 space being filled with ‘‘rescission’’ or ‘‘waiver’’, as 

16 appropriate, and the second blank space being filled 

17 with the appropriate date. 

18 (3) CONGRESSIONAL PROCEDURES.—A joint 

19 resolution described in paragraph (2) and introduced 

20 within the appropriate period shall be considered in 

21 the Senate and the House of Representatives in ac22 cordance with paragraphs (3) through (7) of section 

23 8066(c) of the Department of Defense Appropria24 tions Act, 1985 (as contained in Public Law 98– 

25 473), except that references in such paragraphs to 


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1 the Committees on Appropriations of the House of 

2 Representatives and the Senate shall be deemed to 

3 be references to the Committee on Foreign Affairs 

4 of the House of Representatives and the Committee 

5 on Foreign Relations of the Senate, respectively. 

6 (h) DEFINITION.—In this section, the term ‘‘support 

7 for acts of international terrorism’’ includes— 

8 (1) expressly consenting to, or with knowledge, 

9 allowing, tolerating, or disregarding the recurring 

10 use of any part of the land, waters, or airspace of 

11 the country by a terrorist or terrorist organization— 

12 (A) to carry out terrorist activities, includ13 ing training, financing, and recruitment; or 

14 (B) as a transit point; 

15 (2) granting sanctuary from prosecution to any 

16 individual or group which has committed an act of 

17 international terrorism; or 

18 (3) willfully aiding or abetting— 

19 (A) the international proliferation of nu20 clear explosive devices to individuals or groups; 

21 (B) the acquisition by individuals or 

22 groups of unsafeguarded special nuclear mate23 rial; and 

24 (C) the efforts of an individual or group to 

25 use, develop, produce, stockpile, or otherwise 


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1 acquire chemical, biological, or radiological 

2 weapons. 

3 SEC. 9402. PROHIBITION ON ASSISTANCE TO FOREIGN GOV4 ERNMENTS SUPPORTING STATE SPONSORS 

5 OF TERRORISM. 

6 (a) IN GENERAL.—No foreign assistance may be pro7 vided to a foreign government which the Secretary deter8 mines provides assistance (other than humanitarian as9 sistance) to, or transfers lethal military equipment to, a 

10 state sponsor of terrorism. 

11 (b) APPLICABILITY.—The prohibition in subsection 

12 (a) shall apply only to assistance provided or transfers 

13 made after the date on which a government was des14 ignated as a state sponsor of terrorism. 

15 (c) EXPIRATION OF DETERMINATIONS.—A deter16 mination of the Secretary under subsection (a) shall re17 main in effect until rescinded. 

18 (d) RESCISSION OF DETERMINATIONS.—A deter19 mination of the Secretary under subsection (a) with re20 spect to a government may not be rescinded unless the 

21 President submits to the appropriate congressional com22 mittees a report certifying that— 

23 (1) the government has not provided assistance 

24 or transferred lethal military equipment to a state 


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1 sponsor of terrorism during the preceding 12-month 

2 period; 

3 (2) there has been a fundamental change in the 

4 leadership and policies of the government; and 

5 (3) the government has provided assurances 

6 that it will not provide assistance or transfer lethal 

7 military equipment to a state sponsor of terrorism in 

8 the future. 

9 (e) PUBLICATION.—A determination made under 

10 subsection (a) and a report submitted under subsection 

11 (d) shall be published in the Federal Register and made 

12 available on the Internet website of the Department of 

13 State. 

14 (f) LIST.—The Secretary shall include in the annual 

15 report required by section 8302 (relating to congressional 

16 budget justification) a list of governments for which deter17 minations under subsection (a) are currently in effect. 

18 (g) WAIVER.—Assistance prohibited by subsection (a) 

19 may be provided to a government described in that sub20 section if, at least 15 days before providing assistance, the 

21 President submits to the appropriate congressional com22 mittees— 

23 (1) a certification that providing foreign assist24 ance to the government is important to the national 

25 interests of the United States; and 


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1 (2) a report describing— 

2 (A) the type and amount of assistance to 

3 be provided pursuant to the waiver; 

4 (B) the justification for such waiver; and 

5 (C) the time period for which such waiver 

6 will be effective. 

7 SEC. 9403. PROHIBITION ON TRANSACTIONS WITH STATE 

8 SPONSORS OF TERRORISM. 

9 (a) PROHIBITED TRANSACTIONS BY THE UNITED

10 STATES GOVERNMENT.—The following transactions by 

11 the United States Government are prohibited: 

12 (1) Exporting or otherwise providing (by sale, 

13 lease or loan, grant, or other means), directly or in14 directly, any munitions item to a country described 

15 in subsection (d) under the authority of this Act or 

16 any other law (except as provided in subsection (g)). 

17 In implementing this paragraph, the President— 

18 (A) shall suspend delivery to such country 

19 of any such item pursuant to any such trans20 action which has not been completed at the 

21 time the Secretary makes the determination de22 scribed in section 9401(a) with respect to the 

23 government of the country; and 

24 (B) shall terminate any lease or loan to 

25 such country of any such item which is in effect 


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1 at the time the Secretary makes that deter2 mination. 

3 (2) Providing credits, guarantees, or other fi4 nancial assistance under the authority of this Act or 

5 any other law (except as provided in subsection (g)), 

6 with respect to the acquisition of any munitions item 

7 by a country described in subsection (d). In imple8 menting this paragraph, the President shall suspend 

9 expenditures pursuant to any such assistance obli10 gated before the Secretary makes the determination 

11 described in section 9401(a) with respect to the gov12 ernment of the country. The President may author13 ize expenditures otherwise required to be suspended 

14 pursuant to the preceding sentence if the President 

15 has determined, and reported to Congress, that sus16 pension of those expenditures causes undue financial 

17 hardship to a supplier, shipper, or similar person 

18 and allowing the expenditure will not result in any 

19 munitions item being made available for use by such 

20 country. 

21 (3) Consenting under this Act, or under any 

22 other law (except as provided in subsection (g)), to 

23 any transfer of any munitions item to a country de24 scribed in subsection (d). In implementing this para25 graph, the President shall withdraw any such conVerDate Mar 15 2010 22:23 Apr 26, 2013 Jkt 029200 PO 00000 Frm 00681 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793

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1 sent, which is in effect at the time the Secretary 

2 makes the determination described in section 

3 9401(a) with respect to the government of the coun4 try, except that this sentence does not apply with re5 spect to any item that has already been transferred 

6 to such country. 

7 (4) Providing any license or other approval 

8 under this Act for any export or other transfer (in9 cluding by means of a technical assistance agree10 ment, manufacturing licensing agreement, or co11 production agreement) of any munitions item to a 

12 country described in subsection (d). In implementing 

13 this paragraph, the President shall suspend any 

14 such license or other approval which is in effect at 

15 the time the Secretary makes the determination de16 scribed in section 9401(a) with respect to the gov17 ernment of the country, except that this sentence 

18 does not apply with respect to any item that has al19 ready been exported or otherwise transferred to such 

20 country. 

21 (5) Otherwise facilitating the acquisition of any 

22 munitions item by a state sponsor of terrorism. This 

23 paragraph applies with respect to activities under24 taken— 


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1 (A) by any department, agency, or other 

2 instrumentality of the United States Govern3 ment; 

4 (B) by any officer or employee of the 

5 United States Government (including members 

6 of the United States Armed Forces); or 

7 (C) by any other person at the request or 

8 on behalf of the United States Government. 

9 The President may waive the requirements of the 

10 second sentence of paragraph (1), the second sen11 tence of paragraph (3), and the second sentence of 

12 paragraph (4) to the extent that the President deter13 mines, after consultation with Congress, that un14 usual and compelling circumstances require that the 

15 President not take the actions specified in that sen16 tence. 

17 (b) PROHIBITED TRANSACTIONS BY UNITED STATES

18 PERSONS.— 

19 (1) IN GENERAL.—A United States person may 

20 not take any of the following actions: 

21 (A) Exporting any munitions item to any 

22 country described in subsection (d). 

23 (B) Selling, leasing, loaning, granting, or 

24 otherwise providing any munitions item to any 

25 country described in subsection (d). 


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1 (C) Selling, leasing, loaning, granting, or 

2 otherwise providing any munitions item to any 

3 recipient which is not the government of or a 

4 person in a country described in subsection (d) 

5 if the United States person has reason to know 

6 that the munitions item will be made available 

7 to any country described in subsection (d). 

8 (D) Taking any other action which would 

9 facilitate the acquisition, directly or indirectly, 

10 of any munitions item by a state sponsor of ter11 rorism, or any person acting on behalf of that 

12 government, if the United States person has 

13 reason to know that action will facilitate the ac14 quisition of that item by such a government or 

15 person. 

16 (2) LIABILITY FOR ACTIONS OF FOREIGN SUB17 SIDIARIES, ETC.—A United States person violates 

18 this subsection if a corporation or other person that 

19 is controlled in fact by that United States person (as 

20 determined under regulations, which the President 

21 shall issue), takes an action described in paragraph 

22 (1) outside the United States. 

23 (3) APPLICABILITY TO ACTIONS OUTSIDE THE

24 UNITED STATES.—Paragraph (1) applies with re25 spect to actions described in that paragraph which 


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1 are taken either within or outside the United States 

2 by a United States person described in subsection 

3 (k)(2)(A) or (B). To the extent provided in regula4 tions issued under subsection (k)(2)(D), paragraph 

5 (1) applies with respect to actions described in that 

6 paragraph which are taken outside the United 

7 States by a person designated as a United States 

8 person in those regulations. 

9 (c) TRANSFERS TO GOVERNMENTS AND PERSONS

10 COVERED.—This section applies with respect to— 

11 (1) the acquisition of munitions items by a 

12 state sponsor of terrorism; and 

13 (2) the acquisition of munitions items by any 

14 individual, group, or other person within a country 

15 described in subsection (d), except to the extent that 

16 subparagraph (D) of subsection (b)(1) provides oth17 erwise. 

18 (d) COUNTRIES COVERED BY PROHIBITION.—The 

19 prohibitions contained in this section apply with respect 

20 to any country that is the subject of a determination under 

21 section 9401(a), which has not been waived or rescinded. 

22 (e) PUBLICATION OF DETERMINATIONS.—Each de23 termination of the Secretary under subsection (d) shall be 

24 published in the Federal Register and made available on 

25 the Internet website of the Department of State. 


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1 (f) WAIVER.— 

2 (1) IN GENERAL.—The President may waive 

3 the prohibitions contained in this section with re4 spect to a specific transaction if— 

5 (A) the President determines that the 

6 transaction is essential to the national security 

7 interests of the United States; and 

8 (B) not less than 15 days prior to the pro9 posed transaction, the President— 

10 (i) consults with the Committee on 

11 Foreign Affairs of the House of Represent12 atives and the Committee on Foreign Rela13 tions of the Senate; and 

14 (ii) submits to the appropriate con15 gressional committees a report con16 taining— 

17 (I) the name of any country in18 volved in the proposed transaction, 

19 the identity of any recipient of the 

20 items to be provided pursuant to the 

21 proposed transaction, and the antici22 pated use of those items; 

23 (II) a description of the muni24 tions items involved in the proposed 

25 transaction (including their market 


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1 value) and the actual sale price at 

2 each step in the transaction (or if the 

3 items are transferred by other than 

4 sale, the manner in which they will be 

5 provided); 

6 (III) the reasons why the pro7 posed transaction is essential to the 

8 national security interests of the 

9 United States and the justification for 

10 such proposed transaction; 

11 (IV) the date on which the pro12 posed transaction is expected to occur; 

13 and 

14 (V) the name of each United 

15 States Government department, agen16 cy, or other entity involved in the pro17 posed transaction, every foreign gov18 ernment involved in the proposed 

19 transaction, and every private party 

20 with significant participation in the 

21 proposed transaction. 

22 (2) FORM.—To the extent possible, the infor23 mation specified in paragraph (1)(B)(ii) shall be 

24 provided in unclassified form, with any classified in25 formation provided in an addendum to the report. 


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1 (g) EXEMPTION FOR TRANSACTIONS SUBJECT TO

2 NATIONAL SECURITY ACT REPORTING REQUIRE3 MENTS.—The prohibitions contained in this section do not 

4 apply with respect to any transaction subject to reporting 

5 requirements under title V of the National Security Act 

6 of 1947 (50 U.S.C. 413 et seq.; relating to congressional 

7 oversight of intelligence activities). 

8 (h) RELATION TO OTHER LAWS.— 

9 (1) IN GENERAL.—With regard to munitions 

10 items controlled pursuant to this Act, the provisions 

11 of this section shall apply notwithstanding any other 

12 provisions of law, other than section 9603. 

13 (2) WAIVER AUTHORITY.—If the authority of 

14 section 9603(a) is used to permit a transaction 

15 under this Act which is otherwise prohibited by this 

16 section, the written policy justification required by 

17 that section shall include the information specified in 

18 subsection (f)(2)(B) of this section. 

19 (i) CRIMINAL PENALTY.—Any person who willfully 

20 violates this section shall be fined for each violation not 

21 more than $1,000,000, imprisoned not more than 10 

22 years, or both. 

23 (j) CIVIL PENALTIES; ENFORCEMENT.—In the en24 forcement of this section, the President is authorized to 

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1 forcement which are conferred upon departments, agen2 cies, and officials by sections 11(c), 11(e), 11(g), and 

3 12(a) of the Export Administration Act of 1979 (as con4 tinued in effect under the International Emergency Eco5 nomic Powers Act) (subject to the same terms and condi6 tions as are applicable to such powers under that Act), 

7 except that section 11(c)(2)(B) of such Act shall not 

8 apply, and instead, as prescribed in regulations issued 

9 under this section, the Secretary of State may assess civil 

10 penalties for violations of this Act and regulations pre11 scribed thereunder and further may commence a civil ac12 tion to recover such civil penalties, and except further 

13 that, notwithstanding section 11(c) of that Act, the civil 

14 penalty for each violation of this section may not exceed 

15 $500,000. 

16 (k) DEFINITIONS.—As used in this section— 

17 (1) the term ‘‘munitions item’’ means any item 

18 enumerated on the United States Munitions list 

19 (without regard to whether the item is imported into 

20 or exported from the United States); 

21 (2) the term ‘‘United States person’’ means— 

22 (A) any citizen or permanent resident alien 

23 of the United States; 

24 (B) any sole proprietorship, partnership, 

25 company, association, or corporation having its 


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1 principal place of business within the United 

2 States or organized under the laws of the 

3 United States, any State, the District of Co4 lumbia, the Commonwealth of Puerto Rico, the 

5 Commonwealth of the Northern Mariana Is6 lands, or any territory or possession of the 

7 United States; 

8 (C) any other person with respect to that 

9 person’s actions while in the United States; and 

10 (D) to the extent provided in regulations 

11 issued by the Secretary, any person that is not 

12 described in subparagraph (A), (B), or (C) 

13 but— 

14 (i) is a foreign subsidiary or affiliate 

15 of a United States person described in sub16 paragraph (B) and is controlled in fact by 

17 that United States person (as determined 

18 in accordance with those regulations), or 

19 (ii) is otherwise subject to the juris20 diction of the United States, 

21 with respect to that person’s actions while out22 side the United States; 

23 (3) the term ‘‘nuclear explosive device’’ has the 

24 meaning given that term in section 830(4) of the 


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1 Nuclear Proliferation Prevention Act of 1994 (22 

2 U.S.C. 6305(4)); and 

3 (4) the term ‘‘unsafeguarded special nuclear 

4 material’’ has the meaning given that term in sec5 tion 830(8) of the Nuclear Proliferation Prevention 

6 Act of 1994 (22 U.S.C. 6305 (8)). 

7 SEC. 9404. TRANSACTIONS WITH COUNTRIES NOT FULLY 

8 COOPERATING WITH UNITED STATES 

9 COUNTERTERRORISM EFFORTS. 

10 (a) PROHIBITED TRANSACTIONS.—No defense article 

11 or defense service may be sold or licensed for export under 

12 this Act in a fiscal year to a foreign country whose govern13 ment the Secretary determines and certifies to Congress, 

14 by May 15 of the calendar year in which that fiscal year 

15 begins, is not cooperating fully with United States 

16 counterterrorism efforts. 

17 (b) WAIVER.—The President may waive the prohibi18 tion in subsection (a) with respect to a specific transaction 

19 if the President determines and reports to the appropriate 

20 congressional committees that the transaction is impor21 tant to the national interests of the United States. 


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1 SEC. 9405. WITHHOLDING OF UNITED STATES PROPOR2 TIONATE SHARE FOR CERTAIN PROGRAMS 

3 OF INTERNATIONAL ORGANIZATIONS. 

4 (a) IN GENERAL.—No contributions by the United 

5 States shall be made to any international organization for 

6 the United States proportionate share for programs in 

7 countries determined to be state sponsors of terrorism in 

8 accordance with section 9401(a). 

9 (b) PROPORTIONATE SHARE.—The Secretary shall— 

10 (1) review, at least annually, the budgets and 

11 accounts of all international organizations receiving 

12 funds under this Act; and 

13 (2) report to the appropriate congressional com14 mittees the amounts of funds expended by each such 

15 organization for the purposes described in subsection 

16 (a) and the amount contributed by the United 

17 States to each such organization. 

18 (c) EXCEPTIONS.—The limitation in subsection (a) 

19 shall not apply to contributions to the International Atom20 ic Energy Agency or the United Nations Children’s Fund 

21 (UNICEF). 


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1 Subchapter B—Middle East Provisions 

2 SEC. 9411. CONDITIONAL CONTRIBUTIONS TO CERTAIN 

3 INTERNATIONAL ORGANIZATIONS. 

4 (a) IN GENERAL.—No contributions by the United 

5 States shall be made to the United Nations Relief and 

6 Works Agency for Palestine Refugees in the Near East. 

7 (b) EXCEPTION.—The limitation in subsection (a) 

8 shall not apply if the Secretary determines and reports 

9 to the appropriate congressional committees that the 

10 United Nations Relief and Works Agency is taking all pos11 sible measures to assure that no part of the United States 

12 contribution shall be used to provide assistance to any ref13 ugee who is receiving military training as a member of 

14 any terrorist group or guerrilla-type organization or who 

15 has engaged in any act of terrorism. 

16 SEC. 9412. LIMITATION ON ASSISTANCE TO THE PALES17 TINIAN AUTHORITY. 

18 (a) LIMITATION.—Assistance may be provided under 

19 this Act to the Hamas-controlled Palestinian Authority 

20 only during a period for which a certification described 

21 in subsection (b) is in effect. 

22 (b) CERTIFICATION.—A certification described in 

23 subsection (a) is a certification transmitted by the Presi24 dent to Congress that contains a determination of the 

25 President that— 


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1 (1) no ministry, agency, or instrumentality of 

2 the Palestinian Authority is effectively controlled by 

3 Hamas, unless the Hamas-controlled Palestinian Au4 thority has— 

5 (A) publicly acknowledged the Jewish state 

6 of Israel’s right to exist; and 

7 (B) committed itself and is adhering to all 

8 previous agreements and understandings with 

9 the United States Government, with the Gov10 ernment of Israel, and with the international 

11 community, including agreements and under12 standings pursuant to the Performance-Based 

13 Roadmap to a Permanent Two-State Solution 

14 to the Israeli-Palestinian Conflict (commonly 

15 referred to as the ‘‘Roadmap’’); and 

16 (2) the Hamas-controlled Palestinian Authority 

17 has made demonstrable progress toward— 

18 (A) completing the process of purging from 

19 its security services individuals with ties to ter20 rorism; 

21 (B) dismantling all terrorist infrastructure 

22 within its jurisdiction, confiscating unauthor23 ized weapons, arresting and bringing terrorists 

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1 tacks, and fully cooperating with Israel’s secu2 rity services; 

3 (C) halting all anti-American and anti4 Israel incitement in Palestinian Authority-con5 trolled electronic and print media and in 

6 schools, mosques, and other institutions it con7 trols, and replacing educational materials, in8 cluding textbooks, with materials that promote 

9 peace, tolerance, and coexistence with Israel; 

10 (D) ensuring democracy, the rule of law, 

11 and an independent judiciary, and adopting 

12 other reforms such as ensuring transparent and 

13 accountable governance; and 

14 (E) ensuring the financial transparency 

15 and accountability of all government ministries 

16 and operations. 

17 (c) RECERTIFICATIONS.—Not later than 90 days 

18 after the date on which the President transmits to Con19 gress an initial certification under subsection (b), and 

20 every six months thereafter— 

21 (1) the President shall transmit to Congress a 

22 recertification that the conditions described in sub23 section (b) are continuing to be met; or 


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1 (2) if the President is unable to make such a 

2 recertification, the President shall transmit to Con3 gress a report that contains the reasons therefor. 

4 (d) CONGRESSIONAL NOTIFICATION.—Assistance 

5 made available under this Act to the Palestinian Authority 

6 may not be provided until 15 days after the date on which 

7 the President has provided notice thereof to the appro8 priate congressional committees in accordance with the 

9 procedures applicable to reprogramming notifications 

10 under section 8401. 

11 (e) NATIONAL SECURITY WAIVER.— 

12 (1) IN GENERAL.—Subject to paragraph (2), 

13 the President may waive subsection (a) with respect 

14 to— 

15 (A) the administrative and personal secu16 rity costs of the Office of the President of the 

17 Palestinian Authority; 

18 (B) the activities of the President of the 

19 Palestinian Authority to fulfill his or her duties 

20 as President, including to maintain control of 

21 the management and security of border cross22 ings, to foster the Middle East peace process, 

23 and to promote democracy and the rule of law; 

24 and 


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1 (C) assistance for the judiciary branch of 

2 the Palestinian Authority and other entities. 

3 (2) CERTIFICATION.—The President may only 

4 exercise the waiver authority under paragraph (1) 

5 after— 

6 (A) consulting with, and submitting a writ7 ten policy justification to, the appropriate con8 gressional committees; and 

9 (B) certifying to the appropriate congres10 sional committees that— 

11 (i) it is in the national security inter12 est of the United States to provide assist13 ance otherwise prohibited under subsection 

14 (a); and 

15 (ii) the individual or entity for which 

16 assistance is proposed to be provided is not 

17 a member of, or effectively controlled by 

18 (as the case may be), Hamas or any other 

19 foreign terrorist organization. 

20 (3) REPORT.—Not later than 10 days after ex21 ercising the waiver authority under paragraph (1), 

22 the President shall submit to the appropriate con23 gressional committees a report describing how the 

24 funds provided pursuant to such waiver will be spent 


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1 and detailing the accounting procedures that are in 

2 place to ensure proper oversight and accountability. 

3 (4) TREATMENT OF CERTIFICATION AS NOTIFI4 CATION OF PROGRAM CHANGE.—For purposes of 

5 this subsection, the certification required under 

6 paragraph (2)(B) shall be deemed to be a notifica7 tion under section 8401 and shall be considered in 

8 accordance with the procedures applicable to notifi9 cations submitted pursuant to that section. 

10 (f) DEFINITION.—In this section, the term ‘‘Pales11 tinian Authority’’ means the interim Palestinian adminis12 trative organization that governs part of the West Bank 

13 and all of the Gaza Strip (or any successor Palestinian 

14 governing entity), including the Palestinian Legislative 

15 Council. 

16 SEC. 9413. LIMITATION ON ASSISTANCE FOR THE WEST 

17 BANK AND GAZA. 

18 (a) LIMITATION.—Assistance may be provided under 

19 this Act to nongovernmental organizations for the West 

20 Bank and Gaza only during a period for which a certifi21 cation described in section 9412(b) is in effect with respect 

22 to the Palestinian Authority. 

23 (b) EXCEPTIONS.—Subsection (a) shall not apply 

24 with respect to the following: 


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1 (1) ASSISTANCE TO MEET BASIC HUMAN

2 NEEDS.—Assistance to meet food, water, medicine, 

3 health, or sanitation needs, or other assistance to 

4 meet basic human needs. 

5 (2) ASSISTANCE TO PROMOTE DEMOCRACY.— 

6 Assistance to promote democracy, human rights, 

7 freedom of the press, non-violence, reconciliation, 

8 and peaceful coexistence, provided that such assist9 ance does not directly benefit Hamas or any other 

10 foreign terrorist organization. 

11 (3) ASSISTANCE FOR INDIVIDUAL MEMBERS OF

12 THE PALESTINIAN LEGISLATIVE COUNCIL.—Assist13 ance, other than funding of salaries or salary supple14 ments, to individual members of the Palestinian 

15 Legislative Council who the President determines 

16 are not members of Hamas or any other foreign ter17 rorist organization, for the purposes of facilitating 

18 the attendance of such members in programs for the 

19 development of institutions of democratic govern20 ance, including enhancing the transparent and ac21 countable operations of such institutions, and pro22 viding support for the Middle East peace process. 

23 (4) OTHER TYPES OF ASSISTANCE.—Any other 

24 type of assistance if the President— 


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1 (A) determines that the provision of such 

2 assistance is in the national security interest of 

3 the United States; and 

4 (B) not less than 30 days prior to the obli5 gation of amounts for the provision of such as6 sistance— 

7 (i) consults with the appropriate con8 gressional committees regarding the spe9 cific programs, projects, and activities to 

10 be carried out using such assistance; and 

11 (ii) submits to the appropriate con12 gressional committees a written memo13 randum that contains the determination of 

14 the President under subparagraph (A). 

15 (c) MARKING REQUIREMENT.—Assistance provided 

16 under this Act to nongovernmental organizations for the 

17 West Bank and Gaza shall be marked as assistance from 

18 the American people or the United States Government un19 less the Secretary of State or, as appropriate, the Admin20 istrator of the United States Agency for International De21 velopment, determines that such marking will endanger 

22 the lives or safety of persons delivering such assistance 

23 or would have an adverse effect on the implementation of 

24 that assistance. 


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1 (d) CONGRESSIONAL NOTIFICATION.—Assistance 

2 made available under this Act to nongovernmental organi3 zations for the West Bank and Gaza may not be provided 

4 until 15 days after the date on which the President has 

5 provided notice thereof to the appropriate congressional 

6 committees in accordance with the procedures applicable 

7 to reprogramming notifications under section 8401. 

8 CHAPTER 5—TRADE AND COMMERCE 

9 SEC. 9501. PROHIBITION ON ASSISTANCE FOR EXPORTING 

10 UNITED STATES JOBS. 

11 (a) INCENTIVES AND INDUCEMENTS.—No foreign as12 sistance may be made available to provide any financial 

13 incentive to a business enterprise located in the United 

14 States for the purpose of inducing such enterprise to relo15 cate outside the United States, if such incentive or induce16 ment is likely to reduce the number of employees of such 

17 business enterprise in the United States because United 

18 States production is being replaced by such enterprise out19 side the United States. 

20 (b) WORKERS’ RIGHTS.—No foreign assistance may 

21 be made available for any program, project, or activity 

22 that contributes to the violation of internationally recog23 nized worker rights (as such term is defined in section 

24 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4))) 


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1 of workers in a partner country, including any designated 

2 zone or area in the country. 

3 SEC. 9502. PROHIBITION ON ASSISTANCE TO GOVERN4 MENTS THAT EXPROPRIATE UNITED STATES 

5 PROPERTY. 

6 (a) IN GENERAL.—No foreign assistance may be pro7 vided to a foreign government which the Secretary deter8 mines has— 

9 (1) on or after January 1, 1962— 

10 (A) nationalized or expropriated or seized 

11 ownership or control of property owned by any 

12 United States citizen or by any corporation, 

13 partnership, or association not less than 50 per14 cent beneficially owned by United States citi15 zens; 

16 (B) taken steps to repudiate or nullify ex17 isting contracts or agreements with any United 

18 States citizen or any corporation, partnership, 

19 or association not less than 50 percent bene20 ficially owned by United States citizens; or 

21 (C) imposed or enforced discriminatory 

22 taxes or other exactions, or restrictive mainte23 nance or operational conditions, or has taken 

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1 izing, expropriating, or otherwise seizing owner2 ship or control of property so owned; and 

3 (2) failed within a reasonable time to take ap4 propriate steps, which may include arbitration, to— 

5 (A) discharge its obligations under inter6 national law toward such citizen or entity, in7 cluding speedy compensation for such property 

8 in convertible foreign exchange, equivalent to 

9 the full value thereof, as required by inter10 national law; or 

11 (B) provide relief from such taxes, exac12 tions, or conditions, as the case may be. 

13 (b) REASONABLE TIME DEFINED.—For the purposes 

14 of subsection (a)(2), the term ‘‘reasonable time’’ means— 

15 (1) not more than six months after an action 

16 described in subsection (a)(1); or 

17 (2) in the event of a referral to the Foreign 

18 Claims Settlement Commission of the United States, 

19 not more than twenty days after the report of the 

20 Commission is received. 

21 (c) EXPIRATION OF DETERMINATIONS.—A deter22 mination of the Secretary under subsection (a) shall re23 main in effect until rescinded. 

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1 spect to a foreign government shall not be rescinded unless 

2 the President submits to the appropriate congressional 

3 committees a report certifying that the government has 

4 taken appropriate steps to— 

5 (1) discharge its obligations under international 

6 law toward such citizen or entity; or 

7 (2) provide relief from the taxes, exactions, or 

8 conditions, as the case may be. 

9 (e) PUBLICATION.—A determination made under 

10 subsection (a) or a report submitted under subsection (d) 

11 shall be published in the Federal Register and made avail12 able on the Internet website of the Department of State. 

13 (f) LIST.—The Secretary shall include in the annual 

14 report required by section 8302 (relating to congressional 

15 budget justification) a list of foreign governments for 

16 which determinations under subsection (a) are currently 

17 in effect. 

18 (g) WAIVER.—Assistance prohibited by subsection (a) 

19 may be provided to a foreign government described in that 

20 subsection if, at least 15 days before providing assistance, 

21 the President submits to the appropriate congressional 

22 committees— 

23 (1) a certification that such a waiver is impor24 tant to the national interests of the United States; 

25 and 


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1 (2) a report describing— 

2 (A) the type and amount of assistance to 

3 be provided pursuant to the waiver; 

4 (B) the justification for such waiver; and 

5 (C) the time period for which such waiver 

6 will be effective. 

7 (h) FOREIGN CLAIMS SETTLEMENT COMMISSION.— 

8 (1) IN GENERAL.—Upon request of the Presi9 dent (within 70 days after an action referred to in 

10 subsection (a)(1)), the Foreign Claims Settlement 

11 Commission of the United States (established pursu12 ant to Reorganization Plan No. 1 of 1954, 68 Stat. 

13 1279) is hereby authorized to evaluate expropriated 

14 property, determining the full value of any property 

15 nationalized, expropriated, or seized, or subject to 

16 discriminatory or other actions as aforesaid, for pur17 poses of this section and to render an advisory re18 port to the President within 90 days after such re19 quest. 

20 (2) FORM OF REPORT.—Unless authorized by 

21 the President, the Commission shall not publish its 

22 advisory report except to the citizen or entity owning 

23 such property. 

24 (3) AUTHORIZATION OF APPROPRIATIONS.— 

25 There is authorized to be appropriated such 


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1 amounts, to remain available until expended, as may 

2 be necessary from time to time to enable the Com3 mission to carry out expeditiously its functions 

4 under this subsection. 

5 (i) FEDERAL ACT OF STATE DOCTRINE.— 

6 (1) IN GENERAL.—Notwithstanding any other 

7 provision of law, no court in the United States shall 

8 decline on the ground of the Federal act of state 

9 doctrine to make a determination on the merits giv10 ing effect to the principles of international law in a 

11 case in which claim of title or other right to property 

12 is asserted by any party, including a foreign state 

13 (or a party claiming through such state), based upon 

14 (or traced through) a confiscation or other taking 

15 after January 1, 1959, by an act of that state in vio16 lation of the principles of international law, includ17 ing the principles of compensation and the other 

18 standards set out in this section. 

19 (2) EXCEPTIONS.—This subsection shall not be 

20 applicable— 

21 (A) in any case in which an act of a for22 eign state is not contrary to international law 

23 or with respect to a claim of title or other right 

24 to property acquired pursuant to an irrevocable 

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1 tion issued in good faith prior to the time of the 

2 confiscation or other taking; or 

3 (B) in any case with respect to which the 

4 President determines that application of the act 

5 of state doctrine is required in that particular 

6 case by the foreign policy interests of the 

7 United States and a suggestion to this effect is 

8 filed on the President’s behalf in that case with 

9 the court. 

10 SEC. 9503. PROHIBITION ON ASSISTANCE FOR COMPENSA11 TION RELATING TO EXPROPRIATED OR NA12 TIONALIZED PROPERTY. 

13 (a) PROHIBITION.—No foreign assistance may be 

14 provided to compensate owners for expropriated or nation15 alized property and, upon finding by the President that 

16 such assistance has been used by a government for such 

17 purpose, no further assistance under this Act may be pro18 vided to the government until appropriate reimbursement 

19 is made to the United States. 

20 (b) EXCEPTION.—The prohibition in subsection (a) 

21 shall not apply to monetary assistance made available for 

22 use by a foreign government to compensate nationals of 

23 that country in accordance with a land reform program 

24 if the President determines that monetary assistance for 


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1 such land reform program will further the national inter2 ests of the United States. 

3 SEC. 9504. PROHIBITION ON ASSISTANCE TO GOVERN4 MENTS THAT REFUSE EXTRADITION RE5 QUESTS. 

6 (a) IN GENERAL.—No assistance under this Act 

7 (other than assistance under title V) may be provided to 

8 the central government of a country which has notified 

9 the Department of State of its refusal to extradite to the 

10 United States any individual indicted for a criminal of11 fense for which the maximum penalty is life imprisonment 

12 without the possibility of parole or for killing a law en13 forcement officer, as specified in a United States extra14 dition request. 

15 (b) APPLICABILITY.—The prohibition in subsection 

16 (a) shall only apply to the central government of a coun17 try— 

18 (1) with which the United States maintains dip19 lomatic relations; and 

20 (2) which is violating the terms and conditions 

21 of its extradition treaty with the United States. 

22 (c) WAIVER.—The Secretary may waive the prohibi23 tion in subsection (a) on a case-by-case basis if the Sec24 retary certifies and reports to the appropriate congres25 sional committees pursuant to section 8401 that such 


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1 waiver is important to the national interests of the United 

2 States. 

3 SEC. 9505. PROHIBITION ON TAXATION OF FOREIGN AS4 SISTANCE. 

5 (a) IN GENERAL.—No foreign assistance may be pro6 vided to a foreign government under a bilateral agreement 

7 entered into after the date of the enactment of this Act 

8 governing the terms and conditions under which such as9 sistance is to be provided unless such agreement includes 

10 a provision stating that United States foreign assistance 

11 shall be exempt from taxation or reimbursed by the for12 eign government. 

13 (b) REIMBURSEMENT OF FOREIGN TAXES.—In each 

14 fiscal year, the Secretary shall reduce the amount of for15 eign assistance made available under this Act to a govern16 ment by an amount equivalent to the total taxes assessed 

17 on United States foreign assistance, either directly or 

18 through grantees, contractors and subcontractors, by such 

19 government in the previous fiscal year, until such taxes 

20 have been reimbursed to the United States. 

21 (c) TRANSPARENCY.—The Secretary shall include in 

22 each report on allocations of assistance under section 8303 

23 the amount of unreimbursed taxes assessed by each gov24 ernment to which the United States Government intends 

25 to provide funds. 


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1 (d) DEFINITION.—In this section, the terms ‘‘taxes’’ 

2 and ‘‘taxation’’ refer to value-added taxes and customs du3 ties imposed on commodities financed with United States 

4 foreign assistance, and do not include foreign taxes of a 

5 de minimis nature. 

6 SEC. 9506. LIMITATION ON ASSISTANCE TO COUNTRIES IN 

7 DEFAULT. 

8 No assistance made available under this Act may be 

9 made available for new loans to the government of any 

10 country which is in default, during a period in excess of 

11 six calendar months, in payment to the United States of 

12 principal or interest on any loan made to such country 

13 under this Act, unless— 

14 (1) such country meets its obligations under the 

15 existing loan; or 

16 (2) the Secretary determines that new loans to 

17 such government are in the national interest and no18 tifies the appropriate congressional committees of 

19 such determination. 

20 Subtitle B—Policy Authorities 

21 SEC. 9601. CONTINGENCIES. 

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of law, the President is authorized to use funds made 

24 available to carry out any provision of this Act in order 

25 to provide, for any unanticipated contingencies, assistance 


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1 authorized by title I, II or III in accordance with the provi2 sions applicable to the furnishing of such assistance. 

3 (b) LIMITATION.—The authority of subsection (a) 

4 may not be used to authorize the use of more than 

5 $50,000,000 during any fiscal year. 

6 (c) REPORT REQUIRED.—The President shall report 

7 in advance to the extent practicable to the appropriate 

8 congressional committees each time the President intends 

9 to exercise the authority of subsection (a). 

10 SEC. 9602. TRANSFER BETWEEN ACCOUNTS. 

11 (a) IN GENERAL.—Whenever the President deter12 mines it to be necessary for the purposes of this Act, not 

13 to exceed 10 percent of the funds made available for any 

14 provision of this Act may be transferred to, and consoli15 dated with, the funds made available for any other provi16 sion of this Act, and may be used for any of the purposes 

17 for which such funds may be used, except that the total 

18 in the provision for the benefit of which the transfer is 

19 made shall not be increased by more than 20 percent of 

20 the amount of funds made available for such provision. 

21 (b) EXCEPTION.—The authority of subsection (a) 

22 shall not be used to transfer funds made available for the 

23 purposes of titles I, II, or III and consolidate them with 

24 funds made available for the purposes of titles IV or V 

25 of this Act. 


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1 (c) REPORT REQUIRED.—The President shall report 

2 in advance to the extent practicable to the appropriate 

3 congressional committees each time the President intends 

4 to exercise the authority of subsection (a). 

5 SEC. 9603. SPECIAL WAIVER AUTHORITY. 

6 (a) AUTHORITY.—The President may authorize the 

7 taking of any action (or the refraining from the taking 

8 of any action) under this Act or any other Act relating 

9 to foreign assistance, notwithstanding any provision of 

10 law, if the President determines— 

11 (1) in cases relating to the transfer of defense 

12 articles or defense services, that to do so is essential 

13 to the national interests of the United States; and 

14 (2) in any other cases, that to do so is impor15 tant to the national interests of the United States. 

16 (b) CONSULTATION WITH CONGRESS.—Before exer17 cising the authority of subsection (a), the President shall 

18 consult with, and shall provide a written policy justifica19 tion to, the appropriate congressional committees. 

20 (c) NOTIFICATION TO CONGRESS.—A determination 

21 under subsection (a) shall not be effective until the Presi22 dent submits written notification of that determination to 

23 the appropriate congressional committees. 

24 (d) ANNUAL CEILINGS.— 


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1 (1) IN GENERAL.—The authority of this section 

2 may not be used in any fiscal year to authorize— 

3 (A) more than $1,000,000,000 in sales or 

4 leases to be made under subtitle C of title IV; 

5 (B) the use of more than $500,000,000 of 

6 funds made available for use under any other 

7 provision of this Act; and 

8 (C) the use of more than $100,000,000 of 

9 foreign currencies accruing under this Act or 

10 any other law. 

11 (2) ARMS SALES.—If the authority of this sec12 tion is used both to authorize a sale or lease under 

13 subtitle C of title IV and to authorize funds to be 

14 used under this Act with respect to the financing of 

15 that sale or lease, then the use of the funds shall be 

16 counted against the limitation in paragraph (1)(B) 

17 and the portion, if any, of the sale or lease which 

18 is not so financed shall be counted against the limi19 tation in paragraph (1)(A). 

20 (3) LEASES.—For purposes of paragraph 

21 (1)(A), the replacement cost, less any depreciation in 

22 the value, of the defense articles authorized to be 

23 leased shall be counted against the limitation in that 

24 paragraph. 


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1 (4) COUNTRY LIMITS.—The following limita2 tions shall apply with respect to any one country in 

3 any fiscal year: 

4 (A) Not more than $100,000,000 of the 

5 $500,000,000 limitation provided in paragraph 

6 (1)(B) may be allocated to the country unless 

7 the country is a victim of active aggression. 

8 (B) Not more than $750,000,000 of the 

9 aggregate limitation of $1,500,000,000 pro10 vided in paragraphs (1)(A) and (1)(B) may be 

11 allocated to the country. 

12 TITLE X—ORGANIZATION, MAN13 AGEMENT, AND HUMAN RE14 SOURCES 

15 SEC. 10001. DEFINITIONS. 

16 In this title: 

17 (1) COMMODITY.—The term ‘‘commodity’’ in18 cludes any material, article, supply, goods, or equip19 ment used for the purposes of providing non-military 

20 assistance. 

21 (2) COMMODITY RESTRICTIONS.—The term 

22 ‘‘commodity restrictions’’ means statutory and regu23 latory requirements that apply to the procurement 

24 or transportation of commodities financed under this 

25 Act, including— 


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1 (A) sections 10501 and 10503; 

2 (B) section 901(b)(1) of the Merchant Ma3 rine Act of 1936; 

4 (C) section 5 of the International Air 

5 Transportation Fair Competitive Practice Act 

6 of 1974; 

7 (D) section 644 of the Small Business Act; 

8 (E) section 2711 of the Competition in 

9 Contracting Act of 1984; and 

10 (F) the Federal Property and Administra11 tive Services Act of 1949. 

12 (3) COUNTRY OF ASSIGNMENT.—The term 

13 ‘‘country of assignment’’ means the foreign country 

14 in which an individual serves an accredited rep15 resentative of the United States Government. 

16 (4) DEFENSE ARTICLE AND RELATED

17 TERMS.—The terms ‘‘defense article’’, ‘‘defense serv18 ice’’, ‘‘defense information’’, ‘‘excess defense arti19 cle’’, ‘‘major defense equipment’’, and ‘‘significant 

20 military equipment’’ have the meanings given such 

21 terms in section 4411. 

22 (5) FEDERAL EMPLOYEE.—The term ‘‘Federal 

23 employee’’ or ‘‘employee’’ has the meaning given the 

24 term ‘‘employee’’ in section 2105(a) of title 5, 

25 United States Code. 


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1 (6) FEDERAL OFFICER.—The term ‘‘Federal of2 ficer’’ or ‘‘officer’’ has the meaning given the term 

3 ‘‘officer’’ in section 2104 of title 5, United States 

4 Code. 

5 (7) FEDERAL PERSONNEL.—The term ‘‘Federal 

6 personnel’’ or ‘‘personnel’’ includes Federal employ7 ees, Federal officers, personal services contractors, 

8 locally employed staff, foreign national employees of 

9 the Foreign Service (as defined in section 103(6) of 

10 the Foreign Service Act of 1980), and any other in11 dividual employed by a Federal department or agen12 cy, as defined under regulations prescribed by the 

13 President. 

14 (8) FOREIGN SERVICE OFFICER.—The term 

15 ‘‘Foreign Service Officer’’ means a member of the 

16 Foreign Service as defined in section 103 of the 

17 Foreign Service Act of 1980. 

18 (9) FUNCTION.—The term ‘‘function’’ includes 

19 any duty, obligation, power, authority, responsibility, 

20 right, privilege, discretion, or activity. 

21 (10) GENDER ANALYSIS, EQUALITY, AND INTE22 GRATION.—The terms ‘‘gender analysis’’, ‘‘gender 

23 equality’’, and ‘‘gender integration’’ have the mean24 ings given such terms in section 1708. 

25 (11) LOCAL ENTITY.— 


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1 (A) IN GENERAL.—The term ‘‘local entity’’ 

2 means an individual, corporation, nonprofit or3 ganization, or another body of persons that— 

4 (i) is located in a partner country; 

5 (ii) is organized under the laws of the 

6 partner country; 

7 (iii) has as its principal place of busi8 ness or operations the partner country; 

9 and 

10 (iv) is owned or controlled by citizens 

11 of the partner country. 

12 (B) OWNED OR CONTROLLED.—In sub13 paragraph (iv), the term ‘‘owned or controlled’’ 

14 means— 

15 (i) in the case of a corporation, the 

16 holding of at least 50 percent (by vote or 

17 value) of the capital structure of the cor18 poration; or 

19 (ii) in the case of any other kind of 

20 legal entity, the holding of interests rep21 resenting at least 50 percent of the capital 

22 structure of the entity. 

23 (12) SERVICE.—The term ‘‘service’’ includes 

24 any service, repair, training, technical assistance, ad25 vice, or information used for purposes of this Act. 


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1 Subtitle A—Organization 

2 CHAPTER 1—EXERCISE AND 

3 COORDINATION OF FUNCTIONS 

4 SEC. 10101. DELEGATIONS; REGULATIONS. 

5 (a) DELEGATIONS BY THE PRESIDENT.—The Presi6 dent may exercise any functions conferred upon the Presi7 dent by this Act through such Federal agency or Federal 

8 officer as the President shall direct. 

9 (b) ISSUE REGULATIONS AND DELEGATIONS BY

10 AGENCY HEADS.—The head of any such agency or any 

11 such officer exercising functions under this Act— 

12 (1) may from time to time promulgate such 

13 rules and regulations as may be necessary to carry 

14 out such functions; and 

15 (2) may delegate authority, including the dele16 gation to any other agency, upon obtaining the con17 currence of the head of that agency, to perform any 

18 such functions, including, if the delegating official 

19 shall so specify, the authority successively to redele20 gate any such functions. 

21 SEC. 10102. ROLE OF THE SECRETARY OF STATE. 

22 (a) IN GENERAL.—Under the direction of the Presi23 dent, the Secretary shall be responsible for the continuous 

24 supervision, overall coordination, and general direction of 


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1 United States foreign assistance, and for ensuring that the 

2 foreign policy of the United States is best served thereby. 

3 (b) MILITARY ASSISTANCE.—The responsibility con4 ferred upon the Secretary in subsection (a) includes— 

5 (1) all forms of military assistance; and 

6 (2) determinations of whether to offer or deliver 

7 any form of military assistance and the scope, types, 

8 amounts, and conditions of such assistance. 

9 SEC. 10103. ROLE OF THE CHIEF OF MISSION. 

10 (a) IN GENERAL.—The Chief of Mission shall be re11 sponsible for the continuous supervision, overall coordina12 tion, and general direction of all activities, resources, and 

13 programs of the United States Government as they are 

14 carried out in the country of assignment. 

15 (b) EXCEPTIONS.—The responsibility conferred upon 

16 the Chief of Mission in subsection (a) shall not include 

17 authority over— 

18 (1) Federal personnel under the command of a 

19 United States area military commander; or 

20 (2) Federal personnel specifically exempted by 

21 law or designated by the President. 

22 SEC. 10104. OFFICE FOR GLOBAL WOMEN’S ISSUES. 

23 (a) ESTABLISHMENT.—There is established an Office 

24 for Global Women’s Issues (in this section referred to as 

25 the ‘‘Office’’) in the Office of the Secretary of State in 


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1 the Department of State. The Office shall be headed by 

2 the Ambassador-at-Large (in this section referred to as 

3 the ‘‘Ambassador’’), who shall report directly to the Sec4 retary of State. 

5 (b) PURPOSE.—The Office shall coordinate efforts of 

6 the United States Government regarding gender integra7 tion and women’s empowerment in United States foreign 

8 policy. 

9 (c) DUTIES.— 

10 (1) IN GENERAL.—The Ambassador shall— 

11 (A) coordinate and advise on activities, 

12 policies, programs, and funding relating to gen13 der integration and women’s empowerment 

14 internationally for all bureaus and offices of the 

15 Department of State and in the international 

16 programs of other Federal agencies; 

17 (B) design, support, and as appropriate, 

18 implement, limited projects regarding women’s 

19 empowerment internationally; 

20 (C) actively promote and advance the full 

21 integration of gender analysis into the pro22 grams, structures, processes, and capacities of 

23 all bureaus and offices of the Department of 

24 State and in the international programs of 

25 other Federal agencies; and 


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1 (D) direct, as appropriate, United States 

2 Government resources to respond to needs for 

3 gender integration and women’s empowerment 

4 in United States Government foreign policies 

5 and international programs. 

6 (2) DIPLOMATIC REPRESENTATION.—Subject to 

7 the direction of the President and the Secretary of 

8 State, the Ambassador is authorized to represent the 

9 United States in matters relevant to the status of 

10 women internationally. 

11 (d) REPORTING.—The heads of all bureaus and inde12 pendent offices of the Department of State, the United 

13 States Agency for International Development, and the 

14 Millennium Challenge Corporation shall, as appropriate, 

15 evaluate and monitor all women’s empowerment programs 

16 administered by such bureaus and offices and annually 

17 submit to the Ambassador a report on such programs and 

18 on policies and practices to integrate gender. 

19 SEC. 10105. BUREAU FOR ENERGY RESOURCES. 

20 (a) IN GENERAL.—Section 931(a) of the Energy 

21 Independence and Security Act of 2007 (42 U.S.C. 

22 17371(a)) is amended— 

23 (1) in the subsection heading, by striking ‘‘CO24 ORDINATOR FOR’’ and inserting ‘‘COORDINATION

25 OF’’; and 


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1 (2) in paragraph (2)— 

2 (A) in the paragraph heading, by striking 

3 ‘‘COORDINATOR FOR’’ and inserting ‘‘COORDINA4 TION OF’’; and 

5 (B) by striking ‘‘There is established with6 in the Office of the Secretary of State a Coordi7 nator for International Energy Affairs,’’ and in8 serting in lieu thereof the following: ‘‘There is 

9 established within the Department of State a 

10 Bureau for Energy Resources, to be headed by 

11 an Assistant Secretary,’’. 

12 (b) TRANSFER AUTHORITY.—The Secretary of State 

13 may transfer any authority, duty, or function assigned to 

14 the Coordinator for International Energy Affairs or to the 

15 Office of International Energy Affairs to the Assistant 

16 Secretary for Energy Resources or to the Bureau for En17 ergy Resources (as the case may be). 

18 (c) CONFORMING AMENDMENTS.—(1) Section 

19 1(c)(1) of the State Department Basic Authorities Act of 

20 1956 (22 U.S.C. 2651a), as amended by this Act, is fur21 ther amended by striking ‘‘25’’ and inserting ‘‘26’’. 

22 (2) Section 5315 of title 5, United States Code, as 

23 amended by this Act, is further amended in the item relat24 ing to Assistant Secretaries of State, by striking ‘‘(25)’’ 

25 and inserting ‘‘(26)’’. 


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1 SEC. 10106. BUREAU OF OCEANS, ENVIRONMENT AND 

2 SCIENCE. 

3 (a) DEPARTMENT OF STATE APPROPRIATIONS AU4 THORIZATION ACT OF 1973.—Section 9 of the Depart5 ment of State Appropriations Authorization Act of 1973 

6 (22 U.S.C. 2655a) is amended— 

7 (1) in the section heading, by striking ‘‘OCEANS

8 AND INTERNATIONAL ENVIRONMENTAL AND SCI9 ENTIFIC AFFAIRS’’ and inserting ‘‘OCEANS, ENVI10 RONMENT AND SCIENCE’’; and 

11 (2) by striking ‘‘Oceans and International Envi12 ronmental and Scientific Affairs’’ each place it ap13 pears and inserting ‘‘Oceans, Environment and 

14 Science’’. 

15 (b) CLEAN AIR ACT.—Section 617(a) of the Clean 

16 Air Act (42 U.S.C. 7671p(a)) is amended by striking 

17 ‘‘Oceans and International Environmental and Scientific 

18 Affairs’’ and inserting ‘‘Oceans, Environment and 

19 Science’’. 

20 CHAPTER 2—UNITED STATES AGENCY 

21 FOR INTERNATIONAL DEVELOPMENT 

22 SEC. 10201. UNITED STATES AGENCY FOR INTERNATIONAL 

23 DEVELOPMENT. 

24 (a) ESTABLISHMENT.—The United States Agency for 

25 International Development shall be an agency of the 


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1 United States under the policy guidance of the Secretary 

2 of State. 

3 (b) MANDATE.—The mandate of the United States 

4 Agency for International Development shall be to reduce 

5 global poverty and alleviate human suffering. 

6 (c) STATUTORY OFFICERS.— 

7 (1) ADMINISTRATOR.—The United States 

8 Agency for International Development shall be head9 ed by an Administrator, who shall be appointed by 

10 the President, by and with the advice and consent 

11 of the Senate. 

12 (2) DEPUTY ADMINISTRATORS.—The President 

13 may appoint, by and with the advice and consent of 

14 the Senate, up to 2 Deputy Administrators of the 

15 United States Agency for International Develop16 ment, who shall be compensated at the rate provided 

17 for at level III of the Executive Schedule under sec18 tion 5314 of title 5, United States Code. 

19 (3) ASSISTANT ADMINISTRATORS.—The Presi20 dent may appoint, by and with the advice and con21 sent of the Senate, up to 13 Assistant Administra22 tors of the United States Agency for International 

23 Development, who shall be compensated at the rate 

24 provided for at level IV of the Executive Schedule 


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1 under section 5315 of title 5, United States Code. 

2 Among these shall be— 

3 (A) an Assistant Administrator for Policy, 

4 Planning, and Learning; 

5 (B) an Assistant Administrator for Food 

6 Security; 

7 (C) an Assistant Administrator for Demo8 cratic and Civic Development; and 

9 (D) an Assistant Administrator for Eco10 nomic Growth, Environment, and Energy. 

11 (4) NOMINATIONS OF ASSISTANT ADMINISTRA12 TORS.—Whenever the President submits to the Sen13 ate a nomination of an individual for appointment to 

14 a position in the United States Agency for Inter15 national Development pursuant to paragraph (3), 

16 the President shall designate the regional or func17 tional bureau or bureaus of the Agency with respect 

18 to which the individual shall have responsibility. 

19 (d) CONFORMING AMENDMENTS.—Title 5, United 

20 States Code, is amended as follows: 

21 (1) In section 5315, in the item relating to As22 sistant Administrators, Agency for International De23 velopment— 

24 (A) by inserting ‘‘United States’’ before 

25 ‘‘Agency’’; and 


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1 (B) by striking ‘‘(6)’’ and inserting ‘‘(13)’’. 

2 (2) In section 7103(a)(2)(B)(iv), by inserting 

3 ‘‘United States’’ before ‘‘Agency for International 

4 Development’’. 

5 SEC. 10202. ROLE OF THE ADMINISTRATOR. 

6 (a) IN GENERAL.—The Administrator shall have the 

7 responsibility for carrying out the mandate of the United 

8 States Agency for International Development and for co9 ordinating all United States development-related activi10 ties. 

11 (b) CHIEF DEVELOPMENT ADVISOR.—The Adminis12 trator shall be the chief development advisor to the Presi13 dent. 

14 (c) NATIONAL SECURITY COUNCIL MEMBERSHIP.— 

15 The Administrator may, as chief development advisor to 

16 the President, and subject to the direction of the Presi17 dent, attend and participate in meetings of the National 

18 Security Council. 

19 (d) UNITED NATIONS DEVELOPMENT AGENCIES.— 

20 The Administrator shall be responsible for the coordina21 tion and direction of United States policy regarding, and 

22 contributions to, all development-related agencies of the 

23 United Nations, in consultation with the Assistant Sec24 retary of State for International Organization Affairs. 


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1 (e) MULTILATERAL DEVELOPMENT BANKS.—The 

2 President should appoint the Administrator to be the Al3 ternate United States Governor of the Asian Development 

4 Bank, the African Development Bank, and the Inter5 American Development Bank. 

6 SEC. 10203. OVERSEAS MISSIONS. 

7 (a) AUTHORITY TO MAINTAIN OVERSEAS MIS8 SIONS.— 

9 (1) IN GENERAL.—The Administrator may 

10 maintain special missions or staffs outside the 

11 United States in such countries and for such periods 

12 of time as may be necessary to carry out the pur13 poses of this Act. 

14 (2) OTHER LOCATIONS.—To the degree per15 mitted by security and financial considerations, the 

16 Secretary should give favorable consideration to re17 quests by the Administrator that the Secretary exer18 cise authority under section 606(a)(2)(B) of the Se19 cure Embassy Construction and Counterterrorism 

20 Act of 1999 (22 U.S.C. 4865(a)(2)(B)) to waive cer21 tain requirements of that Act in order to permit the 

22 United States Agency for International Development 

23 to maintain such missions or staffs at locations sep24 arate from the United States embassy. 


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1 (b) APPOINTMENT.—The Administrator may appoint 

2 a head, who shall be known as the Mission Director, of 

3 each office or staff maintained under subsection (a). 

4 (c) COMPENSATION AND ALLOWANCES.—Each Mis5 sion Director may receive such compensation and allow6 ances as are authorized by the Foreign Service Act of 

7 1980, not to exceed those authorized for a chief of mission 

8 (as defined in section 102(a)(3) of that Act), as the Ad9 ministrator deems appropriate. 

10 (d) ROLE OF MISSION DIRECTOR.—The Mission Di11 rector’s responsibilities shall include— 

12 (1) serving as the primary development and hu13 manitarian advisor to the Chief of Mission; 

14 (2) coordinating preparation of the Country De15 velopment Cooperation Strategy; and 

16 (3) supervising and directing United States de17 velopment cooperation with, and United States hu18 manitarian operations in, such country. 

19 (e) RELATIONSHIP TO FOREIGN ASSISTANCE COOR20 DINATOR.—The responsibilities assigned to the Mission 

21 Director under subsection (d) shall not preclude the Sec22 retary of State from appointing an individual to oversee 

23 and coordinate the full range of economic and security as24 sistance programs in a country. 


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1 SEC. 10204. CHAIRMAN OF OECD DEVELOPMENT ASSIST2 ANCE COMMITTEE. 

3 (a) APPOINTMENT.—The President may— 

4 (1) appoint any United States citizen who is 

5 not a Federal employee, or 

6 (2) assign any United States citizen who is a 

7 Federal employee, 

8 to serve as Chairman of the Development Assistance Com9 mittee (DAC) or any successor committee thereto of the 

10 Organization for Economic Cooperation and Development, 

11 upon election thereto by members of said Committee. 

12 (b) COMPENSATION AND ALLOWANCES.— 

13 (1) IN GENERAL.—An individual appointed or 

14 assigned under subsection (a) may receive such com15 pensation and allowances as are authorized by the 

16 Foreign Service Act of 1980, not to exceed those au17 thorized for a chief of mission (as defined in section 

18 102(a)(3) of that Act), as the President deems ap19 propriate. 

20 (2) ADDITIONAL PROVISIONS.—Such individual 

21 (if appointed under subsection (a)(1)) shall be 

22 deemed to be a Federal employee for purposes of 

23 chapters 81, 83, 84, 87, and 89 of title 5, United 

24 States Code. Such individual may also, in the Presi25 dent’s discretion, receive any other benefits and perVerDate Mar 15 2010 22:23 Apr 26, 2013 Jkt 029200 PO 00000 Frm 00729 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793

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1 quisites then available under this Act to a Chief of 

2 Mission under section 10103. 

3 SEC. 10205. TRANSFER AND CONSOLIDATION OF PER4 SONNEL AND FUNCTIONS. 

5 The personnel and functions of the Office of Foreign 

6 Assistance Resources at the Department of State shall be 

7 transferred to and consolidated with the Office of Budget 

8 and Resource Management at the United States Agency 

9 for International Development. 

10 Subtitle B—Management and 

11 Program Administration 

12 CHAPTER 1—OPERATING EXPENSES AND 

13 ADMINISTRATIVE AUTHORITIES 

14 SEC. 10301. OPERATING EXPENSES OF THE UNITED STATES 

15 AGENCY FOR INTERNATIONAL DEVELOP16 MENT. 

17 (a) OPERATING EXPENSES.—The Administrator is 

18 authorized to use up to 10 percent of the total amount 

19 of funds managed by the United States Agency for Inter20 national Development in a fiscal year for operating ex21 penses of the United States Agency for International De22 velopment. 

23 (b) CAPITAL INVESTMENT FUND.—In addition to 

24 funds made available under subsection (a), the Adminis25 trator is authorized to use up to 1 percent of the total 


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1 amount of funds managed by the United States Agency 

2 for International Development in a fiscal year for overseas 

3 construction and related costs, and for the procurement 

4 and enhancement of information technology and related 

5 capital investments. Amounts made available under this 

6 subsection are authorized to remain available until ex7 pended. 

8 (c) MANAGEMENT OF FUNDS.—The annual congres9 sional budget justification prepared pursuant to section 

10 8302 of this Act shall contain an estimate of the total 

11 funds managed by the United States Agency for Inter12 national Development, disaggregated by account, and a 

13 detailed operating expenses budget. 

14 (d) STATUS OF OBLIGATIONS.—The Administrator 

15 shall keep the appropriate congressional committees cur16 rently informed of the status of obligations of amounts 

17 made available under this section. 

18 (e) DEFINITIONS.—In this section: 

19 (1) OPERATING EXPENSES.—The term ‘‘oper20 ating expenses’’ means a use of funds that is author21 ized under section 10302. 

22 (2) FUNDS MANAGED BY AGENCY.—The term 

23 ‘‘funds managed by the United States Agency for 

24 International Development’’ means all funds over 


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1 which the Administrator has obligation authority, in2 cluding— 

3 (A) appropriations to carry out this Act; 

4 (B) allocations or transfers from any other 

5 Federal agency, or from other appropriations, 

6 for functions directly related to the purposes of 

7 this Act; and 

8 (C) proceeds from the disposal of property 

9 acquired under the authority of section 10302 

10 (or predecessor provisions of law). 

11 SEC. 10302. AUTHORIZED USES OF FUNDS. 

12 (a) AUTHORIZED USES.—For purposes of section 

13 10301(a), the following costs shall be considered operating 

14 expenses of the United States Agency for International 

15 Development and shall be included within the percentage 

16 limitation contained in such section: 

17 (1) All compensation, training and benefits for 

18 Agency personnel, including personal services con19 tractors, during the time such personnel have Wash20 ington, DC, or other places in the United States as 

21 their official duty station. 

22 (2) Travel and transportation of Agency per23 sonnel described in paragraph (1) and their depend24 ents and possessions. 


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1 (3) Acquisition, rent, operation and mainte2 nance in the United States of motor vehicles, air3 craft, and vessels. 

4 (4) Acquisition, rent, operation and mainte5 nance in the United States of land and facilities. 

6 (5) Furniture and equipment located in the 

7 United States, including operation and maintenance. 

8 (6) Utilities, insurance, communications, print9 ing and reproduction, and miscellaneous services and 

10 charges in the United States. 

11 (7) Subscriptions, supplies and materials for 

12 use in the United States. 

13 (8) Attendance at meetings and conferences of 

14 Agency personnel described in paragraph (1). 

15 (9) Commissions, councils, boards and similar 

16 groups authorized by law primarily located in the 

17 United States. 

18 (10) Security equipment and services in the 

19 United States. 

20 (11) Institutional, administrative service, and 

21 any other contract, including profit and overhead, 

22 for work to be performed primarily in the United 

23 States. 

24 (12) Representation and entertainment ex25 penses in the United States. 


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1 (b) COMPLIANCE WITH FEDERAL LAW.—All new fa2 cilities constructed under the authorities of this section, 

3 whether inside or outside the United States, shall comply 

4 with all relevant Federal codes and standards requiring 

5 access for persons with disabilities. 

6 SEC. 10303. OPERATING EXPENSES OF THE OFFICE OF THE 

7 INSPECTOR GENERAL. 

8 (a) IN GENERAL.—The President is authorized to 

9 pay for the necessary operating expenses of the Office of 

10 the Inspector General of the United States Agency for 

11 International Development to the extent and in the 

12 amounts authorized and appropriated for such purposes 

13 in any fiscal year. 

14 (b) ADDITIONAL AMOUNTS.—There are authorized to 

15 be appropriated to the President such amounts as may 

16 be necessary for increases in compensation, retirement, 

17 and other personnel benefits authorized by law, and for 

18 other nondiscretionary costs of the Office. 

19 SEC. 10304. ADMINISTRATIVE AUTHORITIES OF THE DE20 PARTMENT OF DEFENSE. 

21 (a) IN GENERAL.—Funds allocated to the Depart22 ment of Defense for the purpose of providing assistance 

23 under this Act shall be available for the following: 

24 (1) Administrative, extraordinary (not to exceed 

25 $300,000 in any fiscal year), and operating expenses 


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1 incurred in furnishing assistance under this Act ad2 ministered through the Department of Defense, in3 cluding the purchase of passenger motor vehicles for 

4 replacement only for use outside of the United 

5 States. 

6 (2) Reimbursement of actual expenses of mili7 tary officers detailed or assigned as tour directors in 

8 connection with orientation visits of foreign military 

9 and related civilian personnel, in accordance with the 

10 provisions of section 5702 of title 5, United States 

11 Code, applicable to Federal employees. 

12 (3) Maintenance, repair, alteration, and fur13 nishing of United States-owned facilities in the Dis14 trict of Columbia or elsewhere for the training of 

15 foreign military and related civilian personnel with16 out regard to the provisions of section 6303 of title 

17 41, United States Code, or other provision of law re18 quiring a specific authorization or specific appropria19 tion for such public contracts. 

20 (b) MILITARY OFFICER.—The term ‘‘military offi21 cer’’ means a commissioned, warrant, or non-commis22 sioned officer of the United States Armed Forces. 


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1 SEC. 10305. WORKING CAPITAL FUND. 

2 (a) ESTABLISHMENT.—The Administrator is author3 ized to establish a Working Capital Fund (in this section 

4 referred to as the ‘‘Fund’’). 

5 (b) PURPOSE.—Amounts deposited during any fiscal 

6 year in the Fund shall be available without fiscal year limi7 tation and used, in addition to other funds available for 

8 such purposes, for administrative costs resulting from 

9 Agency implementation and procurement reform efforts, 

10 the administration of this Fund, and administrative con11 tingencies designated by the Administrator. 

12 (c) DEPOSITS INTO THE FUND.—There may be de13 posited in any fiscal year in the Fund up to 1 percent 

14 of the total value of obligations entered into by the Agency 

15 from appropriations available to the Agency and any ap16 propriation made available for the purpose of providing 

17 capital. Receipts from the disposal of, or payments for the 

18 loss or damage to, property held in the Fund, rebates, re19 imbursements, refunds and other credits applicable to the 

20 operation of the Fund may be deposited into the Fund. 

21 (d) REFUNDS.—At the close of each fiscal year the 

22 Administrator shall transfer out of the Fund and into the 

23 Emergency Humanitarian Response Fund established 

24 under section 1905 of this Act amounts in excess of 

25 $100,000,000 and any other amounts that the Adminis26 trator determines to be in excess of the needs of the Fund. 


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1 SEC. 10306. SUSPENSION AND DEBARMENT. 

2 (a) ELIGIBILITY TO RECEIVE FUNDS.—The Presi3 dent shall issue and enforce regulations determining the 

4 eligibility of any person to receive funds made available 

5 under this Act. 

6 (b) SUSPENSION.—The regulations described in sub7 section (a) shall provide for the suspension of eligibility 

8 of a person for a temporary period pending the completion 

9 of an investigation and any resulting judicial or debarment 

10 proceedings, upon cause for belief that such person or an 

11 affiliate thereof probably has undertaken conduct which 

12 constitutes a cause for debarment. 

13 (c) DEBARMENT.—A person may be debarred from 

14 further receipt of funds made available under this Act, and 

15 from participating in any contract or agreement regarding 

16 the use of funds made available under this Act, for— 

17 (1) conviction of or civil judgment for— 

18 (A) commission of fraud or a criminal of19 fense in connection with obtaining, attempting 

20 to obtain, or performing a public or private 

21 agreement or transaction; 

22 (B) violation of Federal or State antitrust 

23 statutes, including those proscribing price fixing 

24 between competitors, allocation of customers be25 tween competitors, and bid rigging; 


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1 (C) commission of embezzlement, theft, 

2 forgery, bribery, falsification or destruction of 

3 records, making false statements, tax evasion, 

4 receiving stolen property, making false claims 

5 or obstruction of justice; or 

6 (D) commission of any other offense indi7 cating a lack of business integrity or business 

8 honesty; 

9 (2) violation of the terms of a public agreement 

10 or transaction so serious as to affect the integrity of 

11 a program under this Act, such as— 

12 (A) a willful failure to perform in accord13 ance with the terms of one or more public 

14 agreements or transactions; 

15 (B) a history of failure to perform or of 

16 unsatisfactory performance of one or more pub17 lic agreements or transactions; or 

18 (C) a willful violation of a statutory or reg19 ulatory provision or requirement applicable to a 

20 public agreement or transaction; or 

21 (3) any of the following causes: 

22 (A) knowingly doing business with an ineli23 gible person; 


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1 (B) failure to pay a single substantial debt, 

2 or a number of outstanding debts, owed to any 

3 Federal agency or instrumentality; 

4 (C) engaging in any of the behavior de5 scribed in section 103(8) or 103(9) of the Traf6 ficking Victims Protection Act of 2000 (Public 

7 Law 106–386); or 

8 (D) any other cause of a serious or com9 pelling nature. 

10 (d) REINSTATEMENT.—Reinstatement of eligibility in 

11 each particular case shall be subject to such conditions 

12 as the President shall direct. 

13 SEC. 10307. FALSE CLAIMS AND INELIGIBLE COMMODITIES. 

14 (a) IN GENERAL.—Any person who makes or causes 

15 to be made or presents or causes to be presented to any 

16 bank or other financial institution or to any officer, agent, 

17 or employee of any agency of the United States Govern18 ment a claim for payment from funds made available 

19 under this Act for the purposes of furnishing assistance 

20 and who knows the claim to be false, fraudulent, or ficti21 tious or to cover a commodity or commodity-related service 

22 determined by the President to be ineligible for payment 

23 from funds made available under this Act, or who uses 

24 to support such claim any certification, statement, or 

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1 mercial invoice, or Government form, which such person 

2 knows, or in the exercise of prudent business management 

3 should know, to contain false, fraudulent, or fictitious in4 formation, or who uses or engages in any other fraudulent 

5 trick, scheme, or device for the purpose of securing or ob6 taining, or aiding to secure or obtain, for any person any 

7 benefit or payment from funds so made available under 

8 this Act in connection with the negotiation, procurement, 

9 award, or performance of a contract financed with funds 

10 so made available under this Act, and any person who en11 ters into an agreement, combination or conspiracy to do 

12 so— 

13 (1) shall pay to the United States an amount 

14 equal to 25 per centum of any amount thereby 

15 sought to be wrongfully secured or obtained but not 

16 actually received; 

17 (2) shall forfeit and refund any payment, com18 pensation, loan, commission, or advance received as 

19 a result thereof; and 

20 (3) shall, in addition, pay to the United States 

21 for each such act— 

22 (A) the sum of $2,000 and double the 

23 amount of any damage which the United States 

24 may have sustained by reason thereof; or 


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1 (B) an amount equal to 50 per centum of 

2 any such payment, compensation, loan, commis3 sion, or advance so received, whichever is the 

4 greater, together with the costs of suit. 

5 (b) JUDICIAL PROCEEDING AND WITHHOLDING OF

6 FUNDS.— 

7 (1) IN GENERAL.—In order to secure recovery 

8 under this section, the President may, as the Presi9 dent deems appropriate— 

10 (A) institute suit in the United States dis11 trict court for any judicial district in which the 

12 person alleged to have performed or partici13 pated in an act described by this section may 

14 reside or may be found; and 

15 (B) upon posting by registered mail to 

16 such person a notice of claim describing the 

17 basis therefor and identifying the funds to be 

18 withheld, withhold from funds owed by any 

19 agency of the United States Government to 

20 such person an amount equal to the refund, 

21 damages, liquidated damages, and exemplary 

22 damages claimed by the United States under 

23 this section. 

24 (2) EFFECT OF WITHHOLDING.—Any such 

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1 stitute a final determination of the rights and liabil2 ities of such person under this section with respect 

3 to the amount so withheld, unless within one year of 

4 receiving the notice of claim such person brings suit 

5 for recovery, which is hereby authorized, against the 

6 United States in any United States district court. 

7 (c) PERSON DEFINED.—For purposes of this section, 

8 the term ‘‘person’’ includes any individual, corporation, 

9 partnership, association, or other legal entity. 

10 SEC. 10308. TERMINATION EXPENSES. 

11 (a) TERMINATION EXPENSES.— 

12 (1) IN GENERAL.—Funds made available under 

13 this Act, the former authority of the Foreign Assist14 ance Act of 1961, the former authority of section 23 

15 of the Arms Export Control Act, or other prede16 cessor provisions of law shall remain available for 

17 obligation for a period not to exceed 8 months from 

18 the date of any termination of assistance under such 

19 Acts for the necessary expenses of winding up pro20 grams related to such termination and may remain 

21 available until expended. 

22 (2) TREATMENT OF OBLIGATED FUNDS.— 

23 Funds obligated under the authority of such Acts 

24 prior to the effective date of the termination of as25 sistance may remain available for expenditure for 


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1 the necessary expenses of winding up programs re2 lated to such termination notwithstanding any provi3 sion of law restricting the expenditure of funds. 

4 (3) COMPLETION OF TRAINING OR STUDIES.— 

5 In order to ensure the effectiveness of such assist6 ance, such expenses for orderly termination of pro7 grams may include the obligation and expenditure of 

8 funds to complete the training or studies outside 

9 their countries of origin of students whose course of 

10 study or training program began before assistance 

11 was terminated. 

12 (b) LIABILITY TO CONTRACTORS.—For the purpose 

13 of making an equitable settlement of termination claims 

14 under extraordinary contractual relief standards, the 

15 President is authorized to adopt as a contract or other 

16 obligation of the United States Government, and assume 

17 (in whole or in part) any liabilities arising thereunder, any 

18 contract with a United States or third-country contractor 

19 that had been funded with assistance under the Acts re20 ferred to in subsection (a) prior to the termination of as21 sistance. 

22 (c) REOBLIGATION OF AMOUNTS TERMINATED.— 

23 Amounts obligated for assistance and subsequently termi24 nated by the President, or by any provision of law, shall 

25 continue to remain available and may be reobligated to 


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1 meet any necessary expenses arising from the termination 

2 of such assistance. 

3 (d) GUARANTY PROGRAMS.—No provision of this Act 

4 or any other Act requiring the termination of assistance 

5 under this Act or any other Act shall be construed to re6 quire the termination of guarantee commitments that were 

7 entered into prior to the effective date of the termination 

8 of assistance. 

9 (e) RELATION TO OTHER PROVISIONS.—Unless spe10 cifically made inapplicable by another provision of law, the 

11 provisions of this section shall be applicable to the termi12 nation of assistance pursuant to any provision of law. 

13 CHAPTER 2—ASSISTANCE AUTHORITIES 

14 AND PROGRAM EXPENSES 

15 SEC. 10401. GENERAL ASSISTANCE AUTHORITIES. 

16 (a) TERMS OF ASSISTANCE.—Except as otherwise 

17 specifically prohibited in this Act, assistance under this 

18 Act may be furnished on a grant, loan, or guaranty basis, 

19 or on such terms, including cash, credit, or other terms 

20 of repayment (including repayment in foreign currencies 

21 or by transfer to the United States Government of arti22 cles), as may be determined to be best suited to the 

23 achievement of the purposes of this Act. 

24 (b) TERMS AND CONDITIONS.—The President, the 

25 Secretary, and the Administrator, as the case may be, may 


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1 furnish assistance under this Act on such terms and condi2 tions (consistent with other provisions of law) as he or 

3 she deems appropriate, and, consistent with the provisions 

4 of this Act, may charge such fees for guarantees and loans 

5 under this Act as he or she deems appropriate. Credit as6 sistance shall be consistent with the provisions of the Fed7 eral Credit Reform Act of 1990. In the case of contribu8 tions or other assistance provided for an international or9 ganization or arrangement under this or any other Act, 

10 such organization or arrangement may utilize its own pro11 curement, administrative, accounting, and audit rules and 

12 procedures. 

13 (c) IMPLEMENTATION.—In furtherance of the pur14 poses and subject to the limitations of this Act, the Presi15 dent, the Secretary, and the Administrator, in providing 

16 assistance under this Act, may make loans (in conformity 

17 with the provisions of the Federal Credit Reform Act of 

18 1990), advances, and grants to, make and perform agree19 ments and contracts with, or enter into other transactions 

20 with, any person, corporation, or other body of persons, 

21 any government or government agency, and any inter22 national organization or arrangement. 

23 (d) GIFTS.—The President, the Secretary, and the 

24 Administrator may accept and use in furtherance of the 

25 purposes of this Act, money, funds, property, and services 


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1 of any kind made available by gift, devise, bequest, grant, 

2 or otherwise for such purpose. 

3 (e) INSURANCE.— 

4 (1) FOREIGN PARTICIPANTS.—Any Federal 

5 agency is authorized to pay the cost of health and 

6 accident insurance for foreign participants in any 

7 program of furnishing assistance administered by 

8 such agency while such participants are absent from 

9 their homes for the purpose of participation in such 

10 program. 

11 (2) FOREIGN PERSONNEL.—Any Federal agen12 cy is authorized to pay the cost of health and acci13 dent insurance for foreign personnel of that agency 

14 while such personnel are absent from their places of 

15 employment abroad for purposes of training or other 

16 official duties. 

17 (f) ADMISSION TO UNITED STATES.—Alien partici18 pants in any program of furnishing assistance under this 

19 Act may be admitted to the United States if otherwise 

20 qualified as nonimmigrants under section 101(a)(15) of 

21 the Immigration and Nationality Act (8 U.S.C. 

22 1101(a)(15)), for such time and under such conditions as 

23 may be prescribed by regulations promulgated by the Sec24 retary of State and the Attorney General. 


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1 (g) ASSISTANCE AUTHORITIES.—In furnishing and 

2 administering assistance under this Act, the President, the 

3 Secretary, and the Administrator— 

4 (1) may issue letters of credit and letters of 

5 commitment; 

6 (2) may collect, compromise, reschedule or oth7 erwise settle any obligations assigned to, or held by, 

8 and any legal or equitable rights accruing to, the 

9 United States and may (as he or she deems appro10 priate) refer any such obligations or rights to the 

11 Attorney General for suit or collection; 

12 (3) may— 

13 (A) acquire and dispose of (upon such 

14 terms and conditions as he or she deems appro15 priate) any property, including any instrument 

16 evidencing indebtedness or ownership; and 

17 (B) guarantee payment against any such 

18 instrument; 

19 (4) may establish the character of, and decide 

20 the necessity for, obligations and expenditures of 

21 funds used in furnishing and administering such as22 sistance and the manner in which such obligations 

23 and expenditures shall be incurred, allowed, and 

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1 ble to corporations of the United States Govern2 ment; and 

3 (5) shall cause to be maintained an integral set 

4 of accounts which shall be audited by the Govern5 ment Accountability Office in accordance with prin6 ciples and procedures applicable to commercial cor7 porate transactions as provided by chapter 91 of 

8 title 31, United States Code. 

9 (h) GUARANTEES.—Guarantees issued to carry out 

10 the purposes of this Act shall be subject to the following: 

11 (1) FULL FAITH AND CREDIT.—The full faith 

12 and credit of the United States may be pledged for 

13 the full payment and performance of guarantees 

14 issued under this Act or predecessor Acts. 

15 (2) CHARGES.—The President may charge ap16 propriate fees or interest in connection with the ac17 tivities carried out under such authority. 

18 (3) RELATIONSHIP TO OTHER PROVISIONS OF

19 LAW.—Guarantees may be provided under this Act 

20 without regard to commodity restrictions. 

21 (4) DENOMINATION OF LIABILITY.—The losses 

22 guaranteed may be in dollars or in other currencies. 

23 In the case of losses guaranteed in currencies other 

24 than dollars, the guarantees issued shall be subject 

25 to an overall payment limitation expressed in dollars. 


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1 (i) LOAN GUARANTEES TO ISRAEL PROGRAM.—Not2 withstanding section 11201(1), section 226 of the Foreign 

3 Assistance Act of 1961 (22 U.S.C. 2186; relating to Loan 

4 Guarantees to Israel Program), shall not be repealed and 

5 shall remain in effect as on the day before the date of 

6 the enactment of this Act. 

7 (j) SUBSIDY COST OF GUARANTEES AND LOANS.— 

8 The President, the Secretary, and the Administrator, as 

9 the case may be, may use funds made available under this 

10 Act to pay the cost (as defined in section 13201 of the 

11 Budget Enforcement Act of 1990) of direct loans and loan 

12 guarantees made or entered into (and associated adminis13 trative costs) in furtherance of the purposes of this Act. 

14 Funds appropriated to pay the cost (as defined in section 

15 13201 of the Budget Enforcement Act of 1990) of direct 

16 loans and loan guarantees made or entered into to carry 

17 out the provisions of this Act shall be provided in con18 formity with section 504(b)(1) of the Federal Credit Re19 form Act of 1990. 

20 (k) CLAIMS RELATING TO GUARANTEES.—Claims 

21 arising as a result of any guarantee program authorized 

22 by this Act may be settled, and disputes arising as the 

23 result thereof may be arbitrated with the consent of the 

24 parties, on such terms and conditions as the President 

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1 ment, or as a result of an arbitration award, shall be final 

2 and conclusive notwithstanding any other provision of law. 

3 (l) FINANCIAL TRANSACTIONS WITH FOREIGN GOV4 ERNMENTS IN DEFAULT OF OBLIGATIONS TO THE

5 UNITED STATES.—Section 955 of title 18, United States 

6 Code, shall not apply to any person— 

7 (1) who acts for or participates in any oper8 ation or transaction arising under this Act; or 

9 (2) who acquires any obligation issued in con10 nection with any operation or transaction arising 

11 under this Act. 

12 (m) EDUCATIONAL INSTITUTIONS.—Any cost-type 

13 contract or agreement (including grants) entered into with 

14 an institution of higher education for the purpose of car15 rying out programs authorized by this Act may provide 

16 for the payment of the reimbursable indirect costs of that 

17 institution on the basis of predetermined fixed-percentage 

18 rates applied to the total or an element thereof, of the 

19 reimbursable direct costs incurred. 

20 (n) PER DIEM.—Funds made available under this 

21 Act may be used for payment of per diem in lieu of sub22 sistence to foreign participants engaged in any program 

23 under this Act while such participants are away from their 

24 homes in countries other than the United States, at rates 

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1 ernment travel regulations, notwithstanding any other 

2 provision of law. 

3 (o) MULTIYEAR COMMITMENTS.—Except as other4 wise provided in this Act, a contract or agreement which 

5 entails commitments for the expenditure of funds under 

6 this Act may, subject to any future action of the Congress, 

7 extend at any time for not more than 5 years. 

8 (p) PROGRAM AND MANAGEMENT OVERSIGHT.—The 

9 Administrator may use funds made available under title 

10 I to provide program and management oversight for activi11 ties that are funded under that title and that are con12 ducted in countries in which the Agency does not have 

13 a field mission or office. 

14 SEC. 10402. AUTHORITY TO CONDUCT REIMBURSABLE PRO15 GRAMS. 

16 (a) GENERAL AUTHORITY.—Whenever the President 

17 considers it consistent with and within the limitations of 

18 this Act, any Federal agency is authorized to furnish serv19 ices and articles on an advance-of-funds or reimbursement 

20 basis to partner countries, international organizations and 

21 arrangements, and nongovernmental organizations. 

22 (b) PERSONAL SERVICE CONTRACTS.— 

23 (1) IN GENERAL.—When any Federal agency 

24 provides services on an advance-of-funds or reim25 bursable basis under this section, such agency may 


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1 contract with individuals for personal service abroad 

2 or in the United States— 

3 (A) to perform such services; or 

4 (B) to replace, in a manner otherwise per5 mitted by law, Federal employees who are as6 signed by the agency to provide such services. 

7 (2) RULE OF CONSTRUCTION.—Such individ8 uals shall not be regarded as Federal employees for 

9 the purpose of any law administered by the Office 

10 of Personnel Management. 

11 (c) USE OF PAYMENTS.—Advances and reimburse12 ments received under this section shall be credited to the 

13 currently applicable appropriation, account, or fund of the 

14 agency concerned and shall be available for the purposes 

15 for which such appropriation, account, or fund is author16 ized to be used. 

17 SEC. 10403. RETENTION OF INTEREST. 

18 (a) GENERAL AUTHORITY.—The Administrator may, 

19 for the purpose of carrying out the provisions of title I, 

20 enter into agreements with international organizations 

21 and with local entities that provide for the retention by 

22 such organizations and entities, without deposit in the 

23 Treasury of the United States and without further appro24 priation by Congress, of interest earned on the advance 

25 of funds. 


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1 (b) USE OF INTEREST.—Any interest earned on the 

2 advance of funds made available under subsection (a) shall 

3 be used only for the purposes for which the agreement 

4 is made. 

5 (c) AUDITS.—The Administrator shall audit, on a 

6 regular and recurring basis, interest earned on advance 

7 funds to ensure that the requirements of subsection (a) 

8 are strictly observed. 

9 (d) LIMITATION.—The authorities of this section may 

10 be used only for agreements with a value of $5,000,000 

11 or less. 

12 (e) TRANSPARENCY.—The Administrator shall make 

13 publicly available on the Internet website of the Agency 

14 information about each agreement made under the author15 ity of this section, including the name of the organization 

16 or entity and the amount and the purpose of the agree17 ment. 

18 SEC. 10404. MARKING AND BRANDING OF ECONOMIC AND 

19 HUMANITARIAN ASSISTANCE. 

20 (a) REQUIREMENT.—Economic assistance and hu21 manitarian assistance implemented with funds made avail22 able to any agency to carry out the purposes of this or 

23 any other Act, and to any contractor or grantee thereof, 

24 shall be identified as being ‘‘From the American People’’ 

25 and only as follows: 


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1 (1) The site or article, as appropriate, shall not 

2 include any reference to a particular Federal agency 

3 or division thereof. 

4 (2) The identification of the assistance shall in5 clude only a representation of the American flag, 

6 and shall not include any logo of a particular Fed7 eral agency or division thereof. 

8 (b) RELATIONSHIP TO OTHER PROVISIONS OF LAW

9 AND REGULATIONS.—The provisions of this section shall 

10 be applicable notwithstanding any other provision of this 

11 or any other Act, and notwithstanding any Federal regula12 tion, agency guidance, or procedure to the contrary. 

13 (c) APPLICABILITY.—The provisions of this section 

14 shall be applicable to all— 

15 (1) articles; and 

16 (2) program, project and activity sites. 

17 (d) ONGOING PROGRAMS.—To the extent it is feasible 

18 and cost effective to do so, the marking and branding of 

19 articles and sites financed pursuant to ongoing agree20 ments, including grants, contracts, and cooperative agree21 ments, shall be conformed to meet the requirements of this 

22 section. 

23 (e) EXCEPTIONS.—The requirements of subsection 

24 (a) shall not apply— 


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1 (1) if the Chief of Mission or the relevant As2 sistant Secretary of State determines that the mark3 ing of a particular program, project, or activity 

4 would— 

5 (A) jeopardize the health, safety or human 

6 rights of a private partner or intended bene7 ficiary; or 

8 (B) be detrimental to the achievement of 

9 the objectives of such program, project, or ac10 tivity in such country; 

11 (2) if the Secretary determines that the mark12 ing of economic assistance or humanitarian assist13 ance in such country would be detrimental to the 

14 achievement of overall United States foreign policy 

15 objectives in such country; 

16 (3) to office space occupied by a private part17 ner, or to housing, personal vehicles or other per18 sonal property of employees thereof; or 

19 (4) to a project or activity for which the United 

20 States is one among many donors or has contributed 

21 a small proportion of the total costs. 

22 (f) EXEMPTION FROM DETERMINATION.—A deter23 mination under subsection (e)(2) shall not preclude the 

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1 nanced by the United States Government in such country 

2 be subject to the requirements of subsection (a). 

3 (g) CO-BRANDING.—The requirements of subsection 

4 (a) shall not prohibit the identification of economic assist5 ance or humanitarian assistance provided through a pri6 vate partner with such partner’s own organizational brand 

7 or logo, subject to any standards or regulations that the 

8 President may establish. 

9 SEC. 10405. REDUCTIONS IN DESIGNATED FUNDS. 

10 (a) DESIGNATED FUNDS DEFINED.—For the pur11 poses of this section, the term ‘‘designated funds’’ means 

12 amounts within an account that are authorized or appro13 priated to be available only for a particular country, orga14 nization, or purpose during a specified fiscal period. 

15 (b) PROPORTIONAL REDUCTIONS.—If the amount 

16 appropriated for a fiscal period to carry out any provision 

17 of this Act (including rescissions and reductions required 

18 by law) is less than the amount authorized to be appro19 priated to carry out such provision, then the President is 

20 authorized to make a proportionate reduction in des21 ignated funds, notwithstanding the provision of law mak22 ing such designation. 

23 (c) REPROGRAMMINGS.—Notwithstanding a provision 

24 of law providing for designated funds, the President may 

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1 in the same account under the same terms and conditions 

2 as originally provided, if— 

3 (1) compliance with such provision of law is 

4 made impossible by operation of law; or 

5 (2) the President determines that a significant 

6 change in circumstances relating to the particular 

7 country, organization, or purpose makes it unlikely 

8 that the designated funds can be obligated during 

9 the original period of availability. 

10 (d) CONGRESSIONAL NOTIFICATION.—A reprogram11 ming pursuant to subsection (c) shall be subject to the 

12 regular notification procedures under section 8401. 

13 SEC. 10406. REQUIREMENT FOR AUTHORIZATION OF AP14 PROPRIATIONS. 

15 (a) REQUIREMENT FOR AUTHORIZATION.—Funds 

16 appropriated to carry out this Act shall not be available 

17 for obligation or expenditure— 

18 (1) unless the appropriation thereof has been 

19 specifically authorized by law; or 

20 (2) in excess of the amount authorized by law. 

21 (b) SUBSEQUENT AUTHORIZATIONS.—To the extent 

22 that legislation enacted after the making of an appropria23 tion for foreign assistance authorizes the obligation or ex24 penditure thereof, the limitation contained in subsection 

25 (a) shall not apply. 


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1 (c) RELATION TO OTHER PROVISIONS.—The provi2 sions of this section shall not be superseded except by a 

3 provision of law that specifically repeals or modifies the 

4 provisions of this section. 

5 SEC. 10407. UNEXPENDED BALANCES. 

6 Unexpended balances of funds made available pursu7 ant to the Foreign Assistance Act of 1961 (as in effect 

8 on the day before the date of the enactment of this Act) 

9 are authorized to remain available for the general pur10 poses for which appropriated and may be consolidated 

11 with appropriations made available for the same general 

12 purposes under the authority of this Act. 

13 SEC. 10408. AUTHORITY FOR EXTENDED PERIOD OF AVAIL14 ABILITY OF APPROPRIATIONS. 

15 Unless otherwise specified, amounts appropriated to 

16 carry out this Act are authorized to remain available until 

17 expended. 

18 SEC. 10409. SUPPORT FOR REGIONAL, INTERNATIONAL AND 

19 NONGOVERNMENTAL ORGANIZATIONS. 

20 In carrying out the goals and objectives of this Act, 

21 the Administrator is authorized to support programs, 

22 projects, and activities of, and to provide technical assist23 ance to, regional, international, and nongovernmental or24 ganizations. 


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1 SEC. 10410. PROTECTION OF PATENTS AND TECHNICAL IN2 FORMATION. 

3 (a) INVENTIONS AND DISCOVERIES.—Whenever, in 

4 connection with the furnishing of assistance under this 

5 Act— 

6 (1) an invention or discovery covered by a pat7 ent issued by the United States Government is prac8 ticed within the United States without the author9 ization of the owner, or 

10 (2) information, which is (A) protected by law, 

11 and (B) held by the United States Government sub12 ject to restrictions imposed by the owner, is dis13 closed by the United States Government or any of 

14 its officers, employees, or agents in violation of such 

15 restrictions, 

16 the exclusive remedy of the owner, except as provided in 

17 subsection (b), is to sue the United States Government 

18 for reasonable and entire compensation for such practice 

19 or disclosure in the district court of the United States for 

20 the district in which such owner is a resident, or in the 

21 United States Court of Federal Claims within six years 

22 after the cause of action arises. Any period during which 

23 the United States Government is in possession of a written 

24 claim under subsection (b) before mailing a notice of de25 nial of that claim does not count in computing the six 

26 years. In any such suit, the United States Government 


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1 may plead any defense that may be pleaded by a private 

2 person in such an action. The last paragraph of section 

3 1498(a) of title 28 of the United States Code shall apply 

4 to inventions and information covered by this section. 

5 (b) REMEDY.—Before suit against the United States 

6 Government has been instituted, the head of the agency 

7 of the United States Government concerned may settle 

8 and pay any claim arising under the circumstances de9 scribed in subsection (a). No claim may be paid under this 

10 subsection unless the amount tendered is accepted by the 

11 claimant in full satisfaction. 

12 (c) PHARMACEUTICAL PRODUCTS.—No assistance 

13 under this Act may be made available for the acquisition 

14 of any drug product or pharmaceutical product manufac15 tured outside the United States, if the manufacture of 

16 such drug product or pharmaceutical product in the 

17 United States would involve the use of, or be covered by, 

18 an unexpired patent of the United States which has not 

19 previously been held invalid by an unappealed or 

20 unappealable judgment or decree of a court of competent 

21 jurisdiction, unless— 

22 (1) such manufacture is expressly authorized by 

23 the owner of such patent; or 

24 (2) the Secretary determines, on a case-by-case 

25 basis, that the application of this subsection would 


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1 significantly reduce the ability of the United States 

2 to save lives and alleviate human suffering in a de3 veloping country. 

4 SEC. 10411. PRIVATE AND VOLUNTARY ORGANIZATIONS 

5 AND COOPERATIVES. 

6 Prohibitions on assistance to countries contained in 

7 this or any other Act shall not be construed to prohibit 

8 assistance by the Agency in support of programs of private 

9 and voluntary organizations and cooperatives already 

10 being supported prior to the date such prohibition becomes 

11 applicable, if the President determines, and reports to the 

12 appropriate congressional committees within 15 days of 

13 making such determination, that continuation of support 

14 for such programs is in the national interest of the United 

15 States, along with the reasons for such continuation. 

16 CHAPTER 3—PROCUREMENT, DISPOSI17 TION, TRANSPORTATION AND VALU18 ATION OF ARTICLES 

19 SEC. 10501. PROCUREMENT STANDARDS AND PROCE20 DURES. 

21 (a) LIMITATIONS ON PROCUREMENT OUTSIDE THE

22 UNITED STATES.—Funds made available for assistance 

23 under this Act may be used by the President for procure24 ment— 


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1 (1) only in the United States, the recipient 

2 country, or developing countries; or 

3 (2) in any other country but only if— 

4 (A) the provision of such assistance re5 quires articles or services of a type that are not 

6 produced in and available for purchase in any 

7 country specified in paragraph (1); or 

8 (B) the President determines that procure9 ment in such other country is necessary— 

10 (i) to meet unforeseen circumstances, 

11 such as emergency situations, where it is 

12 important to permit procurement in a 

13 country not specified in paragraph (1); or 

14 (ii) to promote efficiency in the use of 

15 United States foreign assistance resources, 

16 including to avoid impairment of foreign 

17 assistance objectives. 

18 (b) BULK COMMODITIES.—No funds made available 

19 under this Act shall be used for the purchase in bulk of 

20 any commodities at prices higher than the market price 

21 prevailing in the United States at the time of purchase, 

22 adjusted for differences in the cost of transportation to 

23 destination, quality, and terms of payment, except to meet 

24 unforeseen circumstances, such as emergency situations. 


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1 (c) SURPLUS COMMODITIES.—None of the funds 

2 made available under this Act shall be used to establish 

3 or expand production of any commodity or extraction of 

4 any mineral for export by a foreign country if— 

5 (1) the commodity or mineral is likely to be in 

6 surplus on world markets at the time the resulting 

7 productive or extractive capacity is expected to be8 come operative; and 

9 (2) the assistance will cause substantial injury 

10 to United States producers of the same, similar, or 

11 competing commodity or mineral. 

12 (d) EXCEPTIONS.—The prohibition contained in sub13 section (c) shall not apply— 

14 (1) if the President determines that— 

15 (A) the benefits to industry and employ16 ment in the United States are likely to out17 weigh the injury to United States producers of 

18 the same, similar, or competing commodity or 

19 mineral; or 

20 (B) the foreign country is a low-income 

21 country for which production of the commodity 

22 or extraction of the mineral would contribute 

23 substantially to the reduction of poverty; 

24 (2) to activities in a low-income country that 

25 does not export on a consistent basis the commodity 


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1 or mineral with respect to which assistance is pro2 vided; or 

3 (3) to activities in a country which the Presi4 dent determines is recovering from widespread con5 flict, a humanitarian crisis, or a complex emergency. 

6 (e) NOTIFICATION.—The President shall notify the 

7 appropriate congressional committees of a determination 

8 under this section, in accordance with the procedures set 

9 forth in section 8401. 

10 (f) LOW-INCOME COUNTRY DEFINED.—In this sec11 tion, the term ‘‘low-income country’’ means a country that 

12 is eligible for assistance from the International Develop13 ment Association but is not eligible for assistance from 

14 the International Bank for Reconstruction and Develop15 ment. 

16 SEC. 10502. LOCAL PROCUREMENT. 

17 (a) LIMITED COMPETITION.—The Administrator is 

18 authorized, using funds made available under title I, to 

19 award contracts and other instruments in which competi20 tion is limited to local entities. 

21 (b) AMOUNT OF AWARDS.—The authority provided in 

22 subsection (a) may not be used to make awards in excess 

23 of $5,000,000. 

24 (c) PROCUREMENTS.—The requirements of section 

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1 curement of goods and services shall not apply to procure2 ments made under agreements entered into under the au3 thority of this section. 

4 SEC. 10503. UNITED STATES COMPETITIVENESS. 

5 In order to ensure maximum competition for con6 tracts receiving funding under this Act, the President shall 

7 establish procedures to ensure that— 

8 (1) all solicitations under this Act for contracts 

9 over $5,000,000, regardless of the location where the 

10 contract is to be performed, are made publicly avail11 able on a single, centralized Internet website; 

12 (2) in countries with nonconvertible or highly 

13 unstable currencies— 

14 (A) solicitations may be bid in United 

15 States dollars; and 

16 (B) contracts awarded to United States 

17 firms may be paid in United States dollars; 

18 (3) United States diplomatic and consular posts 

19 assist United States firms in obtaining local licenses 

20 and permits; and 

21 (4) United States firms are not disadvantaged 

22 during the solicitation and bid evaluation process. 

23 SEC. 10504. SMALL BUSINESS. 

24 (a) IN GENERAL.—Insofar as practicable and to the 

25 maximum extent consistent with the accomplishment of 


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1 the purposes of this Act, the President shall assist United 

2 States small business to participate equitably in the provi3 sion of commodities, articles, and services (including de4 fense articles and defense services) financed with funds 

5 made available under this Act— 

6 (1) by causing to be made available to suppliers 

7 in the United States, and particularly to small inde8 pendent enterprises, information, as far in advance 

9 as possible, with respect to purchases proposed to be 

10 financed with such funds; 

11 (2) by causing to be made available to prospec12 tive purchasers in partner countries information as 

13 to such commodities, articles, and services produced 

14 by small independent enterprises in the United 

15 States; and 

16 (3) by providing for additional services to give 

17 small business better opportunities to participate in 

18 the provision of such commodities, articles, and serv19 ices financed with such funds. 

20 (b) OFFICE OF SMALL AND DISADVANTAGED BUSI21 NESS UTILIZATION.—There shall be an Office of Small 

22 and Disadvantaged Business Utilization within the Agen23 cy, and similar offices within such other agencies as the 

24 President may direct, to assist in carrying out the provi25 sions of subsection (a). 


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1 (c) DEPARTMENT OF DEFENSE PURCHASES.—The 

2 Secretary of Defense shall ensure that there is made avail3 able to suppliers in the United States, and particularly 

4 to small independent enterprises, information with respect 

5 to purchases made by the Department of Defense pursu6 ant to title IV, such information to be furnished as far 

7 in advance as possible. 

8 SEC. 10505. ALLOCATION OR TRANSFER OF FUNDS AND RE9 IMBURSEMENT AMONG AGENCIES. 

10 (a) ALLOCATIONS OR TRANSFERS TO AGENCIES.— 

11 The President, or with respect to funds appropriated to 

12 any Federal agency, the head of such agency, as the case 

13 may be, may allocate or transfer to any Federal agency 

14 any funds available for providing assistance under this 

15 Act, including any advance to the United States Govern16 ment by any country or international organization for the 

17 procurement of articles or services. Such funds shall be 

18 available for obligation and expenditure for the purposes 

19 for which authorized, in accordance with the authority 

20 pursuant to which they were made available or the author21 ity governing the activities of the agency to which such 

22 funds are allocated or transferred. 

23 (b) PROCUREMENT FROM OTHER AGENCIES.— 

24 (1) AUTHORITY.—Any officer of the United 

25 States Government carrying out functions under this 


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1 Act may utilize any facility of, and may procure any 

2 article or service from, any Federal agency as the 

3 President shall direct, or with the consent of the 

4 head of such agency. 

5 (2) SEPARATE ACCOUNT.—Funds allocated pur6 suant to this subsection to any such agency may be 

7 established in separate appropriation accounts on 

8 the books of the Treasury of the United States. 

9 (c) REIMBURSEMENT TO AGENCIES.— 

10 (1) IN GENERAL.—In the case of any facility 

11 utilized by, or any article or service procured from, 

12 any Federal agency to carry out any provision of 

13 this Act (except as otherwise specifically provided in 

14 this Act), reimbursement or payment shall be made 

15 to such agency from funds available to carry out 

16 that provision. 

17 (2) AMOUNT OF REIMBURSEMENT.—Such reim18 bursement or payment shall be at— 

19 (A) replacement cost; 

20 (B) if required by law, actual cost; 

21 (C) in the case of defense articles procured 

22 from the Department of Defense, value as de23 fined in section 4412, or, if required by law, ac24 tual costs; 


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1 (D) in the case of services procured from 

2 the Department of Defense, the amount of the 

3 additional costs incurred by the Department of 

4 Defense in providing such services, or, if re5 quired by law, actual costs; or 

6 (E) at any other cost agreed to by the 

7 owning or disposing agency. 

8 (3) CREDITING OF REIMBURSEMENT.—The 

9 amount of any such reimbursement or payment shall 

10 either be credited to current applicable appropria11 tions, funds, or accounts of such agency, to be avail12 able for the same purposes and for the same time 

13 period as the appropriation, fund or account to 

14 which transferred, or any such credited funds shall 

15 remain available for such purposes until expended. 

16 (d) REIMBURSEMENT TO THE DEPARTMENT OF DE17 FENSE.—Reimbursement or payment to the Department 

18 of Defense under subsection (c) shall exclude salaries of 

19 members of the United States Armed Forces (other than 

20 the Coast Guard) and unfunded estimated costs of civilian 

21 retirement and other benefits, unless otherwise required 

22 by law. 

23 (e) ESTABLISHMENT OF ACCOUNTS.— 

24 (1) AUTHORITY TO ESTABLISH; USES.—In fur25 nishing assistance under this Act, accounts may be 


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1 established on the books of any Federal agency or, 

2 on terms and conditions approved by the Secretary 

3 of the Treasury, in banking institutions in the 

4 United States— 

5 (A) against which letters of commitment 

6 may be issued which shall constitute recordable 

7 obligations of the United States Government, 

8 and moneys due or to become due under such 

9 letters of commitment shall be assignable under 

10 the last sentence of section 3727(b) and section 

11 3727(c) of title 31, United States Code, and 

12 paragraphs (5) and (6) of section 6305(b) of 

13 title 41, United States Code; and 

14 (B) from which disbursements may be 

15 made to, or withdrawals may be made by, re16 cipient countries or agencies, organizations, or 

17 persons upon presentation of contracts, in18 voices, or other appropriate documentation. 

19 (2) ACCOUNTING FOR EXPENDITURES.—Ex20 penditure of funds that have been made available 

21 through accounts established under paragraph (1) 

22 shall be accounted for on standard documentation 

23 required for expenditure of funds of the United 

24 States Government. 

25 (f) RESPONSIBILITY OF AGENCIES.— 


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1 (1) IN GENERAL.—The agency to which funds 

2 are transferred or allocated pursuant to the author3 ity of subsection (a), or any comparable provision of 

4 law, shall be the agency responsible for the manage5 ment and use of such funds. 

6 (2) AUDIT.—Any agreement for the transfer or 

7 allocation of such funds shall expressly provide that 

8 the Office of the Inspector General for the agency 

9 receiving the transfer or allocation shall perform 

10 periodic program and financial audits of the use of 

11 those funds. Funds transferred or allocated pursu12 ant to subsection (a) may be used for the cost of 

13 such audits. 

14 SEC. 10506. RETENTION AND USE OF CERTAIN ITEMS AND 

15 FUNDS. 

16 (a) RETENTION AND USE OF CERTAIN ARTICLES.— 

17 (1) AUTHORITY TO RETAIN, TRANSFER, AND

18 USE.—Any articles procured to carry out this Act 

19 shall be retained by, or (upon reimbursement) trans20 ferred to and for the use of, such Federal agency as 

21 the President deems appropriate in lieu of being dis22 posed of to a foreign country or international organi23 zation, whenever in the judgment of the President 

24 the best interests of the United States will be served 

25 thereby. 


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1 (2) LAWS GOVERNING DISPOSAL OF GOVERN2 MENT PROPERTY.—Any articles so retained may be 

3 disposed of without regard to provisions of law relat4 ing to the disposal of property owned by the United 

5 States Government, when necessary to prevent spoil6 age or wastage of such articles or to conserve their 

7 usefulness. 

8 (3) PROCEEDS CREDITED TO APPROPRIA9 TIONS.—Funds realized from any disposal or trans10 fer of any articles shall revert to the respective ap11 propriation, fund, or account used to procure such 

12 articles or to the appropriation, fund, or account 

13 currently available for the same general purpose, 

14 and shall remain available until expended. 

15 (b) ARTICLES RECEIVED AS PAYMENT.—Whenever 

16 articles are transferred to the United States Government 

17 as repayment of assistance under this Act or the Foreign 

18 Assistance Act of 1961 (as in effect on the day before the 

19 date of the enactment of this Act), such articles may be 

20 used in furtherance of the purposes and within the limita21 tions of this Act. 

22 (c) FAILED TRANSACTIONS.—Funds realized as a re23 sult of any failure of a transaction financed under this 

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1 ment, or to the terms of any agreement or contract en2 tered into under this Act, shall revert to the respective 

3 appropriation, fund, or account used to finance such 

4 transaction or to the appropriation, fund, or account cur5 rently available for the same general purpose. 

6 (d) DISPOSAL OF DEFENSE ARTICLES.—Funds real7 ized by the United States Government from the sale, 

8 transfer, or disposal of defense articles furnished under 

9 chapter 2 of part II of the Foreign Assistance Act of 1961 

10 (as in effect on the day before the date of the enactment 

11 of this Act), and no longer needed for the purposes for 

12 which furnished, shall be credited to the respective appro13 priation, fund, or account currently available for the same 

14 general purpose. 

15 SEC. 10507. FOREIGN AND DOMESTIC EXCESS PROPERTY. 

16 (a) POLICY REGARDING USE OF EXCESS AND OTHER

17 AVAILABLE PROPERTY.—In furnishing assistance under 

18 this Act— 

19 (1) excess personal property, or 

20 (2) if a substantial savings would occur, other 

21 property already owned by a Federal agency, 

22 may be utilized wherever practicable in lieu of or supple23 mentary to the procurement of new items for United 

24 States-assisted projects and programs. 


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1 (b) AUTHORITY TO USE CERTAIN PROPERTY FOR

2 ASSISTANCE PURPOSES.—The President is authorized to 

3 use funds made available under this Act to acquire— 

4 (1) property classified as domestic or foreign 

5 excess pursuant to the Federal Property and Admin6 istrative Services Act of 1949 (40 U.S.C. 471 and 

7 following), 

8 (2) any property available from a Federal agen9 cy, or 

10 (3) other property, 

11 for use of such property as assistance in furtherance of 

12 the purposes of this Act. Property acquired pursuant to 

13 this section may be furnished pursuant to any provision 

14 of this Act for which funds are authorized for the fur15 nishing of assistance, and shall be subject to the same con16 ditions and restrictions that apply to funds so authorized. 

17 (c) SEPARATE ACCOUNT.— 

18 (1) IN GENERAL.—The President is authorized 

19 for purposes described in subsection (b) to maintain 

20 in a separate account funds made available under 

21 this Act, free from fiscal year limitations (notwith22 standing section 1535(d) of title 31, United States 

23 Code) to pay costs (including personnel costs) of ac24 quisition and storage (including in advance of known 

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1 ing, crating, handling, transportation, and related 

2 costs of handling and providing such property as as3 sistance. 

4 (2) REPAYMENT.—The separate account estab5 lished pursuant to this section may be repaid from 

6 funds made available pursuant to any provision of 

7 this Act for which funds are authorized for the fur8 nishing of assistance for all costs incurred. 

9 (d) CONDITIONS ON USE OF EXCESS PROPERTY.— 

10 (1) LIMITATION.—Government-owned excess 

11 property may not be made available for use under 

12 this Act unless approval is given and a determina13 tion is made in accordance with paragraph (2)— 

14 (A) before the shipment of such property 

15 for use in a specified country; or 

16 (B) if the property is already in such coun17 try, before the transfer of the property. 

18 (2) DETERMINATION.—A shipment or transfer 

19 subject to paragraph (1) may take place only after 

20 the President approves the shipment or transfer and 

21 makes a written determination— 

22 (A) that there is a need for such property 

23 in the quantity requested and that such prop24 erty is suitable for the purpose requested; 


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1 (B) that the designated end-user has 

2 agreed to use and maintain such property effec3 tively, and has the ability to do so; and 

4 (C) that the residual value, serviceability, 

5 and appearance of such property would not re6 flect unfavorably on the image of the United 

7 States and would justify the costs of packing, 

8 crating, handling, transportation, and other ac9 cessorial costs, and that the residual value at 

10 least equals the total of these costs. 

11 (e) NONAPPLICABILITY TO DEPARTMENT OF DE12 FENSE.—This section shall not apply— 

13 (1) with respect to excess defense articles; and 

14 (2) with respect to funds made available for as15 sistance under this Act that is administered through 

16 the Department of Defense. 

17 SEC. 10508. OCEAN FREIGHT DIFFERENTIAL. 

18 (a) SHIPPING DIFFERENTIAL.—For purposes of fa19 cilitating implementation of section 901(b) of the Mer20 chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), funds 

21 made available for the purposes of this Act may be used 

22 to pay for all or any portion of the differential between 

23 United States and foreign-flag vessel charter or freight 

24 rates. 


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1 (b) DETERMINATIONS.—The amount of the differen2 tial between United States and foreign-flag vessel charter 

3 or freight rates shall be determined by the Secretary of 

4 Transportation, or in the case of food assistance, by the 

5 Secretary of Transportation in consultation with the Sec6 retary of Agriculture and the Administrator. 

7 (c) USE OF FOREIGN CURRENCIES.—Payments 

8 under this section shall be made in United States-owned 

9 foreign currencies wherever feasible. 

10 (d) CERTAIN LAWS NOT APPLICABLE.—The ocean 

11 transportation between foreign countries of commodities 

12 purchased with foreign currencies made available or de13 rived from funds made available under this Act or the Ag14 ricultural Trade Development and Assistance Act of 1954 

15 (7 U.S.C. 1691 and following), or any predecessor Acts, 

16 and transfers of fresh fruit and fresh fruit products under 

17 this Act, shall not be governed by section 901(b) of the 

18 Merchant Marine Act, 1936 (46 U.S.C. app. 1241(b)), or 

19 any other law relating to the ocean transportation of com20 modities on United States flag vessels. 

21 SEC. 10509. USE OF AIRCRAFT FOR ADDITIONAL PURPOSES. 

22 (a) TRANSFER AUTHORITY.— 

23 (1) IN GENERAL.—Aircraft procured for nar24 cotics control purposes with funds made available 

25 under this Act, the Foreign Assistance Act of 1961 


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1 (as in effect on the day before the date of the enact2 ment of this Act), or any Act making appropriations 

3 for the Department of State, foreign operations, and 

4 related programs, may be used for any other pro5 gram, country or region, including for the transpor6 tation of Civilian Response Corps personnel and 

7 equipment during a deployment. 

8 (2) RULE OF CONSTRUCTION.—The authority 

9 of paragraph (1) may be exercised notwithstanding 

10 section 5207 or any other provision of law pre11 cluding the use of aircraft described in paragraph 

12 (1). 

13 (b) DETERMINATION REQUIRED.—The authority 

14 provided in subsection (a) may be exercised only if the 

15 Secretary determines that— 

16 (1) the such aircraft is no longer required to 

17 meet programmatic purposes in the originally des18 ignated program, country, or region, or 

19 (2) there is an emergency need for such aircraft 

20 in another program, country or region. 

21 (c) NOTIFICATION.—The appropriate congressional 

22 committees shall be notified— 

23 (1) of a determination under subsection (b); 

24 and 

25 (2) prior to a transfer under subsection (a). 


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1 (d) AIRCRAFT COORDINATION AND USE.— 

2 (1) IN GENERAL.—Aircraft purchased or leased 

3 by the Department of State or the United States 

4 Agency for International Development under this 

5 Act, the Foreign Assistance Act of 1961 (as in effect 

6 on the day before the date of the enactment of this 

7 Act), or any Act making appropriations for the De8 partment of State, foreign operations, and related 

9 programs shall be— 

10 (A) coordinated by the relevant Chief of 

11 Mission; 

12 (B) made available for the transportation 

13 of personnel supporting the programs and ac14 tivities of the Department of State or the 

15 United States Agency for International Devel16 opment, as the case may be; and 

17 (C) made available for official travel for 

18 other agencies for other purposes on a reim19 bursable basis, or without reimbursement when 

20 traveling on a space-available basis. 

21 (2) RULE OF CONSTRUCTION.—The authority 

22 of paragraph (1) may be exercised notwithstanding 

23 section 5207 or any other provision of law pre24 cluding the use of aircraft described in paragraph 

25 (1). 


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1 SEC. 10510. STREAMLINING AND REVIEW OF PROCURE2 MENT PROCESS. 

3 (a) POLICY.—In carrying out assistance under this 

4 Act, the Administrator should seek to— 

5 (1) maximize the transparency, efficiency, sim6 plicity, and speed of the acquisitions and assistance 

7 process; 

8 (2) attract and enable a wide range of United 

9 States entities to compete for awards, regardless of 

10 whether they are large or small, private enterprises 

11 or nonprofit organizations, or have previously 

12 partnered with the Agency; 

13 (3) ensure that decisions regarding the use of 

14 acquisitions and assistance instruments are made 

15 without prejudice or bias toward or against private 

16 enterprises or nonprofit organizations; and 

17 (4) harmonize procurement rules, regulations, 

18 policies and practices with those of other Federal 

19 agencies. 

20 (b) STREAMLINING PROCEDURES.—To streamline 

21 the process for making awards, the Administrator 

22 should— 

23 (1) create simplified solicitations, structured 

24 scopes of work, standardized proposals and assist25 ance templates, and joint funding models under 


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1 which multiple offices and agencies can fund inte2 grated programs; 

3 (2) consider pre-qualification short-lists to re4 duce award time; 

5 (3) improve training for contracting and pro6 curement personnel; 

7 (4) increase transparency on anticipated activi8 ties; and 

9 (5) improve communications and consultation 

10 with the public and with private partners, including 

11 outreach and information services to potential new 

12 partners. 

13 (c) ACQUISITIONS AND ASSISTANCE.—To ensure the 

14 appropriate balance and use of acquisitions and assistance 

15 instruments, the Administrator shall— 

16 (1) issue a policy and guidelines regarding the 

17 use and application of each type of instrument, in18 cluding the responsibility of personnel of the Agency 

19 with respect to the administration of each type of in20 strument; 

21 (2) make such guidelines public; 

22 (3) ensure that Agency personnel receive ade23 quate training on the use and application of each 

24 type of instrument; and 


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1 (4) review and update, as necessary, such policy 

2 and guidelines in light of recommendations received 

3 by the committee established under subsection (d). 

4 (d) OPERATIONAL ISSUES REVIEW COMMITTEE.— 

5 The Administrator should convene an Advisory Com6 mittee, pursuant to the Federal Advisory Committee Act, 

7 to— 

8 (1) assist in updating Agency procedures and 

9 regulations to improve the transparency, efficiency, 

10 simplicity, and speed of the acquisitions and assist11 ance process; 

12 (2) review the procedures, policy and guidelines 

13 developed under subsections (b) and (c); and 

14 (3) provide advice and guidance on other oper15 ational issues, as appropriate. 

16 Such Committee should include broad representation of 

17 both private enterprises and nonprofit organizations. 

18 (e) HARMONIZATION OF PROCUREMENT RULES.— 

19 The Administrator shall convene a working group, incor20 porating representatives of all Federal agencies carrying 

21 out activities under title I, to harmonize rules, regulations, 

22 policies and practices regarding procurement. 

23 (f) RULEMAKING PROCEDURES.—The Administrator 

24 shall apply the same rulemaking procedures to policies re25 garding assistance instruments as are applied to policies 


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1 regarding acquisition instruments, and shall ensure that 

2 all such procedures are carried out in compliance with sec3 tion 533 of title 5, United States Code. 

4 SEC. 10511. OVERSEAS PROCUREMENT FLEXIBILITY. 

5 Section 3 of the State Department Basic Authorities 

6 Act of 1956 (22 U.S.C. 2670) is amended by— 

7 (1) in subsection (l), by striking ‘‘and’’ at the 

8 end; 

9 (2) in subsection (m), by striking the period at 

10 the end and inserting ‘‘; and’’; and 

11 (3) by adding at the end the following new sub12 section: 

13 ‘‘(n) make and carry out contracts for procurement 

14 outside the United States of goods or services needed for 

15 the operation of United States diplomatic and consular 

16 posts and related facilities outside the United States, pro17 vided that— 

18 ‘‘(1) laws of the United States relating to the 

19 negotiation, making, contents or performance of gov20 ernment contracts for goods or services, and advance 

21 payments and indemnification in relation to such 

22 contracts shall apply with respect to such contracts 

23 except to the extent that the Secretary determines 

24 (other than for purposes of chapter 21 of title 41, 

25 United States Code) that the Secretary could not 


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1 reasonably meet the need of a post or facility for 

2 such goods and services by use of authority available 

3 to the Secretary under a law under this subsection; 

4 ‘‘(2) the Secretary shall— 

5 ‘‘(A) issue guidance addressing use of this 

6 authority; and 

7 ‘‘(B) require written approval to waive spe8 cific laws or procurement regulations under this 

9 authority by the Procurement Executive (with10 out further delegation); and 

11 ‘‘(3) no individual contract action entered into 

12 under this authority shall exceed $2,000,000 unless 

13 approved in writing by the Chief Acquisition Officer 

14 of the Department (without further delegation).’’. 

15 SEC. 10512. LOCAL GUARD CONTRACTS ABROAD. 

16 Section 136(c)(3) of the Foreign Relations Author17 ization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 

18 4864(c)(3)) is amended to read as follows: 

19 ‘‘(3) in evaluating proposals for such contracts, 

20 award contracts to technically acceptable firms offer21 ing the lowest evaluated price, except that— 

22 ‘‘(A) the Secretary may grant authoriza23 tion to award contracts on the basis of best 

24 value as determined by a cost-technical tradeoff 

25 analysis; and 


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1 ‘‘(B) proposals received from United 

2 States persons and qualified United States joint 

3 venture persons (as defined in subsection (d) of 

4 this section) shall be evaluated by reducing the 

5 bid price by 10 percent.’’. 

6 SEC. 10513. AUTHORITY TO PAY TRANSPORTATION COSTS. 

7 (a) IN GENERAL.—In order to further the efficient 

8 use of United States voluntary contributions for alle9 viating human suffering, the Administrator is authorized 

10 to use funds made available for the purposes of title I to 

11 pay transportation charges on shipments of humanitarian 

12 goods by United States private and voluntary organiza13 tions. 

14 (b) REIMBURSEMENTS.—Reimbursement under this 

15 section may be provided for transportation charges on 

16 shipments from United States ports, or in the case of ex17 cess or surplus property supplied by the United States 

18 from foreign ports, to ports of entry abroad or to points 

19 of entry abroad in cases— 

20 (1) of landlocked countries; 

21 (2) where ports cannot be used effectively be22 cause of natural or other disturbances; 

23 (3) where carriers to a specified country are un24 available; or 


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1 (4) where a substantial savings in costs or time 

2 can be effected by the utilization of points of entry 

3 other than ports. 

4 (c) DEFRAYING TRANSPORTATION COSTS.—Where 

5 practicable, the President shall make arrangements with 

6 the receiving country for free entry of such shipments and 

7 for the making available by the country of local currencies 

8 for the purpose of defraying the transportation costs of 

9 such shipments from the port or point of entry of the re10 ceiving country to the designated shipping point of the 

11 consignee. 

12 CHAPTER 4—USE OF FOREIGN 

13 CURRENCIES 

14 SEC. 10601. SEPARATE ACCOUNTS FOR LOCAL CUR15 RENCIES. 

16 (a) IN GENERAL.—The Administrator shall require 

17 that any local currencies generated as a result of agree18 ments with a foreign government regarding the use of eco19 nomic assistance or development assistance are deposited 

20 in a separate account established by that government. 

21 (b) AGREEMENTS.—A separate account under sub22 section (a) shall be established pursuant to an agreement 

23 between the United States Agency for International Devel24 opment and the foreign government which sets forth— 


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1 (1) the amount of the local currencies to be 

2 generated; 

3 (2) the terms and conditions under which the 

4 currencies so deposited may be utilized, consistent 

5 with this section; and 

6 (3) the responsibilities of the Agency and the 

7 foreign government to monitor and account for de8 posits into and disbursements from the separate ac9 count. 

10 (c) USES OF LOCAL CURRENCIES.—Local currencies 

11 deposited in a separate account pursuant to subsection 

12 (a), or an equivalent amount of local currencies, shall be 

13 used only— 

14 (1) to further the goals and objectives of title 

15 I; or 

16 (2) for the administrative requirements of the 

17 United States Government. 

18 (d) TERMINATION OF ASSISTANCE PROGRAMS.— 

19 Upon termination of economic assistance to a country, any 

20 unencumbered balances of funds which remain in a sepa21 rate account established pursuant to subsection (a) shall 

22 be disposed of for such purposes as may be agreed to by 

23 the government of that country and the United States 

24 Government. 


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1 (e) REPORTING REQUIREMENT.—The Administrator 

2 shall include in the annual congressional budget justifica3 tion documents submitted pursuant to section 8302 a re4 port on the amounts and uses of local currency (and 

5 United States dollar equivalent) in each applicable coun6 try. 

7 SEC. 10602. USE OF CERTAIN FOREIGN CURRENCIES. 

8 (a) AUTHORITY TO USE FOREIGN CURRENCIES FOR

9 ASSISTANCE PROGRAMS.—Except as otherwise provided 

10 in this Act or other provisions of law, foreign currencies 

11 described in subsection (b) that are owned by the United 

12 States Government are authorized to be appropriated for 

13 use in providing assistance under this Act. 

14 (b) FOREIGN CURRENCIES THAT MAY BE USED FOR

15 ASSISTANCE.—The foreign currencies that may be used 

16 under subsection (a) are any foreign currencies received 

17 as a result of the furnishing of assistance under this Act 

18 (or any predecessor Acts authorizing non-military assist19 ance), other than assistance administered through the De20 partment of Defense, that are in excess of— 

21 (1) the amounts reserved under authority of 

22 section 105(d) of the Mutual Educational and Cul23 tural Exchange Act of 1961 or any other Act relat24 ing to educational and cultural exchanges; and 


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1 (2) the amounts required for payment by the 

2 agencies of the United States Government of their 

3 obligations outside the United States, as such re4 quirements may be established from time to time by 

5 the President. 

6 (c) PAYMENT OF OBLIGATIONS OF GOVERNMENT

7 AGENCIES.—Foreign currencies described in subsection 

8 (b) that are in excess of the amounts described in para9 graph (1) of that subsection may be sold by the Secretary 

10 of the Treasury to agencies of the United States Govern11 ment for payment of their obligations outside the United 

12 States. 

13 (d) USE OF FOREIGN CURRENCIES NOT OWNED BY

14 THE UNITED STATES GOVERNMENT.—With the concur15 rence of the relevant inspector general, the use of foreign 

16 currencies that accrue or are otherwise available as a re17 sult of assistance provided under this Act (including pred18 ecessor Acts) that are not owned by the United States 

19 Government, shall be the responsibility of the government 

20 owning such currencies to audit. 

21 SEC. 10603. ACCOUNTING AND VALUATION OF FOREIGN 

22 CURRENCIES. 

23 (a) RESPONSIBILITY OF SECRETARY OF THE TREAS24 URY.—Under the direction of the President, the Secretary 

25 of the Treasury shall have responsibility for valuation and 


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1 central accounting with respect to foreign credits (includ2 ing currencies) owed to or owned by the United States. 

3 In order to carry out such responsibility, the Secretary 

4 shall issue regulations binding upon all agencies of the 

5 United States Government. 

6 (b) SOLE AUTHORITY.—The Secretary of the Treas7 ury shall have sole authority to establish for all foreign 

8 currencies or credits the exchange rates at which such cur9 rencies are to be reported by all agencies of the Govern10 ment. 

11 Subtitle C—Human Resources 

12 CHAPTER 1—PERSONNEL AND BENEFITS 

13 SEC. 10701. EMPLOYMENT OF PERSONNEL. 

14 (a) AUTHORITY.—Any Federal agency or Federal of15 ficer carrying out functions under this Act is authorized 

16 to employ such Federal personnel as the President deems 

17 necessary to carry out the provisions and purposes of this 

18 Act. 

19 (b) ASSISTANCE FUNCTIONS IN THE UNITED

20 STATES.— 

21 (1) APPOINTMENTS AND REMOVAL WITHOUT

22 REGARD TO CERTAIN CIVIL SERVICE LAWS.—Not 

23 more than 110 employees of the United States 

24 Agency for International Development in the United 

25 States may be appointed or removed without regard 


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1 to the provisions of title 5, United States Code, gov2 erning appointments in the competitive service, and 

3 may be compensated without regard to the provi4 sions of chapter 51 or subchapter III of chapter 53 

5 of such title, subject to paragraph (2) of this sub6 section. 

7 (2) COMPENSATION.—Of the employees ap8 pointed under paragraph (1), 51 may be com9 pensated at rates higher than those payable for GS– 

10 15 of the General Schedule under section 5332 of 

11 title 5, United States Code, but not in excess of the 

12 highest rate payable under section 5376 of such 

13 title. 

14 (3) REINSTATEMENT RIGHTS.—Under such 

15 regulations as the President may prescribe, any indi16 vidual employed under paragraph (1) may be enti17 tled, upon removal (except for cause) from the posi18 tion to which the appointment was made, to rein19 statement to the position occupied by that individual 

20 at the time of appointment or to a position of com21 parable grade and pay. 

22 (c) DEPARTMENT OF DEFENSE FUNCTIONS IN THE

23 UNITED STATES.—Of the personnel employed in the 

24 United States by the Department of Defense to carry out 

25 this Act not to exceed 8 may be compensated at rates 


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1 higher than those payable for GS–15 of the General 

2 Schedule under section 5332 of title 5, United States 

3 Code, but not in excess of the highest rate payable under 

4 section 5376 of such title. Such positions shall be in addi5 tion to those authorized by law to be filled by Presidential 

6 appointment, and in addition to the number authorized 

7 by section 5108 of title 5, United States Code. 

8 (d) PERFORMANCE OF FUNCTIONS OUTSIDE THE

9 UNITED STATES.— 

10 (1) AUTHORITY TO EMPLOY OR ASSIGN.—For 

11 the purpose of performing functions under this Act 

12 outside the United States, the President may— 

13 (A) employ or assign individuals; or 

14 (B) authorize the employment or assign15 ment of Federal employees that are not author16 ized to utilize the Foreign Service personnel 

17 system. 

18 (2) COMPENSATION.—Individuals employed or 

19 assigned under paragraph (1) shall receive com20 pensation at any of the rates provided for under sec21 tion 402 or section 403 of the Foreign Service Act 

22 of 1980, or under chapter 53 of title 5, United 

23 States Code, or at any other rate authorized by law, 

24 together with allowances and benefits under the For25 eign Service Act of 1980. 


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1 (3) REEMPLOYMENT RIGHTS.—Individuals so 

2 employed or assigned shall be entitled to the same 

3 benefits as are provided by section 310 of the For4 eign Service Act of 1980 for individuals appointed to 

5 the Foreign Service, except to the extent that the 

6 President may specify otherwise in cases in which 

7 the period of employment or assignment exceeds 30 

8 months. 

9 SEC. 10702. EXPERTS AND CONSULTANTS. 

10 (a) AUTHORITY TO EMPLOY.—Experts and consult11 ants or organizations thereof may, in accordance with sec12 tion 3109 of title 5, United States Code, be employed for 

13 the performance of functions under this Act. 

14 (b) RATES OF COMPENSATION.—Individuals em15 ployed under the authority of subsection (a) may be com16 pensated at rates not in excess of the daily equivalent of 

17 the highest rate payable under section 5332 of title 5, 

18 United States Code, and while away from their homes or 

19 regular places of business, they may be paid actual travel 

20 expenses and per diem in lieu of subsistence at rates not 

21 in excess of those prescribed by the standardized Govern22 ment travel regulations. 

23 (c) MANDATORY RETIREMENT AGE NOT APPLICA24 BLE.—The service of an individual as an expert or consult25 ant under subsection (a) shall not be considered to be emVerDate Mar 15 2010 22:23 Apr 26, 2013 Jkt 029200 PO 00000 Frm 00793 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793

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1 ployment or holding of office or position for purposes of 

2 applying the provisions of section 3323(a) of title 5, 

3 United States Code, to the individual. 

4 (d) EMPLOYMENT OF CERTAIN PERSONS WITHOUT

5 COMPENSATION.—Persons of outstanding experience and 

6 ability may be employed without compensation by any 

7 Federal agency for the performance of functions under 

8 this Act in accordance with the provisions of section 

9 710(b) of the Defense Production Act of 1950 (50 U.S.C. 

10 App. 2160(b)), and regulations issued thereunder. 

11 SEC. 10703. PROHIBITION OF DISCRIMINATION AGAINST 

12 FEDERAL PERSONNEL. 

13 (a) ASSIGNMENT OF PERSONNEL.— 

14 (1) IN GENERAL.—The President shall not take 

15 into account, in assigning Federal personnel to carry 

16 out the provisions of this Act, the individual’s race, 

17 sex, religion, national origin, sexual orientation, or 

18 gender identity. Such assignments shall be made 

19 solely on the basis of ability and relevant experience. 

20 (2) PROHIBITION ON CONSIDERATION OF EX21 CLUSIONARY POLICIES OR PRACTICES.—No agency 

22 performing functions under this Act shall, in em23 ploying or assigning Federal personnel to participate 

24 in the performance of any such function, whether in 

25 the United States or abroad, take into account the 


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1 exclusionary policies or practices of any foreign gov2 ernment where such policies or practices are based 

3 upon race, sex, religion, national origin, sexual ori4 entation or gender identity. 

5 (3) CONTRACTS.—Each contract entered into 

6 by any such agency for the performance of any func7 tion under this Act shall contain a provision to the 

8 effect that no person, partnership, corporation, or 

9 other entity performing functions pursuant to such 

10 contract, shall, in employing or assigning personnel 

11 to participate in the performance of any such func12 tion, whether in the United States or abroad, take 

13 into account the exclusionary policies or practices of 

14 any foreign government where such policies or prac15 tices are based upon race, sex, religion, national ori16 gin, sexual orientation, or gender identity. 

17 (b) EXCLUSION BY FOREIGN COUNTRIES.—Except 

18 as provided in subsection (c), no assistance may be pro19 vided under this Act to any government or organization 

20 that excludes, as a matter of law, regulation, policy or 

21 practice, any United States person (as defined in section 

22 7701(a)(30) of the Internal Revenue Code of 1986) from 

23 participating in the furnishing of assistance under this Act 

24 on the basis of sex, race, religion, national origin, sexual 

25 orientation or gender identity. 


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1 (c) EXCEPTION.—The President may provide assist2 ance notwithstanding the prohibition in subsection (b) if 

3 the President— 

4 (1) determines that, notwithstanding such ex5 clusion,— 

6 (A) extraordinary circumstances exist 

7 which necessitate the provision of such assist8 ance; and 

9 (B) it is in the national interest of the 

10 United States to provide such assistance; and 

11 (2) transmits to the appropriate congressional 

12 committees, prior to providing such assistance, a re13 port detailing— 

14 (A) the facts and circumstances of such ex15 clusion; 

16 (B) the response thereto on the part of the 

17 United States Government or any agency or 

18 personnel thereof; 

19 (C) the result of such response, if any; 

20 (D) the extraordinary circumstances which 

21 necessitate the provision of such assistance; and 

22 (E) the nature and amount of the assist23 ance to be provided notwithstanding such exclu24 sion. 


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1 SEC. 10704. FOREIGN SERVICE LIMITED APPOINTMENTS. 

2 (a) AUTHORITY TO HIRE AND EMPLOY.—The Ad3 ministrator is authorized to hire and employ up to 200 

4 individuals in the United States and overseas on a limited 

5 appointment basis pursuant to the authority of sections 

6 308 and 309 of the Foreign Service Act of 1980. 

7 (b) CONDITIONS.—The authority of subsection (a) 

8 may only be used to the extent that an equivalent number 

9 of positions that are filled by personal services contractors 

10 or other nondirect hire personnel of the United States 

11 Agency for International Development are eliminated. 

12 (c) PRIORITY SECTORS.—In exercising the authority 

13 of this section, primary emphasis shall be placed on ena14 bling the United States Agency for International Develop15 ment to meet personnel needs in technical skill areas cur16 rently encumbered by personal services contractors or 

17 other non-direct hire personnel. 

18 (d) EXTENSIONS.—Individuals hired and employed 

19 by the United States Agency for International Develop20 ment pursuant to the authority of section 309 of the For21 eign Service Act of 1980 may be extended for a period 

22 of up to 4 years notwithstanding the limitation set forth 

23 in such section. 

24 SEC. 10705. TECHNICAL ADVISORS. 

25 The Administrator is authorized to use funds made 

26 available to carry out title I to reimburse Federal agencies, 


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1 agencies of State governments, institutions of higher edu2 cation, and private and voluntary organizations for the full 

3 cost of individuals (including for the personal services of 

4 such individuals) detailed or assigned to, or contracted by, 

5 as the case may be, the United States Agency for Inter6 national Development for the purpose of carrying out this 

7 Act. 

8 SEC. 10706. PERSONAL SERVICES CONTRACTORS FOR 

9 USAID. 

10 (a) EMPLOYMENT OUTSIDE THE UNITED STATES.— 

11 The Administrator is authorized to employ personal serv12 ices contractors outside the United States to carry out the 

13 purposes of this Act. 

14 (b) EMPLOYMENT IN THE UNITED STATES.—The 

15 Administrator is authorized to employ up to 40 personal 

16 services contractors in the United States, notwithstanding 

17 any other provision of law, for the purpose of providing 

18 direct, interim support for new or expanded overseas pro19 grams and activities managed by the United States Agen20 cy for International Development until permanent direct 

21 hire personnel are hired and trained. 

22 (c) CONSIDERED AS OPERATING EXPENSES.—The 

23 salaries and expenses of individuals hired under the au24 thority of subsection (b) shall be considered as operating 

25 expenses of the United States Agency for International 


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1 Development and subject to the limitations of section 

2 10301, except that the Administrator may use funds made 

3 available to carry out title II of the Agricultural Trade 

4 Development and Assistance Act of 1954 for personal 

5 services contractors assigned to the Office of Food for 

6 Peace. 

7 (d) NOT REGARDED AS FEDERAL EMPLOYEES.—In8 dividuals hired under the authority of this section shall 

9 not be regarded as Federal employees for the purpose of 

10 any law administered by the Office of Personnel Manage11 ment. 

12 SEC. 10707. PERSONAL SERVICES CONTRACTORS FOR THE 

13 DEPARTMENT OF STATE. 

14 (a) IN GENERAL.—In addition to other authorities 

15 that may be available, the Secretary of State may establish 

16 a pilot program (in this section referred to as the ‘‘pro17 gram’’) for the purpose of hiring United States citizens 

18 or aliens as personal services contractors, for service in 

19 the United States, or for service both in the United States 

20 and abroad, to respond to new or emerging needs or to 

21 augment current services. 

22 (b) CONDITIONS.—The Secretary is authorized to use 

23 the authority of subsection (a), subject to the following 

24 conditions: 


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1 (1) The Secretary determines that existing per2 sonnel resources are insufficient. 

3 (2) The contract length, including options, may 

4 not exceed 2 years, unless the Secretary makes a 

5 finding that exceptional circumstances justify an ex6 tension of up to one additional year. 

7 (3) Not more than a total of 200 United States 

8 citizens or aliens are employed at any one time as 

9 personal services contractors under this section. 

10 (4) This authority may only be used to obtain 

11 specialized skills or experience or to respond to ur12 gent needs. 

13 (c) STATUS OF PERSONAL SERVICE CONTRAC14 TORS.— 

15 (1) IN GENERAL.—An individual hired as a per16 sonal service contractor pursuant to this section 

17 shall not, by virtue of such hiring, be considered to 

18 be an employee of the United States Government for 

19 purposes of any law administered by the Office of 

20 Personnel Management. 

21 (2) APPLICABLE LAWS.—An individual hired as 

22 a personal service contractor pursuant to this section 

23 shall be covered, in the same manner as a similarly 

24 situated employee, by— 

25 (A) the Ethics in Government Act of 1978; 


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1 (B) chapter 21 of title 41, United States 

2 Code; and 

3 (C) chapter 73 of title 5, sections 201, 

4 203, 205, 207, 208, and 209 of title 18, and 

5 section 1346 and chapter 171 of title 28, 

6 United States Code. 

7 (3) EXCEPTION.—This subsection shall not af8 fect the determination as to whether an individual 

9 hired as a personal service contractor pursuant to 

10 this section is an employee of the United States Gov11 ernment for purposes of any Federal law not speci12 fied in paragraphs (1) and (2). 

13 (d) TERMINATION OF AUTHORITY.—The authority to 

14 award personal services contracts under the program au15 thorized by this section shall terminate on September 30, 

16 2014. A contract entered into prior to the termination 

17 date under this subsection may remain in effect until expi18 ration. 

19 SEC. 10708. HIRING AUTHORITY OF INSPECTOR GENERAL 

20 OF THE UNITED STATES AGENCY FOR INTER21 NATIONAL DEVELOPMENT. 

22 (a) IN GENERAL.—Subject to the requirements and 

23 limitations of this section, the Inspector General of the 

24 United States Agency for International Development is 


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1 authorized to employ personal services contractors outside 

2 the United States. 

3 (b) NUMBER.—The number of contractors hired 

4 under the authority of subsection (a) may not exceed 5 

5 percent of the total authorized workforce of the Office of 

6 the Inspector General. 

7 (c) CONTRACT LENGTH.—A contractor hired under 

8 the authority of subsection (a) shall have a contract period 

9 of not longer than 2 years, unless the Inspector General 

10 determines, on a case-by-case basis, that exceptional cir11 cumstances justify the extension of a contract for up to 

12 1 additional year. 

13 (d) CERTIFICATION.—The authority provided in sub14 section (a) may be exercised only if the Inspector General 

15 determines that it is impractical to recruit a sufficient 

16 number of direct-hire employees to perform necessary 

17 overseas work, and reports such determination to the ap18 propriate congressional committees, along with the rea19 sons such recruitment is impractical. 

20 (e) STATUS OF EMPLOYMENT.—Individuals employed 

21 under the authority of this section shall not be considered 

22 Federal employees for purposes of the Foreign Service Act 

23 of 1980 or any law administered by the Office of Per24 sonnel Management. 


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1 SEC. 10709. PUBLIC AVAILABILITY OF CONSULTING CON2 TRACTS. 

3 Any contract for consulting services issued with funds 

4 made available under this Act shall be a matter of public 

5 record and subject to public inspection, unless otherwise 

6 specifically provided under law. 

7 SEC. 10710. SENIOR FOREIGN SERVICE REQUIREMENT. 

8 Section 305 of the Foreign Service Act of 1980 (22 

9 U.S.C. 3945) is amended by adding at the end the fol10 lowing: 

11 ‘‘(e) REQUIREMENT.—Beginning 3 years from the 

12 date of the enactment of this subsection, a Foreign Service 

13 Officer may not be promoted into the Senior Foreign Serv14 ice of the Department of State or the United States Agen15 cy for International Development without having served 

16 at least one domestic rotation in a bureau or office that 

17 does not have a regional jurisdiction.’’. 

18 SEC. 10711. PAY PARITY FOR CRIMINAL INVESTIGATORS. 

19 Section 5541(2)(C)(xiv) of title 5, United States 

20 Code, is amended to read as follows: 

21 ‘‘(xiv) a Foreign Service officer, ex22 cept that a Foreign Service officer serving 

23 as a criminal investigator in the Office of 

24 the Inspector General of the United States 

25 Agency for International Development 

26 shall be eligible for and receive availability 


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1 pay on the same terms as a criminal inves2 tigator under section 5545a.’’. 

3 CHAPTER 2—DETAILS, FELLOWSHIPS, 

4 AND EXCHANGES 

5 SEC. 10801. DETAILS TO FOREIGN GOVERNMENTS AND 

6 INTERNATIONAL ORGANIZATIONS. 

7 (a) DETAILS TO FOREIGN GOVERNMENTS.—When 

8 consistent with and in furtherance of the purposes of this 

9 Act, the head of any Federal agency is authorized to detail 

10 any Federal employee of that agency to any office or posi11 tion with any foreign government or foreign government 

12 agency, where acceptance of such office or position does 

13 not involve the taking of an oath of allegiance to another 

14 government or acceptance of compensation or other bene15 fits from any foreign country by such employee. 

16 (b) DETAILS TO INTERNATIONAL ORGANIZATIONS.— 

17 When consistent with and in furtherance of the purposes 

18 of this Act, the head of any Federal agency is authorized 

19 to detail to any international organization or arrangement, 

20 any Federal employee of that agency to serve with, or as 

21 a member of, the international staff of such organization, 

22 or to render any technical, scientific, or professional advice 

23 or service to, or in cooperation with, such organization. 

24 (c) STATUS OF FEDERAL EMPLOYEES DETAILED.— 


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1 (1) RETENTION OF BENEFITS.—Any Federal 

2 employee, while detailed under this section— 

3 (A) shall be considered a Federal employee 

4 and of the Federal agency from which detailed 

5 for the purpose of preserving his or her allow6 ances, privileges, rights, seniority, and other 

7 benefits as such; and 

8 (B) shall continue to receive compensation, 

9 allowances, and benefits from funds appro10 priated to that agency or made available to that 

11 agency under this Act, or may be detailed on a 

12 leave without pay status. 

13 (2) ALLOWANCES.—Any Federal employee as14 signed, detailed, or appointed under this section, sec15 tion 10203(b), section 10204 or section 10702, may 

16 receive (under such regulations as the President may 

17 prescribe) representation allowances similar to those 

18 allowed under section 905 of the Foreign Service Act 

19 of 1980. The authorization of such allowances and 

20 other benefits and the payment thereof out of any 

21 appropriations available therefor shall be considered 

22 as meeting all the requirements of section 5536 of 

23 title 5, United States Code. 


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1 (d) TERMS OF DETAIL.—Details may be made under 

2 this section or section 408 of the Mutual Security Act of 

3 1954 in accordance with any of the following: 

4 (1) Without reimbursement to the United 

5 States Government by the foreign government or 

6 international organization. 

7 (2) Upon agreement by the foreign government 

8 or international organization to reimburse the 

9 United States Government for compensation, travel 

10 expenses, benefits, and allowances, or any part 

11 thereof, payable to the Federal employee concerned 

12 during the period of detail. Such reimbursements 

13 (including foreign currencies) shall be credited to the 

14 appropriation, fund, or account utilized for paying 

15 such compensation, travel expenses, benefits, or al16 lowances, or to the appropriation, fund, or account 

17 currently available for such purposes. 

18 (3) Upon an advance of funds, property, or 

19 services by the foreign government or international 

20 organization to the United States Government ac21 cepted with the approval of the President for speci22 fied uses in furtherance of the purposes of this Act. 

23 Funds so advanced may be established as a separate 

24 fund in the Treasury of the United States Govern25 ment, to be available for the specified uses, and to 


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1 be used for reimbursement of appropriations or di2 rect expenditure subject to the provisions of this 

3 Act. Any unexpended balance of such account shall 

4 be returned to the foreign government or inter5 national organization. 

6 (4) Subject to the receipt by the United States 

7 Government of a credit to be applied against the 

8 payment by the United States Government of its 

9 share of the expenses of the international organiza10 tion to which the Federal employee is detailed, such 

11 credit to be based upon the compensation, travel ex12 penses, benefits and allowances, or any part thereof, 

13 payable to such employee during the period of detail 

14 in accordance with subsection (c). 

15 SEC. 10802. DETAILS TO UNITED STATES GOVERNMENT 

16 AGENCIES. 

17 (a) AUTHORITY TO DETAIL.—The head of any Fed18 eral agency is authorized to detail Federal employees of 

19 that agency (hereinafter known as the ‘‘detailing agency’’) 

20 to any office or position in any other Federal agency (here21 inafter known as the ‘‘receiving agency’’), for the purposes 

22 set out in subsection (b). 

23 (b) PURPOSES OF DETAIL.—A detail under sub24 section (a) is authorized for the purposes of— 


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1 (1) improving cooperation and collaboration be2 tween the detailing agency and receiving agency, 

3 (2) rendering any technical, scientific, or pro4 fessional advice or service to the receiving agency, or 

5 (3) providing training and professional develop6 ment to employees of the detailing agency, 

7 when such detail is consistent with and in furtherance of 

8 the purposes of this Act. 

9 (c) CONGRESSIONAL DETAIL.—The Secretary and 

10 the Administrator are each authorized to detail up to 5 

11 employees of the Department of State and the United 

12 States Agency for International Development, respectively, 

13 each fiscal year to individual members and committees of 

14 Congress, notwithstanding the requirement for reimburse15 ment in subsection (d). Such detailees shall be known as 

16 ‘‘Congressional Fellows’’. 

17 (d) REQUIREMENT FOR REIMBURSEMENT.—The re18 ceiving agency shall reimburse the detailing agency for the 

19 salary and allowances of each Federal employee for the 

20 period of the detail, unless— 

21 (1) the detail is for a period of less than two 

22 years; 

23 (2) a substantially equivalent number of Fed24 eral employees are detailed to and from each agency 

25 in a fiscal year; or 


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1 (3) not more than 15 Federal employees are de2 tailed from a single agency in a fiscal year. 

3 (e) PERSONNEL LIMITATIONS.—Personnel detailed 

4 under this section shall not be counted for purposes of 

5 any limitation established by the Office of Management 

6 and Budget on the maximum number of personnel allow7 able for the detailing agency. 

8 (f) WAIVER.—The Secretary and the Administrator 

9 are authorized to waive the requirement for reimburse10 ment in subsection (d) for the detail of an employee of 

11 the Department of State or the Agency, respectively, for 

12 a period of up to 5 years if the receiving agency is the 

13 National Security Council. 

14 (g) DETAIL DEFINED.—In this section, the term ‘‘de15 tail’’ means to detail, assign, or otherwise make available 

16 an employee to another agency, office, or organization. 

17 SEC. 10803. SCIENCE AND TECHNOLOGY FELLOWSHIP PRO18 GRAMS. 

19 Section 504 of the Foreign Relations Authorization 

20 Act, Fiscal Year 1979 (22 U.S.C. 2656d) is amended by 

21 adding at the end the following: 

22 ‘‘(e)(1) The Secretary is authorized to make grants 

23 or enter into cooperative agreements related to Depart24 ment of State science and technology fellowship programs, 

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1 ment of stipends, travel, and other appropriate expenses 

2 to fellows. 

3 ‘‘(2) Payment of stipends under the authority of 

4 paragraph (1) shall not be considered to be compensation 

5 for purposes of section 209 of title 18, United States 

6 Code. 

7 ‘‘(3) The total amount of grants made under the au8 thority of paragraph (1) may not exceed $1,000,000 in 

9 any fiscal year.’’. 

10 SEC. 10804. FOREIGN RELATIONS EXCHANGE PROGRAMS. 

11 (a) IN GENERAL.—The Secretary may establish ex12 change programs under which employees of the Depart13 ment of State, including individuals appointed under title 

14 5, United States Code, and members of the Foreign Serv15 ice, may be assigned, for a period not to exceed 1 year, 

16 to a position with any foreign government or international 

17 entity that permits an employee of the foreign government 

18 or international entity, as the case may be, to be assigned 

19 to a position with the Department of State. 

20 (b) DEPARTMENT OF STATE EMPLOYEES.—During 

21 a period in which an employee of the Department of State 

22 is participating in an exchange program authorized under 

23 subsection (a), such employee shall, for the purposes of 

24 receiving salary and benefits, be treated as an employee 

25 detailed under section 10801. 


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1 (c) FOREIGN EMPLOYEES.—The salary and benefits 

2 of an employee of a foreign government or international 

3 entity participating in a program established under this 

4 section shall be paid by such government or entity during 

5 the period in which such employee is participating in the 

6 program, and shall not be reimbursed by the Department 

7 of State. 

8 (d) RULE OF CONSTRUCTION.—Nothing in this sec9 tion shall be construed to authorize the appointment as 

10 a Federal employee of— 

11 (1) an individual whose allegiance is to any 

12 country, government, or foreign or international en13 tity other than the United States; or 

14 (2) an individual who has not met the require15 ments of sections 3331, 3332, 3333, and 7311 of 

16 title 5, United States Code, or any other provision 

17 of law concerning eligibility for appointment, and 

18 continuation of employment, as a Federal employee. 

19 SEC. 10805. GUIDELINES FOR ROTATIONAL ASSIGNMENTS. 

20 (a) CAREER GUIDELINES.—The Administrator shall 

21 establish career guidelines for Foreign Service officers and 

22 civil service officers that incorporate interagency, intergov23 ernmental, or international organization rotational assign24 ments. The guidelines established under this subsection 

25 shall include— 


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1 (1) selection; 

2 (2) professional education and training; 

3 (3) types of relevant interagency, intergovern4 mental, and international organization assignments; 

5 and 

6 (4) such other matters as the Administrator 

7 considers appropriate. 

8 (b) PROMOTIONS TO SENIOR RANKS.—Not later than 

9 2 years after the date of the enactment of this Act, the 

10 Administrator shall establish additional guidelines that 

11 consider participation by relevant employees in at least 1 

12 interagency, intergovernmental, or international organiza13 tional rotational assignment of at least 6 months as a fac14 tor for promotion into the ranks of the Senior Foreign 

15 Service or Senior Executive Service. 

16 (c) PROMOTION PRECEPTS.—The Administrator 

17 shall ensure that promotion precepts and promotion pan18 els do not penalize employees who have been assigned to 

19 interagency, intergovernmental, or international organiza20 tions. 

21 CHAPTER 3—TRAINING AND 

22 PROFESSIONAL DEVELOPMENT 

23 SEC. 10901. TRAINING OF FEDERAL PERSONNEL. 

24 (a) AUTHORITY TO CONDUCT TRAINING.—The head 

25 of each Federal agency carrying out activities under this 


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1 Act is authorized to use funds made available under this 

2 Act to pay the costs, in accordance with subsection (b), 

3 of providing training for Federal personnel, through inter4 change or otherwise, at any State or local unit of govern5 ment, public or private nonprofit institution, trade, labor, 

6 agricultural, or scientific association or organization, or 

7 commercial firm. 

8 (b) PAYMENT OF COSTS.—Training costs shall be 

9 paid— 

10 (1) from funds made available to the employing 

11 agency; 

12 (2) for individuals performing functions within 

13 the United States, from funds available for adminis14 trative expenses; and 

15 (3) for individuals performing functions outside 

16 the United States, from funds available for the pro17 gram, project, or activity being carried out by such 

18 individual. 

19 (c) LIMITATION ON DUAL EMPLOYMENT.—Training 

20 under this section shall not be considered employment or 

21 holding of office under section 5533 of title 5, United 

22 States Code. 

23 (d) ACCEPTANCE OF CERTAIN PAYMENTS.—Any 

24 payments or contributions in connection with training 

25 under this section may, as deemed appropriate by the head 


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1 of the Federal agency authorizing such training, be made 

2 by private or public sources and be accepted by any train3 ee, or may be accepted by and credited to the current ap4 plicable appropriation of such agency. Any such payments 

5 or contributions shall be in lieu, or in reduction, of com6 pensation received from the United States Government. 

7 SEC. 10902. CAREER DEVELOPMENT. 

8 (a) COMPREHENSIVE PROGRAM.—The Secretary and 

9 the Administrator shall implement and maintain a com10 prehensive career-long program of professional training 

11 for the personnel of the Department of State and the 

12 United States Agency for International Development, re13 spectively. 

14 (b) PARTICIPATION LEVELS.—The Secretary and the 

15 Administrator shall ensure that in each fiscal year not less 

16 than 10 percent of personnel of the Department of State 

17 and the United States Agency for International Develop18 ment receive professional training or participate in details, 

19 exchanges, fellowships, scholarships or other opportunities 

20 for professional development. 

21 (c) INSTITUTION FOR TRAINING.—Section 701(b) of 

22 the Foreign Service Act of 1980 (22 U.S.C. 4021(b)) is 

23 amended to read as follows: 

24 ‘‘(b)(1) The Secretary of State shall ensure that 

25 training offered by the institution— 


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1 ‘‘(A) meets the training needs of all foreign af2 fairs agencies; 

3 ‘‘(B) is made available on an equal basis to per4 sonnel of all foreign affairs agencies, including ac5 cess to child care facilities, travel, per diem, and re6 imbursements; 

7 ‘‘(C) is responsive to requests by the heads of 

8 other agencies for the development and implementa9 tion of specialized training courses; and 

10 ‘‘(D) is evaluated regularly for cost-effective11 ness and for results. 

12 ‘‘(2) Other agencies shall avoid duplicating the facili13 ties and training provided by the Secretary of State 

14 through the institution and otherwise.’’. 

15 (d) TRAINING SUPPORT SERVICES.—Section 

16 704(a)(4)(B) of the Foreign Service Act of 1980 (22 

17 U.S.C. 4024(a)(4)(B)) is amended by striking ‘‘language 

18 instructors, linguists, and other academic and training 

19 specialists’’ and inserting ‘‘education and training special20 ists, including language instructors and linguists, and 

21 other specialists who perform work directly relating to the 

22 design, delivery, oversight, or coordination of training de23 livered by the institution’’. 

24 (e) REQUIREMENTS FOR PROMOTION.—The Sec25 retary and the Administrator shall each establish a set of 


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1 mandatory training requirements for promotion into the 

2 Senior Foreign Service. 

3 (f) EVALUATION OF EFFECTIVENESS.—The Sec4 retary and the Administrator shall evaluate the effective5 ness of all training and professional development pro6 grams for the personnel of the Department of State and 

7 the United States Agency for International Development, 

8 respectively, not later than 2 years after the date of the 

9 enactment of this Act, and not less than once every 5 years 

10 after thereafter. The results of such evaluations shall be 

11 made publicly available on the Internet. 

12 SEC. 10903. LANGUAGE SKILLS DEVELOPMENT. 

13 (a) DEVELOPMENT OF SYSTEM.—The Secretary and 

14 the Administrator shall develop a system for increasing 

15 the number and percentage of Foreign Service Officers at 

16 the Department of State and the United States Agency 

17 for International Development, respectively, who are pro18 ficient in the official language of the country of assign19 ment. 

20 (b) ELEMENTS OF SYSTEM.—Such system shall in21 clude— 

22 (1) methods for identifying emerging areas of 

23 foreign language shortfalls and projected language 

24 needs; 


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1 (2) designation of Foreign Service positions for 

2 which a minimum level of certified language pro3 ficiency is required, to be known as ‘‘language des4 ignated positions’’; 

5 (3) designation of languages for which there is 

6 a critical unmet need, to be known as ‘‘critical lan7 guages’’; 

8 (4) development of policies and procedures re9 lating to assignments, length of rotations, recruit10 ment, retention, training, and promotion to— 

11 (A) ensure that there are a sufficient num12 ber of Foreign Service officers able and avail13 able to fill language designated positions; and 

14 (B) remedy shortfalls in critical languages; 

15 (5) establishment of clear and measurable per16 formance goals and objectives; and 

17 (6) requirements for monitoring and evaluation 

18 of progress. 

19 (c) TRANSMISSION TO CONGRESS.—The Secretary 

20 and the Administrator shall transmit to the appropriate 

21 congressional committees, not later than 1 year after the 

22 date of the enactment of this Act, a report on the system 

23 developed under subsection (a) and a plan for its imple24 mentation, including any budgetary implications. 


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1 (d) IMPLEMENTATION REPORTS.—One year after the 

2 date on which the report is transmitted pursuant to sub3 section (c), and each of the next 2 years thereafter, the 

4 Secretary and the Administrator shall transmit to the ap5 propriate congressional committees a report on the status 

6 of implementation of the system developed under sub7 section (a). 

8 (e) REPEAL OF DUPLICATIVE REPORT.—Section 702 

9 of the Foreign Service Act of 1980 (22 U.S.C. 4022) is 

10 amended by striking subsection (c). 

11 (f) AVAILABILITY OF FUNDS.—Notwithstanding sec12 tion 10302, amounts made available to the Agency to 

13 carry out this section shall not be considered to be oper14 ating expenses. 

15 TITLE XI—AMENDMENTS AND 

16 REPEALS 

17 Subtitle A—Amendments 

18 SEC. 11101. AMENDMENTS RELATING TO ASSISTANCE TO 

19 COMBAT HIV/AIDS, TUBERCULOSIS, AND MA20 LARIA. 

21 (a) ASSISTANCE TO COMBAT HIV/AIDS.—Subtitle A 

22 of title III of the United States Leadership Against HIV/ 

23 AIDS, Tuberculosis and Malaria Act of 2003 (22 U.S.C. 

24 7631 et seq.) is amended— 


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1 (1) by redesignating section 301 as section 

2 301A; 

3 (2) in the heading of section 301A (as redesig4 nated), by inserting ‘‘OTHER PROVISIONS RELAT5 ING TO’’ before ‘‘ASSISTANCE’’; and 

6 (3) by inserting before section 301A (as redes7 ignated) the following new section: 

8 ‘‘SEC. 301. ASSISTANCE TO COMBAT HIV/AIDS. 

9 ‘‘(a) FINDING.—Congress recognizes that the alarm10 ing spread of HIV/AIDS in countries in sub-Saharan Afri11 ca, the Caribbean, Central Asia, Eastern Europe, Latin 

12 America and other developing countries is a major global 

13 health, national security, development, and humanitarian 

14 crisis. 

15 ‘‘(b) POLICY.— 

16 ‘‘(1) OBJECTIVES.—It is a major objective of 

17 the foreign assistance program of the United States 

18 to provide assistance for the prevention and treat19 ment of HIV/AIDS and the care of those affected by 

20 the disease. It is the policy objective of the United 

21 States, by 2013, to— 

22 ‘‘(A) assist partner countries to— 

23 ‘‘(i) prevent 12,000,000 new HIV in24 fections worldwide; 

25 ‘‘(ii) support— 


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1 ‘‘(I) the increase in the number 

2 of individuals with HIV/AIDS receiv3 ing antiretroviral treatment above the 

4 goal established under section 

5 402(a)(3) and increased pursuant to 

6 paragraphs (1) through (3) of section 

7 403(d); and 

8 ‘‘(II) additional treatment 

9 through coordinated multilateral ef10 forts; 

11 ‘‘(iii) support care for 12,000,000 in12 dividuals infected with or affected by HIV/ 

13 AIDS, including 5,000,000 orphans and 

14 vulnerable children affected by HIV/AIDS, 

15 with an emphasis on promoting a com16 prehensive, coordinated system of services 

17 to be integrated throughout the continuum 

18 of care; 

19 ‘‘(iv) provide at least 80 percent of 

20 the target population with access to coun21 seling, testing, and treatment to prevent 

22 the transmission of HIV from mother-to23 child; 

24 ‘‘(v) provide care and treatment serv25 ices to children with HIV in proportion to 


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1 their percentage within the HIV-infected 

2 population of a given partner country; and 

3 ‘‘(vi) train and support retention of 

4 health care professionals, paraprofes5 sionals, and community health workers in 

6 HIV/AIDS prevention, treatment, and 

7 care, with the target of providing such 

8 training to at least 140,000 new health 

9 care professionals and paraprofessionals 

10 with an emphasis on training and in coun11 try deployment of critically needed doctors 

12 and nurses; 

13 ‘‘(B) strengthen the capacity to deliver pri14 mary health care in developing countries, espe15 cially in sub-Saharan Africa; 

16 ‘‘(C) support and help countries in their 

17 efforts to achieve staffing levels of at least 2.3 

18 doctors, nurses, and midwives per 1,000 popu19 lation, as called for by the World Health Orga20 nization; and 

21 ‘‘(D) help partner countries to develop 

22 independent, sustainable HIV/AIDS programs. 

23 ‘‘(2) COORDINATED GLOBAL STRATEGY.—The 

24 United States and other countries with the sufficient 

25 capacity should provide assistance to countries in 


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1 sub-Saharan Africa, the Caribbean, Central Asia, 

2 Eastern Europe, and Latin America, and other 

3 countries and regions confronting HIV/AIDS 

4 epidemics in a coordinated global strategy to help 

5 address generalized and concentrated epidemics 

6 through HIV/AIDS prevention, treatment, care, 

7 monitoring and evaluation, and related activities. 

8 ‘‘(3) PRIORITIES.—The United States Govern9 ment’s response to the global HIV/AIDS pandemic 

10 and the Government’s efforts to help countries as11 sume leadership of sustainable campaigns to combat 

12 their local epidemics should place high priority on— 

13 ‘‘(A) the prevention of the transmission of 

14 HIV; 

15 ‘‘(B) moving toward universal access to 

16 HIV/AIDS prevention counseling and services; 

17 ‘‘(C) meaningful cost-sharing assurances 

18 by the partner country; and 

19 ‘‘(D) the inclusion of transition strategies 

20 to ensure sustainability of such programs and 

21 activities, including health care systems, under 

22 other international donor support, or budget 

23 support by respective foreign governments. 

24 ‘‘(c) AUTHORIZATION.— 


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1 ‘‘(1) IN GENERAL.—Consistent with section 

2 1321 of the Global Partnerships Act of 2013, the 

3 President is authorized to furnish assistance, on 

4 such terms and conditions as the President may de5 termine, for HIV/AIDS, including to prevent, treat, 

6 and monitor HIV/AIDS, and carry out related ac7 tivities, in countries in sub-Saharan Africa, the Car8 ibbean, Central Asia, Eastern Europe, Latin Amer9 ica, and other countries and areas, particularly with 

10 respect to refugee populations or those in 

11 postconflict settings in such countries and areas with 

12 significant or increasing HIV incidence rates. 

13 ‘‘(2) ROLE OF NGOS.—It is the sense of Con14 gress that the President should provide an appro15 priate level of assistance under paragraph (1) 

16 through nongovernmental organizations (including 

17 faith-based and community-based organizations) in 

18 countries in sub-Saharan Africa, the Caribbean, 

19 Central Asia, Eastern Europe, Latin America, and 

20 other countries and areas affected by the HIV/AIDS 

21 pandemic, particularly with respect to refugee popu22 lations or those in post-conflict settings in such 

23 countries and areas with significant or increasing 

24 HIV incidence rates. 


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1 ‘‘(3) COORDINATION OF ASSISTANCE EF2 FORTS.—The President shall coordinate the provi3 sion of assistance under paragraph (1) with the pro4 vision of related assistance by the Joint United Na5 tions Programme on HIV/AIDS (UNAIDS), the 

6 United Nations Children’s Fund (UNICEF), the 

7 World Health Organization (WHO), the United Na8 tions Development Programme (UNDP), the Global 

9 Fund to Fight AIDS, Tuberculosis and Malaria and 

10 other appropriate international organizations (such 

11 as the International Bank for Reconstruction and 

12 Development), relevant regional multilateral develop13 ment institutions, national, state, and local govern14 ments of partner countries, other international ac15 tors, appropriate governmental and nongovernmental 

16 organizations, and relevant executive branch agen17 cies within the framework of the principles of the 

18 Three Ones. 

19 ‘‘(d) ACTIVITIES SUPPORTED.—Assistance provided 

20 under subsection (c) shall, to the maximum extent prac21 ticable, be used to carry out the following activities: 

22 ‘‘(1) PREVENTION.—Prevention of HIV/AIDS 

23 through activities including— 

24 ‘‘(A) programs and efforts that are de25 signed or intended to impart knowledge with 


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1 the exclusive purpose of helping individuals 

2 avoid behaviors that place them at risk of HIV 

3 infection, including integration of such pro4 grams into health programs and the inclusion 

5 in counseling programs of information on meth6 ods of avoiding infection of HIV, including de7 laying sexual debut, abstinence, fidelity and mo8 nogamy, reduction of casual sexual partnering 

9 and multiple concurrent sexual partnering, re10 ducing sexual violence and coercion, including 

11 child marriage, widow inheritance, and polyg12 amy, and where appropriate, use of male and 

13 female condoms; 

14 ‘‘(B) assistance to establish and implement 

15 culturally appropriate HIV/AIDS education and 

16 prevention programs that are designed with 

17 local input and focus on helping individuals 

18 avoid infection of HIV/AIDS, implemented 

19 through nongovernmental organizations, includ20 ing faith-based and community-based organiza21 tions, particularly those locally based organiza22 tions that utilize both professionals and volun23 teers with appropriate skills, experience, and 

24 community presence; 


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1 ‘‘(C) assistance for the purpose of encour2 aging men to be responsible in their sexual be3 havior, child rearing, and to respect women; 

4 ‘‘(D) assistance for the purpose of pro5 viding voluntary testing and counseling (includ6 ing the incorporation of confidentiality protec7 tions with respect to such testing and coun8 seling) and promoting the use of provider-initi9 ated or ‘opt-out’ voluntary testing in accordance 

10 with World Health Organization guidelines; 

11 ‘‘(E) assistance for the purpose of pre12 venting mother-to-child transmission of the 

13 HIV infection, including medications to prevent 

14 such transmission and access to infant formula 

15 and other alternatives for infant feeding; 

16 ‘‘(F) assistance to— 

17 ‘‘(i) achieve the goal of reaching 80 

18 percent of pregnant women for prevention 

19 and treatment of mother-to-child trans20 mission of HIV in countries in which the 

21 United States is implementing HIV/AIDS 

22 programs by 2013; and 

23 ‘‘(ii) promote infant feeding options 

24 and treatment protocols that meet the 


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1 most recent criteria established by the 

2 World Health Organization; 

3 ‘‘(G) medical male circumcision programs 

4 as part of national strategies to combat the 

5 transmission of HIV/AIDS; 

6 ‘‘(H) assistance to ensure a safe blood sup7 ply and sterile medical equipment; 

8 ‘‘(I) assistance to help avoid substance 

9 abuse and intravenous drug use that can lead 

10 to HIV infection; 

11 ‘‘(J) assistance for the purpose of increas12 ing women’s access to employment opportuni13 ties, income, productive resources, and micro14 finance programs, where appropriate; and 

15 ‘‘(K) assistance for counseling, testing, 

16 treatment, care, and support programs, includ17 ing— 

18 ‘‘(i) counseling and other services for 

19 the prevention of reinfection of individuals 

20 with HIV/AIDS; 

21 ‘‘(ii) counseling to prevent sexual 

22 transmission of HIV, including— 

23 ‘‘(I) life skills development for 

24 practicing abstinence and faithfulness; 


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1 ‘‘(II) reducing the number of sex2 ual partners; 

3 ‘‘(III) delaying sexual debut; and 

4 ‘‘(IV) ensuring correct and con5 sistent use of condoms; 

6 ‘‘(iii) assistance to engage underlying 

7 vulnerabilities to HIV/AIDS, especially 

8 those of women and girls; 

9 ‘‘(iv) assistance for appropriate HIV/ 

10 AIDS education programs and training 

11 targeted to prevent the transmission of 

12 HIV among men who have sex with men; 

13 ‘‘(v) assistance to provide male and 

14 female condoms; 

15 ‘‘(vi) diagnosis and treatment of other 

16 sexually transmitted infections; 

17 ‘‘(vii) strategies to address the stigma 

18 and discrimination that impede HIV/AIDS 

19 prevention efforts; and 

20 ‘‘(viii) assistance to facilitate wide21 spread access to microbicides for HIV pre22 vention, if safe and effective products be23 come available, including financial and 

24 technical support for culturally appropriate 

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1 tribution, logistics management, program 

2 delivery, acceptability studies, provider 

3 training, demand generation, and 

4 postintroduction monitoring. 

5 ‘‘(2) TREATMENT.—The treatment and care of 

6 individuals with HIV/AIDS, including— 

7 ‘‘(A) assistance to establish and implement 

8 programs to strengthen and broaden indigenous 

9 health care delivery systems and the capacity of 

10 such systems to deliver HIV/AIDS pharma11 ceuticals and otherwise provide for the treat12 ment of individuals with HIV/AIDS, including 

13 clinical training for indigenous organizations 

14 and health care providers; 

15 ‘‘(B) assistance to strengthen and expand 

16 hospice and palliative care programs to assist 

17 patients debilitated by HIV/AIDS, their fami18 lies, and the primary caregivers of such pa19 tients, including programs that utilize faith20 based and community-based organizations; 

21 ‘‘(C) assistance for the purpose of the care 

22 and treatment of individuals with HIV/AIDS 

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1 portunistic infections, pain management, nutri2 tional support, and other treatment modalities; 

3 ‘‘(D) as part of care and treatment of 

4 HIV/AIDS, assistance (including prophylaxis 

5 and treatment) for common HIV/AIDS-related 

6 opportunistic infections for free or at a rate at 

7 which it is easily affordable to the individuals 

8 and populations being served; and 

9 ‘‘(E) as part of care and treatment of 

10 HIV/AIDS, assistance or referral to available 

11 and adequately resourced service providers for 

12 nutritional support, including counseling and 

13 where necessary the provision of commodities, 

14 for persons meeting malnourishment criteria 

15 and their families. 

16 ‘‘(3) PREVENTATIVE INTERVENTION EDU17 CATION AND TECHNOLOGIES.—(A) With particular 

18 emphasis on specific populations that represent a 

19 particularly high risk of contracting or spreading 

20 HIV/AIDS, including those exploited through the 

21 sex trade, victims of rape and sexual assault, indi22 viduals already infected with HIV/AIDS, and in 

23 cases of occupational exposure of health care work24 ers, assistance with efforts to reduce the risk of 

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1 maceutical prophylaxis, and necessary pharma2 ceuticals and commodities, including test kits, 

3 condoms, and, when proven effective, microbicides. 

4 ‘‘(B) Bulk purchases of available test kits, 

5 condoms, and, when proven effective, microbicides 

6 that are intended to reduce the risk of HIV/AIDS 

7 transmission and for appropriate program support 

8 for the introduction and distribution of these com9 modities, as well as education and training on the 

10 use of the technologies. 

11 ‘‘(4) MONITORING.—The monitoring of pro12 grams, projects, and activities carried out pursuant 

13 to paragraphs (1) through (3), including— 

14 ‘‘(A) monitoring to ensure that adequate 

15 controls are established and implemented to 

16 provide HIV/AIDS pharmaceuticals and other 

17 appropriate medicines to poor individuals with 

18 HIV/AIDS; 

19 ‘‘(B) appropriate evaluation and surveil20 lance activities; 

21 ‘‘(C) monitoring to ensure that appropriate 

22 measures are being taken to maintain the sus23 tainability of HIV/AIDS pharmaceuticals (espe24 cially antiretrovirals) and ensure that drug reVerDate Mar 15 2010 22:23 Apr 26, 2013 Jkt 029200 PO 00000 Frm 00831 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793

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1 sistance is not compromising the benefits of 

2 such pharmaceuticals; 

3 ‘‘(D) monitoring to ensure appropriate law 

4 enforcement officials are working to ensure that 

5 HIV/AIDS pharmaceuticals are not diminished 

6 through illegal counterfeiting or black market 

7 sales of such pharmaceuticals; 

8 ‘‘(E) carrying out and expanding program 

9 monitoring, impact evaluation research and 

10 analysis, and operations research and dissemi11 nating data and findings through mechanisms 

12 to be developed by the Coordinator of United 

13 States Government Activities to Combat HIV/ 

14 AIDS Globally, in coordination with the Direc15 tor of the Centers for Disease Control, in order 

16 to— 

17 ‘‘(i) improve accountability, increase 

18 transparency, and ensure the delivery of 

19 evidence-based services through the collec20 tion, evaluation, and analysis of data re21 garding gender-responsive interventions, 

22 disaggregated by age and sex; 

23 ‘‘(ii) identify and replicate effective 

24 models; and 


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1 ‘‘(iii) develop gender indicators to 

2 measure outcomes and the impacts of 

3 interventions; and 

4 ‘‘(F) establishing appropriate systems to— 

5 ‘‘(i) gather epidemiological and social 

6 science data on HIV; and 

7 ‘‘(ii) evaluate the effectiveness of pre8 vention efforts among men who have sex 

9 with men, with due consideration to stigma 

10 and risks associated with disclosure. 

11 ‘‘(5) PHARMACEUTICALS.— 

12 ‘‘(A) PROCUREMENT.—The procurement of 

13 HIV/AIDS pharmaceuticals, antiviral therapies, 

14 and other appropriate medicines, including 

15 medicines to treat opportunistic infections. 

16 ‘‘(B) MECHANISMS FOR QUALITY CONTROL

17 AND SUSTAINABLE SUPPLY.—Mechanisms to 

18 ensure that such HIV/AIDS pharmaceuticals, 

19 antiretroviral therapies, and other appropriate 

20 medicines are quality-controlled and sustainably 

21 supplied. 

22 ‘‘(C) MECHANISM TO ENSURE COST-EF23 FECTIVE DRUG PURCHASING.—Subject to sub24 paragraph (B), mechanisms to ensure that safe 

25 and effective pharmaceuticals, including 


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1 antiretrovirals and medicines to treat opportun2 istic infections, are purchased at the lowest pos3 sible price at which such pharmaceuticals may 

4 be obtained in sufficient quantity on the world 

5 market, provided that such pharmaceuticals are 

6 approved, tentatively approved, or otherwise au7 thorized for use by— 

8 ‘‘(i) the Food and Drug Administra9 tion; 

10 ‘‘(ii) a stringent regulatory agency ac11 ceptable to the Secretary of Health and 

12 Human Services; or 

13 ‘‘(iii) a quality assurance mechanism 

14 acceptable to the Secretary of Health and 

15 Human Services. 

16 ‘‘(D) DISTRIBUTION.—The distribution of 

17 such HIV/AIDS pharmaceuticals, antiviral 

18 therapies, and other appropriate medicines (in19 cluding medicines to treat opportunistic infec20 tions) to qualified national, regional, or local or21 ganizations for the treatment of individuals 

22 with HIV/AIDS in accordance with appropriate 

23 HIV/AIDS testing and monitoring requirements 

24 and treatment protocols and for the prevention 


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1 of mother-to-child transmission of the HIV in2 fection. 

3 ‘‘(6) RELATED AND COORDINATED ACTIVI4 TIES.—The conduct of related activities, including— 

5 ‘‘(A) the care and support of children who 

6 are orphaned by the HIV/AIDS pandemic, in7 cluding services designed to care for orphaned 

8 children in a family environment which rely on 

9 extended family members; 

10 ‘‘(B) improved infrastructure and institu11 tional capacity to develop and manage edu12 cation, prevention, and treatment programs, in13 cluding training and the resources to collect 

14 and maintain accurate HIV surveillance data to 

15 target programs and measure the effectiveness 

16 of interventions; 

17 ‘‘(C) vaccine research and development 

18 partnership programs with specific plans of ac19 tion to develop a safe, effective, accessible, pre20 ventive HIV vaccine for use throughout the 

21 world; 

22 ‘‘(D) coordinated or referred activities to— 

23 ‘‘(i) enhance the clinical impact of 

24 HIV/AIDS care and treatment; and 


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1 ‘‘(ii) ameliorate the adverse social and 

2 economic costs often affecting AIDS-im3 pacted families and communities through 

4 the direct provision, as necessary, or 

5 through the referral, if possible, of support 

6 services, including— 

7 ‘‘(I) nutritional and food support; 

8 ‘‘(II) safe drinking water and 

9 adequate sanitation; 

10 ‘‘(III) nutritional counseling; 

11 ‘‘(IV) income-generating activi12 ties and livelihood initiatives; 

13 ‘‘(V) maternal and child health 

14 care; 

15 ‘‘(VI) primary health care; 

16 ‘‘(VII) the diagnosis and treat17 ment of other infectious or sexually 

18 transmitted diseases; 

19 ‘‘(VIII) substance abuse and 

20 treatment services; and 

21 ‘‘(IX) legal services; 

22 ‘‘(E) coordinated or referred activities to 

23 link programs addressing HIV/AIDS with pro24 grams addressing gender-based violence in 

25 areas of significant HIV prevalence to assist 


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1 countries in the development and enforcement 

2 of women’s health, children’s health, and HIV/ 

3 AIDS laws and policies that— 

4 ‘‘(i) prevent and respond to violence 

5 against women and girls; 

6 ‘‘(ii) promote the integration of 

7 screening and assessment for gender-based 

8 violence into HIV/AIDS programming; 

9 ‘‘(iii) promote appropriate HIV/AIDS 

10 counseling, testing, and treatment into 

11 gender-based violence programs; and 

12 ‘‘(iv) assist governments to develop 

13 partnerships with civil society organiza14 tions to create networks for psychosocial, 

15 legal, economic, or other support services; 

16 ‘‘(F) coordinated or referred activities to— 

17 ‘‘(i) address the frequent coinfection 

18 of HIV and tuberculosis, in accordance 

19 with World Health Organization guide20 lines; 

21 ‘‘(ii) promote provider-initiated or 

22 ‘opt-out’ HIV/AIDS counseling and testing 

23 and appropriate referral for treatment and 

24 care to individuals with tuberculosis or its 


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1 symptoms, particularly in areas with sig2 nificant HIV prevalence; and 

3 ‘‘(iii) strengthen programs to ensure 

4 that individuals testing positive for HIV 

5 receive tuberculosis screening and to im6 prove laboratory capacities, infection con7 trol, and adherence; and 

8 ‘‘(G) activities to— 

9 ‘‘(i) improve the effectiveness of na10 tional responses to HIV/AIDS; 

11 ‘‘(ii) strengthen overall health systems 

12 in high-prevalence countries, including sup13 port for workforce training, retention, and 

14 effective deployment, capacity building, 

15 laboratory development, equipment mainte16 nance and repair, and public health and 

17 related public financial management sys18 tems and operations; 

19 ‘‘(iii) encourage fair and transparent 

20 procurement practices among partner 

21 countries; and 

22 ‘‘(iv) promote in-country or intra-re23 gional pediatric training for physicians and 

24 other health professionals, preferably 

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1 ing colleges and universities, with the goal 

2 of increasing pediatric HIV workforce ca3 pacity. 

4 ‘‘(7) COMPREHENSIVE HIV/AIDS PUBLIC-PRI5 VATE PARTNERSHIPS.—The establishment and oper6 ation of public-private partnership entities within 

7 countries in sub-Saharan Africa, the Caribbean, and 

8 other countries affected by the HIV/AIDS pandemic 

9 that are dedicated to supporting the national strat10 egy of such countries regarding the prevention, 

11 treatment, and monitoring of HIV/AIDS. Each such 

12 public-private partnership should— 

13 ‘‘(A) support the development, implementa14 tion, and management of comprehensive HIV/ 

15 AIDS plans in support of the national HIV/ 

16 AIDS strategy; 

17 ‘‘(B) operate at all times in a manner that 

18 emphasizes efficiency, accountability, and re19 sults-driven programs; 

20 ‘‘(C) engage both local and foreign devel21 opment partners and donors, including busi22 nesses, government agencies, academic institu23 tions, nongovernmental organizations, founda24 tions, multilateral development agencies, and 

25 faith-based organizations, to assist the country 


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1 in coordinating and implementing HIV/AIDS 

2 prevention, treatment, and monitoring pro3 grams in accordance with its national HIV/ 

4 AIDS strategy; 

5 ‘‘(D) provide technical assistance, consult6 ant services, financial planning, monitoring and 

7 evaluation, and research in support of the na8 tional HIV/AIDS strategy; and 

9 ‘‘(E) establish local human resource capac10 ities for the national HIV/AIDS strategy 

11 through the transfer of medical, managerial, 

12 leadership, and technical skills. 

13 ‘‘(8) COMPACTS AND FRAMEWORK AGREE14 MENTS.—The development of compacts or frame15 work agreements, tailored to local circumstances, 

16 with national governments or regional partnerships 

17 in countries with significant HIV/AIDS burdens to 

18 promote host government commitment to deeper in19 tegration of HIV/AIDS services into health systems, 

20 contribute to health systems overall, and enhance 

21 sustainability, including— 

22 ‘‘(A) meaningful cost-sharing assurances 

23 by the partner country; and 

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1 cluding health care systems, under other inter2 national donor support, or budget support by 

3 respective foreign governments. 

4 ‘‘(e) COMPACTS AND FRAMEWORK AGREEMENTS.— 

5 ‘‘(1) FINDINGS.—Congress makes the following 

6 findings: 

7 ‘‘(A) The congressionally mandated Insti8 tute of Medicine report entitled ‘PEPFAR Im9 plementation: Progress and Promise’ states: 

10 ‘The next strategy [of the U.S. Global AIDS 

11 Initiative] should squarely address the needs 

12 and challenges involved in supporting sustain13 able country HIV/AIDS programs, thereby 

14 transitioning from a focus on emergency relief.’. 

15 ‘‘(B) One mechanism to promote the tran16 sition from an emergency to a public health and 

17 development approach to HIV/AIDS is through 

18 compacts or framework agreements between the 

19 United States Government and each partici20 pating nation. 

21 ‘‘(2) ELEMENTS.—Compacts on HIV/AIDS au22 thorized under subsection (d)(8) shall include the 

23 following elements: 


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1 ‘‘(A) Compacts whose primary purpose is 

2 to provide direct services to combat HIV/AIDS 

3 are to be made between— 

4 ‘‘(i) the United States Government; 

5 and 

6 ‘‘(ii)(I) national or regional entities 

7 representing low-income countries served 

8 by an existing United States Agency for 

9 International Development or Department 

10 of Health and Human Services presence or 

11 regional platform; or 

12 ‘‘(II) countries or regions— 

13 ‘‘(aa) experiencing significantly 

14 high HIV prevalence or risk of signifi15 cantly increasing incidence within the 

16 general population; 

17 ‘‘(bb) served by an existing 

18 United States Agency for Inter19 national Development or Department 

20 of Health and Human Services pres21 ence or regional platform; and 

22 ‘‘(cc) that have inadequate finan23 cial means within such country or re24 gion. 


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1 ‘‘(B) Compacts whose primary purpose is 

2 to provide limited technical assistance to a 

3 country or region connected to services provided 

4 within the country or region— 

5 ‘‘(i) may be made with other countries 

6 or regional entities served by an existing 

7 United States Agency for International 

8 Development or Department of Health and 

9 Human Services presence or regional plat10 form; 

11 ‘‘(ii) shall require significant invest12 ments in HIV prevention, care, and treat13 ment services by the host country; 

14 ‘‘(iii) shall be time-limited in terms of 

15 United States contributions; and 

16 ‘‘(iv) shall be made only upon prior 

17 notification to Congress— 

18 ‘‘(I) justifying the need for such 

19 compacts; 

20 ‘‘(II) describing the expected in21 vestment by the country or regional 

22 entity; and 

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1 ited technical assistance under the 

2 compact and its intended impact. 

3 ‘‘(C) Compacts shall include provisions 

4 to— 

5 ‘‘(i) promote local and national efforts 

6 to reduce stigma associated with HIV/ 

7 AIDS; and 

8 ‘‘(ii) work with and promote the role 

9 of civil society in combating HIV/AIDS. 

10 ‘‘(D) Compacts shall take into account the 

11 overall national health and development and na12 tional HIV/AIDS and public health strategies of 

13 each country. 

14 ‘‘(E) Compacts shall contain— 

15 ‘‘(i) consideration of the specific ob16 jectives that the country and the United 

17 States expect to achieve during the term of 

18 a compact; 

19 ‘‘(ii) consideration of the respective 

20 responsibilities of the country and the 

21 United States in the achievement of such 

22 objectives; 

23 ‘‘(iii) consideration of regular bench24 marks to measure progress toward achiev25 ing such objectives; 


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1 ‘‘(iv) an identification of the intended 

2 beneficiaries, disaggregated by gender and 

3 age, and including information on orphans 

4 and vulnerable children, to the maximum 

5 extent practicable; 

6 ‘‘(v) consideration of the methods by 

7 which the compact is intended to— 

8 ‘‘(I) address the factors that put 

9 women and girls at greater risk of 

10 HIV/AIDS; and 

11 ‘‘(II) strengthen elements such as 

12 the economic, educational, and social 

13 status of women, girls, orphans, and 

14 vulnerable children and the inherit15 ance rights and safety of such individ16 uals; 

17 ‘‘(vi) consideration of the methods by 

18 which the compact will— 

19 ‘‘(I) strengthen the health care 

20 capacity, including factors such as the 

21 training, retention, deployment, re22 cruitment, and utilization of health 

23 care workers; 

24 ‘‘(II) improve supply chain man25 agement; and 


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1 ‘‘(III) improve the health systems 

2 and infrastructure of the partner 

3 country, including the ability of com4 pact participants to maintain and op5 erate equipment transferred or pur6 chased as part of the compact; 

7 ‘‘(vii) consideration of proposed mech8 anisms to provide oversight; 

9 ‘‘(viii) consideration of the role of civil 

10 society in the development of a compact 

11 and the achievement of its objectives; 

12 ‘‘(ix) a description of the current and 

13 potential participation of other donors in 

14 the achievement of such objectives, as ap15 propriate; and 

16 ‘‘(x) consideration of a plan to ensure 

17 appropriate fiscal accountability for the 

18 use of assistance. 

19 ‘‘(F) For regional compacts, priority shall 

20 be given to countries that are included in re21 gional funds and programs in existence as of 

22 the date of the enactment of the Tom Lantos 

23 and Henry J. Hyde United States Global Lead24 ership Against HIV/AIDS, Tuberculosis, and 

25 Malaria Reauthorization Act of 2008. 


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1 ‘‘(G) Amounts made available for compacts 

2 described in subparagraphs (A) and (B) shall 

3 be subject to the inclusion of— 

4 ‘‘(i) meaningful cost-sharing assur5 ances by the partner country; and 

6 ‘‘(ii) transition strategies to ensure 

7 sustainability of such programs and activi8 ties, including health care systems, under 

9 other international donor support, and 

10 budget support by respective foreign gov11 ernments. 

12 ‘‘(3) LOCAL INPUT.—In entering into a com13 pact on HIV/AIDS authorized under subsection 

14 (d)(8), the Coordinator of United States Govern15 ment Activities to Combat HIV/AIDS Globally shall 

16 seek to ensure that the government of a country— 

17 ‘‘(A) takes into account the local perspec18 tives of the rural and urban poor, including 

19 women, in each country; and 

20 ‘‘(B) consults with private and voluntary 

21 organizations, including faith-based organiza22 tions, the business community, and other do23 nors in the country. 

24 ‘‘(4) CONGRESSIONAL AND PUBLIC NOTIFICA25 TION AFTER ENTERING INTO A COMPACT.—Not later 


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1 than 10 days after entering into a compact author2 ized under subsection (d)(8), the Global AIDS Coor3 dinator shall— 

4 ‘‘(A) submit a report containing a detailed 

5 summary of the compact and a copy of the text 

6 of the compact to— 

7 ‘‘(i) the Committee on Foreign Rela8 tions of the Senate; 

9 ‘‘(ii) the Committee on Appropriations 

10 of the Senate; 

11 ‘‘(iii) the Committee on Foreign Af12 fairs of the House of Representatives; and 

13 ‘‘(iv) the Committee on Appropria14 tions of the House of Representatives; and 

15 ‘‘(B) publish such information in the Fed16 eral Register and on the Internet website of the 

17 Office of the Global AIDS Coordinator. 

18 ‘‘(f) ANNUAL REPORT.— 

19 ‘‘(1) IN GENERAL.—Not later than January 31 

20 of each year, the President shall submit to the Com21 mittee on Foreign Relations of the Senate and the 

22 Committee on Foreign Affairs of the House of Rep23 resentatives a report on the implementation of this 

24 section for the prior fiscal year. 


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1 ‘‘(2) REPORT ELEMENTS.—Each report shall 

2 include— 

3 ‘‘(A) a description of efforts made by each 

4 relevant executive branch agency to implement 

5 the policies set forth in this section, section 

6 302, and section 303; 

7 ‘‘(B) a description of the programs estab8 lished pursuant to such sections; 

9 ‘‘(C) a detailed breakdown of funding allo10 cations, by program and by country, for preven11 tion activities; and 

12 ‘‘(D) a detailed assessment of the impact 

13 of programs established pursuant to such sec14 tions, including— 

15 ‘‘(i)(I) the effectiveness of such pro16 grams in reducing— 

17 ‘‘(aa) the transmission of 

18 HIV, particularly in women and 

19 girls; 

20 ‘‘(bb) mother-to-child trans21 mission of HIV, including 

22 through drug treatment and 

23 therapies, either directly or by re24 ferral; and 


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1 ‘‘(cc) mortality rates from 

2 HIV/AIDS; 

3 ‘‘(II) the number of patients receiving 

4 treatment for AIDS in each country that 

5 receives assistance under this Act; 

6 ‘‘(III) an assessment of progress to7 wards the achievement of annual goals set 

8 forth in the timetable required under the 

9 5-year strategy established under section 

10 101 and, if annual goals are not being 

11 met, the reasons for such failure; and 

12 ‘‘(IV) retention and attrition data for 

13 programs receiving United States assist14 ance, including mortality and loss to fol15 low-up rates, organized overall and by 

16 country; 

17 ‘‘(ii) the progress made toward— 

18 ‘‘(I) improving health care deliv19 ery systems (including the training of 

20 health care workers, including doctors, 

21 nurses, midwives, pharmacists, labora22 tory technicians, and compensated 

23 community health workers, and the 

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1 cruiting practices for health care 

2 workers); 

3 ‘‘(II) advancing safe working 

4 conditions for health care workers; 

5 and 

6 ‘‘(III) improving infrastructure 

7 to promote progress toward universal 

8 access to HIV/AIDS prevention, treat9 ment, and care by 2013; 

10 ‘‘(iii) a description of coordination ef11 forts with relevant executive branch agen12 cies to link HIV/AIDS clinical and social 

13 services with non-HIV/AIDS services as 

14 part of the United States health and devel15 opment agenda; 

16 ‘‘(iv) a detailed description of inte17 grated HIV/AIDS and food and nutrition 

18 programs and services, including— 

19 ‘‘(I) the amount spent on food 

20 and nutrition support; 

21 ‘‘(II) the types of activities sup22 ported; and 

23 ‘‘(III) an assessment of the effec24 tiveness of interventions carried out to 

25 improve the health status of persons 


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1 with HIV/AIDS receiving food or nu2 tritional support; 

3 ‘‘(v) a description of efforts to im4 prove harmonization, in terms of relevant 

5 executive branch agencies, coordination 

6 with other public and private entities, and 

7 coordination with partner countries’ na8 tional strategic plans as called for in the 

9 ‘Three Ones’; 

10 ‘‘(vi) a description of— 

11 ‘‘(I) the efforts of partner coun12 tries that were signatories to the 

13 Abuja Declaration on HIV/AIDS, Tu14 berculosis, and Other Related Infec15 tious Diseases to adhere to the goals 

16 of such Declaration in terms of invest17 ments in public health, including HIV/ 

18 AIDS; and 

19 ‘‘(II) a description of the HIV/ 

20 AIDS investments of partner coun21 tries that were not signatories to such 

22 Declaration; 

23 ‘‘(vii) a detailed description of any 

24 compacts or framework agreements 

25 reached or negotiated between the United 


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1 States and any partner countries, including 

2 a description of the elements of compacts 

3 described in subsection (e); 

4 ‘‘(viii) a description of programs serv5 ing women and girls, including— 

6 ‘‘(I) HIV/AIDS prevention pro7 grams that address the vulnerabilities 

8 of girls and women to HIV/AIDS; 

9 ‘‘(II) information on the number 

10 of individuals served by programs 

11 aimed at reducing the vulnerabilities 

12 of women and girls to HIV/AIDS and 

13 data on the types, objectives, and du14 ration of programs to address these 

15 issues; 

16 ‘‘(III) information on programs 

17 to address the particular needs of ad18 olescent girls and young women; and 

19 ‘‘(IV) programs to prevent gen20 der-based violence or to assist victims 

21 of gender based violence as part of, or 

22 in coordination with, HIV/AIDS pro23 grams; 

24 ‘‘(ix) a description of strategies, goals, 

25 programs, and interventions to— 


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1 ‘‘(I) address the needs and 

2 vulnerabilities of youth populations; 

3 ‘‘(II) expand access among young 

4 men and women to evidence-based 

5 HIV/AIDS health care services and 

6 HIV prevention programs, including 

7 abstinence education programs; and 

8 ‘‘(III) expand community-based 

9 services to meet the needs of orphans 

10 and of children and adolescents af11 fected by or vulnerable to HIV/AIDS 

12 without increasing stigmatization; 

13 ‘‘(x) a description of— 

14 ‘‘(I) the specific strategies funded 

15 to ensure the reduction of HIV infec16 tion among injection drug users; 

17 ‘‘(II) the number of injection 

18 drug users, by country, reached by 

19 such strategies; and 

20 ‘‘(III) medication-assisted drug 

21 treatment for individuals with HIV or 

22 at risk of HIV; 

23 ‘‘(xi) a detailed description of pro24 gram monitoring, operations research, and 

25 impact evaluation research, including— 


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1 ‘‘(I) the amount of funding pro2 vided for each research type; 

3 ‘‘(II) an analysis of cost-effective4 ness models; and 

5 ‘‘(III) conclusions regarding the 

6 efficiency, effectiveness, and quality of 

7 services as derived from previous or 

8 ongoing research and monitoring ef9 forts; 

10 ‘‘(xii) building capacity to identify, in11 vestigate, and stop nosocomial trans12 mission of infectious diseases, including 

13 HIV and tuberculosis; and 

14 ‘‘(xiii) a description of staffing levels 

15 of United States Government HIV/AIDS 

16 teams in countries with significant HIV/ 

17 AIDS programs, including whether or not 

18 a full-time coordinator was on staff for the 

19 year. 

20 ‘‘(g) FUNDING LIMITATION.—Of the funds made 

21 available to carry out this section in any fiscal year, not 

22 more than 7 percent may be used for the administrative 

23 expenses of the United States Agency for International 

24 Development in support of activities described in this sec25 tion, section 302, and section 303. Such amount shall be 


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1 in addition to other amounts otherwise available for such 

2 purposes. 

3 ‘‘(h) DEFINITIONS.—In this section: 

4 ‘‘(1) AIDS.—The term ‘AIDS’ means acquired 

5 immune deficiency syndrome. 

6 ‘‘(2) HIV.—The term ‘HIV’ means the human 

7 immunodeficiency virus, the pathogen that causes 

8 AIDS. 

9 ‘‘(3) HIV/AIDS.—The term ‘HIV/AIDS’ 

10 means, with respect to an individual, an individual 

11 who is infected with HIV or living with AIDS. 

12 ‘‘(4) RELEVANT EXECUTIVE BRANCH AGEN13 CIES.—The term ‘relevant executive branch agencies’ 

14 means the Department of State, the United States 

15 Agency for International Development, the Depart16 ment of Health and Human Services (including its 

17 agencies and offices), and any other department or 

18 agency of the United States that participates in 

19 international HIV/AIDS activities pursuant to the 

20 authorities of such department or agency or this 

21 Act.’’. 

22 (b) ASSISTANCE TO COMBAT TUBERCULOSIS.—Sub23 title A of title III of the United States Leadership Against 

24 HIV/AIDS, Tuberculosis and Malaria Act of 2003 (22 

25 U.S.C. 7631 et seq.) is amended— 


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1 (1) by redesignating section 302 as section 

2 302A; 

3 (2) in the heading of section 302A (as redesig4 nated), by inserting ‘‘OTHER PROVISIONS RELAT5 ING TO’’ before ‘‘ASSISTANCE’’; and 

6 (3) by inserting before section 302A (as redes7 ignated) the following new section: 

8 ‘‘SEC. 302. ASSISTANCE TO COMBAT TUBERCULOSIS. 

9 ‘‘(a) FINDINGS.—Congress makes the following find10 ings: 

11 ‘‘(1) Congress recognizes the growing inter12 national problem of tuberculosis and the impact its 

13 continued existence has on those countries that had 

14 previously largely controlled the disease. 

15 ‘‘(2) Congress further recognizes that the 

16 means exist to control and treat tuberculosis 

17 through expanded use of the DOTS (Directly Ob18 served Treatment Short-course) treatment strategy, 

19 including DOTS–Plus to address multi-drug resist20 ant tuberculosis, and adequate investment in newly 

21 created mechanisms to increase access to treatment, 

22 including the Global Tuberculosis Drug Facility es23 tablished in 2001 pursuant to the Amsterdam Dec24 laration to Stop TB and the Global Alliance for TB 

25 Drug Development. 


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1 ‘‘(b) POLICY.—It is a major objective of the foreign 

2 assistance program of the United States to control tuber3 culosis. In all countries in which the Government of the 

4 United States has established development programs, par5 ticularly in countries with the highest burden of tuber6 culosis and other countries with high rates of tuberculosis, 

7 the United States should support the objectives of the 

8 Global Plan to Stop TB, including through achievement 

9 of the following goals: 

10 ‘‘(1) Reduce by half the tuberculosis death and 

11 disease burden from the 1990 baseline. 

12 ‘‘(2) Sustain or exceed the detection of at least 

13 70 percent of sputum smear-positive cases of tuber14 culosis and the successful treatment of at least 85 

15 percent of the cases detected in countries with estab16 lished United States Agency for International Devel17 opment tuberculosis programs. 

18 ‘‘(3) In support of the Global Plan to Stop TB, 

19 the President shall establish a comprehensive, 5-year 

20 United States strategy to expand and improve 

21 United States efforts to combat tuberculosis glob22 ally, including a plan to support— 

23 ‘‘(A) the successful treatment of 4,500,000 

24 new sputum smear tuberculosis patients under 

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1 rect support for needed services, commodities, 

2 health workers, and training, and additional 

3 treatment through coordinated multilateral ef4 forts; and 

5 ‘‘(B) the diagnosis and treatment of 

6 90,000 new multiple drug resistant tuberculosis 

7 cases by 2013, and additional treatment 

8 through coordinated multilateral efforts. 

9 ‘‘(c) AUTHORIZATION.—To carry out this section and 

10 consistent with section 1321 of the Global Partnerships 

11 Act of 2013, the President is authorized to furnish assist12 ance, on such terms and conditions as the President may 

13 determine, for the prevention, treatment, control, and 

14 elimination of tuberculosis. 

15 ‘‘(d) COORDINATION.—In carrying out this section, 

16 the President shall coordinate with the World Health Or17 ganization, the Global Fund to Fight AIDS, Tuberculosis, 

18 and Malaria, and other organizations with respect to the 

19 development and implementation of a comprehensive tu20 berculosis control program. 

21 ‘‘(e) PRIORITY TO STOP TB STRATEGY.—In fur22 nishing assistance under subsection (c), the President 

23 shall give priority to— 

24 ‘‘(1) direct services described in the Stop TB 

25 Strategy, including expansion and enhancement of 


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1 Directly Observed Treatment Short-course (DOTS) 

2 coverage, rapid testing, treatment for individuals in3 fected with both tuberculosis and HIV, and treat4 ment for individuals with multi-drug resistant tuber5 culosis (MDR–TB), strengthening of health systems, 

6 use of the International Standards for Tuberculosis 

7 Care by all providers, empowering individuals with 

8 tuberculosis, and enabling and promoting research to 

9 develop new diagnostics, drugs, and vaccines, and 

10 program-based operational research relating to tu11 berculosis; and 

12 ‘‘(2) funding for the Global Tuberculosis Drug 

13 Facility, the Stop Tuberculosis Partnership, and the 

14 Global Alliance for TB Drug Development. 

15 ‘‘(f) ASSISTANCE FOR THE WORLD HEALTH ORGANI16 ZATION AND THE STOP TUBERCULOSIS PARTNERSHIP.— 

17 In carrying out this section, the President, acting through 

18 the Administrator of the United States Agency for Inter19 national Development, is authorized to provide increased 

20 resources to the World Health Organization and the Stop 

21 Tuberculosis Partnership to improve the capacity of coun22 tries with high rates of tuberculosis and other affected 

23 countries to implement the Stop TB Strategy and specific 

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1 berculosis (MDR–TB) and extensively drug resistant tu2 berculosis (XDR–TB). 

3 ‘‘(g) ANNUAL REPORT.—The President shall submit 

4 an annual report to Congress that describes the impact 

5 of United States foreign assistance on efforts to control 

6 tuberculosis, including— 

7 ‘‘(1) the number of tuberculosis cases diagnosed 

8 and the number of cases cured in countries receiving 

9 United States bilateral foreign assistance for tuber10 culosis control purposes; 

11 ‘‘(2) a description of activities supported with 

12 United States tuberculosis resources in each coun13 try, including a description of how those activities 

14 specifically contribute to increasing the number of 

15 people diagnosed and treated for tuberculosis; 

16 ‘‘(3) in each country receiving bilateral United 

17 States foreign assistance for tuberculosis control 

18 purposes, the percentage provided for direct tuber19 culosis services in countries receiving United States 

20 bilateral foreign assistance for tuberculosis control 

21 purposes; 

22 ‘‘(4) a description of research efforts and clin23 ical trials to develop new tools to combat tuber24 culosis, including diagnostics, drugs, and vaccines 

25 supported by United States bilateral assistance; 


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1 ‘‘(5) the number of persons who have been di2 agnosed and started treatment for multidrug-resist3 ant tuberculosis in countries receiving United States 

4 bilateral foreign assistance for tuberculosis control 

5 programs; 

6 ‘‘(6) a description of the collaboration and co7 ordination of United States anti-tuberculosis efforts 

8 with the World Health Organization, the Global 

9 Fund, and other major public and private entities 

10 within the Stop TB Strategy; 

11 ‘‘(7) the constraints on implementation of pro12 grams posed by health workforce shortages and ca13 pacities; 

14 ‘‘(8) the number of people trained in tuber15 culosis control; and 

16 ‘‘(9) a breakdown of expenditures for direct pa17 tient tuberculosis services, drugs and other commod18 ities, drug management, training in diagnosis and 

19 treatment, health systems strengthening, research, 

20 and support costs. 

21 ‘‘(h) DEFINITIONS.—In this section: 

22 ‘‘(1) DOTS.—The term ‘DOTS’ or ‘Directly 

23 Observed Treatment Short-course’ means the World 

24 Health Organization-recommended strategy for 

25 treating tuberculosis, including— 


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1 ‘‘(A) low-cost and effective diagnosis, 

2 treatment, and monitoring of tuberculosis; 

3 ‘‘(B) a reliable drug supply; 

4 ‘‘(C) a management strategy for public 

5 health systems; 

6 ‘‘(D) health system strengthening; 

7 ‘‘(E) promotion of the use of the Inter8 national Standards for Tuberculosis Care by all 

9 care providers; 

10 ‘‘(F) bacteriology under an external quality 

11 assessment framework; 

12 ‘‘(G) short-course chemotherapy; and 

13 ‘‘(H) sound reporting and recording sys14 tems. 

15 ‘‘(2) DOTS–PLUS.—The term ‘DOTS–Plus’ 

16 means a comprehensive tuberculosis management 

17 strategy that is built upon and works as a supple18 ment to the standard DOTS strategy, and which 

19 takes into account specific issues (such as use of sec20 ond line anti-tuberculosis drugs) that need to be ad21 dressed in areas where there is high prevalence of 

22 multidrug resistant tuberculosis. 

23 ‘‘(3) GLOBAL ALLIANCE FOR TUBERCULOSIS

24 DRUG DEVELOPMENT.—The term ‘Global Alliance 

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1 lic-private partnership that brings together leaders 

2 in health, science, philanthropy, and private industry 

3 to devise new approaches to tuberculosis and to en4 sure that new medications are available and afford5 able in high tuberculosis burden countries and other 

6 affected countries. 

7 ‘‘(4) STOP TB STRATEGY.—The term ‘Stop TB 

8 Strategy’ means the 6-point strategy to reduce tu9 berculosis developed by the World Health Organiza10 tion, which is described in the Global Plan to Stop 

11 TB 2006–2015: Actions for Life, a comprehensive 

12 plan developed by the Stop TB Partnership that sets 

13 out the actions necessary to achieve the millennium 

14 development goal of cutting tuberculosis deaths and 

15 disease burden in half by 2015. 

16 ‘‘(5) STOP TUBERCULOSIS PARTNERSHIP.—The 

17 term ‘Stop Tuberculosis Partnership’ means the 

18 partnership of the World Health Organization, do19 nors including the United States, high tuberculosis 

20 burden countries, multilateral agencies, and non21 governmental and technical agencies committed to 

22 short- and long-term measures required to control 

23 and eventually eliminate tuberculosis as a public 

24 health problem in the world.’’. 


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1 (c) ASSISTANCE TO COMBAT MALARIA.—Subtitle A 

2 of title III of the United States Leadership Against HIV/ 

3 AIDS, Tuberculosis and Malaria Act of 2003 (22 U.S.C. 

4 7631 et seq.) is amended— 

5 (1) by redesignating section 303 as section 

6 303A; 

7 (2) in the heading of section 303A (as redesig8 nated), by inserting ‘‘OTHER PROVISIONS RELAT9 ING TO’’ before ‘‘ASSISTANCE’’; and 

10 (3) by inserting before section 303A (as redes11 ignated) the following new section: 

12 ‘‘SEC. 303. ASSISTANCE TO COMBAT MALARIA. 

13 ‘‘(a) FINDING.—Congress finds that malaria kills 

14 more people annually than any other communicable dis15 ease except tuberculosis, that more than 90 percent of all 

16 malaria cases are in sub-Saharan Africa, and that children 

17 and women are particularly at risk. Congress recognizes 

18 that there are cost-effective tools to decrease the spread 

19 of malaria and that malaria is a curable disease if prompt20 ly diagnosed and adequately treated. 

21 ‘‘(b) POLICY.—It is a major objective of the foreign 

22 assistance program of the United States to provide assist23 ance for the prevention, control, treatment, and cure of 

24 malaria. 


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1 ‘‘(c) AUTHORIZATION.—To carry out this section and 

2 consistent with section 1321 of the Global Partnerships 

3 Act of 2013, the President is authorized to furnish assist4 ance, on such terms and conditions as the President may 

5 determine, for the prevention, treatment, control, and 

6 elimination of malaria. 

7 ‘‘(d) COORDINATION.—In carrying out this section, 

8 the President shall coordinate with the World Health Or9 ganization, the Global Fund to Fight AIDS, Tuberculosis, 

10 and Malaria, the Department of Health and Human Serv11 ices (the Centers for Disease Control and Prevention and 

12 the National Institutes of Health), and other organiza13 tions with respect to the development and implementation 

14 of a comprehensive malaria control program.’’. 

15 (d) TECHNICAL AND CONFORMING AMENDMENTS.— 

16 The United States Leadership Against HIV/AIDS, Tuber17 culosis and Malaria Act of 2003 (22 U.S.C. 7601 et seq.) 

18 is amended— 

19 (1) in section 3(12), by striking ‘‘Foreign As20 sistance Act of 1961’’ and inserting ‘‘Global Part21 nerships Act of 2013’’; 

22 (2) in section 101(f)(1)(A), by inserting at the 

23 end before the period the following: ‘‘(as such sec24 tions were in effect on the day before the date of the 

25 enactment of the Global Partnerships Act of 2013)’’; 


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1 (3) in section 202(d)(4)(B)— 

2 (A) in clause (iii), by striking ‘‘section 

3 104A of the Foreign Assistance Act of 1961 (as 

4 added by section 301 of this Act)’’ and insert5 ing ‘‘section 301 of this Act’’; and 

6 (B) in clause (iv), by striking ‘‘sections 

7 104A, 104B, and 104C of the Foreign Assist8 ance Act of 1961 (as added by title III of this 

9 Act)’’ and inserting ‘‘sections 301, 302, and 

10 303 of this Act’’; 

11 (4) in section 204(b)(1), by striking ‘‘section 

12 129 of the Foreign Assistance Act of 1961 (22 

13 U.S.C. 2152)’’ and inserting ‘‘section 1132 of the 

14 Global Partnerships Act of 2013’’; 

15 (5) in section 301A (as redesignated)— 

16 (A) in subsection (b)— 

17 (i) in paragraph (1)— 

18 (I) by striking ‘‘section 104(c) of 

19 the Foreign Assistance Act of 1961 

20 (22 U.S.C. 2151b(c))’’ and inserting 

21 ‘‘section 1304 of the Global Partner22 ships Act of 2013’’; and 

23 (II) by striking ‘‘section 104A of 

24 the Foreign Assistance Act of 1961, 


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1 as added by subsection (a)’’ and in2 serting ‘‘section 301’’; and 

3 (ii) in paragraph (3), by striking ‘‘sec4 tion 104A(d)(4) of the Foreign Assistance 

5 Act of 1961 (as added by subsection (a))’’ 

6 and inserting ‘‘section 301(d)(5)’’; and 

7 (B) in subsection (d), by striking ‘‘under 

8 section 104A of the Foreign Assistance Act of 

9 1961’’ and inserting ‘‘under section 1304 of the 

10 Global Partnerships Act of 2013’’; 

11 (6) in section 302A(b)(1) (as redesignated)— 

12 (A) by striking ‘‘section 104(c) of the For13 eign Assistance Act of 1961 (22 U.S.C. 

14 2151b(c))’’ and inserting ‘‘section 1304 of the 

15 Global Partnerships Act of 2013’’; and 

16 (B) by striking ‘‘section 104B of the For17 eign Assistance Act of 1961, as added by sub18 section (a)’’ and inserting ‘‘section 302’’; and 

19 (7) in section 303A(b)(1) (as redesignated)— 

20 (A) by striking ‘‘section 104(c) of the For21 eign Assistance Act of 1961 (22 U.S.C. 

22 2151b(c))’’ and inserting ‘‘section 1304 of the 

23 Global Partnerships Act of 2013’’; and 


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1 (B) by striking ‘‘section 104C of the For2 eign Assistance Act of 1961, as added by sub3 section (a)’’ and inserting ‘‘section 303’’; 

4 (8) in section 304A (as redesignated)— 

5 (A) in subsection (e), by striking ‘‘section 

6 104C of the Foreign Assistance Act of 1961 

7 (22 U.S.C. 2151b–4)’’ and inserting ‘‘section 

8 303’’; and 

9 (B) in subsection (f), by striking ‘‘section 

10 104C’’; 

11 (9) in section 312(c)(4)(C)(ii), by striking 

12 ‘‘104A(f) of the Foreign Assistance Act of 1961’’ 

13 and inserting ‘‘section 301(f)’’; and 

14 (10) in section 403— 

15 (A) in subsection (a)(4), by striking ‘‘sec16 tion 104A(e) of the Foreign Assistance Act of 

17 1961 (22 U.S.C. 2151b–2(e))’’ and inserting 

18 ‘‘section 301(e) of this Act’’; and 

19 (B) in subsection (d)(4), by striking ‘‘sec20 tion 104A(b)(1)(A) of the Foreign Assistance 

21 Act of 1961 (22 U.S.C. 2151b–2(b)(1)(A))’’ 

22 and inserting ‘‘section 301(b)(1)(A) of this 

23 Act’’. 

24 (e) CLERICAL AMENDMENT.—The table of contents 

25 in section 1(b) of the United States Leadership Against 


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1 HIV/AIDS, Tuberculosis and Malaria Act of 2003 (22 

2 U.S.C. 7601 note) is amended by striking the items relat3 ing to sections 301 through 303 and inserting the fol4 lowing new items: 

‘‘Sec. 301. Assistance to combat HIV/AIDS. 

‘‘Sec. 301A. Other provisions relating to assistance to combat HIV/AIDS. 

‘‘Sec. 302. Assistance to combat tuberculosis. 

‘‘Sec. 302A. Other provisions relating to assistance to combat tuberculosis. 

‘‘Sec. 303. Assistance to combat malaria. 

‘‘Sec. 303A. Other provisions relating to assistance to combat malaria.’’. 

5 (f) TRANSFER OF PRIOR YEAR FUNDS.—Unobli6 gated balances of funds made available under sections 

7 104A, 104B and 104C of the Foreign Assistance Act of 

8 1961 (as in effect on the day before the date of the enact9 ment of this Act) shall be transferred to, merged with, 

10 and made available for the same purposes as funds made 

11 available under sections 301, 302 and 303, respectively, 

12 of the United States Leadership Against HIV/AIDS, Tu13 berculosis and Malaria Act of 2003 (as added by this sec14 tion). 

15 SEC. 11102. AMENDMENTS TO THE MILLENNIUM CHAL16 LENGE ACT OF 2003. 

17 (a) EXTENSION OF COMPACTS.—Section 609(j) of 

18 the Millennium Challenge Act of 2003 (22 U.S.C. 7708(j)) 

19 is amended to read as follows: 

20 ‘‘(j) EXTENSION OF COMPACT.— 


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1 ‘‘(1) IN GENERAL.—Except as provided under 

2 paragraph (2), the duration of a Compact shall not 

3 exceed 5 years. 

4 ‘‘(2) EXCEPTION.—The duration of a Compact 

5 may be extended beyond 5 years if— 

6 ‘‘(A) the Compact was signed prior to the 

7 date of the enactment of the Global Partner8 ships Act of 2013; 

9 ‘‘(B) the Board determines that a project 

10 included in the Compact cannot be completed in 

11 5 years or less; 

12 ‘‘(C) the Board approves an extension of 

13 the Compact that does not extend the total du14 ration of the Compact beyond 7 years; and 

15 ‘‘(D) the appropriate congressional com16 mittees are notified in accordance with sub17 section (i).’’. 

18 (b) CONCURRENT AND SUBSEQUENT COMPACTS.— 

19 (1) IN GENERAL.—Section 609(k) of the Mil20 lennium Challenge Act of 2003 (22 U.S.C. 7708(k)) 

21 is amended to read as follows: 

22 ‘‘(k) CONCURRENT AND SUBSEQUENT COMPACTS.— 

23 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

24 and in accordance with the requirements of this 

25 title, an eligible country and the United States— 


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1 ‘‘(A) may enter into and have in effect 

2 more than one Compact at any given time; and 

3 ‘‘(B) may enter into subsequent Compacts 

4 after the expiration of existing Compacts. 

5 ‘‘(2) REQUIREMENTS.—An eligible country and 

6 the United States may enter into concurrent or sub7 sequent Compacts if the Board determines that such 

8 country— 

9 ‘‘(A) is making or has made significant, 

10 consistent progress in implementing the terms 

11 of any existing or prior Compact; and 

12 ‘‘(B) will contribute, in the case of a can13 didate country as defined in section 606(a), not 

14 less than 7.5 percent of the total amount 

15 agreed upon for a subsequent Compact, or in 

16 the case of a candidate country as defined in 

17 section 606(b), not less than 15 percent of the 

18 total amount agreed upon for a subsequent 

19 Compact. 

20 ‘‘(3) FUNDING.—The Corporation shall commit 

21 any funding for a concurrent Compact at the time 

22 it funds the Compact. 

23 ‘‘(4) TIMING.—A concurrent Compact shall be 

24 signed not later than 2 years after the signing of the 

25 earlier Compact. 


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1 ‘‘(5) LIMITATION.—The Corporation may pro2 vide not more than 15 years of Compact funding to 

3 any country.’’. 

4 (2) EFFECTIVE DATE.—The amendment made 

5 by paragraph (1) applies with respect to Compacts 

6 entered into between the United States and an eligi7 ble country under the Millennium Challenge Act of 

8 2003 (22 U.S.C. 7701 et seq.) before, on, or after 

9 the date of the enactment of this Act. 

10 (c) MAINTAINING CANDIDATE STATUS FOR PUR11 POSES OF INCOME CATEGORY.—Section 606 of the Mil12 lennium Challenge Act of 2003 (22 U.S.C. 7705) is 

13 amended— 

14 (1) in subsection (a)— 

15 (A) in paragraph (1)— 

16 (i) in the heading, by striking ‘‘FIS17 CAL YEAR 2004’’ and inserting ‘‘IN GEN18 ERAL’’; 

19 (ii) in the matter preceding subpara20 graph (A), by striking ‘‘for fiscal year 

21 2004’’ and inserting ‘‘for a fiscal year’’; 

22 (iii) in subparagraph (A) to read as 

23 follows: 

24 ‘‘(A) the country— 


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1 ‘‘(i) has a per capita income that is 

2 not greater than the World Bank’s lower 

3 middle income country threshold for such 

4 fiscal year; and 

5 ‘‘(ii) is among the 75 lowest per cap6 ita income countries, as identified by the 

7 World Bank; and’’; and 

8 (iv) in subparagraph (B), by striking 

9 ‘‘subject to paragraph (3)’’ and inserting 

10 ‘‘subject to paragraph (2)’’; 

11 (B) by striking paragraph (2); and 

12 (C) by redesignating paragraph (3) as 

13 paragraph (2); 

14 (2) in subsection (b)— 

15 (A) in paragraph (1)— 

16 (i) in the matter preceding subpara17 graph (A), by striking ‘‘for fiscal year 

18 2006 or a subsequent fiscal year’’ and in19 serting ‘‘for a fiscal year’’; and 

20 (ii) by striking subparagraphs (A) and 

21 (B) and inserting the following: 

22 ‘‘(A) has a per capita income that is not 

23 greater than the World Bank’s lower middle in24 come country threshold for such fiscal year; 


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1 ‘‘(B) is not among the 75 lowest per capita 

2 income countries as identified by the World 

3 Bank; and 

4 ‘‘(C) meets the requirements under sub5 section (a)(1)(B).’’; and 

6 (B) in paragraph (2)— 

7 (i) by striking ‘‘for fiscal year 2006 or 

8 any subsequent fiscal year’’ and inserting 

9 ‘‘for a fiscal year’’; and 

10 (ii) by striking ‘‘for fiscal year 2006 

11 or the subsequent fiscal year, as the case 

12 may be’’ and inserting ‘‘for such fiscal 

13 year’’; 

14 (3) by redesignating existing subsection (c) as 

15 subsection (d); and 

16 (4) by inserting after subsection (b) the fol17 lowing: 

18 ‘‘(c) MAINTAINING CANDIDATE STATUS.—Any can19 didate country whose per capita income changes in a given 

20 fiscal year such that the country’s income classification 

21 as ‘low income’ or ‘lower middle income’ changes, shall 

22 retain its candidacy at the former income category for the 

23 year of such transition and for the two subsequent fiscal 

24 years.’’. 


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1 (d) CHAIRPERSON.—Section 604(c)(5) of the Millen2 nium Challenge Act of 2003 (22 U.S.C. 7703(c)(5)) is 

3 amended by striking ‘‘Secretary of State’’ and inserting 

4 ‘‘Administrator of the United States Agency for Inter5 national Development’’. 

6 (e) CONFORMING AMENDMENTS.—The Millennium 

7 Challenge Act of 2003 is amended— 

8 (1) in section 603(1)(A) (22 U.S.C. 

9 7702(1)(A)), by striking ‘‘International Relations’’ 

10 and inserting ‘‘Foreign Affairs’’; 

11 (2) in section 605(e)(4) (22 U.S.C. 

12 7704(e)(4))— 

13 (A) by striking ‘‘The prohibitions on use of 

14 funds contained in paragraphs (1) through (3) 

15 of section 104(f) of the Foreign Assistance Act 

16 of 1961 (22 U.S.C. 2151b(f)(1)–(3))’’ and in17 serting ‘‘The principles and restrictions on use 

18 of funds contained in section 1305 of the Global 

19 Partnerships Act of 2013’’; and 

20 (B) by striking ‘‘part I’’ and inserting 

21 ‘‘title I’’; 

22 (3) in section 606(a)(1)(B) (22 U.S.C. 

23 7705(a)(1)(B))— 


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1 (A) by striking ‘‘part I of the Foreign As2 sistance Act of 1961’’ and inserting ‘‘title I of 

3 the Global Partnerships Act of 2013’’; and 

4 (B) by striking ‘‘any provision of the For5 eign Assistance Act of 1961’’ and inserting 

6 ‘‘any provision of the Global Partnerships Act 

7 of 2013’’; and 

8 (4) in section 614(d) (22 U.S.C. 7713(d)), by 

9 striking ‘‘Foreign Assistance Act of 1961 (22 U.S.C. 

10 2151 et seq.)’’ and inserting ‘‘Global Partnerships 

11 Act of 2013’’. 

12 SEC. 11103. AMENDMENTS TO THE MIGRATION AND REF13 UGEE ASSISTANCE ACT OF 1962. 

14 Section 2(c) of the Migration and Refugee Assistance 

15 Act of 1962 (22 U.S.C. 2601(c)) is amended— 

16 (1) in paragraph (1), by striking ‘‘President’’ 

17 and inserting ‘‘Secretary of State’’; and 

18 (2) in paragraph (2), by striking 

19 ‘‘$100,000,000’’ and inserting ‘‘$200,000,000’’. 

20 SEC. 11104. AMENDMENTS TO THE FULBRIGHT-HAYS ACT. 

21 The Mutual Educational and Cultural Exchange Act 

22 of 1961 (commonly known as the ‘‘Fulbright-Hays Act’’) 

23 is amended— 

24 (1) in section 102(b)(3) (22 U.S.C. 

25 2452(b)(3)), by inserting ‘‘, hospital centers for 


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1 medical education and research, and other’’ after 

2 ‘‘operation of schools’’; and 

3 (2) in section 112(a)(5) (22 U.S.C. 2460(a)(5)) 

4 to read as follows: 

5 ‘‘(5) the American Schools and Hospitals 

6 Abroad Program which provides financial assistance 

7 to the operations of American-sponsored schools, 

8 hospital centers for medical education and research, 

9 and other institutions of learning abroad;’’. 

10 SEC. 11105. AMENDMENTS TO THE STATE DEPARTMENT 

11 BASIC AUTHORITIES ACT OF 1956. 

12 Section 1(f)(1) of the State Department Basic Au13 thorities Act of 1956 (22 U.S.C. 2651a(f)(1)) is amend14 ed— 

15 (1) in the first sentence, by striking ‘‘Depart16 ment of State in the immediate office of the Sec17 retary of State’’ and inserting ‘‘United States Agen18 cy for International Development’’; and 

19 (2) in the second sentence, by striking ‘‘Sec20 retary’’ and inserting ‘‘Administrator of the United 

21 States Agency for International Development’’. 

22 Subtitle B—Repeals 

23 SEC. 11201. REPEAL OF LAWS INCORPORATED IN THIS ACT. 

24 The following provisions of law are hereby repealed: 


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1 (1) The Foreign Assistance Act of 1961 (Public 

2 Law 87–195). 

3 (2) The Arms Export Control Act (Public Law 

4 90–629). 

5 (3) Sections 664 and 665 of the Foreign Rela6 tions Authorization Act, Fiscal Year 2003 (Public 

7 Law 107–228). 

8 (4) Sections 2121 and 2122 of the ADVANCE 

9 Democracy Act of 2007 (title XXI of Public Law 

10 110–53). 

11 SEC. 11202. REPEAL OF LAWS INCONSISTENT WITH THIS 

12 ACT. 

13 The following provisions of law are hereby repealed: 

14 (1) Section 601 of the Support for East Euro15 pean Democracy (SEED) Act of 1989 (Public Law 

16 101–179). 

17 (2) Section 102 of the Freedom for Russia and 

18 Emerging Eurasian Democracies and Open Markets 

19 Support Act of 1992 (Public Law 102–511). 

20 (3) The Foreign Affairs Reform and Restruc21 turing Act of 1998 (division G of Public Law 105– 

22 277). 

23 SEC. 11203. REPEAL OF OBSOLETE PROVISIONS OF LAW. 

24 The following provisions of law are hereby repealed: 


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1 (1) The Trafficking Victims Protection Reau2 thorization Act of 2003 (Public Law 108–193). 

3 (2) The Torture Victims Relief Reauthorization 

4 Act of 2003 (Public Law 108–179). 

5 (3) The HELP Commission Act (section 637 of 

6 division B of Public Law 108–99). 

7 (4) The International Anti-Corruption and 

8 Good Governance Act of 2000 (Public Law 106– 

9 309). 

10 (5) The Iraq Liberation Act of 1998 (Public 

11 Law 105–338). 

12 (6) The Agriculture Export Relief Act of 1998 

13 (Public Law 105–194). 

14 (7) Title I of the International Narcotics Con15 trol Corrections Act of 1994 (Public Law 103–447). 

16 (8) The South African Democratic Transition 

17 Support Act of 1993 (Public Law 103–149). 

18 (9) Public Law 102–270 (relating to the peace 

19 process in Liberia). 

20 (10) Title III of the Conventional Forces in Eu21 rope Treaty Implementation Act of 1991. 

22 (11) The Emergency Supplemental Persian 

23 Gulf Refugee Assistance Act of 1991 (Public Law 

24 102–45). 


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1 (12) The Emergency Supplemental Assistance 

2 for Israel Act of 1991 (Public Law 102–21). 

3 (13) The Urgent Assistance for Democracy in 

4 Panama Act of 1990 (Public Law 101–243). 

5 (14) The Survival Assistance to Victims of Civil 

6 Strife in Central America (Public Law 101–215). 

7 (15) The Bangladesh Disaster Assistance Act 

8 of 1988 (Public Law 100–576). 

9 (16) The International Cooperation to Protect 

10 Biological Diversity (Public Law 100–530). 

11 (17) The Overseas Private Investment Corpora12 tion Amendments Act of 1988 (Public Law 100– 

13 461). 

14 (18) The American Aid to Poland Act of 1988 

15 (Part II of Public Law 100–418). 

16 (19) Public Law 100–276 (relating to peace, 

17 democracy and reconciliation in Central America). 

18 (20) The Special Foreign Assistance Act of 

19 1986 (Public Law 99–529). 

20 (21) The Jordan Supplemental Economic As21 sistance Authorization Act of 1985 (Public Law 99– 

22 88). 

23 (22) The African Famine Relief and Recovery 

24 Act of 1985 (Public Law 99–8). 


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1 (23) The International Security and Develop2 ment Assistance Authorizations Act of 1983 (Public 

3 Law 98–151). 

4 (24) The Lebanon Emergency Assistance Act of 

5 1983 (Public Law 98–43). 

6 (25) The International Security and Develop7 ment Cooperation Act of 1981 (Public Law 97– 

8 113). 

9 (26) The International Security and Develop10 ment Cooperation Act of 1980 (Public Law 96– 

11 533), other than section 110 and title V of such Act. 

12 (27) The International Development Coopera13 tion Act of 1979 (Public Law 96–92). 

14 (28) The International Security Assistance Act 

15 of 1979 (Public Law 96–53). 

16 (29) The Special International Security Assist17 ance Act of 1979 (Public Law 96–35). 

18 (30) The International Development and Food 

19 Assistance Act of 1978 (Public Law 95–424). 

20 (31) The International Security Assistance Act 

21 of 1978 (Public Law 95–384). 

22 (32) The International Security Assistance Act 

23 of 1977 (Public Law 95–92). 


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1 (33) The International Development and Food 

2 Assistance Act of 1977 (Public Law 95–88), other 

3 than sections 1, 132, and 133 of such Act. 

4 (34) The International Security Assistance and 

5 Arms Export Control Act of 1976 (Public Law 94– 

6 329), except for section 601. 

7 (35) The International Development and Food 

8 Assistance Act of 1975 (Public Law 94–161). 

9 (36) The Foreign Assistance Act of 1974 (Pub10 lic Law 93–559). 

11 (37) The Emergency Security Assistance Act of 

12 1973 (Public Law 93–199). 

13 (38) The Foreign Assistance Act of 1973 (Pub14 lic Law 93–189). 

15 (39) The Foreign Assistance Act of 1971 (Pub16 lic Law 92–226). 

17 (40) The Act entitled, ‘‘An Act to Amend the 

18 Foreign Military Sales Act, and for other purposes,’’ 

19 approved January 12, 1971 (Public Law 91–672). 

20 (41) The Special Foreign Assistance Act of 

21 1971 (Public Law 91–652). 

22 (42) The Foreign Assistance Act of 1968 (Pub23 lic Law 90–554). 

24 (43) The Foreign Assistance Act of 1964 (Pub25 lic Law 88–633). 


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1 (44) The Latin American Development Act 

2 (Public Law 86–735). 

3 SEC. 11204. REPEAL OF UNNECESSARY REPORTING RE4 QUIREMENTS. 

5 The following provisions of law are repealed: 

6 (1) Section 560(g) of Public Law 103–87. 

7 (2) Section 104 of Public Law 102–511. 

8 (3) Section 1012(c) of Public Law 103–337. 

9 (4) Subsections (c)(4) and (c)(5) of section 601 

10 of Public Law 96–465. 

11 (5) Section 585 of division A of Public Law 

12 104–208. 

13 (6) Section 8 of Public Law 107–245. 

14 (7) Section 807 of Public Law 98–164. 

15 Subtitle C—Savings Provisions 

16 SEC. 11301. REFERENCES TO FORMER AUTHORITIES. 

17 (a) IN GENERAL.—Effective beginning on the date 

18 of the enactment of this Act— 

19 (1) any reference to part I of the Foreign As20 sistance Act of 1961 shall be deemed to be a ref21 erence to title I of this Act; 

22 (2) any reference to section 104(f) of the For23 eign Assistance Act of 1961 shall be deemed to be 

24 a reference to section 1305 of this Act; 


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1 (3) any reference to section 104A, 104B, or 

2 104C of the Foreign Assistance Act of 1961 shall be 

3 deemed to be a reference to section 301, 302, or 

4 303, respectively, of the United States Leadership 

5 Against HIV/AIDS, Tuberculosis and Malaria Act of 

6 2003 (as added by this Act); 

7 (4) any reference to section 109 or 610 of the 

8 Foreign Assistance Act of 1961 shall be deemed to 

9 be a reference to section 9602 of this Act; 

10 (5) any reference to section 116(a) or 502B of 

11 the Foreign Assistance Act of 1961 shall be deemed 

12 to be a reference to section 9101 of this Act; 

13 (6) any reference to section 116(d) of the For14 eign Assistance Act of 1961 shall be deemed to be 

15 a reference to section 3102 of this Act; 

16 (7) any reference to section 451 of the Foreign 

17 Assistance Act of 1961 shall be deemed to be a ref18 erence to section 9601 of this Act; 

19 (8) any reference to chapter 4 of part II of the 

20 Foreign Assistance Act of 1961 shall be deemed to 

21 be a reference to subtitle A of title IV of this Act; 

22 (9) any reference to section 614 of the Foreign 

23 Assistance Act of 1961 shall be deemed to be a ref24 erence to section 9603 of this Act; 


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1 (10) any reference to section 620A of the For2 eign Assistance Act of 1961 shall be deemed to be 

3 a reference to section 9401 of this Act; 

4 (11) any reference to section 620H of the For5 eign Assistance Act of 1961 shall be deemed to be 

6 a reference to section 9402 of this Act; 

7 (12) any reference to section 620M of the For8 eign Assistance Act of 1961 shall be deemed to be 

9 a reference to section 9102 of this Act; 

10 (13) any reference to section 632 of the For11 eign Assistance Act of 1961 shall be deemed to be 

12 a reference to section 10504 of this Act; 

13 (14) any reference to section 634 of the For14 eign Assistance Act of 1961 shall be deemed to be 

15 a reference to section 8302 of this Act; 

16 (15) any reference to section 634A of the For17 eign Assistance Act of 1961 shall be deemed to be 

18 a reference to section 8401 of this Act; and 

19 (16) any reference to section 653 of the For20 eign Assistance Act of 1961 shall be deemed to be 

21 a reference to section 8303 of this Act. 

22 (b) UNITED STATES AGENCY FOR INTERNATIONAL

23 DEVELOPMENT.—References in any provision of law to 

24 the ‘‘Agency for International Development’’ shall be 


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1 deemed to be a reference to the ‘‘United States Agency 

2 for International Development’’. 

3 SEC. 11302. REPEAL OF PROVISIONS AMENDING OTHER 

4 LAWS. 

5 Except as otherwise provided in this Act, the repeal 

6 by this Act of any provision of law that amended or re7 pealed another provision of law does not affect in any way 

8 that amendment or repeal. 

9 SEC. 11303. SAVINGS PROVISIONS. 

10 (a) IN GENERAL.—Except as may be expressly pro11 vided to the contrary in this Act, all determinations, au12 thorizations, regulations, orders, contracts, agreements, 

13 and other actions issued, undertaken, or entered into 

14 under authority of any provision of law repealed by this 

15 Act shall continue in full force and effect until modified 

16 by appropriate authority. 

17 (b) CONDITIONS.—Wherever provisions of this Act 

18 establish conditions which must be complied with before 

19 use may be made of authority contained in, or funds made 

20 available to carry out the provisions of, this Act, compli21 ance with, or satisfaction of, substantially similar condi22 tions under provisions repealed by this Act shall be 

23 deemed to constitute compliance with the conditions estab24 lished by this Act. 


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1 (c) AVAILABILITY OF FUNDS.—Funds made available 

2 pursuant to provisions of law repealed by this Act shall, 

3 unless otherwise authorized or provided by law, remain 

4 available for their original purposes in accordance with the 

5 provisions of law originally applicable thereto, or in ac6 cordance with the provisions of law currently applicable 

7 to those purposes. 

8 (d) REFERENCES.—References in law to provisions 

9 repealed by this Act may hereafter be deemed to be ref10 erences to corresponding provisions of this Act, on a case11 by-case basis as may be appropriate. 

12 (e) CERTAIN PRESIDENTIAL APPOINTEES.—The re13 peal by this Act of any provision of the Foreign Assistance 

14 Act of 1961 providing for the appointment of an individual 

15 to a position by the President, by and with the advice and 

16 consent of the Senate, and the reenactment by this Act 

17 of that provision in substantively identical form does not 

18 require the reappointment of the individual holding that 

19 position on the effective date of this Act. 

20 (f) GUARANTEES AND LOANS UNDER FORMER AU21 THORITY.—Guarantees committed or outstanding under 

22 the former authorities of sections 108, 222, and 222A of 

23 the Foreign Assistance Act of 1961, as in effect on the 

24 day before the date of the enactment of this Act, loans 

25 obligated under section 108 on or before such date, the 


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1 fees and interest collected in connection with such guaran2 tees and loans, and income on claims receivable with re3 spect to such guarantees and loans, shall continue to be 

4 subject to provisions of such Act originally applicable to 

5 those guarantees and loans and the Federal Credit Reform 

6 Act of 1990. 

7 (g) SEVERABILITY.—If any provision of this Act, or 

8 the application of such provision to any person or cir9 cumstance, shall be held invalid, the validity of the remain10 der of this Act, and of the applicability of such provision 

11 to other persons or circumstances, shall not be affected 

12 thereby. 

13 SEC. 11304. EFFECTIVE DATE. 

14 This Act and the amendments made by this Act shall 

15 take effect on the date of the enactment of this Act. 

Æ 


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