I

103D CONGRESS

2D SESSION H. R. 3775

To achieve budget savings by reducing spending by the Agency for

International Development for development assistance.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 2, 1994

Mr. INGLIS of South Carolina introduced the following bill; which was referred

to the Committee on Foreign Affairs

A BILL

To achieve budget savings by reducing spending by the Agency for International Development for development assistance.

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.

4 This Act may be cited as the ‘‘Agency for Inter5 national Development Efficiency and Effectiveness Act of

6 1994’’.
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1 SEC. 2. REDUCTIONS IN SPENDING FOR DEVELOPMENT AS2 SISTANCE BY THE AGENCY FOR INTER3 NATIONAL DEVELOPMENT.

4 For fiscal years 1995 through 1999, budget authority

5 and outlays for development assistance shall be less than

6 the CBO baseline by at least the following amounts:

7 (1) FISCAL YEAR 1995.—For fiscal year 1995,

8 budget authority shall be at least $580,000,000 less

9 and outlays shall be at least $40,000,000 less.

10 (2) FISCAL YEAR 1996.—For fiscal year 1996,

11 budget authority shall be at least $600,000,000 less

12 and outlays shall be at least $290,000,000 less.

13 (3) FISCAL YEAR 1997.—For fiscal year 1997,

14 budget authority shall be at least $610,000,000 less

15 and outlays shall be at least $430,000,000 less.

16 (4) FISCAL YEAR 1998.—For fiscal year 1998,

17 budget authority shall be at least $630,000,000 less

18 and outlays shall be at least $500,000,000 less.

19 (5) FISCAL YEAR 1999.—For fiscal year 1999,

20 budget authority shall be at least $640,000,000 less

21 and outlays shall be at least $560,000,000 less.

22 SEC. 3. STEPS TO IMPLEMENT REDUCTIONS.

23 (a) IN GENERAL.—To achieve the budget savings

24 provided for in section 2, the Agency for International De25 velopment shall narrow its focus and fund fewer develop-
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1 ment assistance projects and activities. This shall be ac2 complished—

3 (1) by funding only projects and activities that

4 have objectives that are more attainable than the

5 numerous objectives that are specified in the provi6 sions of law in effect on the date of enactment of

7 this Act; and

8 (2) by funding only projects and activities that

9 are in the countries that are most likely to benefit

10 from such development assistance.

11 (b) REDUCTION IN NUMBER OF RECIPIENT COUN12 TRIES.—

13 (1) IN GENERAL.—The Agency for Inter14 national Development shall target development as15 sistance to lower income countries that have eco16 nomic policies designed to encourage growth through

17 free markets and trade, thereby reducing the num18 ber of countries that receive development assistance

19 from that agency to approximately 60.

20 (2) INELIGIBLE COUNTRIES.—The Agency for

21 International Development may not provide develop22 ment assistance for—

23 (A) middle income countries, or

24 (B) lower income countries where develop25 ment assistance has not shown results.
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1 (c) REDUCTION IN NUMBER OF OBJECTIVES.—

2 (1) IN GENERAL.—The Agency for Inter3 national Development may provide development as4 sistance only for projects and activities that focus on

5 alleviating poverty and promoting economic develop6 ment.

7 (2) TERMINATION OF HOUSING INVESTMENT

8 GUARANTY PROGRAM.—Guaranties may not be is9 sued under sections 221 and 222 of the Foreign As10 sistance Act of 1961 after September 30, 1994.

11 (3) TRANSFER OF RESPONSIBILITY FOR OTHER

12 PROGRAMS TO OTHER AGENCIES.—(A) The Presi13 dent shall transfer responsibility for administering

14 all development assistance programs that have an

15 objective other than alleviating poverty and promot16 ing economic development from the Agency for

17 International Development to an agency of the Unit18 ed States Government whose mission is closer to

19 that objective.

20 (B) In carrying out subparagraph (B), the

21 President—

22 (i) shall transfer private sector activities

23 from the Agency for International Development

24 to the Overseas Private Investment Corpora25 tion; and
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1 (ii) shall transfer responsibility for environ2 mental protection activities in developing coun3 tries to the Environmental Protection Agency.

4 (4) TRANSFERRED PROGRAMS.—(A) The head

5 of each agency to which responsibility for a program

6 is transferred pursuant to paragraph (3) shall deter7 mine, nothwithstanding any other provision of law—

8 (i) which such programs shall be contin9 ued, and

10 (ii) what policies and authorities shall be

11 applicable to any such program that is contin12 ued.

13 (B) Programs which are transferred from the

14 Agency for International Development to another

15 agency pursuant to paragraph (3) and continued

16 pursuant to subparagraph (A)(i) of this paragraph

17 shall be carried out by that agency with funds ap18 propriated for that agency rather than with develop19 ment assistance funds or other funds in budget

20 function 150 (international affairs).

21 (d) EXISTING PROVISIONS SUPERSEDED.—To the

22 extent necessary to achieve the budget savings provided

23 for in section 2, this section supersedes provisions of law

24 enacted prior to the date of enactment of this Act that
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1 would otherwise be applicable to development assistance

2 provided by the Agency for International Development.

3 (e) EFFECTIVE DATE.—This section shall be effective

4 as of October 1, 1994.

5 SEC. 4. DEFINITIONS.

6 As used in this Act—

7 (1) the term ‘‘CBO baseline’’ means the base8 line budget projections used by the Congressional

9 Budget Office in preparing its February 1993 re10 ported entitled ‘‘Reducing the Deficit: Spending and

11 Revenue Options’’, which was submitted to the Com12 mittee on the Budget of the House of Representa13 tives and the Committee on the Budget of the Sen14 ate pursuant to section 202(f) of the Congressional

15 Budget and Impoundment Control Act of 1974; and

16 (2) the term ‘‘development assistance’’ means

17 assistance under chapter 1 of part I of the Foreign

18 Assistance Act of 1961 (relating to the functional

19 development assistance accounts) and assistance

20 under chapter 10 of that part (relating to the Devel21 opment Fund for Africa).

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