II 

108TH CONGRESS 

2D SESSION H. R. 3818

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 20, 2004

Received 

AN ACT

To amend the Foreign Assistance Act of 1961 to improve 

the results and accountability of microenterprise development assistance programs, 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,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Microenterprise Re3 sults and Accountability Act of 2004’’. 

4 SEC. 2. FINDINGS AND POLICY. 

5 Congress finds and declares the following: 

6 (1) Congress has demonstrated its support for 

7 microenterprise development assistance programs 

8 through the enactment of two comprehensive micro9 enterprise laws: 

10 (A) The Microenterprise for Self-Reliance 

11 Act of 2000 (title I of Public Law 106–309; 

12 114 Stat. 1082). 

13 (B) Public Law 108–31 (an Act entitled 

14 ‘‘An Act to amend the Microenterprise for Self15 Reliance Act of 2000 and the Foreign Assist16 ance Act of 1961 to increase assistance for the 

17 poorest people in developing countries under 

18 microenterprise assistance program under those 

19 Acts, and for other purposes’’, approved June 

20 17, 2003). 

21 (2) The report on the effectiveness of the 

22 United States Agency for International Develop23 ment’s microfinance program, prepared by the Con24 sultative Group to Assist the Poor, rated the Agency 

25 in the top tier of the 17 donors in this field. 
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1 (3) The Comptroller General, in a report dated 

2 November 2003, found that the United States Agen3 cy for International Development has met some, but 

4 not all, of the key objectives of such microenterprise 

5 development assistance programs. 

6 (4) The Comptroller General’s report found, 

7 among other things, the following: 

8 (A) Microenterprise development assistance 

9 generally can help alleviate some impacts of 

10 poverty, improve income levels and quality of 

11 life for borrowers and provide poor individuals, 

12 workers, and their families with an important 

13 coping mechanism. 

14 (B) Microenterprise development assist15 ance programs of the United States Agency for 

16 International Development have encouraged 

17 women’s participation in microfinance projects 

18 and, according to data of the Agency, women 

19 have comprised two-thirds or more of the micro20 loan clients in Agency-funded microenterprise 

21 projects since 1997. 

22 (5)(A) The Comptroller General’s report rec23 ommends that the Administrator of the United 

24 States Agency for International Development review 

25 the Agency’s ‘‘microenterprise results reporting’’ 
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1 system with the goal of ensuring that its annual re2 porting is complete and accurate. 

3 (B) Specifically, the Administrator should re4 view and reconsider the methodologies used for the 

5 collection, analysis, and reporting of data on annual 

6 spending targets, outreach to the very poor, sustain7 ability of microfinance institutions, and the contribu8 tion of Agency’s funding to the institutions it sup9 ports. 

10 SEC. 3. MICROENTERPRISE DEVELOPMENT ASSISTANCE. 

11 Chapter 2 of part I of the Foreign Assistance Act 

12 of 1961 (22 U.S.C. 2166 et seq.) is amended by inserting 

13 after title V the following new title: 

14 ‘‘TITLE VI—MICROENTERPRISE DEVELOPMENT 

15 ASSISTANCE 

16 ‘‘SEC. 251. FINDINGS AND POLICY. 

17 ‘‘Congress finds and declares the following: 

18 ‘‘(1) Access to financial services and the devel19 opment of microenterprise are vital factors in the 

20 stable growth of developing countries and in the de21 velopment of free, open, and equitable international 

22 economic systems. 

23 ‘‘(2) It is therefore in the best interest of the 

24 United States to facilitate access to financial serv-
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1 ices and assist the development of microenterprise in 

2 developing countries. 

3 ‘‘(3) Access to financial services and the devel4 opment of microenterprises can be supported by pro5 grams providing credit, savings, training, technical 

6 assistance, business development services, and other 

7 financial services. 

8 ‘‘(4) Given the relatively high percentage of 

9 populations living in rural areas of developing coun10 tries, and the combined high incidence of poverty in 

11 rural areas and growing income inequality between 

12 rural and urban markets, microenterprise programs 

13 should target both rural and urban poor. 

14 ‘‘(5) Microenterprise programs have been suc15 cessful and should continue to empower vulnerable 

16 women in the developing world. The Agency should 

17 work to ensure that recipients of microenterprise 

18 and microfinance development assistance under this 

19 title communicate and work with nongovernmental 

20 organizations and government organizations to iden21 tify and assist victims of trafficking as provided for 

22 in section 106(a)(1) of the Trafficking Victims Pro23 tection Act of 2000 (22 U.S.C. 7104(a)(1); Public 

24 Law 106–386) and women who are victims of or 
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1 susceptible to other forms of exploitation and vio2 lence. 

3 ‘‘(6) Given that microenterprise programs have 

4 been successful in empowering disenfranchised 

5 groups such as women, microenterprise programs 

6 should also target populations disenfranchised due to 

7 race or ethnicity in countries where a strong rela8 tionship between poverty and race or ethnicity has 

9 been demonstrated, such as countries in Latin 

10 America. 

11 ‘‘SEC. 252. AUTHORIZATION; IMPLEMENTATION; TARGETED 

12 ASSISTANCE. 

13 ‘‘(a) AUTHORIZATION.—The President is authorized 

14 to provide assistance on a non-reimbursable basis for pro15 grams in developing countries to increase the availability 

16 of credit, savings, and other services to microfinance and 

17 microenterprise clients lacking full access to capital, train18 ing, technical assistance, and business development serv19 ices, through—

20 ‘‘(1) assistance for the purpose of expanding 

21 the availability of credit, savings, and other financial 

22 and non-financial services to microfinance and 

23 microenterprise clients; 

24 ‘‘(2) assistance for the purpose of training, 

25 technical assistance, and business development serv-
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1 ices for microenterprises to enable them to make 

2 better use of credit, to better manage their enter3 prises, to conduct market analysis and product de4 velopment for expanding domestic and international 

5 sales, particularly to United States markets, and to 

6 increase their income and build their assets; 

7 ‘‘(3) capacity-building for microfinance and 

8 microenterprise institutions in order to enable them 

9 to better meet the credit, savings, and training needs 

10 of microfinance and microenterprise clients; and 

11 ‘‘(4) policy, regulatory programs, and research 

12 at the country level that improve the environment 

13 for microfinance and microenterprise clients and in14 stitutions that serve the poor and very poor. 

15 ‘‘(b) IMPLEMENTATION.—

16 ‘‘(1) OFFICE OF MICROENTERPRISE DEVELOP17 MENT.—There is established within the Agency an 

18 office of microenterprise development, which shall be 

19 headed by a Director who shall be appointed by the 

20 Administrator and who should possess technical ex21 pertise and ability to offer leadership in the field of 

22 microenterprise development. 

23 ‘‘(2) ADDITIONAL PROVISIONS.—

24 ‘‘(A) USE OF IMPLEMENTING PARTNER

25 ORGANIZATIONS.—Assistance under this section 
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1 shall emphasize the use of implementing part2 ner organizations that best meet the require3 ments of subparagraph (C). 

4 ‘‘(B) USE OF CENTRAL FUNDING MECHA5 NISMS.—

6 ‘‘(i) PROGRAM.—In order to ensure 

7 that assistance under this title is distrib8 uted effectively and efficiently, the office 

9 shall also seek to implement a program of 

10 central funding under which assistance is 

11 administered directly by the office, includ12 ing through targeted core support for 

13 microfinance and microenterprise networks 

14 and other practitioners. 

15 ‘‘(ii) FUNDING.—Of the amount made 

16 available to carry out this subtitle for a fis17 cal year, not less than $25,000,000 should 

18 be made available to carry out clause (i). 

19 ‘‘(C) EFFICIENCY AND COST-EFFECTIVE20 NESS.—Assistance under this section shall meet 

21 high standards of efficiency, cost-effectiveness, 

22 and sustainability and shall especially provide 

23 the greatest possible resources to the poor and 

24 very poor. When administering assistance under 

25 this section, the Administrator shall—
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1 ‘‘(i) take into consideration the per2 centage of funds a provider of assistance 

3 intends to expend on administrative costs; 

4 ‘‘(ii) take all appropriate steps to en5 sure that the provider of assistance keeps 

6 administrative costs as low as practicable 

7 to ensure the maximum amount of funds 

8 are used for directly assisting microfinance 

9 and microenterprise clients, for estab10 lishing sustainable microfinance and micro11 enterprise institutions, or for advancing 

12 the microenterprise development field; and 

13 ‘‘(iii) give preference to proposals 

14 from providers of assistance that are the 

15 most technically competitive and have a 

16 reasonable allocation to overhead and ad17 ministrative costs. 

18 ‘‘(3) APPROVAL OF STRATEGIC PLANS.—With 

19 respect to assistance provided under this section, the 

20 office shall be responsible for concurring in the 

21 microenterprise development components of strategic 

22 plans of missions, bureaus, and other offices of the 

23 Agency and providing technical support to field mis24 sions to help the missions prepare such components. 
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1 ‘‘(c) TARGETED ASSISTANCE.—In carrying out sus2 tainable poverty-focused programs under subsection (a), 

3 50 percent of all microenterprise resources shall be tar4 geted to clients who are very poor. Specifically, until Sep5 tember 30, 2006, such resources shall be used for—

6 ‘‘(1) support of programs under this section 

7 through practitioner institutions that—

8 ‘‘(A) provide credit and other financial 

9 services to clients who are very poor, with loans 

10 in 1995 United States dollars of—

11 ‘‘(i) $1,000 or less in the Europe and 

12 Eurasia region; 

13 ‘‘(ii) $400 or less in the Latin Amer14 ica region; and 

15 ‘‘(iii) $300 or less in the rest of the 

16 world; and 

17 ‘‘(B) can cover their costs in a reasonable 

18 time period; or 

19 ‘‘(2) demand-driven business development pro20 grams that achieve reasonable cost recovery that are 

21 provided to clients holding poverty loans (as defined 

22 by the regional poverty loan limitations in paragraph 

23 (1)(A)), whether they are provided by microfinance 

24 institutions or by specialized business development 

25 services providers. 
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1 ‘‘SEC. 253. MONITORING SYSTEM. 

2 ‘‘(a) IN GENERAL.—In order to maximize the sus3 tainable development impact of assistance authorized 

4 under section 252(a), the Administrator of the Agency, 

5 acting through the Director of the office, shall strengthen 

6 its monitoring system to meet the requirements of sub7 section (b). 

8 ‘‘(b) REQUIREMENTS.—The requirements referred to 

9 in subsection (a) are the following: 

10 ‘‘(1) The monitoring system shall include per11 formance goals for the assistance and expresses such 

12 goals in an objective and quantifiable form, to the 

13 extent feasible. 

14 ‘‘(2) The monitoring system shall include per15 formance indicators to be used in measuring or as16 sessing the achievement of the performance goals de17 scribed in paragraph (1) and the objectives of the 

18 assistance authorized under section 252. 

19 ‘‘(3) The monitoring system provides a basis for 

20 recommendations for adjustments to the assistance 

21 to enhance the sustainability and the impact of the 

22 assistance, particularly the impact of such assistance 

23 on the very poor, particularly poor women. 

24 ‘‘(4) The monitoring system adopts the wide25 spread use of proven and effective poverty assess26 ment tools to successfully identify the very poor and 
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1 ensure that they receive adequate access to micro2 enterprise loans, savings, and assistance. 

3 ‘‘SEC. 254. DEVELOPMENT AND CERTIFICATION OF POV4 ERTY MEASUREMENT METHODS; APPLICA5 TION OF METHODS. 

6 ‘‘(a) DEVELOPMENT AND CERTIFICATION.—

7 ‘‘(1) IN GENERAL.—The Administrator of the 

8 Agency, in consultation with microenterprise institu9 tions and other appropriate organizations, shall de10 velop no fewer than two low-cost methods for imple11 menting partner organizations to use to assess the 

12 poverty levels of their current incoming or prospec13 tive clients. The Administrator shall develop poverty 

14 indicators that correlate with the circumstances of 

15 the very poor. 

16 ‘‘(2) FIELD TESTING.—The Administrator shall 

17 field-test the methods developed under paragraph 

18 (1). As part of the testing, institutions and pro19 grams may use the methods on a voluntary basis to 

20 demonstrate their ability to reach the very poor. 

21 ‘‘(3) CERTIFICATION.—Not later than April 1, 

22 2005, the Administrator shall, from among the low23 cost poverty measurement methods developed under 

24 paragraph (1), certify no fewer than two such meth25 ods as approved methods for measuring the poverty 
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1 levels of current, incoming, or prospective clients of 

2 microenterprise institutions for purposes of assist3 ance under section 252. 

4 ‘‘(b) APPLICATION.—The Administrator shall require 

5 that, with reasonable exceptions, all implementing partner 

6 organizations applying for microenterprise assistance 

7 under this title use one of the certified methods, beginning 

8 not later than October 1, 2006, to determine and report 

9 the poverty levels of current, incoming, or prospective cli10 ents. 

11 ‘‘SEC. 255. ADDITIONAL AUTHORITIES. 

12 ‘‘Notwithstanding any other provision of law, 

13 amounts made available for assistance for microenterprise 

14 development assistance under any provision of law other 

15 than this title may be provided to further the purposes 

16 of this title. To the extent assistance described in the pre17 ceding sentence is provided in accordance with such sen18 tence, the Administrator of the Agency shall include, as 

19 part of the report required under section 258, a detailed 

20 description of such assistance and, to the extent applica21 ble, the information required by paragraphs (1) through 

22 (11) of subsection (b) of such section with respect to such 

23 assistance.’’. 
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1 SEC. 4. MICROENTERPRISE DEVELOPMENT CREDITS. 

2 (a) TRANSFER.—Section 108 of the Foreign Assist3 ance Act of 1961 (22 U.S.C. 2151f) is hereby—

4 (1) transferred from chapter 1 of part I of the 

5 Foreign Assistance Act of 1961 to title VI of chap6 ter 2 of part I of such Act (as added by section 3 

7 of this Act); and 

8 (2) inserted after section 255 of the Foreign 

9 Assistance Act of 1961. 

10 (b) REDESIGNATION.—Title VI of chapter 2 of part 

11 I of the Foreign Assistance Act of 1961 is amended by 

12 redesignating section 108 (as added by subsection (a)) as 

13 section 256. 

14 (c) CONFORMING AMENDMENTS.—Title VI of chap15 ter 2 of part I of the Foreign Assistance Act of 1961 is 

16 amended—

17 (1) by inserting after the title heading the fol18 lowing: 

19 ‘‘Subtitle A—Grant Assistance’’; 

20 (2) by inserting after section 255 the following: 

21 ‘‘Subtitle B—Credit Assistance’’; and 

22 (3) in section 256 (as redesignated by sub23 section (b))—

24 (A) in the matter preceding paragraph (1) 

25 of subsection (c), by striking ‘‘Administrator of 

26 the agency primarily responsible for admin-
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1 istering this part’’ and inserting ‘‘Administrator 

2 of the Agency’’; and 

3 (B) in subsection (f)(1)—

4 (i) by striking ‘‘section 131’’ and in5 serting ‘‘this part’’; and 

6 (ii) by striking ‘‘$1,500,000 for each 

7 of fiscal years 2001 through 2004’’ and in8 serting ‘‘such sums as may be necessary 

9 for each of the fiscal years 2005 through 

10 2009’’. 

11 SEC. 5. UNITED STATES MICROFINANCE LOAN FACILITY. 

12 (a) TRANSFER.—Section 132 of the Foreign Assist13 ance Act of 1961 (22 U.S.C. 2152b) is hereby—

14 (1) transferred from chapter 1 of part I of the 

15 Foreign Assistance Act of 1961 to title VI of chap16 ter 2 of part I of such Act (as added by section 3 

17 of this Act); and 

18 (2) inserted after section 256 of the Foreign 

19 Assistance Act of 1961 (as added by section 4 of 

20 this Act). 

21 (b) REDESIGNATION.—Title VI of chapter 2 of part 

22 I of the Foreign Assistance Act of 1961 is amended by 

23 redesignating section 132 (as added by subsection (a)) as 

24 section 257. 
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1 (c) CONFORMING AMENDMENTS.—Title VI of chap2 ter 2 of part I of the Foreign Assistance Act of 1961 is 

3 amended—

4 (1) by inserting after section 256 the following: 

5 ‘‘Subtitle C—United States Microfinance Loan Facility’’; 

6 and 

7 (2) in section 257 (as redesignated by sub8 section (b))—

9 (A) in subsection (b)(3), by striking ‘‘2001 

10 and 2002’’ and inserting ‘‘2005 through 2009’’; 

11 (B) in the matter preceding subparagraph 

12 (A) of subsection (d)(1), by striking ‘‘this part 

13 for the fiscal year 2001, up to $5,000,000’’ and 

14 inserting ‘‘this part for each of the fiscal years 

15 2005 through 2009, such sums as may be nec16 essary’’; and 

17 (C) by striking subsection (e). 

18 SEC. 6. MISCELLANEOUS PROVISIONS. 

19 Title VI of chapter 2 of part I of the Foreign Assist20 ance Act of 1961 (as added by section 3 of this Act and 

21 amended by sections 4 and 5 of this Act) is further 

22 amended by adding at the end the following new subtitle: 
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1 ‘‘Subtitle D—Miscellaneous Provisions 

2 ‘‘SEC. 258. REPORT. 

3 ‘‘(a) IN GENERAL.—Not later than June 30, 2006, 

4 and each June 30 thereafter, the Administrator of the 

5 Agency, acting through the Director of the office, shall 

6 submit to the appropriate congressional committees a re7 port that contains a detailed description of the implemen8 tation of this title for the previous fiscal year. 

9 ‘‘(b) CONTENTS.—The report shall contain the fol10 lowing: 

11 ‘‘(1) The number of grants, cooperative agree12 ments, contracts, contributions, or other form of as13 sistance provided under section 252, with a listing 

14 of—

15 ‘‘(A) the amount of each grant, cooperative 

16 agreement, contract, contribution, or other form 

17 of assistance; 

18 ‘‘(B) the name of each recipient and each 

19 developing country with respect to which 

20 projects or activities under the grant, coopera21 tive agreement, contract, contribution, or other 

22 form of assistance were carried out; and 

23 ‘‘(C) a listing of the number of countries 

24 receiving assistance authorized by section 252. 
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1 ‘‘(2) The results of the monitoring system re2 quired under section 253. 

3 ‘‘(3) The process of developing and applying 

4 poverty assessment procedures required under sec5 tion 254. 

6 ‘‘(4) The percentage of assistance furnished 

7 under section 252 that was allocated to the very 

8 poor based on the data collected using the certified 

9 methods required by section 254. 

10 ‘‘(5) The estimated number of the very poor 

11 reached with assistance provided under section 252. 

12 ‘‘(6) The amount of assistance provided under 

13 section 252 through central mechanisms. 

14 ‘‘(7) The name of each country that receives as15 sistance under section 256 and the amount of such 

16 assistance. 

17 ‘‘(8) Information on the efforts of the Agency 

18 to ensure that recipients of United States micro19 enterprise and microfinance development assistance 

20 work closely with nongovernmental organizations 

21 and foreign governments to identify and assist vic22 tims or potential victims of severe forms of traf23 ficking in persons and women who are victims of or 

24 susceptible to other forms of exploitation and vio25 lence. 
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1 ‘‘(9) Any additional information relating to the 

2 provision of assistance authorized by this title, in3 cluding the use of the poverty measurement tools re4 quired by section 254, or additional information on 

5 assistance provided by the United States to support 

6 microenterprise development under this title or any 

7 other provision of law. 

8 ‘‘(10) An estimate of the percentage of bene9 ficiaries of assistance under this title in countries 

10 where a strong relationship between poverty and 

11 race or ethnicity has been demonstrated. 

12 ‘‘(11) The level of funding provided through 

13 contracts, the level of funding provided through 

14 grants, contracts, and cooperative agreements that is 

15 estimated to be subgranted or subcontracted, as the 

16 case may be, to direct service providers, and an 

17 analysis of the comparative cost-effectiveness and 

18 sustainability of projects carried out under these 

19 mechanisms. 

20 ‘‘(c) AVAILABILITY TO PUBLIC.—The report required 

21 by this section shall be made available to the public on 

22 the Internet website of the Agency. 

23 ‘‘SEC. 259. DEFINITIONS. 

24 ‘‘In this title: 
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1 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis2 trator’ means the Administrator of the Agency. 

3 ‘‘(2) AGENCY.—The term ‘Agency’ means the 

4 United States Agency for International Develop5 ment. 

6 ‘‘(3) APPROPRIATE CONGRESSIONAL COMMIT7 TEES.—The term ‘appropriate congressional com8 mittees’ means the Committee on International Re9 lations of the House of Representatives and the 

10 Committee on Foreign Relations of the Senate. 

11 ‘‘(4) BUSINESS DEVELOPMENT SERVICES.—The 

12 term ‘business development services’ means support 

13 for the growth of microenterprises through training, 

14 technical assistance, marketing assistance, improved 

15 production technologies, and other related services. 

16 ‘‘(5) DIRECTOR.—The term ‘Director’ means 

17 the Director of the office. 

18 ‘‘(6) IMPLEMENTING PARTNER ORGANIZA19 TION.—The term ‘implementing partner organiza20 tion’ means an entity eligible to receive assistance 

21 under this title which is—

22 ‘‘(A) a United States or an indigenous pri23 vate voluntary organization; 

24 ‘‘(B) a United States or an indigenous 

25 credit union; 
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1 ‘‘(C) a United States or an indigenous co2 operative organization; 

3 ‘‘(D) an indigenous governmental or non4 governmental organization; 

5 ‘‘(E) a microenterprise institution; 

6 ‘‘(F) a microfinance institution; or 

7 ‘‘(G) a practitioner institution. 

8 ‘‘(7) MICROENTERPRISE INSTITUTION.—The 

9 term ‘microenterprise institution’ means a not-for10 profit entity that provides services, including micro11 finance, training, or business development services, 

12 for microenterprise clients in foreign countries. 

13 ‘‘(8) MICROFINANCE INSTITUTION.—The term 

14 ‘microfinance institution’ means a not-for-profit enti15 ty or a regulated financial intermediary that directly 

16 provides, or works to expand, the availability of 

17 credit, savings, and other financial services to micro18 finance and microenterprise clients in foreign coun19 tries. 

20 ‘‘(9) MICROFINANCE NETWORK.—The term 

21 ‘microfinance network’ means an affiliated group of 

22 practitioner institutions that provides services to its 

23 members, including financing, technical assistance, 

24 and accreditation, for the purpose of promoting the 
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1 financial sustainability and societal impact of micro2 enterprise assistance. 

3 ‘‘(10) OFFICE.—The term ‘office’ means the of4 fice of microenterprise development established 

5 under section 252(b)(1). 

6 ‘‘(11) PRACTITIONER INSTITUTION.—The term 

7 ‘practitioner institution’ means a not-for-profit enti8 ty or a regulated financial intermediary, including a 

9 microfinance network, that provides services, includ10 ing microfinance, training, or business development 

11 services, for microfinance and microenterprise cli12 ents, or provides assistance to microenterprise insti13 tutions in foreign countries. 

14 ‘‘(12) PRIVATE VOLUNTARY ORGANIZATION.—

15 The term ‘private voluntary organization’ means a 

16 not-for-profit entity that—

17 ‘‘(A) engages in and supports activities of 

18 an economic or social development or humani19 tarian nature for citizens in foreign countries; 

20 and 

21 ‘‘(B) is incorporated as such under the 

22 laws of the United States, including any of its 

23 states, territories or the District of Columbia, 

24 or of a foreign country. 
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1 ‘‘(13) UNITED STATES-SUPPORTED MICRO2 FINANCE INSTITUTION.—The term ‘United States3 supported microfinance institution’ means a finan4 cial intermediary that has received funds made avail5 able under this part for fiscal year 1980 or any sub6 sequent fiscal year. 

7 ‘‘(14) VERY POOR.—The term ‘very poor’ 

8 means those individuals—

9 ‘‘(A) living in the bottom 50 percent below 

10 the poverty line established by the national gov11 ernment of the country in which those individ12 uals live; or 

13 ‘‘(B) living on less than the equivalent of 

14 $1 per day (as calculated using the purchasing 

15 power parity (PPP) exchange rate method).’’. 

16 SEC. 7. SENSE OF CONGRESS. 

17 It is the sense of Congress that, in carrying out title 

18 VI of chapter 2 of part I of the Foreign Assistance Act 

19 of 1961 (as added by section 3 of this Act and amended 

20 by sections 4 through 6 of this Act), the Administrator 

21 of the United States Agency for International Develop22 ment—

23 (1) where applicable, should ensure that micro24 enterprise development assistance provided under 

25 such title is matched by recipients with an equal 
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1 amount of assistance from non-United States Gov2 ernment sources, including private donations, multi3 lateral funding, commercial and concessional bor4 rowing, savings, and program income; 

5 (2) should include in the report required by sec6 tion 258 of the Foreign Assistance Act of 1961 (as 

7 added by section 6 of this Act) a description of all 

8 matching assistance (as described in paragraph (1)) 

9 provided for the prior year by recipients of micro10 enterprise development assistance under such title; 

11 (3) should ensure that recipients of microenter12 prise development assistance under such title do not 

13 expend an unreasonably large percentage of such as14 sistance on administrative costs; 

15 (4) should not use recipients of microenterprise 

16 development assistance under such title to carry out 

17 critical management functions of the Agency, includ18 ing functions such as strategy development or overall 

19 management of programs in a country; and 

20 (5) should consult with the appropriate congres21 sional committees with respect to the implementa22 tion of title VI of chapter 2 of part I of the Foreign 

23 Assistance Act of 1961 not later than 90 days after 

24 the date of the enactment of this Act. 
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1 SEC. 8. REPEALS. 

2 (a) FOREIGN ASSISTANCE ACT OF 1961.—Section 

3 131 of the Foreign Assistance Act of 1961 (22 U.S.C. 

4 2152a) is hereby repealed. 

5 (b) PUBLIC LAW 108–31.—

6 (1) IN GENERAL.—Section 4 of Public Law 

7 108–31 (22 U.S.C. 2151f note) is amended by strik8 ing subsection (b). 

9 (2) CONFORMING AMENDMENT.—Section 4 of 

10 Public Law 108–31 is amended by striking ‘‘(a)’’ 

11 and all that follows through ‘‘Not later’’ and insert12 ing ‘‘Not later’’. 

13 SEC. 9. REFERENCES. 

14 Any reference in a law, regulation, agreement, or 

15 other document of the United States to section 108, 131, 

16 or 132 of the Foreign Assistance Act of 1961 shall be 

17 deemed to be a reference to subtitle B of title VI of chap18 ter 2 of part I of the Foreign Assistance Act of 1961, 

19 subtitle A of title VI of chapter 2 of part I of such Act,
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1 or subtitle C of title VI of chapter 2 of part I of such 

2 Act, respectively.

Passed the House of Representatives November 20, 

2004. 

Attest: JEFF TRANDAHL, 

Clerk.