FAULT Act

To limit assistance to Iran, North Korea, Syria, Egypt, and Pakistan, and for other purposes. 1. Short title and table of contents (a) Short title This Act may be cited as the Foreign Assistance Under Limitation and Transparency Act FAULT Act (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Sec. 2. Findings. Sec. 3. Definitions. Title I—Limitations on foreign assistance Sec. 101. Limitation on assistance to Iran, North Korea, Syria, Egypt, and Pakistan. Sec. 102. Limitation on assistance to other countries. Sec. 103. Limitation on assistance to private voluntary organizations. Sec. 104. Statement of policy on assistance to foreign terrorist organizations. Sec. 105. Report on unobligated funds available for sanctioned countries and organizations under this Act. Sec. 106. Inapplicability of other provisions of law. Title II—Transparency and other provisions Sec. 201. Termination of designation of Egypt and Pakistan as major non-NATO allies. Sec. 202. Annual foreign assistance report to Congress. 2. Findings Congress finds the following: (1) Foreign assistance is an important tool utilized to facilitate diplomacy by making investments in infrastructure and basic human needs abroad. (2) United States taxpayer dollars should be used prudently and appropriately, and should not be distributed to those who seek to do harm to Americans or our allies. (3) Failure to cooperate with the United States as it carries out its foreign policy objectives should necessarily lead to restricted or terminated United States foreign assistance. (4) Once foreign assistance to a country is restricted, Congress reserves the right to reinstate any such foreign assistance based on substantive changes in rhetoric or action of that country, and on a case-by-case basis. (5) The countries of Iran, North Korea, Syria, Egypt, and Pakistan have engaged in activities that undermine the security and foreign policy objectives of the United States or compromise regional and international stability. 3. Definitions In this Act: (1) Agricultural commodity The term agricultural commodity (2) Appropriate congressional committees Except as otherwise provided, the term appropriate congressional committees (A) the Committee on Foreign Affairs and the Permanent Select Committee on Intelligence of the House of Representatives; and (B) the Committee on Foreign Relations and the Select Committee on Intelligence of the Senate. (3) Covered country The term covered country (4) Emergency international disaster assistance The term emergency international disaster assistance (A) infrastructure repairs and improvements; (B) mitigating the effects of the disaster; (C) assisting internally displaced persons; (D) harboring refugees; (E) providing agricultural commodities; (F) providing medicine; and (G) providing medical devices. (5) Financial instrument The term financial instrument (6) Foreign assistance The term foreign assistance 22 U.S.C. 2394(b) (7) Government The term government (8) Humanitarian assistance The term humanitarian assistance (A) disaster relief assistance, including any assistance under chapter 9 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2292 et seq.) (relating to international disaster assistance); and (B) refugee assistance, including any assistance under the Migration and Refugee Act of 1962 ( 22 U.S.C. 2601 et seq. (9) Major non-NATO ally The term major non-NATO ally 22 U.S.C. 2321k (10) Medical device The term medical device device 21 U.S.C. 321 (11) Medicine The term medicine drug 21 U.S.C. 321 (12) NATO The term NATO (13) Private voluntary organization The term private voluntary organization (14) United States ally The term United States ally (A) a NATO member state (other than the United States); or (B) a major non-NATO ally. I Limitations on foreign assistance 101. Limitation on assistance to Iran, North Korea, Syria, Egypt, and Pakistan (a) Limitation (1) In general Notwithstanding any other provision of law, no funds made available to any Federal department or agency may be used to provide foreign assistance to Iran, North Korea, Syria, Egypt, and Pakistan. (2) Exception The limitation on foreign assistance in paragraph (1) shall not apply to agricultural commodities, medicine, or medical devices, except that the aggregate value of such assistance in any fiscal year may not exceed $50,000,000. (b) General waiver (1) In general Notwithstanding any other provision of law, the limitation on foreign assistance in subsection (a) may not be waived with respect to a country specified in subsection (a) unless the President submits to the appropriate congressional committees at least 45 days before the proposed waiver would take effect a report certifying that there has been a fundamental change in the policies of the government of such country, including— (A) information relating to such government’s assurances of— (i) free and democratic elections without pressure from such government or any organization affiliated with such government; (ii) freedom of religious belief and practice; and (iii) freedom of speech and expression; (B) information relating to such government’s attempts and successes to date with regard to eradicating the trafficking of— (i) persons; (ii) weapons of mass destruction or components to facilitate the creation of such weapons; (iii) illicit narcotics; and (iv) any financial instrument used to facilitate the trafficking of any persons described in clause (i), weapons or components described in clause (ii), or illicit narcotics described in clause (iii), if such trafficking originates, passes through, or is destined for such country or any entity under that country’s jurisdiction; (C) information relating to such government’s attempts and successes to date with regard to eradicating— (i) gross violations of internationally recognized human rights, including torture; (ii) cruel, inhuman, or degrading treatment or punishment; (iii) prolonged detention without charges; (iv) causing the disappearance of a person by the abduction and clandestine detention of such person; or (v) other flagrant denial of the right to life, liberty, and the security of a person; (D) information relating to such government’s attempts and successes to date with regard to eradicating child exploitation, abuse, or forced conscription into military or paramilitary services; (E) information relating to such government’s attempts and successes to date with regard to eradicating admissions biases based on gender, religion, disability, or other similar biases at institutions of learning that are funded by the government of such country; (F) information relating to such government’s denouncement of the damage or destruction by mob action of United States property within such country, provision of appropriate measures to prevent a recurrence thereof, and provision of adequate compensation for such damage or destruction; and (G) information relating to such government’s assurances that it— (i) is not currently engaged in violence against its own citizens, residents, or inhabitants; (ii) has publicly and appropriately expressed the State of Israel’s right to peacefully exist; (iii) is not supporting acts of international terrorism and has provided assurances it will not support acts of international terrorism in the future; (iv) is taking a public, active role in eradicating any element of international terrorism within its borders; and (v) if such country does not possess a nuclear weapon as of the date of the enactment of this Act, is not engaged in a nuclear weapons development program. (2) Disapproval of general waiver (A) In general The limitation on foreign assistance in subsection (a) may not be waived with respect to a country specified in subsection (a) if Congress, within 45 days after receipt of a report under paragraph (1), enacts a joint resolution the matter after the resolving clause of which is as follows: That the proposed waiver of the limitation on foreign assistance with respect to ____ as contained in the report submitted to Congress under section 101(b) of the Foreign Assistance Under Limitation and Transparency Act on ____ is hereby prohibited. (B) House and Senate procedures A joint resolution described in paragraph (1) and introduced within the appropriate 45-day period shall be considered in the Senate and the House of Representatives in accordance with paragraphs (3) through (7) of section 8066(c) of the Department of Defense Appropriations Act (as contained in Public Law 98–473 (c) Humanitarian waiver (1) In general The President may waive, for a period of 120 days, the limitation on foreign assistance in subsection (a) with respect to providing humanitarian assistance to a country specified in subsection (a) if— (A) prior to waiving such prohibition, the President submits to Congress a report that contains a determination of the President that the people residing within the country— (i) have been affected by a natural disaster, limited to fire, famine, earthquake, drought, hurricane, typhoon, tsunami, tropical storm, flood, landslide and debris flow, widespread disease, or volcano eruption; or (ii) face imminent threat from exposure to radioactive or toxic elements due to the failure of any power source or other machinery directly involved with radioactive or toxic material; and (B) the humanitarian assistance to be provided will not be provided to or through the government of the country. (2) Humanitarian waiver renewal At the end of the 120-day waiver period specified in paragraph (1), the President may extend the waiver for additional 90-day periods if the President submits, not less than 10 days prior to the start of each 90-day period, a comprehensive status report to the appropriate congressional committees on— (A) the extent to which further humanitarian assistance is needed; (B) the manner in which the humanitarian assistance has been administered; and (C) the effectiveness of the humanitarian assistance. (3) Limitation The aggregate value of humanitarian assistance provided under this subsection in any fiscal year may not exceed $50,000,000. (d) Effective date This section takes effect on the date of the enactment of this Act and applies with respect to funds made available to any Federal department or agency for any fiscal year after fiscal year 2013. 102. Limitation on assistance to other countries (a) Limitation (1) In general Notwithstanding any other provision of law, no funds made available to any Federal department or agency may be used to provide foreign assistance to any country unless the government of such country provides assurances in writing to the head of the Federal department or agency that the government of such country will not provide assistance (other than assistance described in paragraph (2)) to a covered country. (2) Exception The limitation on foreign assistance in paragraph (1) shall not apply to agricultural commodities, medicine, medical devices, or emergency international disaster assistance. (3) Submission of assurances The head of such Federal department or agency shall submit to the appropriate congressional committees a copy of the assurances described in paragraph (1) as soon as practicable after the date on which the government of the country provides the assurances to the head of such Federal department or agency. (b) Penalties (1) In general A country that provides foreign assistance to a covered country in violation of subsection (a) shall be ineligible to receive further foreign assistance during the period— (A) beginning on the date on which the head of the Federal department or agency determines the violation occurred; and (B) ending on the date that is not less than 5 years but not more than 12 years after the date described in subparagraph (A). (2) Notification The head of such Federal department or agency shall submit to the appropriate congressional committees a notification containing the name of the country that is ineligible to receive further foreign assistance as determined under this subsection and the time period of ineligibility for such foreign assistance as determined under this subsection. (c) Humanitarian waiver (1) In general The President may waive, for a period of 120 days, the limitation on foreign assistance in subsection (a) with respect to providing humanitarian assistance to a country specified in subsection (a) if— (A) prior to waiving such prohibition, the President submits to Congress a report that contains a determination of the President that the people residing within the country— (i) have been affected by a natural disaster, limited to fire, famine, earthquake, drought, hurricane, typhoon, tsunami, tropical storm, flood, landslide and debris flow, widespread disease, or volcano eruption; or (ii) face imminent threat from exposure to radioactive or toxic elements due to the failure of any power source or other machinery directly involved with radioactive or toxic material; and (B) the humanitarian assistance to be provided will not be provided to or through the government of the country. (2) Humanitarian waiver renewal At the end of the 120-day waiver period specified in paragraph (1), the President may extend the waiver for additional 90-day periods if the President submits, not less than 10 days prior to the start of each 90-day period, a comprehensive status report to the appropriate congressional committees on— (A) the extent to which further humanitarian assistance is needed; (B) the manner in which the humanitarian assistance has been administered; and (C) the effectiveness of the humanitarian assistance. (3) Limitation The aggregate value of humanitarian assistance provided under this subsection in any fiscal year may not exceed $50,000,000. (d) Effective date This section takes effect on the date of the enactment of this Act and applies with respect to funds made available to any Federal department or agency for any fiscal year after fiscal year 2013. 103. Limitation on assistance to private voluntary organizations (a) Limitation (1) In general Notwithstanding any other provision of law, no funds made available to any Federal department or agency may be used to provide foreign assistance to any private voluntary organization unless the private voluntary organization provides assurances in writing to the head of the Federal department or agency that the private voluntary organization— (A) will not provide assistance (other than assistance described in paragraph (2)) to any covered country; and (B) will not enter into any contract or sub-contract to provide assistance (other than assistance described in paragraph (2)) to any covered country. (2) Exception The limitation on foreign assistance in paragraph (1) shall not apply to agricultural commodities, medicine, medical devices, or emergency international disaster assistance. (3) Submission of assurances The head of such Federal department or agency shall submit to the appropriate congressional committees a copy of the assurances described in paragraph (1) as soon as practicable after the date on which the private voluntary organization provides the assurances to the head of such Federal department or agency. (b) Penalties Whoever, acting on behalf of a private voluntary organization, shall willfully violate any of the provisions of this section, shall, upon conviction, be fined not more than $50,000, or, if a natural person, imprisoned for not more than 20 years, or both, and the officer, director, or agent of any private voluntary organization who knowingly participates in such violation shall be punished by a like fine, imprisonment, or both. (c) Effective date This section takes effect on the date of the enactment of this Act and applies with respect to funds made available to any Federal department or agency for any fiscal year after fiscal year 2013 104. Statement of policy on assistance to foreign terrorist organizations (a) Finding Congress finds it immoral and counterproductive to lend any type of foreign assistance to any organization that has used violence or threatens violence against the United States, the State of Israel, or any other United States ally. (b) Statement of policy Congress— (1) reaffirms, in accordance with section 2339B of title 18, United States Code, no funds made available to any Federal department or agency may be used to provide foreign assistance to any foreign terrorist organization as described in such section; and (2) affirms that contracts facilitating foreign assistance transfers, such as Limited Scope Grant Agreements and Strategic Objective Grant Agreements, and all other similar documents and contracts used to facilitate the transfer of monies for foreign assistance, must contain language that specifically prohibits any monies from being transferred, directly or indirectly, to any foreign terrorist organization. 105. Report on unobligated funds available for sanctioned countries and organizations under this Act (a) In general Not later than 30 days after the date of the enactment of this Act, the President shall submit to the specified congressional committees a report detailing and accounting for all unobligated funds available for assistance for countries and organizations described in subsection (b) for purposes of providing for the rescission of such funds. (b) Countries and organizations described Countries and organizations referred to in subsection (a) are— (1) covered countries under this Act; (2) countries with respect to which the limitation on foreign assistance under section 102(a) is in effect; and (3) private voluntary organizations with respect to which the limitation on foreign assistance under section 103(a) is in effect (c) Definition In this section, the term specified congressional committees (1) the appropriate congressional committees; and (2) the Committee on Appropriations of the House of Representatives and the Committee on Appropriations of the Senate. 106. Inapplicability of other provisions of law The provisions of this title may not be waived under any provision of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2251 et seq. 22 U.S.C. 2751 et seq. II Transparency and other provisions 201. Termination of designation of Egypt and Pakistan as major non-NATO allies (a) Egypt (1) In general Effective beginning on the date of the enactment of this Act— (A) the designation of Egypt as a major non-NATO ally pursuant to subsection (b) of section 517 of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2321k (B) the President may not issue a separate designation of Egypt as a major non-NATO ally pursuant to section 517(a)(1) of such Act or any other provision of law. (2) Conforming amendment Section 517(b) of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2321k(b) Egypt, (b) Pakistan Effective beginning on the date of the enactment of this Act— (1) the designation of Pakistan as a major non-NATO ally pursuant to paragraph (1) of section 517(a) of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2321k(a) (2) the President may not issue a separate designation of Pakistan as a major non-NATO ally pursuant to section 517(a)(1) of such Act or any other provision of law. (c) Effective dates (1) Egypt Subsection (a) shall be effective for the period beginning on the date of the enactment of this Act and ending on the date on which the Secretary of State certifies to the appropriate congressional committees that the Government of Egypt has drafted a new constitution, held a national referendum to approve the new constitution and scheduled a date for national democratic elections to elect a new government under the new constitution. (2) Pakistan Subsection (b) shall be effective for the period beginning on the date of the enactment of this Act and ending on the date on which the Secretary of State certifies to the appropriate congressional committees that the Government of Pakistan has drafted a new constitution, held a national referendum to approve the new constitution and scheduled a date for national democratic elections to elect a new government under the new constitution. (3) Definition In this subsection, the term appropriate congressional committees (A) the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives; and (B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate. (d) Rule of construction Nothing in this section shall be construed to authorize the President to issue a separate designation of Egypt or Pakistan as a major non-NATO ally of the United States pursuant to section 517(a)(1) of the Foreign Assistance Act of 1961 for the period during which subsection (a) or subsection (b), as the case may be, is in effect. 202. Annual foreign assistance report to Congress Section 634(a) of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2394(a) (1) in paragraph (11), by striking and (2) by redesignating paragraph (12) as paragraph (14); and (3) by inserting after paragraph (11) the following new paragraphs: (12) with respect to each private voluntary organization (as such term is defined in section 259(12)) that receives United States foreign assistance, a determination and accounting of— (A) how the organization allocates its funds, including dollar amounts disbursed for foreign assistance, dollar amounts expended for salaries and bonuses for such organization’s founders, managers, and other employees, and dollar amounts expended for administrative purposes of such organization; and (B) whether or not such organization provides any assistance directly or indirectly to a covered country (as such term is defined in section 3(2) of the Foreign Assistance Under Limitation and Transparency Act (13) with respect to each country that receives United States foreign assistance, whether bilaterally or otherwise, a determination and accounting of whether or not the country provides any assistance directly or indirectly to a covered country (as such term is defined in section 3(2) of the Foreign Assistance Under Limitation and Transparency Act .

Summary: Foreign Assistance Under Limitation and Transparency Act or the FAULT Act - Prohibits funds made available to any federal agency after FY2013 from being used to provide foreign assistance to Iran, North Korea, Syria, Egypt, and Pakistan. Exempts agricultural commodities, medicine, and medical devices, provided that the aggregate value in any fiscal year does not exceed $50 million. Bars the prohibition from being waived for such countries unless the President submits to Congress a waiver proposal certifying that there has been a fundamental change in the policies of the government of such a country, including information with respect to: (1) the government's assurances of free and democratic elections and the freedom of religion, speech, and expression; (2) its attempts to eradicate trafficking of persons, weapons of mass destruction, narcotics, and financial instruments used to facilitate such activities; (3) its attempts to eradicate human rights violations, child exploitation, forced conscription into military or paramilitary services, and admissions biases at government funded learning institutions; and (4) its denouncement of damage or destruction by mob action of U.S. property. Specifies additional information to be provided including assurances that the government: (1) is not currently engaged in violence against its own citizens, residents, or inhabitants; (2) has publicly expressed the State of Israel's right to peacefully exist; (3) is not supporting acts of international terrorism and is taking a public, active role in eradicating any element of international terrorism within its borders; and (4) is not engaged in a nuclear weapons development program if it does not already possess a nuclear weapon. Sets forth a process for congressional disapproval of such a waiver. Permits the President, for limited time periods, to waive the prohibition for such countries in order to provide humanitarian assistance of up to an aggregate of $50 million in a fiscal year if: (1) the President submits to Congress a determination that the people within the country have been affected by a natural disaster (limited to fire, famine, earthquake, drought, hurricane, typhoon, tsunami, tropical storm, flood, landslide and debris flow, widespread disease, or volcano eruption) or face imminent threat from exposure to radioactive or toxic elements due to the failure of any power source or other related machinery; and (2) the assistance will not be provided to or through the country's government. Prohibits funds from being used to provide foreign assistance to: (1) any other country unless the applicable government provides assurances that it will not provide unpermitted assistance to Iran, North Korea, Syria, Egypt, and Pakistan; or (2) a private voluntary organization unless it provides assurances that it will not assist or enter contracts to provide unpermitted assistance to such countries. Prescribes penalties for violations of such prohibitions. Requires contracts facilitating foreign assistance transfers to contain language specifically prohibiting any monies from being transferred, directly or indirectly, to any foreign terrorist organization. Terminates the designations of Egypt and Pakistan as major non-NATO (North Atlantic Treaty Organization) allies until the Secretary of State certifies to Congress that the respective governments have drafted and held a national referendum to approve a new constitution and scheduled a date for national democratic elections to elect a new government under such constitution.